Reengineering - Quick Overview

Rohit Mathur Director, Business Development MindTree, Seattle, USA [email_address] Reengineering

BPR: What it means? Slide
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

BPR: What it means?
Fundamental
Ask the most basic questions about the company and how they operate?
Why do they do what they do?
Why do they do it that way?
Look at the tacit rules and assumptions that underlie the way they conduct their business
Begin with no assumption and no given
Reengineering first determines what a company must do, then how to do it
It ignores what is and focuses on what should be
Slide

BPR: What it means? (contd.)
Radical
Derived from Latin word radix , meaning “root”
Getting to the root of the things
Not making superficial changes or fiddling with what is already in place, but throwing away the old
Dramatic
Isn’t about making marginal or incremental improvements but about achieving quantum leaps in performance
Three kind of companies that undertake reengineering
Companies that find themselves in deep recession
Companies that are not yet in trouble but whose management has the foresight to see trouble coming
Companies that are in peak condition; they have no discernible difficulties, either now or on the horizon, but their managements are ambitious and aggressive
Slide

Processes
Defined as collection of activities that takes one or more kinds of input and creates an output that is of value to the customer
Downsizing and Restructuring only means doing less with less; reengineering, by contrast, means doing more with less
Reengineering and quality programs
Reengineering is not the same as quality improvement, TQM etc.
Quality programs and reengineering share a number of common themes
Both recognize the importance of processes
Both start with the needs of customers and work backwards
Slide

Reengineering and quality programs (contd.)
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
Aim is to do what we already do, only to do it better
Reengineering seeks breakthroughs not by enhancing existing processes, but by discarding them and replacing them with entirely new ones
Slide

BPR – Recurring themes
Several jobs are combined into one
Compressing responsibility of for various steps and assigned it to one person
Creation of case worker or case team
Workers make decisions
The steps in the process are performed in a natural order
Linear sequencing of tasks imposes an artificial precedence that slows work down
In reengineering processes, work is sequenced in terms of what needs to follow what
Processes have multiple versions
Processes with multiple versions or paths usually begin with a “triage” to determine which version works best in a given situation
Slide

BPR – Recurring themes (contd.)
Work is performed where it makes the most sense
Shifting of work across organization boundaries
Checks and controls are reduced
Reengineered processes use controls only to the extent that they make economic sense
Reengineered processes often have aggregate or deferred controls
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
Any possible increase in abuse is compensated by dramatically lowering the costs and other encumbrances associated with the control itself
Reconciliation is minimized
Cutting back on the external contact points that a process has, thereby reducing the chance that inconsistent data requiring reconciliation will be received
Slide

Who will reengineer
Leader
A senior executive who authorizes and motivates the overall reengineering effort
Process owner
A manager with responsibility for a specific process and the reengineering effort focused on it
Reengineering team
A group of individuals dedicated to the reengineering of a particular process, who diagnose the existing process and oversee its redesign and implementation
Steering committee
A policy-making body of senior managers who develop the organization’s overall reengineering strategy and monitor its progress
Slide

Embark on reengineering
Case for action
Says why the company must reengineer
Must be so persuasive that no one in the organization will think that there is any alternative to reengineering
Should be brief – 5-10 pages at most – and blunt
Should have:
Business context
Business problems
Marketplace demands
Diagnostics
Cost of inaction
Vision statement
Here is what we want to be
Slide

Who will reengineer (contd.)
Reengineering czar
An individual responsible for developing reengineering techniques and tools within the company and for achieving synergy across the company’s separate reengineering projects
In an ideal world:
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
Slide

What you will discover during reengineering?
You don’t need to be an expert to redesign a process
Being an outsider helps
You have to discard preconceived notions
It’s important to see the things through the customer’s eyes
Redesign is best done in teams
You don’t need to know much about the current process
It’s not hard to have great ideas
Redesign can be fun
Slide

Thank you
Rohit Mathur
Director, Business Development
MindTree, Seattle, USA
[email_address]

Reengineering - Quick Overview

by rohitm02 on Dec 28, 2008

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