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Business Process Re-Engineering
This document discusses business process re-engineering (BPR). BPR is defined as fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in critical areas like cost, quality, and speed. It involves reinventing processes rather than automating existing ones. The goals of BPR include improving customer friendliness, effectiveness, and efficiency. BPR follows four steps: understanding the current process, inventing a new process, automation, and change management. It results in changes to work units, jobs, roles, and organizational structure. Critical success factors include top management commitment and a clear transformation vision, while failure can result from trying to fix rather than change processes.
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Business Process Re-Engineering
- 1. Business process Re-engineering The assumption of an absolute determinism is the essential foundation of every scientific enquiry. ― Max Planck, Dilawar Abbas
- 2. A definition ofBusiness Process Re-engineering? Business Process Re-Engineering is the Fundamental rethinking and Radical redesign of Business Processes to achieve Dramatic improvements in the critical measures of Performance such as Cost, Quality, Service, Efficiency and Speed.
- 3. Re-Engineering is NOT Automation for existing ineffective processes. Sophisticated computerization of obsolete processes. Playing with organization structures. Downsizing - doing less with less. Reorganizing. Change Management ISO9000
- 4. Reason for Re-engineering OLD ERA High Depends Efficiency Control NEW ERA High Competition Innovation Speed Service & Quality
- 5. . . .follow process and progress will follow.
- 6. Effectiveness To improveservice and satisfy customer needs, while lowering costs. Automation use technology to automate the "AS-IS" process to make it happen faster V/ S
- 7. Difference between Automation& Business Process Re-Engineering Business Process Re-Engineering is about Innovation Making New Wine and putting it in a New Bottle Automation is using technological tools to perform OLD Processes, in a NEW way, Like putting OLD Wine in a New Bottle
- 8. 3 Goals ofBusiness Process Re-Engineering Customer Friendliness Effectiveness Efficiency • Meeting customer requirements closely • Providing convenience • Outcome based approach • Gaining loyalty of customers • Image and branding • Cost • Time • Effort
- 9. 4 Steps inBusiness Process Re- Engineering Understanding the Current Process "AS IS" study - mapping current process Analysis of Root Causes for Inefficiencies Identification of Problems, Issues Inventing a New Process ('TO BE' Process) Survey of Best Practices Consultation of Stakeholders Constructing the New Process Bringing in New Law and Rules Adopting Disruptive technologies Automation Selling the NEW way of functioning Change Management Communication Strategy
- 10. 9 Changes Occasionedby Business Process Re-Engineering Work Units Change • from functional departments to process teams Job Changes • from simple task to multiple-dimensional work People's role change • From controlled to empowered Job preparation changes • from training to education Measures of Performances & Compensation Change • from activity to results Criteria for career advancement change • from performance to ability Values change • from protective to productive Organizational Structure Change • from hierarchical to flat Executive change • from scorekeepers to leaders
- 11. Critical Success Factorsin Business Process Re-Engineering 1. Clear Vision for Transformation 2. Top management commitment 3. Identification of Core Processes for Business Process Re-Engineering 4. Ambitious Business Process Re-Engineering Team 5. Knowledge of Re-Engineering techniques 6. Engaging external consultants 7. Tolerance of "genuine failures" 8. Change Management
- 12. Critical Failure Factorsin Business Process Re-Engineering 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 Business Processing Engineering 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 Business Process Re-Engineering exercise too long.
- 13. Scope of BusinessProcess Re-Engineering Intra-functional Small scope within department, least impact Inter-functional Horizontal view across departments, more impact Inter-organizational Broad view including entire supply & delivery chain, most impact
- 14. Re-Engineering guidance and relationship of Mission and Work Processes to Information Technology. Mission Defines Accomplish Work Processes Execute Guide Decisions Consider Supports Information Employ Process Technology
- 15. Why Organizations donot Re-Engineer Complacency Political Resistance New Developments Fear of Unknown and Failure
- 16. The essence ofBusiness Process Re-Engineering is Transformation The essence of Business Process Re- Engineering is Transformation
- 17. A 4-Pronged Approachto Transformation Transformation Transforming Process • Eliminate • Simplify • Automate • Base of Trust • Integrate • Join Up • Legislate Transforming Culture • Competency • Helful • Polite • Professional • Adaptation of Change Using Technology • Enterprise wide Architecture • Centralized System • Unified Database • Unified Networks • Web Based System Transforming People • Training • Change Management • Consultation • Empowerment • Education • Awareness
- 18. Change Management Changeis only possible when people are dis-satisfied. Satisfied people do not need change
- 19. What Change ManagementIs & What it is Not 1. Change management is not a stand-alone process for designing a business solution. 2. Change management is the processes, tools and techniques for managing the people-side of change. 3. Change management is not a process improvement method. 4. Change management is a method for reducing and managing resistance to change when implementing process, technology or organizational change. 5. Change management is not a stand-alone technique for improving organizational performance. 6. Change management is a necessary component for any organizational performance improvement process to succeed, including programs like: Six Sigma, Business Process Reengineering, Total Quality Management, Organizational Development, Restructuring and continuous process improvement. 7. Change management is how we drive the adoption and usage we need to realize business results.
- 20. Change Advisory Board A change advisory board (CAB) delivers support to a change management team by approving requested changes and assisting in the assessment and prioritization of changes. This body is generally made up of IT and Business representatives that include: a change manager, user managers and groups, technical experts, possible third parties and customers (if required). It is advised to form a Change Advisory Board in-order to manage the Change Planning & Implementation. Chairman Change Advisory Board Permanent Board Members Temporary Board Members (Department Based)
- 21. We are whatwe repeatedly do. Excellence then, is not an act, but a habit.
- 22. Readiness Analysis 1.Is there a compelling business need for strategic change? 2. Is the organization prepared to challenge it status quo? 3. Would it have the courage to create a new vision? 4. What's the degree and quality of sponsorship and commitment of senior management? 5. Are they prepared to be deeply involved? 6. Do they have the energy to follow through the entire change process? 7. Is the organization prepared to commit resources (time, energy, money) to undertake the Business Process Re-Engineering project? 8. What is the overall organization's attitude towards change? 9. Is the organization prepared to overcome resistance to change? 10. You create dissatisfaction, if you want people to change.
- 23. Business Process Re-Engineering Team Composition 1. Top Management: CEO / COO as SPONSOR 2. Senior & Middle Management in EXECUTIVE TEAM 3. Selected Senior & Junior Management Staff to form PROCESS TEAMS 4. Enthusiastic and energetic individual as Business Process Re-Engineering Coordinator 5. Business Process Engineers
- 24.