Business Process Reengineering

1. Business Process Re-engineering
S M ARIFUL ISLAM
Sr. Management Counselor, Bangladesh Institute of Management
arifull@yahoo.com

2. Points to cover
1. Concept of Business Process Reengineering (BPR)
2. What is not BPR
3. Reasons for BPR
4. Principles & Methodologies of BPR
5. Issues & Challenges in BPR
6. Critical Success/ Failure Factors in BPR
7. BPR illustrated

3. Concept
Business Process Re-engineering or BPR is
the analysis and redesign of
workflow and processes
within and between
Organizations
- Michael Hammer & James Champy, 1993

4. Concept Contd..
BPR - Fundamental rethinking and
Radical redesign of Business Processes
to achieve dramatic improvements in
critical measures of performance
.. . such as Cost, Quality, Service and Speed.

5. Concept Contd..
• Definition: Business Process is a collection of activities
that takes one or more kinds of input and creates an
output that is of value to customers.
• Examples of BP, in the context of e-Government, are:
• Issuance of birth registration
• Issuance of Driving License or Passport
• Registering a Company in Joint Stock Company
• Audit of a Tax Return

6. What is not Reengineering …….
• Automation of existing ineffective
processes
• Sophisticated computerization of
obsolete processes
• Playing with organization structures
• Downsizing – doing less with less

7. Effectiveness Vs Automation
• Automation : use technology to automate the “AS
IS” process to make it happen faster -
- often wrongly perceived as eGovernment.
• Effectiveness: To improve service and satisfy
customer needs, while lowering costs.
There is nothing more useless than to do efficiently that
which shouldn't be done at all.
E.g. Shining Brass when the ship is sinking

8. Automation & BPR
• Automation is using technological tools to perform
OLD processes, in a NEW way.
• Like putting OLD Wine in a NEW bottle.
• BPR is about Innovation
• Making NEW Wine and putting it in a NEW bottle

9. BPR & Quality Initiatives
• Quality Initiatives attempt continuous improvement
• Six Sigma
• TQM (Total Quality Management)
• BPR attempts a radical redesign or transformation
• Big Bang approach
• Quantum Leap

10. Reasons for BPR

11. Problem Statement
Problem: Governance in the 21st century
with Processes and Organizations
designed in the 19th Century.
PROCESSES & ORGANIZATIONS
Need to be designed for Governance
in the 21st Century

12. Problem restated…
• All processes are simple & efficient when originally designed
• User-friendly
• Deploying contemporary tools & techniques
• Processes become complex & inefficient with passage of time
• with addition of sub-processes to handle exceptions
• with changes in environment and
• with increase in customer expectations
• with increase in volumes

13. Symptoms of Poor Governance
• Air of Mystification about procedures
• Long Queues at delivery points
• Multiple Visits to Government Offices
• Gatekeepers at every turn
• Poor Quality of Service
• Service is a Mercy - not a Right
• Too many Intermediaries, Shortcuts
• No alternatives

14. Symptoms of Poor Processes
1. Extensive information exchange, data redundancy and re-keying
2. Huge inventory, buffers and other assets
3. Too many Controls and Checks
4. Rework, Iteration & Duplication of work
5. Complexity, Exceptions & Special cases

15. Causes of Poor Service Delivery
Legislative
Intent
Process
Problems
Delivery
Channel
Problems
Delivery
Problems

16. Goals of BPR
1. Customer Friendliness
• Meeting customer requirements closely
• Providing convenience
2. Effectiveness
• Outcome-based approach
• Gaining loyalty of customers
• Image and branding
3. Efficiency
• Cost
• Time
• Effort

17. Attributes of Customer-friendly Services
1. Simple
2. Need-based
3. Certainty
4. Speed
5. Convenience
• Place
• Time
• Channel
6. Equitable
7. Responsive
8. Customer-centric
9. Quality of Service
10. Cost-effective
11. Accessible
12. Assisted

18. Principles & Methodologies of BPR

19. Basic Principles of BPR
1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize
them in order of redesign urgency.
3. Integrate information processing work into the real work that
produces the information.
4. Treat geographically dispersed resources as though they were
centralized.
5. Link parallel activities in the workflow instead of just
integrating their results.
6. Put the decision point where the work is performed, and
build control into the process.
7. Capture information once and at the source.

