CONDITIONS RIPE FOR BPR(HAMMER STYLE)

• Unarticulated/out-of-date rules

• Not right first time

• Sequential process

• Lack of focal point of responsibility

• Worker desire for autonomy

• Management trust of workers

• Lack of ability to respond

SUMMARY OF BPR PRINCIPLES (HAMMER STYLE)

1. Focus on outcomes, not tasks

2. With those who use the output, doing it themselves

3. And processing the information too

4. Without regard to geographic barriers

5. Linking functions (interdependence)

6. And allowing decision making authority (empowerment)

BPR RISKS

• Transition is hell -- may lost customers

• Transition never ends -- when is enough?

• Legacy systems will get in the way

• Current information technology still has its limits

BPR SCOPE

• Reinvent the business you’re in

And/Or

• Reinvent what business you’re in

IT-ENABLED BUSINESS TRANSFORMATION

Establishing DirectionEstablishing Direction Design/RedesignDesign/Redesign ImplementationImplementation

• Defining a broad vision for change

• Building infrastructure – Human – Technical – Capital

• Clarifying the vision and establishing the focus for change – Organizational and interorganizational prototypes

• Gaining commitment – Cascading levels of agreement

• Assessing risk/return

• Selecting partners

• Developing detailed design – Business process redesign – Management process redesign (structure, control, HRM, culture) – Information technology

• Implementing technology -- applying project manage- ment techniques to keep on schedule & within budget

• Managing risks

• Detailed cost-benefit analysis

• Developing education & communication materials

• Developing roll-out schedule

• Implementing change

• Managing organizational learning

Feedback and EvaluationSource: Applegate, L.M., “IT-Enabled Business Transformation”, Boston: Harvard Business School Publishing, 1992.

REENGINEERING PROCESS

MobilizatioMobilizationn

DiagnosisDiagnosis RedesignRedesign TransitionTransition

Create a Business Process Map

Appoint Process Owners and Establish Governance Structure

Formulate Reengineering Strategy

Determine Process Prioritization

Assign Reengineering Team Members

Bound and Scope the Process

Understand Customer Needs

Understand the Current Process

Identify Weaknesses in the Existing Design

Set Targets for New Designs

Create Breakthrough Process Design Concept

Redesign the Entire Business System

Develop Detailed Process Design

Build Laboratory Prototype

Test, Simulate, Learn, and Iterate

Implement Initial Field Release (Pilot)

Realize Initial Benefits

Adjust the Business Systems

Develop Supporting Infrastructure

Rollout and Institution- alize

Implement Succeeding Releases

REVIEW OF FIVE STEP PROCESS (D & S)

1. Vision & Process Objectives -- Who & How is This Determined?

– Input From Customers/Marketplace– Technology Transfer from Another

Company/Industry– An Executive Brainstorm

2. Processes to Be Redesigned– Exhaustive (Getting Something

Done?)– High Impact (One Gets Better --

Others Get Worse?)

3. Existing Processes– Don’t Repeat Problems– Likely Doing Something

Right

4. IT Levers (Discuss Table)

5. Prototype of New Process– Building Prototypes Not Easy– Pilot Identification & Control

KEYS TO THE DEMISE OF BUREAUCRACY

• Knowledge of people -- is there a gap developing? Are people committed to continuous learning?

• Willingness to accept responsibility for decisions/actions -- we’re going in two different directions at the same time.

• Not every job needs reinventing or can be reinvented with current technology.

• Board of Directors fulfilling their role