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BPR & The Organization

BPR involves radically redesigning business processes to achieve dramatic improvements in key measures like cost, quality, service and speed. It requires transforming processes rather than incrementally improving them. The key steps of BPR include selecting processes for reengineering, appointing a process team, understanding the current process, developing and communicating a vision for an improved process, identifying an action plan, and executing that plan. BPR aims to remove non-value adding activities and simplify processes to reduce time while improving performance.

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abhinav pandey
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273 views32 pages

BPR & The Organization

BPR involves radically redesigning business processes to achieve dramatic improvements in key measures like cost, quality, service and speed. It requires transforming processes rather than incrementally improving them. The key steps of BPR include selecting processes for reengineering, appointing a process team, understanding the current process, developing and communicating a vision for an improved process, identifying an action plan, and executing that plan. BPR aims to remove non-value adding activities and simplify processes to reduce time while improving performance.

Uploaded by

abhinav pandey
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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1

BPR & The Organization


2

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
4

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)


5

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
6

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)
7

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
8

Why Reengineer?
• Customers
– Demanding
– Sophistication
– Changing Needs

• Competition
– Local
– Global
9

Why Reengineer?
• Change
– Technology
– Customer Preferences
10

Why Organizations Don’t Reengineer?


• Complacency

• Political Resistance

• New Developments

• Fear of Unknown and Failure


11

Performance
• BPR seeks improvements of

– Cost
– Quality
– Service
– Speed
12

Systems Perspective

Feedback

Inputs Transformation Outputs

Environment
13

Implementing a BPR Strategy


14

Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan
15

Select the Process & Appoint Process Team

• Two Crucial Tasks

– Select The Process to be Reengineered

– Appoint the Process Team to Lead the Reengineering


Initiative
16

Select the Process


• Review Business Strategy and Customer
Requirements

• Select Core Processes

• Understand Customer Needs

• Don’t Assume Anything


17

Select the Process


• Select Correct Path for Change

• Remember Assumptions can Hide Failures

• Competition and Choice to Go Elsewhere

• Ask - Questionnaires, Meetings, Focus Groups


18

Appoint the Process Team


• Appoint BPR Champion

• Identify Process Owners

• Establish Executive Improvement Team

• Provide Training to Executive Team


19

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
20

Core Skills Required


• Ability to assume individual and collective
responsibility

• Employ ‘Bridge Builders’


21

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
22

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)
23

Understand the Current Process

• Clearly Identify Improvement


Opportunities
– Quality
– Rework
• Document the Process
– Cost
– Time
– Value Data
24

Understand the Current Process

• Carefully resolve any inconsistencies


– Existing -- New Process
– Ideal -- Realistic Process
25

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
26

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
27

Identify Action Plan


• Develop an Improvement Plan

• Appoint Process Owners

• Simplify the Process to Reduce Process Time

• Remove any Bureaucracy that may hinder


implementation
28

Identify Action Plan


• Remove no-value-added activities

• Standardize Process and Automate Where


Possible

• Up-grade Equipment

• Plan/schedule the changes


29

Identify Action Plan


• Construct in-house metrics and targets

• Introduce and firmly establish a feedback system

• Audit, Audit, Audit


30

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
31

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
32

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

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