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Oak Training 1

BPR & The Organization

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Oak Training 2

What is BPR?

Reengineering is the fundamental

rethinking and redesign ofbusiness processes to achievedramatic improvements in critical,contemporary measures ofperformance, such as cost, quality,service and speed.

(Hammer & Champy,

1993)

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Oak Training 3

BPR is Not?

Automation

Downsizing

Outsourcing

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Oak Training 4

What is a Process?

A specific ordering of work activitiesacross time and space, with abeginning, an end, and clearlyidentified inputs and outputs: astructure for action.

(Davenport,

1993)

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Oak Training 5

What is a Business Process?

A group of logically related tasksthat use the firm's resources toprovide customer-oriented results insupport of the organization'sobjectives

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Oak Training 6

Why Reengineer?

Customers

Demanding

Sophistication Changing Needs

Competition

Local

Global

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Oak Training 7

Why Reengineer?

Change

Technology

Customer Preferences

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Oak Training 8

Why Organizations Dont Reengineer?

Complacency

Political Resistance

New Developments

Fear of Unknown and Failure

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Oak Training 9

Performance

BPR seeks improvements of

Cost Quality

Service

Speed

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Oak Training 10

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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Oak Training 11

Process Based

Added Value

BPR Initiatives must add-value overand above the existing process

Customer-Led

BPR Initiatives must meet the needs of

the customer

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Oak Training 12

Radical Improvement

Sustainable

Process improvements need to becomefirmly rooted within the organization

Stepped Approach

Process improvements will not happen

over night they need to be graduallyintroduced

Also assists the acceptance by staff ofthe change

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Oak Training 13

Integrated Change

Viable Solutions

Process improvements must be viableand practical

Balanced Improvements

Process improvements must be realistic

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Oak Training 14

People-Centred

Business Understanding

Empowerment & Participation

Organizational Culture

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Oak Training 15

Focus on End-Customers

Process improvements must relateto the needs of the organization andbe relevant to the end-customers towhich they are designed to serve

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Oak Training 16

Implementing a BPR Strategy

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Oak Training 17

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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Oak Training 18

Select the Process & Appoint Process

Team

Two Crucial Tasks

Select The Process to be Reengineered

Appoint the Process Team to Lead theReengineering Initiative

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Oak Training 19

Select the Process

Review Business Strategy andCustomer Requirements

Select Core Processes

Understand Customer Needs

Dont Assume Anything

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Oak Training 20

Select the Process

Select Correct Path for Change

Remember Assumptions can HideFailures

Competition and Choice to GoElsewhere

Ask - Questionnaires, Meetings,Focus Groups

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Oak Training 21

Appoint the Process Team

Appoint BPR Champion

Identify Process Owners

Establish Executive Improvement

Team

Provide Training to Executive Team

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Oak Training 22

Core Skills Required

Capacity to view the organization asa whole

Ability to focus on end-customers

Ability to challenge fundamentalassumptions

Courage to deliver and venture intounknown areas

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Oak Training 23

Core Skills Required

Ability to assume individual andcollective responsibility

Employ Bridge Builders

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Oak Training 24

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 theinitiative is organization-led and not

consultant-driven

Control should never be handedover to the consultant

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Oak Training 25

Understand the Current Process

Develop a Process Overview Clearly define the process

Mission

Scope Boundaries

Set business and customermeasurements

Understand customers expectationsfrom the process (staff includingprocess team)

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Oak Training 26


Clearly Identify ImprovementOpportunities

Quality Rework

Document the Process

Cost Time

Value Data

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Oak Training 27


Carefully resolve anyinconsistencies

Existing -- New Process Ideal -- Realistic Process

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Oak Training 28

Develop & Communicate Vision of

Improved Process

Communicate with all employees so thatthey are aware of the vision of the future

Always provide information on theprogress of the BPR initiative - good andbad.

Demonstrate assurance that the BPRinitiative is both necessary and properlymanaged

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Oak Training 29

Develop & Communicate Vision of

Improved Process

Promote individual development byindicating options that are available

Indicate actions required and thoseresponsible

Tackle any actions that need resolution

Direct communication to reinforce newpatterns of desired behavior

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Oak Training 30


Develop an Improvement Plan

Appoint Process Owners

Simplify the Process to Reduce

Process Time

Remove any Bureaucracy that mayhinder implementation

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Oak Training 31


Remove no-value-added activities

Standardize Process and AutomateWhere Possible

Up-grade Equipment

Plan/schedule the changes

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Oak Training 32


Construct in-house metrics andtargets

Introduce and firmly establish afeedback system

Audit, Audit, Audit

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Oak Training 33

Execute Plan

Qualify/certify the process

Perform periodic qualification

reviews Define and eliminate process

problems

Evaluate the change impact on thebusiness and on customers

Benchmark the process

Provide advanced team training

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Oak Training 34

Information Technology & BPR

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Oak Training 35

Benefits From IT

Assists the Implementation ofBusiness Processes

Enables Product & Service Innovations

Improve Operational Efficiency

Coordinate Vendors & Customers in theProcess Chain

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Oak Training 36

Computer Aided BPR (CABPR)

Focus

Business Processes

Process Redesign

Process Implementation

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Oak Training 37

BPR Challenges

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Oak Training 38

Common Problems

Desire to Change Not StrongEnough

Start Point the Existing Process Nota Blank Slate

Commitment to Existing ProcessesToo Strong

REMEMBER -If it aint broke

Quick Fix Approach

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Oak Training 39

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 theBusiness Objectives

Allocation of Resources

Poor Timing and Planning Keeping the Team and Organization on

Target

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Oak Training 40

Summary

Reengineering is a fundamentalrethinking and redesign of businessprocesses to achieve dramatic

improvements

BPR has emerged from keymanagement traditions such asscientific management and systemsthinking

Rules and symbols play an integral

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Summary

Dont assume anything - rememberBPR is fundamental rethinking ofbusiness processes

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