[Whitepaper] Business Process Reengineering (BPR): Implementation Guidelines

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Framework Primer
Business Process Reengineering
(BPR): Implementation Guidelines
Presentation created by
Assign
average
performers
Assign
average
performers
1 Measure only
the plan
Measure only
the plan
Plan
2
Settle for the
status quo
Settle for the
status quo
3 Overlook
communication
Overlook
communication
4

2This document is an exclusive document available to FlevyPro members - http://flevy.com/pro
Contents
Overview
Business Process Reengineering (BPR)
Business Study
BPR Implementation
Templates
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The Implementation Guidelines of Business Process Reengineering (BPR)
is every organization’s handbook to business transformation
Presentation Overview
Business Process Reengineering is the organization’s strategic approach to sharpening
its competitive edge—but only if done right.
Business Process Reengineering (BPR) can be a great success but it can also be a great failure. After months or
years of careful redesign, organizations can achieve dramatic improvements in individual processes.
However, a paradoxical outcome has become almost a common place. Organizations suddenly find itself
watching the overall results decline. Process costs were reduced by 34% yet operating income stalls. Claims
process time cut by 44% yet profits drop. It seems that organizations are squandering management attention and
other resources on projects that look like winners but fail to produce bottom line results for the business unit as
a whole.
Reengineering can actually deliver revolutionary process improvements and many organizations have been
undertaking major reengineering effort. However, like any major change program, a reengineering project can
produce lasting results only if it is designed and implemented the right way.
This presentation provides organizations a practical guide to Business Process Reengineering (BPR) and the 2
critical factors essential in translating short term, narrow focus process improvements into long term profit.
Having an in-depth understanding of the Business Process Reengineering (BPR) can lead organizations to take
on a successful journey to continuous process improvement.
This deck also includes slide templates for you to use in your own business presentations.
1 Breadth
2 Depth

Contents
Overview
Business Study
BPR Implementation
Templates

BPR is a Business Management Strategy focused on the analysis and
design of workflows and business processes within an organization
Business Process Reengineering (BPR) is also known as Business Process Redesign,
Business Transformation, or Business Process Change Management.
Business Process Reengineering (BPR) – Overview
Business Process Reengineering (BPR) is the practice of rethinking and redesigning the way work
is done to better support an organization’s mission and reduce costs.
Companies direct Process Reengineering
initiative on 2 key areas of business.
Help organizations fundamentally rethink
how work must be done to improve
customer service, cut operational costs,
and become world class competitors.
Help companies radically restructure their
organizations by focusing on the ground-
up design of their business processes.
Encourages full scale recreation of
processes rather than iterative
optimization of sub-processes.
BPR can impact the organization through a few
primary ways:
Use of modern technology to enhance
data dissemination and decision-making
process.
Alteration of functional organizations to
form functional teams.
1
2

There are 2 dimensions of BPR—Breadth and Depth—together, they help
us drive short term process improvements into long term results
Only projects that are sufficiently broad and sufficiently deep can produce widespread and
long-lasting bottom line results.
BPR – Dimensions of BPR
To better understand BPR, let us define and understand 2 dimensions of BPR. The dimensions of BPR
are critical in translating short term, narrow focus process improvements into long term profits.
Depth (of Business
Change)
Breadth
(of Process
Redesigned) • How many and how much of the depth
levers change as a result of reengineering.
• Redesign must penetrate to the company’s
core, fundamentally changing 6 crucial
organizational elements.
• The range of activity types within a
process.
• The process to be redesigned must
be broadly defined in terms of cost
or customer value to improve
performance across the entire
business unit.

Contents
Overview
Business Study
BPR Implementation
Templates

A detailed analysis of 20 Organizations was conducted to determine why
reengineering results are not conveyed to the bottom line
Breadth and Depth are 2 factors that can critically contribute to the success of Business
Process Reengineering.
Business Study – Overview
The promise of reengineering is not empty. It can actually deliver revolutionary process improvements
and major reengineering efforts are being conducted around the world. Yet, these results are not
conveyed to the bottom line.
Redesigns are difficult to plan, implement, and often fail to achieve
real business unit impact.
Breadth and depth can translate short term, narrow focus process
improvements into long term profits.
Lasting results can be achieved only if senior executives invest
their time and energy.
A research into reengineering projects in more than 100 companies was
conducted with detailed analysis of 20 of these projects.

