Reengineering - Quick Overview

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This presentation describes the key concepts associated with Reengineering. I had used this slide-deck recently for a workshop for my team members and I thought I would share the same for benefit for others. Please do write to me in case you want to discuss the concepts or to share your experience in teaching/implementing it.

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Reengineering - Quick Overview

  1. 1. Rohit Mathur Director, Business Development MindTree, Seattle, USA [email_address] Reengineering
  2. 2. Slide
  3. 3. BPR: What it means? Slide <ul><li>Reengineering is the: </li></ul><ul><li>fundamental rethinking </li></ul><ul><li>and radical redesign of </li></ul><ul><li>business processes to </li></ul><ul><li>achieve dramatic </li></ul><ul><li>improvements in critical, </li></ul><ul><li>contemporary measures </li></ul><ul><li>of performance, such as </li></ul><ul><li>cost, quality, service and </li></ul><ul><li>speed </li></ul>
  4. 4. BPR: What it means? <ul><li>Fundamental </li></ul><ul><ul><li>Ask the most basic questions about the company and how they operate? </li></ul></ul><ul><ul><li>Why do they do what they do? </li></ul></ul><ul><ul><li>Why do they do it that way? </li></ul></ul><ul><ul><ul><li>Look at the tacit rules and assumptions that underlie the way they conduct their business </li></ul></ul></ul><ul><ul><ul><li>Begin with no assumption and no given </li></ul></ul></ul><ul><ul><li>Reengineering first determines what a company must do, then how to do it </li></ul></ul><ul><ul><li>It ignores what is and focuses on what should be </li></ul></ul>Slide
  5. 5. BPR: What it means? (contd.) <ul><li>Radical </li></ul><ul><ul><li>Derived from Latin word radix , meaning “root” </li></ul></ul><ul><ul><li>Getting to the root of the things </li></ul></ul><ul><ul><li>Not making superficial changes or fiddling with what is already in place, but throwing away the old </li></ul></ul><ul><li>Dramatic </li></ul><ul><ul><li>Isn’t about making marginal or incremental improvements but about achieving quantum leaps in performance </li></ul></ul><ul><ul><li>Three kind of companies that undertake reengineering </li></ul></ul><ul><ul><ul><li>Companies that find themselves in deep recession </li></ul></ul></ul><ul><ul><ul><li>Companies that are not yet in trouble but whose management has the foresight to see trouble coming </li></ul></ul></ul><ul><ul><ul><li>Companies that are in peak condition; they have no discernible difficulties, either now or on the horizon, but their managements are ambitious and aggressive </li></ul></ul></ul>Slide
  6. 6. BPR: What it means? (contd.) <ul><li>Processes </li></ul><ul><ul><li>Defined as collection of activities that takes one or more kinds of input and creates an output that is of value to the customer </li></ul></ul><ul><li>Downsizing and Restructuring only means doing less with less; reengineering, by contrast, means doing more with less </li></ul><ul><li>Reengineering and quality programs </li></ul><ul><ul><li>Reengineering is not the same as quality improvement, TQM etc. </li></ul></ul><ul><ul><li>Quality programs and reengineering share a number of common themes </li></ul></ul><ul><ul><li>Both recognize the importance of processes </li></ul></ul><ul><ul><li>Both start with the needs of customers and work backwards </li></ul></ul>Slide
  7. 7. BPR: What it means? (contd.) <ul><li>Reengineering and quality programs (contd.) </li></ul><ul><ul><li>However, quality programs work within the framework of a company’s existing processes and seek to enhance them by means of what the Japanese call Kaizen, or continuous incremental improvements </li></ul></ul><ul><ul><ul><li>Aim is to do what we already do, only to do it better </li></ul></ul></ul><ul><ul><li>Reengineering seeks breakthroughs not by enhancing existing processes, but by discarding them and replacing them with entirely new ones </li></ul></ul>Slide
