Presentation Outline

Business Process Reengineering

• General Introduction

• Business Process Reengineering

BPR Symbols
• Understand and be able to implement a BPR
Strategy
• Understand the main challenges in implementing a
BPR Strategy
• Conclusion: Summary

Spectrum of Change Automation

• refers to computerizing
• Automation processes to speed up
the existing tasks.
• Rationalization of
procedures • improves efficiency and
effectiveness.
• Reengineering

• Paradigm shift

Rationalization of Procedures Business Process Reengineering

• refers to streamlining of • refers to radical redesign of

standard operating business processes.
procedures, eliminating • Aims at
obvious bottlenecks, so • eliminating repetitive,
that automation makes paper-intensive,
bureaucratic tasks
operating procedures
• reducing costs significantly
more efficient.
• improving product/service
• improves efficiency and quality.
effectiveness.

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Paradigm Shift
Business Process Reengineering
• refers to a more radical • “Reengineering is the fundamental rethinking and radical
form of change where redesign of business processes to achieve dramatic
the nature of business improvements in critical, contemporary measures of
performance such as cost, quality, service, and speed.”
and the nature of the
organization is
questioned.
• improves strategic
standing of the
organization.

Key Words
Key Words
• Fundamental
• Dramatic
• Why do we do what we do?
• Reengineering should be brought in “when a need exits for heavy blasting.”
• Ignore what is and concentrate on what should be. • Companies in deep trouble.
• Radical • Companies that see trouble coming.
• Business reinvention vs. business improvement • Companies that are in peak condition.
• Business Process
• a collection of activities that takes one or more kinds of inputs and creates an
output that is of value to a customer.

4 5

BPR is Not?

• BPR may sometimes be mistaken for the following five tools:

• 1. Automation is an automatic, as opposed to human,

BPR & The Organization operation or control of a process, equipment or a system; or
the techniques and equipment used to achieve this.
Automation is most often applied to computer (or at least
electronic) control of a manufacturing process.
• 2. Downsizing is the reduction of expenditures in order to
become financial stable. Those expenditures could include
but are not limited to: the total number of employees at a
company, retirements, or spin-off companies.

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 BPR is Not? Reengineering & Continuous Improvement--
Similarities
• 3. Outsourcing involves paying another company to
provide the services a company might otherwise Reengineering Continuous Improvement
have employed its own staff to perform. Similarities
Outsourcing is readily seen in the software Basis of analysis Process Process
development sector. Performance measurement Rigorous Rigorous
• 4. Continuous improvement emphasizes small and Organizational change Significant Significant
Behavioral change Significant Significant
measurable refinements to an organization's Time investment Substantial Substantial
current processes and systems. Continuous
improvements’ origins were derived from total
quality management (TQM) and Six Sigma.

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Reengineering & Continuous Improvement-- What is a Process?

Differences
• A specific ordering of work activities across time and space, with a
Reengineering Continuous Improvement beginning, an end, and clearly identified inputs and outputs: a
Differences structure for action.
Level of change Radical Incremental
Starting point Clean slate Existing process
Participation Top-down Bottom-up
Typical scope Broad, cross-functional Narrow, within functions
Risk High Moderate
Primary enabler Information technology Statistical control
Type of change Cultural and structural Cultural

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What is a Business Process? Why Reengineer?

• A group of logically related tasks that use the firm's resources to • Customers
provide customer-oriented results in support of the organization's • Demanding
objectives • Sophistication
• Changing Needs

• Competition
• Local
• Global

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 Customer Demands
Why Reengineer?
• expect us to know everything
• to make the right decisions • Competition
• Local
• to do it right now • Global
• to do it with less resources
• Change
• to make no mistakes
• Technology
• expect to be fully informed • Customer Preferences

Business Process Reengineering Why Organizations Don’t Reengineer?

WHY ?
• Complacency
Integrate people, technology, & organizational culture
To Respond to rapidly changing technical & business • Political Resistance
environment and customer’s needs to achieve Big
performance gains • New Developments

• Fear of Unknown and Failure

Performance

• BPR seeks improvements of

• Cost
•
•
Quality
Service
BPR Symbols
• Speed

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Business Process Flowchart Symbols Business Process Flowchart Symbols

An Activity A Predefined Process

A Document Start The Start of a Process

End The End of a Process

A Decision

Representing a Relation

Data (input as outputs)

Business Process Flowchart Symbols Data Flowchart Symbols

Continuation of the process at the same page An Activity

at an equal symbol with the same number. Used
when a relation arrow crosses another relation arrow
A Document
Off-Page Connector - Process will continue on the
next page

A Decision

Integration Relation - A relation to another module is

identified and described
Flat Data File (input as outputs)

Data Flowchart Symbols

Manual Data Item

A Database File
Rules For Data Symbols
Representing a Relation

Continuation

Off-Page Connector

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Rules For Data Symbols Rules For Data Symbols
Start Symbol used to identify the start of a business process Continuation symbol within the same number must be
I
present twice on the same page
Generate
Purchase Activities must be described as a verb
Order Purchase
Order Name the document

OK? Yes Decisions have only two possibilities (Yes & No)
Off- Page Connector is used to continue a process at the
No
A next page or to let the process to flow over at the previous
to the next page. If more than one is needed use A, B, C,
D…
Crossing lines are not allowed

Posting
of Bonus Name the data
End If one side of the decision has no further processes
defined this symbol has to be used

