Business Process Reengineering (BPR)

Michael Hammer and James Champy Reengineering the Corporation Involves radical change in a number of areas including organization structure, systems, culture, and increasingly, strategy - new thinking - total new project (reengineering) for the processes in an enterprise. 1

Radical change
Radical change can only be accomplished where senior management and front line employees are 100% committed to the initiative.

The term process in the context of reengineering:

A process is a series of related activities that: Takes an input; Adds value to it; Produces an output for a customer;
Input

Process

Output

Business Processes Type I

Business Processes Type II

Class Interorganizational process Interfunctional process Interpersonal process Job Process Description Process between organizations Process between functions Process between persons Process solved from one person

BPR Methodology (Evans)

Stage 1: Stage 2: Stage 3: Stage 4: To Be As Is The Plan The Crossing

BPR Methodology (Fitzgerald and Murphy)

Stage 1: Select the process to be reengineered; Stage 2: Establish process team; Stage 3: Understand the current process; Stage 4: Develop a vision of the improved process; Stage 5: Identify the actions needed to move to the new process; Stage 6: Negotiate/execute a plan to accomplish these actions.
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BPR vs. TQM

Process Innovation BPR Level of Change Starting Point Frequency of Change Time Required Participation Typical Scope Risk Primary Enabler Type of Change Radical Clean Slate One-time Long Top-Down Broad, cross-functional High Information Technology Cultural/Structural Process Improvement TQM Incremental Existing Process One-time/Continuous Short Bottom-Up Narrow, within functions Moderate Statistical Control Cultural
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