• Redesign projects often aim at processes that are too
narrow and change only 1 or 2 of the depth levers.
• Even with sufficient depth, efforts still focus on a
narrowly defined process with little discernible impact
on overall performance.
• Managers analyze improvements relative to the
process being designed not the business unit as a
whole.
• Performance tracking mechanisms are never
developed to measure results.
The study of 20 organizations showed that most Process Reengineering
efforts had little measurable impact on the overall business unit
The need to expand the dimensions of the redesign project is critical for it to be successful.
Business Study – Results
Results of the study of 20 organizations revealed a few common missteps in Process Reengineering
efforts.
Only 6 of 20 companies analyzed
achieved an average 18% reduction
in business unit costs.
Performance improvements
reflected along multiple
dimensions.
Reengineering projects were
designed and conducted in
strikingly similar ways.

Contents
Overview
Business Study
BPR Implementation
Templates

BPR implementation is a series of waves that can wash over the
organization for years, leaving a system for continuous improvement
Full commitment of senior executives is essential in ensuring success of the reengineering
project – its redesign and implementation.
BPR Implementation – Overview
BPR implementation requires an effective Transformation of the 6 Depth Levers.
Comprehensive Training and Skills Development Plans undertaken
in number of years for success.
Performance Measurement Systems that track how well the
organization is meeting its targets and how employees should be
rewarded based on objectives set.
Communication Programs that help employees understand why and
how their behavior must change.
IT Development Plans that capture the benefits of new technology at a
minimal investment while long term structural changes are undertaken.
Pilots that test and refine both the redesign and implementation.
New infrastructures must be planned and build, necessary for BPR
implementation.
Undertaken with a
clean slate approach
to process design, only
then can organizations
avoid the classic
reengineering pitfall
of focusing on fixing
the status quo.
• Redesign plans
must be sufficiently
broad.
• New infrastructure
is in place to realize
the new design.

Leadership Commitment to change is vital to achieving impact in BPR
Implementation
Executives must understand how to lead an organization through a period
of radical change.
BPR Implementation – Leadership Commitment
An evaluation of the disparity between actual and projected impact of fully or nearly fully implemented
projects was conducted.
There was tenacious pursuit of the performance objectives combined
with a flair for building consensus at all organizational levels.
Few compromises were made while being generous with resources.
20% to 60% of executives’ time was invested on the project.
Leadership commitment contributed to successful BPR projects.
Here are some telling
results from the
evaluation:
• 5 of these efforts
have achieved their
projected impact.
• 4 of the 5
successes had their
new Chief
Executives brought
in before or during
the projects.

Committed top managers help reengineering pay off and achieve impact
Organizations that have developed depth, breadth, and leadership have ensured their
projects’ success.
BPR Implementation – Leadership Commitment (Impact)
Strong commitment of executives to the reengineering project can effect fundamental change.
Source: How to Make Reengineering Really Work; Hall, Rosenthal, Wade; Harvard Business Review; 1993
Here are some guiding
principles related to
Leadership actions and
commitment to a BPM
initiative:
• Placing the best
people on the
redesign team.
• Making significant
investments in
Information
Technology and new
skills training.
• Managing by decree
when necessary.
• Giving the team
adequate time to
undertake necessary
changes.
Cost reduction as a percent of the process
High commitment
Dollar
impact
Millions
1. European retail banks b
2. US electronics manufacturer
3. European retail bank
4. European computer manufacturer
5. European industrial (US division)
N/A
$500
150
N/A
2
Low commitment
6. US computer manufacturer
7. US information-services company
8. US insurance company
9. US computer processor
10. European retail bank
75
2
2
20
0
New management
New management
New management
New management
Actual impact
Projected
impact
10% 20% 30% 40% 50% 60%The content on this page has been partially hidden.

The 5 Critical Success Factors (CSF) are essential in BPR implementation
BPR design and implementation is difficult but possible with the 5 key factors in place.
BPR Implementation – Success Factors
Success in reengineering efforts proved the essential importance of 5 Critical Success Factors (CSF).
These are reflected in all reengineering projects that achieved great impact.
1
2
Conduct a comprehensive review of customer needs, economic
leverage points, and market trends.
3
4
5
Commit 20% to 50% of the Chief Executive’s time to the project.
Set an aggressive reengineering performance target.
Assign an additional senior executive to be responsible for
implementation.
Conduct a comprehensive pilot of the new design.

