BPR & The Organization

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BPR & The Organization

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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)
3
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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Systems Perspective
Feedback
Inputs Transformation Outputs
Environment
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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

• Ability to 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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• Clearly Identify Improvement

Opportunities
– Quality
– Rework
• Document the Process
– Cost
– Time
– Value Data
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• Carefully resolve 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
• Always provide 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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• 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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• Remove no-value-added activities
• Standardize Process and Automate Where

Possible
• Up-grade Equipment
• Plan/schedule the changes

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• Construct in-house metrics and targets
• Introduce and firmly establish a feedback system
• Audit, Audit, Audit

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Execute Plan
• Qualify/certify the 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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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
• Rules and symbols play an integral part of all

BPR initiatives
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Summary
• Don’t assume anything - remember BPR is
fundamental rethinking of business processes

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1

BPR & The Organization

• Reengineering is the fundamental rethinking

BPR Versus Process Simplification

Process Simplification Process Reengineering

Incremental Change Radical Transformation

(Source Coulson-Thomas, 1992)

BPR Versus Continuous Improvement

Continuous Improvement Process Reengineering

Incremental Change Radical Transformation

What is a Business Process?

Why Organizations Don’t Reengineer?

• Fear of Unknown and Failure

Inputs Transformation Outputs

Implementing a BPR Strategy

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Select the Process & Appoint Process Team

• Two Crucial Tasks

– Select The Process to be Reengineered

– Appoint the Process Team to Lead the Reengineering

Select the Process

• Select Core Processes

• Understand Customer Needs

• Don’t Assume Anything

Select the Process

• Remember Assumptions can Hide Failures

• Competition and Choice to Go Elsewhere

• Ask - Questionnaires, Meetings, Focus Groups

Appoint the Process Team

• Identify Process Owners

• Establish Executive Improvement Team

• Provide Training to Executive Team

Core Skills Required

• Ability to focus on end-customers

• Ability to challenge fundamental assumptions

• Courage to deliver and venture into unknown

Core Skills Required

• Employ ‘Bridge Builders’

Understand the Current Process

• Develop a Process Overview

Understand the Current Process

• Clearly Identify Improvement

Understand the Current Process

• Carefully resolve any inconsistencies

Develop & Communicate Vision of Improved Process

• Communicate with all employees so that they are

• Always provide information on the progress of

• Demonstrate assurance that the BPR initiative is

Develop & Communicate Vision of Improved Process

• Promote individual development by indicating

• Indicate actions required and those responsible

• Tackle any actions that need resolution

• Direct communication to reinforce new patterns

Identify Action Plan

• Appoint Process Owners

• Simplify the Process to Reduce Process Time