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Business Process Reengineering

Business Process Reengineering (BPR) is

the means by which an organization

achieves radical changein performance as

measured by cost, cycle time, service, and

quality, by the application of a variety oftools that focus on a set of customer-

oriented core business processes.


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Types of Reengineering

Type 1 - Process Improvement;

cost-reduction focus

Type 2 - To achieve parity, or best-in-

class; competitive focus

Type 3 - Searching core business for

breakpoints; rewriting the rules


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BPR Process(1 of 2)

Frame the project

Create the vision, values and goals

Redesign the business operation

Conduct proof of concept

Andrews & Stalick, Business Reengineering: The

Survivors Guide


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BPR Process(2 of 2)

Plan the implementation

Obtain implementation approval

Implement the redesign

Transition to a continuous improvement

state


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The Dimensions of Business Process

Reengineering- Andrews & Stalick (1 of 3)

Physical/Technical Layer

Process structure

Technical structure

Organization structure


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The Dimensions of Business

Process Reengineering

(2 of 3)

Infrastructure Layer

Reward structure

Measurement systems

Management methods


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The Dimensions of Business

Process Reengineering(3 of 3)

Value Layer

Organizational culture

Political power

Individual belief systems


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The Top Ten Ways to Fail at

Reengineering(1 of 2)

1. Dont reengineer but say that you are.

2. Dont focus on processes.

3. Spend a lot of time analyzing the current

situation.

4. Proceed without strong executive leadership.5. Be timid in redesign.

Hammer & Champy, The Reengineering Revolution, 1995


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The Top Ten Ways to Fail at

Reengineering(2 of 2)

6. Go directly from conceptual design to

implementation.

7. Reengineer slowly.

8. Place some aspects of the business off-

limits.

9. Adopt a conventional implementation style.

10. Ignore the concerns of your people.


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Benchmarking

Benchmarking is the search for the

best practices that will lead to

superior performance of an

organization.


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Benchmarking is NOT

A cure for all organizational ills

A means to justify blatant personnel cuts

A one-shot program

A process cookbook with no creativity

A process to conduct industrial espionage

A one-way information flow

An improvement tool requiring little cost or effort


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Benchmarking pproaches

Performance benchmarking

To identify candidates for conductingbenchmarking studies

Process benchmarking

To identify the best practices


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Types of Benchmarking( 1 of 3)

Internal

Comparing yourself against a similar

process, product, or service withinyour

own organization


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Types of Benchmarking(2 of 3)

Competitive

Comparing yourself against the toughest

externalcompetitor or against world-

class companies in your industry


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Types of Benchmarking(3 of 3)

Generic/Functional

Comparing yourself against a world-class company that is not even in your

industry, but that uses a process similar

to yours


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Benchmarking Process( 1 of 6)

1. Getting Organized

Obtain management buy-in

Communicate and educate benchmarkingconcepts

Plan the overall benchmarking process

Address fear and concerns


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Benchmarking Process(2 of 6)

2. Preparing to Benchmark

Identify process to benchmark

Establish benchmark team

Understand existing process

Determine process metrics


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3. Conduct Research

Who performs similar processes

Who performs the best What information is needed

4. Select the organization to Benchmark

Establish a relationship Reach an agreement on the exchange


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5. Collect Data and Information

Identify sources of data/information

Site visitsInterviewsThird partiesDocuments

Plan and collect data/information


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6. Analyze and Adapt the Process

Compare the data/information

Determine process gaps

Establish improvement goals

Design the improved process

Estimate the improvement


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7. Implement the New Process

Train the affected staff

Implement the process on a trial basis Monitor the results

Adjust and adapt

Adopt the process Celebrate