What is BPR?

 Reengineering is the fundamental

rethinking and redesign of business
processes to achieve dramatic
improvements in critical, contemporary
measures of performance, such as
cost, quality, service and speed.
(Hammer & Champy, 1993)

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 BPR is Not?
 Automation

 Downsizing

 Outsourcing

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 BPR Versus Process
Simplification

Process Simplification Process Reengineering

Incremental Change Radical Transformation

Process-Led Vision-Led
Assume Attitudes & Behaviors Change Attitudes & Behaviors
Management-Led Director-Led
Various Simultaneous Projects Limited Number of Initiatives

(Source Coulson-Thomas, 1992)

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 BPR Versus Continuous
Improvement

Continuous Improvement Process Reengineering

Incremental Change Radical Transformation

People Focus People & Technology Focus
Low Investment High Investment
Improve Existing Rebuild
Work Unit Driven Champion Driven

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 What is a Process?
A specific ordering of work activities
across time and space, with a
beginning, an end, and clearly
identified inputs and outputs: a
structure for action.
(Davenport,
1993)

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 What is a Business Process?
A group of logically related tasks that
use the firm's resources to provide
customer-oriented results in support
of the organization's objectives

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 Why Reengineer?
 Customers

– Demanding
– Sophistication
– Changing Needs

 Competition

– Local
– Global

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 Why Reengineer?
 Change

– Technology
– Customer Preferences

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 Why Organizations Don’t
Reengineer?
 Complacency

 Political Resistance

 New Developments

 Fear of Unknown and Failure

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 Performance
 BPR seeks improvements of

– Cost
– Quality
– Service
– Speed

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 Origins
 ScientificManagement. FW Taylor
(1856-1915).
 Frederick Herzberg - Job Enrichment

 Deming et al - Total Quality

Management and Kaizen
 In Search of Excellence (Peters and
Waterman)
 Value-Added Analysis (Porter).

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 Key Characteristics
 Systems Philosophy
 Global Perspective on Business
Processes
 Radical Improvement

 Integrated Change

 People Centred

 Focus on End-Customers

 Process-Based

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 Systems Perspective
Feedback

Inputs Transformation Outputs

Environment

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 Process Based
 Added Value
– BPR Initiatives must add-value over and
above the existing process

 Customer-Led

– BPR Initiatives must meet the needs of

the customer

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 Radical Improvement
 Sustainable

– Process improvements need to become

firmly rooted within the organization

 Stepped Approach
– Process improvements will not happen over
night they need to be gradually introduced
– Also assists the acceptance by staff of the
change

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 Integrated Change
 Viable Solutions
– Process improvements must be viable
and practical

 Balanced Improvements
– Process improvements must be realistic

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 People-Centred
 Business Understanding
 Empowerment & Participation

 Organizational Culture

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 Focus on End-Customers
 Processimprovements must relate to
the needs of the organization and be
relevant to the end-customers to
which they are designed to serve

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Implementing a BPR
Strategy

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 Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan

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 Select the Process & Appoint
Process Team
 Two Crucial Tasks

– Select The Process to be Reengineered

– Appoint the Process Team to Lead the

Reengineering Initiative

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 Select the Process
 Review
Business Strategy and
Customer Requirements

 Select Core Processes

 Understand Customer Needs

 Don’t Assume Anything

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 Select the Process
 Select Correct Path for Change
 Remember Assumptions can Hide
Failures
 Competition and Choice to Go
Elsewhere
 Ask- Questionnaires, Meetings,
Focus Groups
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 Appoint the Process Team
 Appoint BPR Champion

 Identify Process Owners

 Establish Executive Improvement

Team

 Provide Training to Executive Team

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 Core Skills Required
 Capacity to view the organization as
a whole
 Ability to focus on end-customers
 Ability
to challenge fundamental
assumptions
 Courage
to deliver and venture into
unknown areas
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 Core Skills Required
 Abilityto assume individual and
collective responsibility

 Employ ‘Bridge Builders’

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 Use of Consultants
 Used to generate internal capacity
 Appropriate when a implementation is
needed quickly
 Ensure that adequate consultation is
sought from staff so that the initiative
is organization-led and not consultant-
driven
 Control should never be handed over to
the consultant
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Understand the Current Process
 Develop a Process Overview
 Clearly define the process
– Mission
– Scope
– Boundaries
 Set business and customer
measurements
 Understand customers expectations
from the process (staff including process
team)
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Understand the Current Process
 Clearly
Identify Improvement
Opportunities
– Quality
– Rework
 Document the Process
– Cost
– Time
– Value Data
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Understand the Current Process
 Carefullyresolve any
inconsistencies
– Existing -- New Process
– Ideal -- Realistic Process

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 Develop & Communicate Vision of
Improved Process
 Communicate with all employees so that
they are aware of the vision of the future
 Alwaysprovide information on the
progress of the BPR initiative - good and
bad.
 Demonstrate assurance that the BPR
initiative is both necessary and properly
managed

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 Develop & Communicate Vision of
Improved Process
 Promote individual development by
indicating options that are available
 Indicate
actions required and those
responsible
 Tackle any actions that need resolution
 Direct
communication to reinforce new
patterns of desired behavior

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 Identify Action Plan
 Develop an Improvement Plan
 Appoint Process Owners
 Simplify
the Process to Reduce
Process Time
 Remove any Bureaucracy that may
hinder implementation

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 Identify Action Plan
 Remove no-value-added activities

 Standardize
Process and Automate
Where Possible

 Up-grade Equipment

 Plan/schedule the changes

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 Identify Action Plan
 Construct in-house metrics and
targets

 Introduceand firmly establish a

feedback system

 Audit

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 Execute Plan
 Qualify/certifythe process
 Perform periodic qualification reviews

 Define and eliminate process

problems
 Evaluate the change impact on the
business and on customers
 Benchmark the process

 Provide advanced team training

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Information Technology
& BPR

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 Benefits From IT
 Assists
the Implementation of
Business Processes
– Enables Product & Service Innovations
– Improve Operational Efficiency
– Coordinate Vendors & Customers in the
Process Chain

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Computer Aided BPR (CABPR)
 Focus

– Business Processes
– Process Redesign
– Process Implementation

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BPR Challenges

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 Common Problems
 Process Simplification is Common - True
BPR is Not
 Desire to Change Not Strong Enough

 Start Point the Existing Process Not a

Blank Slate
 Commitment to Existing Processes Too
Strong
– REMEMBER - “If it ain’t broke …”
 Quick Fix Approach
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 Common Problems with BPR
 Process under review too big or too small
 Reliance on existing process too strong

 The Costs of the Change Seem Too Large

 BPR Isolated Activity not Aligned to the

Business Objectives
 Allocation of Resources

 Poor Timing and Planning

 Keeping the Team and Organization on

Target
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 Summary
 Reengineering is a fundamental
rethinking and redesign of business
processes to achieve dramatic
improvements
 BPR has emerged from key
management traditions such as
scientific management and systems
thinking
 Don’t assume anything - remember
BPR is fundamental rethinking of
business processes
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