Business process management
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Business process reengineering by www.selekt.co
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Business process management
- 1. BUSINESS PROCESS RE ENGINEERING by snapshot Joseph zaarour from selekt, www.selekt.co
- 2. 50 - % Fail with BPR attem www.selekt.co
- 3. a cliché or a no-brainer? “Wal-Mart reduces restocking time from six weeks to thirty-six hours.” ” Hewlett Packard‟s assembly time for server computers touches new low- four minutes.” “Taco Bell‟s sales soars from $500 million to $3 billion[3].” „Sanita acquires a unprofitable plant and turns it around to breaks even in < 12 months‟ www.selekt.co
- 4. agenda • the WHAT of BPR • the WHY of BPR • the HOW of BPR • common issues & obstacles • pillars of change • „success‟ criteria • company profiles • q&a / SANITA case study www.selekt.co
- 5. what is a Process? • work activities • time and space • beginning & end • inputs into outputs ie, a structure for action www.selekt.co
- 6. what is a Business Process? • sequence of activities • beginning & end • inputs into outputs • uses resources. • clearly defined structure • provides customer-oriented results ie, supports the organization's objectives www.selekt.co
- 7. what is Business Process Re engineering? • fundamental rethinking • radical redesign • of business systems Why? • to achieve dramatic improvements in measures of performance www.selekt.co
- 8. BPR is NOT… • Automation • Downsizing • Outsourcing • Continuous improvement www.selekt.co
- 9. why bother with BPR • eliminating repetitive, paper -intensive, bureaucratic tasks • reducing costs • improving product/service quality. • customers [demanding, sophist iced, changing needs, high maintenance] • competition [Local, Global] www.selekt.co
- 10. what some researchers say “ By making their people more aware of processes, ” organisations gain efficiencies of 10-15% Gartner Research Gartner BPM Summit February 2009 www.selekt.co
- 11. and some customers… “ Deal elapsed time was reduced by 60% and process complexity was reduced by ” 30%. Each deal is fully audited end-to-end. Raju Oak, Head of Process Services Kleinwort Benson – Every day, the bank brokers dozens of high-value financial transactions – including Loans, Foreign Exchanges, Fixed Deposits & Certificates of Deposit – that average over £1 billion in total daily value. www.selekt.co
- 12. which one of you out there is likely to perform BPR? • already in deep S&^! • NOT YET in trouble • doing great but looking for a competitive edge • high cost, low service, product failures • acceptable financial situation, but problems are arising, customer perception www.selekt.co
- 13. a typical / Atypical engagement • no one size fits all, but • there are common grounds: – Framework – Methodology – examples – tools www.selekt.co
- 14. a high-level framework of BPR www.selekt.co
- 15. BPR methodology [one of many] assume current process is irrelevant [start with a clean slate] • define scope & objectives • create a vision • design the new „to-be‟ process • identify GAP (between current processes, technology & structure) & Plan transition • implement solution www.selekt.co
- 16. Implement Design To-Be Reorganize Map & Analyse Prototype & As-is GAP analysis simulate Benchmark transition plans Prepare for BPR Create activity Design to-be Initiate training models Define scope & Identify Evaluate Implement vision disconnects & alternatives transition pans Build cross-functional value adding team processes Validate to-be communicate Identify customer uncover Perform trade- driven objective process off analysis pathology Develop strategic purpose www.selekt.co
- 17. the end result ex. a hire process www.selekt.co
- 18. tools • traditional: White board, Yellow stickies & paper based analysis. • software: – Visio – Lombardi,Websphere business modeler, Oracle, SAP – …other vendors out there www.selekt.co
- 19. the traditional way • figure it out yourself? • travel to remote parties? • lock team in a room for days • capture and scribe it all down? • post-It notes, whiteboards, chart paper? • convert it to a diagram/drawing? • back and forth till you finally understand your process • publish final version….? • then……start again….? www.selekt.co
- 20. software demo modeling tool • http://www.lombardisoftware.com/dow nloads/webinar-bp-overview/ • 14:00 – 20:00 www.selekt.co
- 21. not everyone succeeds with BPR • is BPR a calling ? • 50-70% will fail. • resistance to change (expect it & develop ways to confront it) – deal with EEs concerns not arguments www.selekt.co
- 22. 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 • reliance on existing process too strong www.selekt.co
- 23. change • people – Leader/Sponsor/Steering committee ($$, policy,…) – Process owner (functional) – Reengineering team – Reengineering Czar • tools • external help • culture; values have to be changed www.selekt.co
- 24. cnt‟d www.selekt.co
- 25. culture before & after My boss pays my salary make him happy Customers pays salary Keep my head down. I’m just a cog in the Every job is essential. I do make a wheel difference The more direct reports I have the more Showing up is no accomplishment . I get imp I am paid for the values I create Tomorrow will be just like today. Always I belong to a team. We fail or succeed has been together Nobody knows what tomorrow holds. Constant learning is part of my job Before After www.selekt.co
- 26. how to Avoid BPR Failure • strategic planning • benefits realization • use critical chain PM methodology • unfreeze> Transition>Refreeze • leverage Information technology • customer at the centre • "owned" throughout the organization • do not ignore corporate culture • emphasize constant communication and feedback. www.selekt.co
- 27. company profile • manufacturing or a service organization • if your business processes are inefficient you will be losing money and generating waste. "Automating a mess yields an automated mess" www.selekt.co
- 28. q&a / case study SANITA Thank you! www.selekt.co
Editor's Notes
- TestimonialsMore local news, close to the groundand what exactly has BPR got to do with it?
