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Business Process Reengineering: Presentation By: Eesha Mehta
Business Process Reengineering: Presentation By: Eesha Mehta
Reengineering
Presentation by:
Eesha Mehta
Business Process Reengineering
Process Business Process
a collection of a group of logically
activities that takes related tasks using
one or more kinds of the firm's resources
inputs and creates an to provide customer-
output that is of value oriented results to
to a customer. support organisation's
objectives.
Definition of Process
A process is simply a structured, measured set of
activities designed to produce a specific output for a
particular customers or market.
-- Thomas Davenport
Characteristics:
A specific sequencing of work activities across time and place
A beginning and an end
Clearly defined inputs and outputs
Customer-focus
How the work is done
Process ownership
Measurable and meaningful performance
Processes Are Often Cross Functional Areas
“Manage the white space on the organization chart!”
CEO
Customer/
Markets
Supplier
Needs
Value-added
Products/
Services to
"We cannot improve or measure the performance of a Customers
hierarchical structure. But, we can increase output quality
and customer satisfaction, as well as reduce the cost and
cycle time of a process to improve it."
What is Business Process
Reengineering?
An organizational change method used to redesign an
organization to drive improved efficiency, effectiveness,
and economy.
Organizational change tools may include:
Activity based costing analysis
Baselining and benchmarking studies
Business case analysis
Functionality assessment
Industrial engineering techniques
Organization analysis
Productivity assessment
Workforce analysis
Others, as needed (e.g., human capital tools)
Business Process Reengineering
Definition
BPR first introduced in 1990 in a Harvard Business
Review article by Michael Hammer:
Reengineering Work: Don't Automate, Obliterate.
Hammer/Champy
Reengineering the Corporation (1993)
Provided this definition:
“Reengineering is the fundamental rethinking and radical
redesign of business processes to achieve dramatic
improvements in critical, contemporary measures of
performance, such as cost, quality, service, and speed.”
Business Process Reengineering
Breakthrough
Improvement
Intra-
The firm industry
competitors
Bargaining Bargaining
power of power of
suppliers customers
Why BPR Is Necessary
The Virtual Organization: Three C’s Driving Change
Customers take charge.
Mass market v. a “market of one”
Backward integration
Informed consumers
Demanding
Sophistication
Changing Needs
Competition intensifies.
More and different kinds
Local
Global
Big is not better
Technology changes the nature of competition.
Why BPR Is Necessary
Change becomes constant.
reduced product cycles
reduced time to develop new products
more environment scanning
Technology
Customer Preferences
New New
Competitors Work Force
New Rules of
Competition
The C’s related to
Organization Re-engineering Projects
The 3C’s of The 4C’s of effective
organization Re- teams:
engineering: Commitment
Customers Cooperation
Competition Communication
Change Contribution
Some of the BPR Objectives
Improve Efficiency e.g reduce time to market,
provide quicker response to customers
Increase Effectiveness e.g deliver higher
quality
Achieve Cost Saving in the longer run
Provide more Meaningful work for employees
Increase Flexibility and Adaptability to change
Enable new business Growth
Spectrum of Change
Automation
Rationalization of
procedures
Reengineering
Paradigm shift
Spectrum of Change
Automation- refers to computerizing processes
to speed up the existing tasks, improves
efficiency and effectiveness.
Rationalization of Procedures-refers to
streamlining of standard operating procedures,
eliminating obvious bottlenecks, so that
automation makes operating procedures more
efficient,improves efficiency and effectiveness.
Spectrum of Change
Business Process Reengineering- refers to radical
redesign of business processes.
Aims at
eliminating repetitive, paper-intensive, bureaucratic
tasks
reducing costs significantly
improving product/service quality.
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Reengineering & Continuous
Improvement--Differences
Reengineering Continuous Improvement
Differences
Level of change Radical Incremental
Starting point Clean slate Existing process
Participation Top-down Bottom-up
Typical scope Broad, cross-functional Narrow, within functions
Risk High Moderate
Primary enabler Information technology Statistical control
Type of change Cultural and structural Cultural
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Key Steps
Execute Plan
1. Select the Process & Appoint
Process Team
Two Crucial Tasks
●
Select The Process to be Reengineered
●
Appoint the Process Team to Lead the
Reengineering Initiative
Select the Process
Review Business Strategy and Customer
Requirements
Purchase
Orders
Receiving
Invoices
Documents
Ford (cont)
Ford (cont)
WHY DOES
REENGINEERING FAIL?
Trying to fix a process instead of changing it
Ignoring everything except the process design
Quitting too early
Reengineering from the bottom up
Neglecting people’s values and beliefs
Being willing to settle for minor results
Assigning someone who does not understand
reengineering to lead the effort
FOUR STAGES OF CHANGE
Shock
Anger
Denial
Acceptance
Think about the transition from shock to acceptance and how an
organization may overcome them.
Shock- usually the first reaction once a change has been announced. "
Where in the world did this come from?" "Why?"
Anger- if change is viewed in a negative way, people may react in anger.
They blame other persons and begin to not accept or support the change.
"It wont work and I will not accept this." This can be very damaging to a
process and needs to confronted.
Denial- this person begins to make excuses as to why he or she should not
be held accountable for anything that may go wrong. " Dont blame me if this
doesn't work, it wasn't my idea."
Acceptance- this is the goal an organization needs to get all employees to.
This person has accepted the change and begins to invision his or her role
in the new situation. "How can I help my organization in this process."
HOW TO IMPLEMENT
3 steps to transition of change
●
1. Discontinuation of the old way of doing
business
●
2. Migration
●
3. Starting the new way of doing business
Conclusion
BPR is a multi-discipline approach for strategic
change
Methodology provides missing “how to” that
must follow the “why”
BPR must be managed as a project
BPR must be owned by the organization, not
driven by consultants
BPR requires constant communication and
feedback