Learning Objectives Explain the role of Business Process Reengineering (BPR) within the organization Understand the origins

ns 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 What is BPR? Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. (Hammer & Champy, 1993) BPR is Not? Automation Downsizing Outsourcing BPR Versus Process Simplification

(Source Coulson-Thomas, 1992)

BPR Versus Continuous Improvement

What is a Process? A specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action. (Davenport, 1993) What is a Business Process? A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives Why Reengineer? Customers o Demanding o Sophistication o Changing Needs Competition o Local o Global Change o Technology o Customer Preferences Why Organizations Dont Reengineer? Complacency Political Resistance New Developments Fear of Unknown and Failure Performance BPR seeks improvements of o Cost o Quality

o Service o Speed Origins Scientific Management. FW Taylor (1856-1915). Frederick Herzberg - Job Enrichment Deming et al - Total Quality Management and Kaizen In Search of Excellence (Peters and Waterman) Value-Added Analysis (Porter). Key Characteristics Systems Philosophy Global Perspective on Business Processes Radical Improvement Integrated Change People Centred Focus on End-Customers Process-Based

Systems Perspective

Process Based Added Value o BPR Initiatives must add-value over and above the existing process Customer-Led o BPR Initiatives must meet the needs of the customer

Radical Improvement Sustainable o Process improvements need to become firmly rooted within the organization Stepped Approach o Process improvements will not happen over night they need to be gradually introduced o Also assists the acceptance by staff of the change

Integrated Change Viable Solutions o Process improvements must be viable and practical Balanced Improvements o Process improvements must be realistic People-Centred Business Understanding Empowerment & Participation Organizational Culture Focus on End-Customers Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve BPR Symbols Business Process Flowchart Symbols

Data Flowchart Symbols

Rules For Data Symbols

Version Management

For different versions of a business process or data flow some mandatory information must be on the flowchart. o Name of the business process o Unique number of the business process o Revision number o Date of last change o Author o Page number with total pages

Implementing a BPR Strategy - Key Steps

Select the Process & Appoint Process Team Two Crucial Tasks o Select The Process to be Reengineered o Appoint the Process Team to Lead the Reengineering Initiative

Select the Process Review Business Strategy and Customer Requirements Select Core Processes Understand Customer Needs Dont Assume Anything Select Correct Path for Change Remember Assumptions can Hide Failures Competition and Choice to Go Elsewhere Ask - Questionnaires, Meetings, Focus Groups

Appoint the Process Team Appoint BPR Champion Identify Process Owners Establish Executive Improvement Team Provide Training to Executive Team 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 Ability to assume individual and collective responsibility Employ Bridge Builders

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 Understand the Current Process Develop a Process Overview Clearly define the process o Mission o Scope o Boundaries Set business and customer measurements Understand customers expectations from the process (staff including process team) Clearly Identify Improvement Opportunities o Quality o Rework Document the Process o Cost o Time o Value Data Carefully resolve any inconsistencies

o Existing -- New Process o Ideal -- Realistic Process 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. Demonstrate assurance that the BPR initiative is both necessary and properly managed 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 Identify Action Plan Develop an Improvement Plan Appoint Process Owners Simplify the Process to Reduce Process Time Remove any Bureaucracy that may hinder implementation Remove no-value-added activities Standardize Process and Automate Where Possible Up-grade Equipment Plan/schedule the changes Construct in-house metrics and targets Introduce and firmly establish a feedback system Audit, Audit, Audit 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 Information Technology & BPR Benefits From IT Assists the Implementation of Business Processes o Enables Product & Service Innovations

o Improve Operational Efficiency o Coordinate Vendors & Customers in the Process Chain

Computer Aided BPR (CABPR) Focus o Business Processes o Process Redesign o Process Implementation BPR Challenges Common Problems Process Simplification is Common - 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 - If it aint broke Quick Fix Approach 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 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 Summary

Dont assume anything - remember BPR is fundamental rethinking of business processes