CONDITIONS RIPE FOR BPR (HAMMER STYLE)

1
CONDITIONS RIPE FOR BPR(HAMMER STYLE)

• Unarticulated/out-of-date rules
• Not right first time
• Sequential process
• Lack of focal point of responsibility
• Worker desire for autonomy
• Management trust of workers
• Lack of ability to respond

2
SUMMARY OF BPR PRINCIPLES (HAMMER STYLE)

• 1. Focus on outcomes, not tasks
• 2. With those who use the output, doing it
  themselves
• 3. And processing the information too
• 4. Without regard to geographic barriers
• 5. Linking functions (interdependence)
• 6. And allowing decision making authority
  (empowerment)

3
BPR RISKS

• Transition is hell -- may lost customers
• Transition never ends -- when is enough?
• Legacy systems will get in the way
• Current information technology still has its
  limits

4
BPR SCOPE

• Reinvent the business youre in
• And/Or
• Reinvent what business youre in

5
IT-ENABLED BUSINESS TRANSFORMATION
Establishing Direction
Design/Redesign
Implementation

• Defining a broad vision for change
• Building infrastructure Human
  Technical Capital
• Clarifying the vision and establishing the
  focus for change Organizational and
  interorganizational prototypes
• Gaining commitment Cascading levels of
  agreement
• Assessing risk/return

• Selecting partners
• Developing detailed design Business
  process redesign Management
  process redesign (structure,
  control, HRM, culture) Information
  technology
• Implementing technology -- applying project
  manage- ment techniques to keep on schedule
  within budget
• Managing risks
• Detailed cost-benefit analysis
• Developing education communication materials

• Developing roll-out schedule
• Implementing change
• Managing organizational learning

Feedback and Evaluation
Source Applegate, L.M., IT-Enabled Business
Transformation, Boston Harvard Business School
Publishing, 1992.
6
REENGINEERING PROCESS
Mobilization
Diagnosis
Redesign
Transition

• Create a Business Process Map
• Appoint Process Owners and Establish
  Governance Structure
• Formulate Reengineering Strategy
• Determine Process Prioritization
• Assign Reengineering Team Members

• Bound and Scope the Process
• Understand Customer Needs
• Understand the Current Process
• Identify Weaknesses in the Existing
  Design
• Set Targets for New Designs

• Implement Initial Field Release (Pilot)
• Realize Initial Benefits
• Adjust the Business Systems
• Develop Supporting Infrastructure
• Rollout and Institution- alize
• Implement Succeeding Releases

• Create Breakthrough Process Design
  Concept
• Redesign the Entire Business System
• Develop Detailed Process Design
• Build Laboratory Prototype
• Test, Simulate, Learn, and Iterate

7
REVIEW OF FIVE STEP PROCESS (D S)

• 1. Vision Process Objectives -- Who How is
  This Determined? Input From
  Customers/Marketplace Technology Transfer
  from Another Company/Industry An
  Executive Brainstorm
• 2. Processes to Be Redesigned Exhaustive
  (Getting Something Done?) High Impact (One
  Gets Better -- Others Get Worse?)

8

• 3. Existing Processes Dont Repeat
  Problems Likely Doing Something Right
• 4. IT Levers (Discuss Table)
• 5. Prototype of New Process Building
  Prototypes Not Easy Pilot Identification
  Control

9
KEYS TO THE DEMISE OF BUREAUCRACY

• Knowledge of people -- is there a gap developing?
  Are people committed to continuous learning?
• Willingness to accept responsibility for
  decisions/actions -- were going in two different
  directions at the same time.
• Not every job needs reinventing or can be
  reinvented with current technology.
• Board of Directors fulfilling their role