20. Essence of BPR is transformation

21. Approach to Transformation
Transformation
• Eliminate
• Simplify
• Automate
• Base on Trust
• Integrate
• Join Up
• Legislate
• Multiple Channels
• 24x7
• Access
• Common Service Centres
• Mobile
• Self-Service
• Licensed Intermediaries
• Enterprise Architecture
• Standards
• Unified Databases
• Unified Networks
• SOA
• Portals
•
• Training
• Change Management
• CRM skills
• Consultation
• Empowerment
• Education
• Awareness

22. Steps in BPR
1. Understanding the Current Processes
• ‘AS IS’ study – mapping current processes
• Analysis of Root Causes for Inefficiencies
• Identifications of Problems, Issues
2. Inventing a NEW Process (‘TO BE’ Process)
• Survey of Best Practices
• Consultation of Stakeholders
3. Constructing the NEW Process
• Bringing in new Laws and Rules
• Adopting Disruptive Technologies
4. Selling the NEW way of functioning
• Change Management
• Communication Strategy

23. BPR Methodology
Phase 4
Process Management
Phase1
Project Def.
Phase 2
Process
Analysis &
design
Phase 3
Implementa
tion
Phase 0
Process
Improvement
Planning
Improved
Process
Core Processes
Without Issues
Core Processes
With Issues
Improvement
Plan
Goals, Roles
Boundaries
Implementation
Plan
Strategy
Continuous Improvement
Reengineering - Breakthrough

24. Challenges,
Critical Success Factors &
Critical Failure Factors

25. Challenges in a BPR Exercise
1. Identifying Customer Needs & Performance Problems in the
current Processes
2. Reassessing the Strategic Goals of the Organization
3. Defining the opportunities for Re-engineering
4. Managing the BPR initiative
5. Controlling Risks
6. Maximizing the Benefits
7. Managing Organizational Changes
8. Implementing the re-engineered Processes

26. Changes occasioned by BPR
1. Work Units change
• from functional departments to process teams
2. Jobs change
• from simple tasks to multi-dimensional work
3. People’s roles change
• from controlled to empowered
4. Job preparation changes
• from training to education
5. Measures of Performance & compensation change
• from activity to results
6. Criteria for career advancement change
• from performance to ability
7. Values change
• from protective to productive
8. Organizational Structures change
• from hierarchical to flat
9. Executives change
• from scorekeepers to leaders

27. Critical Success Factors in BPR
1. Clear Vision for Transformation
2. Top management commitment
3. Identification of Core Processes for BPR
4. Ambitious BPR team
5. Knowledge of Reengineering techniques
6. Engaging external consultants
7. Tolerance of “genuine failures"
8. Change Management

28. Critical Failure Factors in BPR
1. Trying to Fix a process instead of Changing it
2. Lack of focus on Business-critical Processes
3. Lack of holistic approach
4. Willingness to settle for minor results
5. Quitting too early
6. Limiting the scope of BPR by existing constraints
7. Dominance of existing corporate culture
8. Adopting bottom-up approach
9. Poor leadership
10. Trying to avoid making anyone unhappy
11. Dragging the BPR exercise too long.

29. Example of BPR

30. Land Records in India
– Previous System (as-is)
 Legacy of British System
 Land Records created mainly for ‘Land Revenue’
 Based on ‘Presumptive Ownership’ of land parcels
 Managed by multiple departments
 Title
 Survey
 Registration
 Local Government
 Processes & services, mostly manual
 Citizens have to visit several offices & wait for months for title changes

31. Buyer &
Seller
Complete
Documents
Pay fees
Submit
Appln.
Registration of
deeds
Verify and
change
records
Buyer &
Seller
Buyer Complete
application
Submit
Appln for
Mutation.
Verify
documents
and register
Buyer
Submit
Appln for
Sub-division
Complete
appl.
Land Title Office
Sub-divide
the parcel
and change
records
Land Surveyor
Buyer
Buyer
Buyer gets proof
of transaction
Buyer gets
ownership
records
Buyer gets
boundary
info.
Cannot verify
ownership
Land Transactions (as-is)

32. International Best Practices in
Land Records Management
a. New Zealand
– Land Information Online
b. Canada
– Land Title & Survey Authority
c. Singapore
– Singapore Land Authority
d. Australia
– Land Victoria

33. Vision of BPR – Integrated Land Information
TRANSFORMATION
Survey
Department
Survey & Land
Records
Departmet
Registration &
Stamps Dept.
Stakeholder
Presumptive Ownership
of Property
Inter - departmental
co-ordination
issues
Need to approach four
different entities for
property services
Poor state of
existing records &
services
 Conveyance
 Sub-division
 Information Search
Ø Ownership
Ø Land use
Ø Graphical
 Market Valuation
 Value Added
Services
Citizen
Business
Integrated Land Information System (ILIS)
Ownership
Info
Graphical
record
Land Use
Info
Geodetic
Network
Other Info
Layers
Integrated Land Information
Repository
Web Based
Service
Provider
ILIS Office
Stakeholders Services Delivery Channels
Local Bodies
Revenue
Department
Current Situation
Govt.

34. Conclusion
• BPR is about Radical Redesign of business processes
• BPR brings Efficiency, Effectiveness & Customer-friendliness
• BPR needs adoption of a structured methodology
• Top management commitment & Change Management are
critical to success

35. Thank You