REENGINEERING

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REENGINEERING

• A PowerPoint Presentation
• By
• Matt Staufer

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OVERVIEW

• Reengineering Definitions
• Brainstorming Exercise
• Goal of Reengineering
• The Nut and Bolts
• Why does reengineering fail?
• Use and Implementation
• Example
• Exercise
• Summary
• References

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WHAT IS REENGINEERING?

• The fundamental rethinking and radical redesign
  of the business process to achieve dramatic
  improvements in critical, contemporary measures
  of performance, such as cost, quality, service
  and speed.

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WHAT IS REENGINEERING? (Continued)

• A radical change approach that integrates
  physical and technical solutions with
  organization structure, management infrastructure
  and organization cultural change solutions.

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WHAT IS REENGINEERING?Quotes

• Its basically taking an axe and a machine gun
  to your existing organization.
  Computerworld, Jan. 24, 1994
• Reengineering must be initiated by someone who
  has enough status to break legs.
  
  Planning Review, May/June 1993
• Reengineering will require a personality
  transplant. . . . a lobotomy.
  Computerworld, June 1, 1987

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GOAL OF REENGINEERING

• Reengineering is typically chartered in response
  to a breakthrough goal for rapid, dramatic
  improvement in process performance.

Continuous improvement refines the breakthrough
Breakthrough Improvement
Continuous improvement activities peak time to
reengineer process
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BRAINSTORMING EXCERCISE

• How can an organization increase the likelihood
  that a reengineering process will provide lasting
  improvements for the agency?

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NUTS AND BOLTSThe Reengineering Process

• Select a reengineering team
• Vital to the communication of the project
• Important that they have the support and
  resources from top management
• They should work as a team, and not focus on
  individuals
• Recognition that the total redesign is necessary

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NUTS AND BOLTSThe Reengineering Process

• Establish Goals
• Define and communicate what actions will be used
• Vision of the results stated clearly
• Analyze the gap between the current performance
  and desired performance
• Focus on goals not specifications

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NUTS AND BOLTSThe Reengineering Process

• Identify the processes that need to be
  reengineered.
• Determine the order in which processes must be
  changed
• Priorities highlighted
• Create time schedules

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NUTS AND BOLTSThe Reengineering Process

• Understand how reengineering may affect people
  and their jobs
• Communication within the organization is vital
• Reengineering should involve the people,
  management must be open to their suggestions
• The people involved must be for, not against the
  reengineering process.

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NUTS AND BOLTSThe Reengineering Process

• Grasp the current process
• Create outlines and maps of the current process
• Diagnose the real problems
• Better understanding of the current process will
  enrich the process of reengineering

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NUTS AND BOLTSThe Reengineering Process

• Redesigning of the Process
• Think with fresh ideas
• Creativity
• Confidence

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NUTS AND BOLTSThe Reengineering Process

• Use the available tools
• Benchmarking
• Flowcharting
• Computer simulation
• Live simulation
• Models
• Surveys
• Statistics

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NUTS AND BOLTSThe Reengineering Process

• Implement the reengineered process
• Phase introduction
• Pre-training

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NUTS AND BOLTSThe Reengineering Process

• Constantly evaluate the reengineered processes
• Are employees adequately trained
• Is the process working as hoped for

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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 peoples values and beliefs
• Being willing to settle for minor results
• Assigning someone who does not understand
  reengineering to lead the effort

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FOUR STAGES OF CHANGE

• Shock
• Anger
• Denial
• Acceptance

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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

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HOW TO IMPLEMENT3 steps to transition of change

• 1. Discontinuation of the old way of doing
  business
• Dont be surprised by overreaction and resistance
• Identify who is losing what and help them accept
  the importance of the loss
• Communicate what is over and what is not
• Mark the ending and avoid dragging it out
• Compensate for losses

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How to implement3 steps to transition of change

• 2. Migration- letting go of the old way and
  beginning a new way
• Communicate and keep people informed of
  progression
• Strengthen and encourage intragroup connections
• Create temporary systems or ways to deal with
  this period

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How to implement3 steps to transition of change

• 3. Starting the new way of doing business
• Be consistent
• Ensure quick success
• Reward new behaviors, not old ones
• Celebrate the success

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Real World Example

• Hallmark
• Product cycle time was approximately 3 years
• Two-thirds of their time was spent in developing
  the plan and concept for the card
• Their goal was to get new products to market
  within one year
• After successfully reengineering their process
  they were able to bring a new card to market
  eight months ahead of schedule

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A Short Exercise

• The four stages of change
• List examples of processes in your organization
  that may be a candidate for reengineering.

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Summary

• Reengineering is the fundamental rethinking and
  radical redesign of the business process to
  achieve dramatic improvements in critical,
  contemporary measures of performance, such as
  cost, quality, service and speed.
• A persons resistance to change needs to be
  addressed and overcome
• Why does communication fail?

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Summary

• Communication and is vital to a successful
  implementation
• Hallmark, a successful reengineering story

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Bibliography

• Andrews, Dorine. Choose the Right Recipe for
  Success. Http//www.reengineering.com/aricles/ap
  r96/Consjour.html. 04 May 2002.
• "Business Process Reengineering."
  Http//www.business majors.about.../weekly/aa06089
  8.htm?termsreengineering02 May 2002.
• "Business Process Reengineering and
  Organizational Change." Http//www.c3i.osd.mil/bp
  r/bprdc/7223c7.htm. 02 May 2002.
• Russell, S. Roberta, Taylor, W. Bernard.
  Operation Management. Upper Saddle River
  Prentice Hall, 2000.
• Shandler, Donald. It's Time to Reengineer
  Training. Http//www.reengineering.com/aricles/a
  pr96/Consjour.html. 04 May 2002.