B.P.R.

1
B.P.R.

• BUSINESS Process 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
• Hammer Champy, 1990)

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Change

• Management practices have changed from the system
  first identified by Adam Smith in the 1700s
  where
• workers performing small, specialised tasks in a
  mass production process

3
Principles of BPR

• Operations Should Be Organised Around the Total
  Process Which Adds Value for Customers Rather
  Than the Functions Which Perform the Various
  Stages of Value Adding
• Rethink Business Processes in a Cross-functional
  Manner Which Organises Work Around the Natural
  Flow of Information.
• Strive for Dramatic Improvements
• Integrate Functions
• Do Not Separate Those Who Do the Work From Those
  Who Control and Manage the Work

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What is Reengineering?

• To Reengineer a Process Try to Combine Tasks and
  Eliminate Steps
• Look for Opportunities to Boost Worker Efficiency
  With Technology
• Start From Scratch - Forget Ho Youve Handled the
  Process So Far and Decide How Best to Handle Them
  in the Future

5
Take Broader View

• Companies That Focus on Task Often Lose Sight of
  Their Larger Objectives. They May Measure Workers
  Ability to Handle Individual Tasks, but Dont
  Look at Efficiency, Cost, Purpose of an Entire
  Process Etc.

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How Reengineering Works

• A reengineering team carefully examines the
  outputs and inputs of a process
• Asks how it might streamline, combine or
  eliminate inputs while adding value to the
  outputs
• Example Kodak (1987)

7
Kodak vs Fuji (1987)

• Fuji Announces New Single-use Preloaded Camera.
• Customer Takes Picture, Return Camera to Fuji Who
  Process the Film, Breakdown the Camera and
  Salvage Parts for Reuse.

• Kodaks Two Existing Design Processes Couldnt
  Meet the Need for Rapid Turnaround
• Kodaks Traditional Design Process Would Take 70
  to Produce a Rival Camera
• Rather Than Look at Org Chars, Kodak Focussed on
  the Design Process Itself - Brought in CAD/CAM
• New Technology Replaced Drafting Tables and
  Allowed Collaboration and Access to Latest Data
• Development Time Halved

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The Reengineers

• Leader
• Authorises and Motivates the Overall Effort
• Persuades the Organisation and Employees That
  Radical Change Is Worthwhile
• Feels a Passion to Reinvent the Company
• Process Owner
• Senior Level Manager Responsible for Specific
  Process and the Reengineering on It
• Assembles a Reengineering Team
• Inspire and Motivate the Team
• Obtain Resources for Team

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The Reengineers - contd

• Reengineering Team
• 5 - 10 Individuals
• Examine the Existing Processes and Oversee the
  Redesign and Implementation
• Consists of Insiders and Outsiders (Consultants
  or People From Different Functions - Objectivity)
• One Team Reengineers One Process at a Time
• 75 of Their Time Committed
• Duration One Year

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What new processes look like

• Several Jobs Are Combined Into One
• The Steps in a Process Are Performed in a Logical
  Order Instead of the Artificial Sequence Imposed
  by Mass Production
• Processes Can Have Multiple Versions
• Work Is Performed Where It Makes the Most Sense
• Checks and Controls Are Reduced

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Think Inductively

• Deductive Thinking Involves Defining a Problem
  and Then Seeking Solutions
• Inductive Thinking - Instead of Searching for One
  Correct Answer, You Search for As Many Promising
  Answers As Possible
• It Helps You Find Better Processes and Ways to
  Exploit the Latest Technology

12
Changing the Culture

• Executives Assess the Current Culture Authority,
  Values, Norms, Rewards and Sanctions
• Where Are the Problems Areas
• Identify the Way Changes Can Be Made to Do Things
  More Attractively.
• Simultaneous Loose-tight Properties I.E.Culture
  Demanded Compliance, Performance and Obedience to
  Key Norms and at the Same Time It Permitted
  Freedom to Take Risks and Innovate ( Peters and
  Waterman, In Search of Excellence)

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Creativity

• The Important thing is not to stop questioning
• Albert Einstein

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Characteristics of Creativity

• Mental Flexibility - Ability to Keep Your Mental
  Outlook Changeable
• Option Thinking - the Way to Have Good Ideas Is
  to Have Plenty of Them
• Big Picture Thinking - Helicopter View They
  Have Ability to Envision the Impact of a Solution
  to a Problem
• Selling Your Ideas - Get Inside the Head of
  Others and Rearrange Their Understanding
• Intellectual Courage - Push Your Idea in the
  Face of Apathy, Rejection, Bigotry and Hostility

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Making the Move

• How Do You Make the Organisation Creative and
  Adaptive?
• Define Your Culture
• Communicate the Need
• Remodel the Reward System
• Remodel the Structures
• Preach the Gospel

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Break the Rules

• Inductive Thinkers Use New Technology to Break
  Rules That Limit How They Conduct Their Work
• Today Information Can Appear in Several Places at
  One Time - Computer Networks and Database
  Technology
• Relatively Unskilled People Can Operate Computer
  Technology - Expert-systems Technology Captures
  the Expertise of Specialists in Computer Software

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What to Reengineer?

• Three Criteria for Selection
• Need Processes in Trouble, a Product
  Development Process Hasnt Delivered a New
  Product in Five Year Employees Type Data From a
  Computer Printout Into a Computer Terminal
• Importance - Processes With Greatest Impact on
  Customer E.G Cost, On-time Delivery Features
• Feasibility Estimate the Likelihood of Success
  for Reengineering Effort.

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Implementation of BPR

• Steering Committee Established
• Define Improvement Objectives and Develop a
  Vision Statement for the Process
• Manage the Project Against Agreed Timescales
• Provide Resources and Ensure Appropriate People
  Are Involved in the Project
• Ensure People Involved Have Right Set of Skills
• Identify Issues and Resolve Them
• Challenge the Status Quo
• Resolve Functional Conflicts

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Process Design Team

• Team Comprises 6-8 Members
• Identify and Map the Current State of the Process
  Under Review
• Define and Understand the Existing Processes
• Identify the Critical Process
• Challenge All Assumptions Associated With the
  Process
• Accept No Boundaries and Demarcations
• Find Breakthrough Improvements
• Design New Process
• Ensure People Affected Are Involved in the
  Process
• Decide How the Changes Will Be Measured and
  Assessed
• Pilot Changes and Modify the Design As
  Appropriate
• Present Recommendations to Project Sponsor and
  Steering Committee
• Communicate With Those Affected by the Change.

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Benefits of BPR

• Increased Customer Focus
• Improved Profitability
• Improved Quality and Control
• Improved Corporate Flexibility
• Increased Speed of Service Delivery and
  Responsiveness
• Improved Measurability Within the Process

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Criticisms of BPR

• Can Be Seen As a Management Fad
• Seen As an Excuse to Get Rid of Staff by Putting
  Short Term Interests of the Shareholder Above
  Long Term Employee and Organisational Interests
• Core Experience Lost From Operation.