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Chapter No. 8: Turnaround Management
Chapter No. 8: Turnaround Management
8
TURNAROUND MANAGEMENT
BUSINESS PROCESS
REENGINEERING
OVERVIEW
BPR stands for Business Process
DEFINITION
Business Process Reengineering has been
To BPR
Functional departments
Process teams
Simple task
Empowered employees
Controlled people
Multidimensional work
Training of employees
Education of employees
Executives as scorekeepers
Executives as leaders
Mass production
Mass customization
ELEMENTS OF BPR
Radical
FEATURES
Several jobs
Employees empowered
Step in business process
Multiple versions
Reconciliation
Hybrid centralized/decentralized
Process- oriented
Creative use of IT
OBJECTIVES
Customer Friendliness
OBJECTIVES
Costumer focus
Speed
Compression
Flexibility
Innovation
Productivity
NEED OF BPR
Rapid change
Well informed
Intense competition
Customer
Change
Technology
Fragmented piecemeal system
STEPS
IN
BPR
IMPLEMENTATION
Develop the business
work
By coordinating the entire process
By eliminating unwanted steps
By simplifying the system
By maintaining continuous effort
DISTINCTION
Attribute
Improvement
Reengineering
Level of change
Incremental
Radical
Starting point
Existing process
Clean slate
Frequency of
change
Continuous
One time
Time required
Short term
Long term
Participation
Bottom up
Top down
Risk
Moderate
High
Type of change
Cultural
Cultural / Structural
ADVANTAGES
Increase effectiveness
Helps to improve efficiency
Reduce cost
Meaningful job for employees
Improvement in organizational approach
Growth of business
Simplification of processes
Enterprise integration
DISADVANTAGES
Long and complex process
Not suitable for small businesses
Resistance
Not an effective way to focus
Gradual and incremental
Culturally biased
Business processes not redesigned
IT AND BPR
Manage BPR project
Link between various BPR drives
Provide platform
Cost benefit
Study complete supply chain
Judge impact of reengineered processes
ATTRIBUTE
TQM
BPR
Reducing or eliminating
errors
Innovation
PARTICIPATION
Bottom -up
Top-down
FLEXIBILITY/
STANDARDIZATION
Standardization of
processes
Flexibility in operations
EXISTING/ NEW
PROCESS
Changing existing
process
TOOLS
Usage of statistical
process control
Enabling role of IT
FOCUS
Current practice
Start again
INVESTMENT
Small
Large
SPEED
Small steps
Long steps
PARTICIPATION
Each employee
Selected few
MEANING
CHANGE
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