- What Introduce some well known and abused concepts or buzz words and their definitions Why AdvantagesHow does it work? What is the deliverable/product? Lifecycle, Stages, Methods, Tools, Examples
- 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.
- A set or sequence of activities that transform a set of inputs into a set of outputs using resources. Has a start and an end with a clearly defined structure.Provides customer-oriented results in support of the organization's objectivesOutputs: [goods or services] Resources: [methods, people, tools, material, etc]. StakeholdersEx of processes: Invoicing a customer, performing a credit analysis on a customer, placing an order, etc
- Fundamental: why do we do what we do? Why do we do it the way we do it? - ignore what is and concentrate on what should beRadical: disregard all existing structure & procedures and invent new waysDramatic: quantum leaps in performanceMeasures of performance: [cost, quality ,service ,speed]
- Automationis an automatic, as opposed to human, operation or control of a process, equipment or a system; Downsizingis the reduction of expenditures in order to become financial stable. Outsourcing involves paying another company to provide the services a company might otherwise have employed its own staff to perform. Continuous improvement emphasizes small and measurable refinements to an organization's current processes and systems. Continuous improvements’ origins were derived from total quality management (TQM) and Six Sigma.
- This is not for meIndulge with me for a minute Not only governments have paper intensive & bureaucracy trust me
- Companies in troubleCompanies not yet in trouble but see a glitch in the horizonLooking for an edge Performance issues Anticipate a change, problem, customer demand shift (industry)
- All this is fine…. In theory You are probably wondering how does this apply to me ? Or how does it actually work? concreteBefore I venture into showing what typical examples look like, I would be deceiving you if I see one size fits all. CBM by IBM heat maps…
- Or stages
- mgt commitments, align with corp strategystakeholders, schedule, goals, change managementuncover process pathology analyze as-is, bottlenecks, opportunitiesalternatives, tool, prototypereorganize, train, communicateDifference between business improvement & bpr – is a clean state startTO BE: Process has to be simple so that demands of fast service, better & cheaper quality, flexibility can be reachedNo more silos. Compress horizontally and spread (matrix) delinearizing the process. Ex task 1 & task 2 (finish to start vsstrat to start)One size fits all process days are goneReduce checks & controls (ex purchasing department to many cheks) (ex auto insurance co. take adjusters out of the process for small claims less than usd 100 . Send claimants directly to approved repair shop. Avoid overbilling by periodically checking charges with competitors. If abused, warning to get off approved list The goal of business process reengineering is to modify, refine, and enhance the interaction between process, people, and technology to help companies realize their business objectives.
- 1. Start with executive consensus on the importance of reengineeringtypical BPR projects involve cross-functional cooperation and significant changes to the status quo, the planning for organizational changes is difficult to conduct without strategic direction from the topHaving identified the customerdriven objectives, the mission or vision statement is formulated. The vision is what a company believes it wants toachieve when it is done, and a well-defined vision will sustain a company’s resolve through the stress of thereengineering process.2. Should understand the existing process before you begin – some (H&C) argue against (stating it inhibits creativity) dire straits organizations go the hammer champy way. improvement should provide dramatic results. Obhjective: identify disconnects & value adding processes3. objective of this phase is to produce one or more alternatives to the current situation that satisfy strategic goals. Identify chokepoints / areas for improvements4. Meets the most resistance. Most difficult phase. develop a transition plan from the As-Is to the redesigned process. This plan must align the organizational structure, information systems, and the business policies and procedures with the redesigned processes.5. A process cannot be reengineered overnight. Monitor progress of action & results.
- BPR is one of the most painful change exercises you’ll ever do. You won’t know what hit you until it does ! Must come from top downThere should be a significant need & a compelling reason for the process to be reengineeredWhy BPR?eliminating repetitive, paper-intensive, bureaucratic tasksreducing costs significantlyimproving product/service quality.CustomersDemandingSophisticationChanging NeedsCompetitionLocalGlobal
- REMEMBER - “If it isn’t broke …”
- Change is almost always disruptive and traumatic at times. Those who know how to anticipate it and catalyze and manage it will stay at the topDimensions of change; structural, cultural, process, cost Czar” (orchestrator of all reengineering efforts – achieve synergy with overall R projects & vision)
- Enlist the support and involvement of key peopleCreate a plan;SimpleCreated by the people at all affected levelsStructured in achievable chunksSpecific roles & responsibilitiesFlexibleSupport the plan with consistent behaviours and messagesDevelop an enabling structureCelebrate milestonesCommunicate relentlesslySpecify nature of the changeExplain whyExplain the cope of the strategy – especially is there is bad newsDevelop a graphic representation of the changeExplain criteria for success and how it will be measuredExplain how people will be rewarded for successRepeat and repeat and repeat the purpose of the change Use a diverse communication style – 2-way! Use consultants; expert &/or process
- Cultural values in some organizations are the by-products of fragmented management systems which focus of past performance, control, and enshrine hierarchy … so….Even values have to change
- Unfreeze: Release attachment between sense of identity and their environment – push them out of their comfort zoneTransition: change, even at the psychological level, is a journey rather than a simple stepRefreeze: putting down roots again and establishing the new place of stabilityCritical chain The focus is no longer on finishing individual tasks on time, but rather starting and completing these tasks as soon as possible.
- It doesn't matter if you are a manufacturing or a service organization, if your business processes are inefficient you will be losing money and generating waste. As Michael Hammer and James Champy say in their classic book "Reengineering the Corporation" - "Automating a mess yields an automated mess"