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Chapter 5 Business Process Change

The document discusses business process change and business process reengineering (BPR). It defines key terms like organizational structure, business process, and BPR. It describes the objectives and characteristics of BPR, including radical improvement and being people-centered. The document also outlines the BPR life cycle and success factors. It provides details on implementing a BPR strategy, including selecting processes and teams and developing and communicating a vision for improved processes.

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Allene Montemayor
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51 views33 pages

Chapter 5 Business Process Change

The document discusses business process change and business process reengineering (BPR). It defines key terms like organizational structure, business process, and BPR. It describes the objectives and characteristics of BPR, including radical improvement and being people-centered. The document also outlines the BPR life cycle and success factors. It provides details on implementing a BPR strategy, including selecting processes and teams and developing and communicating a vision for improved processes.

Uploaded by

Allene Montemayor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER 5

BUSINESS PROCESS
CHANGE

Prepared by:
MS. NELDA A. ROSIMA
iNSTRUCTOR
What is organizational structure?
 A system that outlines how certain activities are directed in
order to achieve the goals of an organization.
 Determines how information flows between levels within the
company.
 Defines each employee’s job and how it fits within the overall
system.
Types of organizational structures
include:
a. Functional
b. Divisional
c. Team-based
d. Flat (Flatarchy)
e. Matrix structures
f. Circular
g. Network
What is Process
 A process is a cross-functional interrelated series of activities
that convert business inputs into business outputs
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
 is a step-by-step outline of a specific business
function within a company. This process may
include both manual an automated step. A business
process change is a modification to a company's
existing business process. (Holmes, Troy, Sept. 2022)
Method Study Questions for
Process Analysis
 What does the customer need?
 operations are necessary?
 Can some operations be eliminated, combined, or simplified?….
 Who is performing the job?
 Can the operation be redesigned to use less skill or less labor?
 Can operations be combined to enrich jobs? ….
 Where is each operation conducted?
 Can layout be improved?
 When is each operation performed? Is there excessive delay or
storage?
 Are some operations creating bottlenecks?
 How is the operation done? Can better methods, procedures, or
equipment be used?
What is Product Process Matrix
 Merges the product life cycle which encompasses all
aspects of the product development process from ideation
to a product’s growth or decline with the process lifecycle,
the progression towards a more cost-effective and
productive standardized structure.
 Developed by Robert H. Hayes and Steven C. Wheelwright.
4 process stages
Objectives of BPR:
Speed
 Flexibility
 Quality
Innovation
Productivity
Characteristics of BPR
Radical Improvement
 Integrated Change
People Centered
Focus on End-Customers
Process-Based
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
Integrated Change
 Viable Solutions
Process improvements must be viable and
practical

 Balanced Improvements
Process improvements must be realistic
People-Centered
➢ Business Understanding
➢ Empowerment & Participation
➢ Organizational Culture
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
Focus on End Customers
 Process improvements must relate to the needs of the
organization and be relevant to the end-customers to
which they are designed to serve
BPR Life Cycle:
Success Factors Of BPR

 Clear Vision for Transformation


 Reduction of Cycle time
 Greater Accuracy
 Increased customer satisfaction
 Reduced cost
 Change Management
Implementing a BPR strategy

Key Steps
 Select The Process & Appoint Process Team
 Understand The Current Process
 Develop & Communicate Vision Of Improved Process
 Identify Action Plan
 Execute Plan
Select the Process & Appoint
Process Team
 Two Crucial Tasks
Select The Process to be Reengineered
Appoint the Process Team to Lead the Reengineering
Initiative
Select the Process

 Review Business Strategy and Customer Requirements


Select Core Processes
Understand Customer Needs
Don‟t Assume Anything
 Select Correct Path for Change
Remember Assumptions can Hide Failures
Competition and Choice to Go Elsewhere
Ask - Questionnaires, Meetings, Focus Groups
Appoint the Process Team

 Appoint BPR Champion


Identify Process Owners
Establish Executive Improvement Team
Provide Training to Executive Team
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
Ability to assume individual and collective responsibility
Employ „Bridge Builders‟
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
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)
 Clearly Identify Improvement Opportunities Quality
Rework
Document the Process
Cost
Time
Value Data
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
 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
Identify Action Plan
 Develop an Improvement Plan
Appoint Process Owners
 amplify the Process to Reduce Process Time
 Remove any Bureaucracy that may hinder implementation
 Remove no-value-added activities
 Standardize Process and Automate Where Possible
 Up-grade Equipment
 Plan/schedule the changes
Execute Plan
 Qualify/certify the process
Define and eliminate process problems
Evaluate the change impact on the business and on customers
Benchmark the process
Provide advanced team training
Limitations:
 Fear of Unknown and Failure
 Confusion surrounding BPR
 Ineffective BPR teams
 Problems related to organizational structure
 Problems related to BPR resources
 What is Business Process Outsourcing?
 BPO began with large manufacturing companies to aid with supply chain
management
 BPO is considered "offshore outsourcing" if the vendor or subcontractor is
located in a different country; for instance, in the case of customer support.
 2 main areas of BPO
1. Back office
2. Front office
THANK YOU FOR LISTENING!

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