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Business Process Reengineering
• Explain the role of Business Process Reengineering (BPR) within the organization • Understand the origins and key characteristics of BPR • Identify and be able to use core BPR Symbols
• Understand and be able to implement a BPR Strategy • Understand the main challenges in implementing a BPR Strategy
BPR & The Organization
1993) . such as cost. (Hammer & Champy. contemporary measures of performance.5 What is BPR? • Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical. quality. service and speed.
6 BPR is Not? • Automation • Downsizing • Outsourcing .
1992) .7 BPR Versus Process Simplification Process Simplification Incremental Change Process-Led Assume Attitudes & Behaviors Management-Led Various Simultaneous Projects Process Reengineering Radical Transformation Vision-Led Change Attitudes & Behaviors Director-Led Limited Number of Initiatives (Source Coulson-Thomas.
8 BPR Versus Continuous Improvement Continuous Improvement Incremental Change People Focus Low Investment Improve Existing Work Unit Driven Process Reengineering Radical Transformation People & Technology Focus High Investment Rebuild Champion Driven .
9 What is a Process? • A specific ordering of work activities across time and space. and clearly identified inputs and outputs: a structure for action. (Davenport. an end. with a beginning. 1993) .
in support of the organization's objectives .10 What is a Business Process? • A group of logically related tasks that use the firm's resources to provide customer-oriented results.
11 Why Reengineer? • Customers – Demanding – Sophistication – Changing Needs • Competition – Local – Global .
12 Why Reengineer? • Change – Technology – Customer Preferences .
13 Why Organizations Don’t Reengineer? • Complacency • Political Resistance • New Developments • Fear of Unknown and Failure .
14 Performance • BPR seeks improvements of – – – – Cost Quality Service Speed .
15 Key Characteristics • • • • • • • Systems Philosophy Global Perspective on Business Processes Radical Improvement Integrated Change People Centred Focus on End-Customers Process-Based .
16 Systems Perspective Feedback Inputs Transformation Outputs Environment .
17 Process Based • Added Value – BPR Initiatives must add-value over and above the existing process • Customer-Led – BPR Initiatives must meet the needs of the customer .
18 Radical Improvement • Sustainable – Process improvements need to become firmly rooted within the organization • Stepped Approach – Process improvements will not happen over night they need to be gradually introduced – Also assists the acceptance by staff of the change .
19 Integrated Change • Viable Solutions – Process improvements must be viable and practical • Balanced Improvements – Process improvements must be realistic .
20 People-Centred • Business Understanding • Empowerment & Participation • Organizational Culture .
21 Focus on End-Customers • Process improvements must relate to the needs of the organization and be relevant to the endcustomers to which they are designed to serve .
– – – – – – Name of the business process Unique number of the business process Revision number Date of last change Author Page number with total pages .22 Version Management • For different versions of a business process or data flow some mandatory information must be on the flowchart.
23 Implementing a BPR Strategy .
24 Key Steps Select The Process & Appoint Process Team Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan Execute Plan .
25 Select the Process & Appoint Process Team • Two Crucial Tasks – Select The Process to be Reengineered – Appoint the Process Team to Lead the Reengineering Initiative .
26 Select the Process • Review Business Strategy and Customer Requirements • Select Core Processes • Understand Customer Needs • Don‟t Assume Anything .
27 Select the Process • Select Correct Path for Change • Remember Assumptions can Hide Failures • Competition and Choice to Go Elsewhere • Ask . Meetings. Focus Groups .Questionnaires.
28 Appoint the Process Team • Appoint BPR Champion • Identify Process Owners • Establish Executive Improvement Team • Provide Training to Executive Team .
29 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 .
30 Core Skills Required • Ability to assume individual and collective responsibility • Employ „Bridge Builders‟ .
31 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 .
32 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 .
33 Understand the Current Process • Clearly Identify Improvement Opportunities – Quality – Rework • Document the Process – Cost – Time – Value Data .
34 Understand the Current Process • Carefully resolve any inconsistencies – Existing -.Realistic Process .New Process – Ideal -.
• Demonstrate assurance that the BPR initiative is both necessary and properly managed .35 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.
36 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 .
37 Identify Action Plan • Develop an Improvement Plan • Appoint Process Owners • Simplify the Process to Reduce Process Time • Remove any Bureaucracy that may hinder implementation .
38 Identify Action Plan • Remove no-value-added activities • Standardize Process and Automate Where Possible • Up-grade Equipment • Plan/schedule the changes .
Audit. Audit .39 Identify Action Plan • Construct in-house metrics and targets • Introduce and firmly establish a feedback system • Audit.
40 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 .
41 Information Technology & BPR .
42 Benefits From IT • Assists the Implementation of Business Processes – Enables Product & Service Innovations – Improve Operational Efficiency – Coordinate Vendors & Customers in the Process Chain .
43 Computer Aided BPR (CABPR) • Focus – Business Processes – Process Redesign – Process Implementation .
44 BPR Challenges .
“If it ain‟t broke …” • Quick Fix Approach .True BPR is Not • Desire to Change Not Strong Enough • Start Point the Existing Process Not a Blank Slate • Commitment to Existing Processes Too Strong – REMEMBER .45 Common Problems • Process Simplification is Common .
46 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 the Business Objectives • Allocation of Resources • Poor Timing and Planning • Keeping the Team and Organization on Target .
47 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 .
remember BPR is fundamental rethinking of business processes.48 Summary • Don‟t assume anything . .
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