Rules For Data Symbols Version Management

Predefined Processes always have a relation to level and
Sub-Process stream by a number in the line below a sub-process
Delivery description
BC 4.04 A predefined process must be described in a different
flowchart. To make the relation clear between the
predefined process and the belonging flowchart a unique
alpha numeric number should be assigned to this
predefined process.
• For different versions of a business process or data flow some
mandatory information must be on the flowchart.
• Name of the business process
• Unique number of the business process
• Revision number
• Date of last change
• Author
• Page number with total pages

The C’s related to

Organization Re-engineering Projects
The 3C’s of The 4C’s of effective
organization Re- teams:
engineering:
Implementing a BPR Strategy - Customers - Commitment
- Competition - Cooperation
- Change - Communication
- Contribution

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Key Steps 1. Select the Process & Appoint
Process Team
• Two Crucial Tasks
Select The Process & Appoint Process Team
• Select The Process to be Reengineered
Understand The Current Process
• Appoint the Process Team to Lead the Reengineering Initiative

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan

Select the Process Select the Process

• Review Business Strategy and Customer Requirements • Select Correct Path for Change

• Select Core Processes • Remember Assumptions can Hide Failures

• Understand Customer Needs • Competition and Choice to Go Elsewhere

• Don’t Assume Anything • Ask - Questionnaires, Meetings, Focus Groups

Appoint the Process Team Core Skills Required

• Appoint BPR Champion • Capacity to view the organization as a whole

• Identify Process Owners • Ability to focus on end-customers

• Establish Executive Improvement Team • Ability to challenge fundamental assumptions

• Provide Training to Executive Team • Courage to deliver and venture into unknown areas

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Core Skills Required Use of Consultants

• Ability to assume individual and collective responsibility
• Used to generate internal capacity
• Appropriate when a implementation is needed quickly
• Ensure that adequate consultation is sought from staff so that the
initiative is organization-led and not consultant-driven
• Control should never be handed over to the consultant

2. Understand the Current Process 2. Understand the Current Process

•Develop a Process Overview •Clearly Identify Improvement

•Clearly define the process Opportunities
• Mission •Quality
• Scope •Rework
• Boundaries •Document the Process
•Set business and customer measurements •Cost
•Understand customers expectations from •Time
the process (staff including process team) •Value Data

3. Develop & Communicate Vision of

3. Understand the Current Process
Improved Process
•Carefully resolve any inconsistencies • Communicate with all employees so that they are aware of the vision
of the future
•Existing -- New Process
•Ideal -- Realistic Process • Always provide information on the progress of the BPR initiative -
good and bad.

• Demonstrate assurance that the BPR initiative is both necessary and

properly managed

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3. Develop & Communicate Vision of 4. Identify Action Plan
Improved Process
• Promote individual development by indicating options that are • Develop an Improvement Plan
available
• Appoint Process Owners
• Indicate actions required and those responsible
• Simplify the Process to Reduce Process Time
• Tackle any actions that need resolution
• Remove any Bureaucracy that may hinder implementation
• Direct communication to reinforce new patterns of desired behavior

4. Identify Action Plan 4. Identify Action Plan

• Remove no-value-added activities • Construct in-house metrics and targets

• Standardize Process and Automate Where Possible • Introduce and firmly establish a feedback system

• Up-grade Equipment • Audit, Audit, Audit

• Plan/schedule the changes

5. Execute Plan

• Qualify/certify the process

• Perform periodic qualification reviews
• Define and eliminate process problems
• Evaluate the change impact on the business and on customers Information Technology & BPR
• Benchmark the process
• Provide advanced team training

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Benefits From IT
• Assists the Implementation of Business Processes
• Enables Product & Service Innovations
• Improve Operational Efficiency
• Coordinate Vendors & Customers in the Process Chain
Common Problems with BPR
• Process Simplification is Common - True BPR is Not
• Desire to Change Not Strong Enough
• Start Point the Existing Process Not a Blank Slate
• Commitment to Existing Processes Too Strong
• REMEMBER - “If it isn’t broke …”
How to Avoid BPR Failure
• To avoid failure of the BPR process it is recommended that:
• BPR must be accompanied by strategic planning, which addresses
leveraging Information technology as a competitive tool.
• Place the customer at the centre of the reengineering effort,
concentrate on reengineering fragmented processes that lead to
delays or other negative impacts on customer service.
• BPR must be "owned" throughout the organization, not driven by
a group of outside consultants.
• Case teams must be comprised of both managers as well as those
who will actually do the work.
BPR Challenges
Common Problems with BPR
• Process under review too big or too small
• Reliance on existing process too strong
• The Costs of the Change Seem Too Large
• BPR Isolated Activity not Aligned to the Business Objectives
• Allocation of Resources
• Poor Timing and Planning
• Keeping the Team and Organization on Target
How to Avoid BPR Failure
• The Information technology group should be an
integral part of the reengineering team from the
start.
• BPR must be sponsored by top executives, who are
not about to leave or retire.
• BPR projects must have a timetable, ideally
between three to six months, so that the
organization is not in a state of "limbo".
• BPR must not ignore corporate culture and must
emphasize constant communication and feedback.
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Summary Summary

• Reengineering is a fundamental rethinking and redesign of business • Don’t assume anything - remember BPR is fundamental rethinking of
processes to achieve dramatic improvements business processes

• BPR has emerged from key management traditions such as scientific

management and systems thinking

• Rules and symbols play an integral part of all BPR initiatives

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