OSM 652- OFFICE BUSINESS PROCESS

BUSINESS PROCESS REENGENEERING CONCEPTS

2.

REENGINEERING
Business processes means tossing aside existing processes and
starting over.

Infrastructure Dimension
Support the physical/technical operational dimensions
If physical/technical changes, infrastructure must change
a)

FUNDAMENTAL
Fundamental implies that everything every assumption, every
reason, and every activity is challenged by asking why it should
be continued.

b) Measurement systems
The feedback process that provide information
on process performance
Should uncover the need of the change, reduce
the randomness and unpredictability of
process performance

RADICAL
Do not try to improve the existing situation, invent completely
new ways of accomplishing work.
DRAMATIC
Do not use business process redesign to obtain marginal
improvements, aim at order-of-magnitude improvements (ten
times). If the marginal gains 5 to 10 percent are the goal,
then continuous improvement is a more appropriate path than
reengineering.

c)

PROCESS
Focus on the business processes instead of organizational
structures

Physical/Technical Dimensions
What people can easily see and do
If the structure out of balance, many operational problem
can occur
a)

Process Structure
Consist of business process, their outcomes
and the procedures that support the process
Defines what, when and how work is
performed
For example a customer complaint handling
process could allow the customer service reps
to decide how to solve the customer problem.

b) Technology Structure
Consists of the automated communication,
networking and computer systems, data,
applications, and related technologies
(support process structure)
Fast and cheap, eliminate time-consuming and
error-producing data entry

Management Methods
Consists of the practices and techniques used
to supervise, develop, and support the people
who perform the business process
Strongly affect business process performance
(management support, empowerment,
employee involvement)

3.

Value Dimension
Define the organizational behavior and culture in the
organization
Least visible and most difficult to change

a)

Organizational culture
Consist of unspoken, collective rule and belief in
the organization
The older the culture, the more embedded the
belief and value and difficult to change.

Dimensions of Business Reengineering

1.

Reward Structure
Reward structure regulate (control) behavior
Formal and informal and financial recognition
based
Such will motivate people to take action and
excel to meet the goal

b) Political power
Can manipulate and shape the action and behavior
of other
Both formal and informal leader use the authority
or knowledge to reinforce the culture.
c)

Individual belief systems

The attitude and mental models that individuals
apply to themselves, those they work with and the
work itself.
Shape their attitudes toward others and their
behavior on the job
Situation in which need reengineering

c)

Management Method
Defines who performs, manages, and is
accountable for each business process
Include job reporting and work group
relationships

1.
2.

Increase the organizations ability to customize

products and services
Increase customer satisfaction with products and
services

3.
4.
5.
6.

7.
8.

Make it easy and pleasant for customers to do business

with your organization
Bring customers into the information channels
Decrease response time to customers, eliminate errors
and complaints, reduce time cycle
Process more customer requests and higher volume
from each customer, and deliver value-driven prices
to customers
Improve the quality of work life and individual
capabilities
Improve sharing and utilization of organization
knowledge

7.

The turmoil of integration and merger

Work processes that often conflict and
duplicate
Critical success Factor for BPR

1.

business focus a focus on all dimensions

Success depends on integrating all three
process, technology and organization
plus supporting that integration with new
infrastructure and values

2.

A methodology and project approach

Requires discipline and structure
Methodology must be systematic and fact
focused
Must articulate how to secure funding,
manage power struggles, and sell the new
ideas

3.

Time

Warning Sign of Trouble for reengineering

1.

The explosion of chaos and bureaucracy

The work process were not designed- they
evolved out of the chaos
Develop a process and rule set to fix mistake
Procedures become habitualized
Example: The new untrained employees and
veterans make mistakes unknowingly

2.

Thinking of customer
Too many organization design process based
on assumption they know what best for the
customer

3.

Automation of existing bureaucracy

Computerization reinforced bureaucracy
rather than breaking through it
automation of existing manual procedures
inexperience to computers and more paper
printouts

4.

Bottlenecks and disconnects in critical crossorganizational work process

No relationship to other units,
Must time spent, duplication of work,
Systems in each department do not
correspond with the other units

5.

Elusiveness of accountability
Most organizations are structured by function
(eg. Sales,manufacturing, etc) but essential
business processes (eg. Customer service and
support) cut across the functions. This makes it
difficult
No accountability
Loss of responsiveness and timeliness
Incomplete, inaccurate, late

6.

Chaos of downsizing
It leaves survivors demoralized
The work environment inadequately staffed,
and people with inadequate skills performing
the work tasks can no longer be processed
within their current configuration

BR takes time. Executives must be able to stick

with the program

4.

Partnership participation
BR is accomplished only as a result of efforts
by people from all over the organization
Requires flexible and trained teams

5.

Visible, active leadership

This is the most important of all the critical
success factors
Requires long-term commitment to BR in
terms of dollars, people and executive
visibility