  8. 8. BPR – Recurring themes <ul><li>Several jobs are combined into one </li></ul><ul><ul><li>Compressing responsibility of for various steps and assigned it to one person </li></ul></ul><ul><ul><li>Creation of case worker or case team </li></ul></ul><ul><li>Workers make decisions </li></ul><ul><li>The steps in the process are performed in a natural order </li></ul><ul><ul><li>Linear sequencing of tasks imposes an artificial precedence that slows work down </li></ul></ul><ul><ul><li>In reengineering processes, work is sequenced in terms of what needs to follow what </li></ul></ul><ul><li>Processes have multiple versions </li></ul><ul><ul><li>Processes with multiple versions or paths usually begin with a “triage” to determine which version works best in a given situation </li></ul></ul>Slide
  9. 9. BPR – Recurring themes (contd.) <ul><li>Work is performed where it makes the most sense </li></ul><ul><ul><li>Shifting of work across organization boundaries </li></ul></ul><ul><li>Checks and controls are reduced </li></ul><ul><ul><li>Reengineered processes use controls only to the extent that they make economic sense </li></ul></ul><ul><ul><li>Reengineered processes often have aggregate or deferred controls </li></ul></ul><ul><ul><ul><li>These control systems will, by design, tolerate moderate and limited abuse, by delaying the point at which abuse is detected or by examining aggregate patterns rather than individual instances </li></ul></ul></ul><ul><ul><ul><li>Any possible increase in abuse is compensated by dramatically lowering the costs and other encumbrances associated with the control itself </li></ul></ul></ul><ul><li>Reconciliation is minimized </li></ul><ul><ul><li>Cutting back on the external contact points that a process has, thereby reducing the chance that inconsistent data requiring reconciliation will be received </li></ul></ul>Slide
  10. 10. Who will reengineer <ul><li>Leader </li></ul><ul><ul><li>A senior executive who authorizes and motivates the overall reengineering effort </li></ul></ul><ul><li>Process owner </li></ul><ul><ul><li>A manager with responsibility for a specific process and the reengineering effort focused on it </li></ul></ul><ul><li>Reengineering team </li></ul><ul><ul><li>A group of individuals dedicated to the reengineering of a particular process, who diagnose the existing process and oversee its redesign and implementation </li></ul></ul><ul><li>Steering committee </li></ul><ul><ul><li>A policy-making body of senior managers who develop the organization’s overall reengineering strategy and monitor its progress </li></ul></ul>Slide
  11. 11. Embark on reengineering <ul><li>Case for action </li></ul><ul><ul><li>Says why the company must reengineer </li></ul></ul><ul><ul><li>Must be so persuasive that no one in the organization will think that there is any alternative to reengineering </li></ul></ul><ul><ul><li>Should be brief – 5-10 pages at most – and blunt </li></ul></ul><ul><ul><ul><li>Should have: </li></ul></ul></ul><ul><ul><ul><ul><li>Business context </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Business problems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Marketplace demands </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Diagnostics </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cost of inaction </li></ul></ul></ul></ul><ul><li>Vision statement </li></ul><ul><ul><li>Here is what we want to be </li></ul></ul>Slide
  12. 12. Who will reengineer (contd.) <ul><li>Reengineering czar </li></ul><ul><ul><li>An individual responsible for developing reengineering techniques and tools within the company and for achieving synergy across the company’s separate reengineering projects </li></ul></ul><ul><li>In an ideal world: </li></ul><ul><ul><li>The Leader appoints the process owner, who convenes a reengineering team to reengineer the process, with the assistance from the czar and under the auspicies of the steering committee </li></ul></ul>Slide
  13. 13. What you will discover during reengineering? <ul><li>You don’t need to be an expert to redesign a process </li></ul><ul><li>Being an outsider helps </li></ul><ul><li>You have to discard preconceived notions </li></ul><ul><li>It’s important to see the things through the customer’s eyes </li></ul><ul><li>Redesign is best done in teams </li></ul><ul><li>You don’t need to know much about the current process </li></ul><ul><li>It’s not hard to have great ideas </li></ul><ul><li>Redesign can be fun </li></ul>Slide
  14. 14. Thank you <ul><li>Rohit Mathur </li></ul><ul><li>Director, Business Development </li></ul><ul><li>MindTree, Seattle, USA </li></ul><ul><li>[email_address] </li></ul>

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