The role of leadership during business process re-engineering in organisations : 'evaluation of the restructuring process at the Lesotho National Development Corporation'

Thamae, Katiso V. (2003)

Mini-study project (MBA)--University of Stellenbosch, 2003.


ENGLISH ABSTRACT: Business Process Re-engineering (BPR) has been undertaken by many organisations with the hope of dramatically improving their competitive position. In most cases however, this undertaking has been a failure. For the success of the BPR, organisational and people issues are of critical importance and cannot be overlooked, as often is the case. Many organisations have not recognised the fundamental need of fully addressing the "soft people issues" during their re-engineering exercises. The ability of the Management team and Management Consultants to filter through these soft issues is of critical importance to the success of the BPR. This study discusses leadership as the first topical issue. Within the parenthesis of LNDC, it then explores the leadership skills required by management of this institution. Leadership is intensely studied from the traits models, situational, consistency models to the transformational leadership styles. Change leadership forms an important basis of the discussions. Organisational culture is one important aspect that has to be considered during change initiative. Crafting and creating appropriate organisational culture forms the centrepiece of leaders' consideration during organisational change. The ability of a leader to create shared values within the organisation leads to building a strong corporate culture that distinguishes between organisations. The McKinsey's seven S model provides a firm framework for most changing organisations. This model illustrates how the soft, yet important issues powerfully impact the BPR process. All of these namely, strategy, structure, systems, style, skills, staff and shared values, are equally important and if any one of them is not properly aligned with the rest, the whole change process may become a failure. This model impacts all seven S's of the organisational dimension and is driven by strategy. Communication on the other hand forms another important element of the discussions. This study shows that without proper communication during organisational change, the whole change process can become a complete failure. The ability of a leader to disseminate intended information appropriately to the employees requires one to have skills and communication methods that are applicable to that particular organisational setting. After undertaking a survey at the LNDC, the researcher concluded that management, at this corporation lacks leadership skills necessary for managing change in an organisation. Recommendations have been made suggesting that the either the CEO be replaced or trained in leadership skills. This would help the organisation to successfully implement the intended change process.


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