Business process reengineering involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in key performance areas like cost, quality, service, and speed. It requires selecting processes for reengineering, appointing a project team, understanding the current process, developing and communicating a vision for an improved process, identifying an action plan, and then executing the plan. Common challenges include not simplifying processes enough, overreliance on existing processes, and failing to involve IT and address organizational culture changes.

1. Business Process Reengineering

2. Business Process Reengineering
 “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.”
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3. Key Words
 Fundamental
 Why do we do what we do?
 Ignore what is and concentrate on what
should be.
 Radical
 Business reinvention vs. business
improvement
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4. Key Words
 Dramatic
 Reengineering should be brought in “when a need
exits for heavy blasting.”
 Companies in deep trouble.
 Companies that see trouble coming.
 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.
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5. What is a Process?
 A specific ordering of work activities across time
and space, with a beginning, an end, and clearly
identified inputs and outputs: a structure for
action.

6. What is a Business Process?
 A group of logically related tasks that use the
firm's resources to provide customer-oriented
results in support of the organization's
objectives

7. Why Reengineer?
 Customers
 Demanding
 Sophistication
 Changing Needs
 Competition
 Local
 Global

8. Customer Demands
• expect us to know everything
• to make the right decisions
• to do it right now
• to do it with less resources
• to make no mistakes
• expect to be fully informed

9. Why Reengineer?
 Competition
 Local
 Global
 Change
 Technology
 Customer Preferences

10. Business Process Reengineering
WHY ?
Integrate people, technology, & organizational culture
To Respond to rapidly changing technical & business
environment and customer’s needs to achieve Big
performance gains

11. Why Organizations Don’t
Reengineer?
 Complacency
 Political Resistance
 New Developments
 Fear of Unknown and Failure

12. Performance
 BPR seeks improvements of
 Cost
 Quality
 Service
 Speed

13. Implementing a BPR
Strategy

14. The C’s related to
Organization Re-engineering Projects
The 3C’s of The 4C’s of effective
organization Re- teams:
engineering:
- Customers - Commitment
- Competition - Cooperation
- Change - Communication
- Contribution

15. Key Steps
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan

16. 1. Select the Process & Appoint
Process Team
 Two Crucial Tasks
 Select The Process to be Reengineered
 Appoint the Process Team to Lead the
Reengineering Initiative

17. Select the Process
 Review Business Strategy and Customer
Requirements
 Select Core Processes
 Understand Customer Needs
 Don’t Assume Anything

18. Select the Process
 Select Correct Path for Change
 Remember Assumptions can Hide Failures
 Competition and Choice to Go Elsewhere
 Ask - Questionnaires, Meetings, Focus Groups

19. Appoint the Process Team
 Appoint BPR Champion
 Identify Process Owners
 Establish Executive Improvement Team
 Provide Training to Executive Team

20. Core Skills Required
 Capacity to view the organization as a whole
 Ability to focus on end-customers
 Ability to challenge fundamental assumptions
 Courage to deliver and venture into unknown
areas

21. Core Skills Required
 Ability to assume individual and collective
responsibility

22. Use of Consultants
 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

23. 2. Understand the Current Process
 Develop a Process Overview
 Clearly define the process
 Mission
 Scope
 Boundaries
 Set business and customer measurements
 Understand customers expectations from
the process (staff including process team)

24. 2. Understand the Current Process
 Clearly Identify Improvement
Opportunities
 Quality
 Rework
 Document the Process
 Cost
 Time
 Value Data

25. 3. Understand the Current Process
 Carefully resolve any inconsistencies
 Existing -- New Process
 Ideal -- Realistic Process

26. 3. Develop & Communicate Vision
of Improved Process
 Communicate with all employees so that they
are aware of the vision of the future
 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

27. 3. Develop & Communicate Vision
of Improved Process
 Promote individual development by indicating
options that are available
 Indicate actions required and those responsible
 Tackle any actions that need resolution
 Direct communication to reinforce new patterns
of desired behavior

28. 4. Identify Action Plan
 Develop an Improvement Plan
 Appoint Process Owners
 Simplify the Process to Reduce Process Time
 Remove any Bureaucracy that may hinder
implementation

29. 4. Identify Action Plan
 Remove no-value-added activities
 Standardize Process and Automate Where
Possible
 Up-grade Equipment
 Plan/schedule the changes

30. 4. Identify Action Plan
 Construct in-house metrics and targets
 Introduce and firmly establish a feedback system
 Audit, Audit, Audit

31. 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
 Benchmark the process
 Provide advanced team training

32. Information
Technology & BPR

33. Benefits From IT
 Assists the Implementation of Business
Processes
 Enables Product & Service Innovations
 Improve Operational Efficiency
 Coordinate Vendors & Customers in the Process
Chain

34. BPR Challenges

35. 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 …”

36. 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

37. 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.

38. 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.

39. Summary
 Reengineering is a fundamental rethinking and
redesign of business processes to achieve
dramatic improvements
 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

40. Summary
 Don’t assume anything - remember BPR is
fundamental rethinking of business processes