Integration of the 5 Key Success Factors in BPR implementation can build
highly skilled, cost effective, and customer responsive organizations
Successful BPR implementation can lead organizations to retain its competitive edge.
BPR Implementation – Success Factors (Details)
Organizations must have a good handle of all 5 of the KSFs of BPR Implementation.
Conduct a comprehensive
review of customer needs,
economic leverage points,
and market trends.
3
• Conduct customer
interviews and visits,
competitor bench-
marking analysis of best
practices in other
industries, and economic
modeling of the business.
Assign an additional
senior executive to
be responsible for
implementation.
4
• Spend 50% of the
manager’s time on
the project during the
critical implementation
stage.
Conduct a
comprehensive
pilot of the new
design.
5
• Require the pilot to
test the design
overall impact and
implementation
process.
• Allow the pilot to
build enthusiasm for
full implementation.
Commit 20% to 50%
of the Chief
Executive’s time
to the project.
2
• Start time commitment at
20% and grow to 50%
during implementation
stage.
• Schedule weekly
meetings that inform top
manager of the project’s
status.
Set an aggressive
reengineering
performance
target.
1
• Span the target in the
entire business unit to
ensure sufficient breadth.
• Aim for a pretax profit
increase to a result from
a percentage of cost
reduction and revenue
increase measured
across the business unit
as a whole.

Reengineering projects can fail—this is typically the result of 1 of 4 root
causes
Understanding these 4 damaging practices can guide organizations develop a more
effective BPR Design and Implementation Plan.
BPR Implementation – Root Causes of Failure
There are typically 4 main root causes that can cause BPR projects to fail.
Assign average
performers
Assign average
performers
1 Measure only
the plan
Measure only
the plan
Plan
2
Settle for the
status quo
Settle for the
status quo
3 Overlook
communication
Overlook
communication
4

The root causes of failure remain a challenge to a successful BPR
implementation
During BPR implementation, it is essential to create a comprehensive communications
program that uses a variety of methods of communication.
BPR Implementation – Root Causes of Failure (Details)
BPR Implementation fails due to faulty beliefs, limited capabilities and other factors that limit its successful
implementation.
Understanding these root causes can lead organizations to take preventive action.
Assign average
performers
Assign average
performers
• Average performers enlisted from headquarters.
• Existing belief that assigning top performers will affect business unit’s performance.1
Measure only
the plan
Measure only
the plan
• Lack of comprehensive measurement system.
• Inability to track whether implementation is succeeding or failing.2
Settle for the
status quo
Settle for the
status quo
• Aspirations never translated into reality.
• Inability to think outside their own skill level, organizational structure, or system constraints.
• Existence of political infighting on incentives and information technology during
implementation.
3
Overlook
communication
Overlook
communication
• Level of communication underestimated during implementation.
• Communication limited to one method like memos, speeches, or PR videos.
• Neglect of the more time-consuming, but effective, small group format where employees can
give feedback and air their concerns.
4
Plan

Contents
Overview
Business Study
BPR Implementation
Templates

Insert headline
Insert bumper.
BPR Implementation Critical Success Factors – TEMPLATE
1
2
Conduct a comprehensive review of customer
needs, economic leverage points, and market
trends.
3
4
5
Commit 20% to 50% of the Chief Executive’s time
to the project.
Set an aggressive reengineering performance target.
Assign an additional senior executive to be
responsible for implementation.
Conduct a comprehensive pilot of the new design.
Insert filler text, filler
text, filler text, filler
text, filler text.
text, filler text.
text, filler text.

Insert headline
Insert bumper.
BPR Implementation Critical Success Factors – TEMPLATE (ALTERNATE)
Set an aggressive reengineering
performance target. 1
Conduct a comprehensive review of
customer needs, economic leverage
points, and market trends.
3
Conduct a comprehensive pilot of
the new design. 5
Commit 20% to 50% of the Chief
Executive’s time to the project.2
Assign an additional senior executive
to be responsible for implementation.4

Insert headline
Insert bumper.
Root Causes of Failure for BPM Implementation – TEMPLATE
Assign average
performers
Assign average
performers
1 Measure only the
plan
Measure only the
plan
Plan
2
Settle for the
status quo
Settle for the
status quo
3
Overlook
communication
Overlook
communication
4

Insert headline
Insert bumper.
Root Causes of Failure for BPM Implementation – TEMPLATE ALTERNATE
Assign average
performers
Measure only
the plan
Settle for the
status quo
Overlook
communication
1 2 3 4
Plan
Insert filler text, filler text,
filler text, filler text.
filler text.
filler text.
filler text.
filler text.

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Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
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[Whitepaper] Business Process Reengineering (BPR): Implementation Guidelines

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[Whitepaper] Business Process Reengineering (BPR): Implementation Guidelines