This document provides an overview of business process design and reengineering. It discusses the objectives of process design, which include developing knowledge around tools and techniques for designing processes, understanding how modeling and testing are important, and factors to consider when evaluating process effectiveness such as cost-benefit analysis. The document outlines principles of business process engineering and reengineering, including organizing around outcomes not tasks, preparing for reengineering, mapping and analyzing the as-is and designing the to-be process. It also discusses common challenges with business process reengineering and how to avoid failures.

1. Design Business
Processes
Afternoon June 16th 2016
Trainers
Bev Gilder and Diane Eaton

2. Objectives for this session….
• To develop your knowledge and skills to design business
processes
• Understand the tools and techniques that support the
design of business processes
• Understand how modelling and testing is important
• Consider factors to take into account when evaluating
the effectiveness of business processes
• Understand cost /benefit analysis

3. What is business process
engineering ?.. Or re-engineering ?
• It is a discipline – its something you do
• Its about improving processes overall
• Its holistic – interrelated activities which work
together to achieve a business objective
• It can have effects on the whole business.
• It involves modelling, controls, measurement,
trials, reworks, implementation and
evaluation

4. Reengineering
• 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”.
• Focusses on systems in the broadest terms not
on tasks or people
• Is about large changes in how things are done
Hammer and Champy 1993

5. What types of processes have changed
dramatically in the last couple of years ??
• What were they ?
• What drove the changes ?
• Who did they affect?
• What consultation was there ?
• What testing took place ?
• Did the changes work straight away?
• Are the changes embedded now ?

6. BPR Principles
• Organise around outcomes, not tasks.
• Prepare for BPR
• Map and analyse as-if Process
• Design to-be process
• Implement reengineered process
• Improve continuously.

7. What is a process
• A business process is a series of steps
designed to produce a product or a service. It
includes all the activities that deliver
particular results for a given
Customer(external or internal).
• Companies often have process maps to give a
picture of how work flows through the
company.

8. Why Reengineer?
• Modern ‘reality’ since 1990s:
o Hyper-competiveness
o Globalization
o Very demanding customers
o Management and IT focus: Innovation,
responsiveness/speed, quality and service.

10. Stage gate model for business
improvement

11. Process mapping… why do it ?
• Employees can participate in constructing a
process map- gives a shared views
• Some of the best solutions to business
problems come from within the organization.
• Reveals the issues and gaps that cause
• Increases participation in change and
probability of success
• Visually illustrates and convey the essential
details of a process in a way that written
procedures cannot do.

13. PDSA model ( Plan, Do, Study, Act)

14. Hammer and Champy-Reengineering the
Corporation (2001)
• Organisations should be process not function
driven
• Processes must be built around the consumer
• Staff need to be involved
• Share responsibilities and empower
employees.
• Should be collaborative partnerships e.g. with
suppliers

15. The three dimensions..
• Process efficiency ( cost, cycle time )
• Product quality ( e.g customer satisfaction,
scope and quality of product)
• Reduced product development time

17. Action checklist
• Develop the vision
• Map existing processes
• Redesign processes
• IT support systems
• Establish performance indicators
• Plan the implementation
• Review and maintenance

18. Prepare for BPR
• Before attempting reengineering, the question ‘Is
BPR necessary?’
• There should be a significant need for the process to
be reengineered.
• A cross-functional team is established with a plan for
the process of reengineering.
• Understand the expectations of your customers and
where your existing process falls short of meeting
those requirements.
• Having identified the customer driven objectives,
the mission or vision statement is formulated.

19. Map and analyse As-If process
• Must understand fully the existing process
• BPR should produce dramatic and fundamental
results
• Identify any disconnects
• A disconnect is anything that prevents the process
from achieving desired results and in particular
information transfer between organisations or
people) and value adding processes.
• Create an activity and process model
• Work out ABC = Activity based costing

20. Activity based costing
‘the amount of time that each activity takes and
the cost that each activity requires in terms of
resources is calculated through simulation and
activity based costing (ABC).

21. Design To-be processes
• Produce one or more alternatives to the
current situation, which satisfy the strategic
goals of the enterprise
• Benchmarking = “ is the comparing of both
the performance of the organisation’s
processes and the way those processes are
conducted with those relevant peer
organisations to obtain ideas for
improvement”
• Simulation and activity based costing

22. Design To-be processes
• The several To-Be models that are finally
arrived at are validated.
• By performing Trade off Analysis the best
possible To-Be scenarios are selected for
implementation.
• Initiate communication and training programs
• Devise a transition plan
• Implement transition plan

23. Improve continuously
• Initiate on going measurement
• Review performance against target
• Monitor progress and results
• KPIs, staff surveys, customer surveys, supplier
response, staff turnover
• Improve process continuously

24. Common Problems with BPR
• Process simplification is common - True BPR is
not
• Desire to change not strong enough
• Start point is the existing process not a blank
slate
• Commitment to existing processes too strong
o REMEMBER - “If it isn’t broke …”

25. Common Problems with BPR
• Process under review too big or too small
• Reliance on existing process too strong
• The costs of the change seem too great
• BPR Isolated Activity not aligned to the business
objectives
• Allocation of resources
• Poor timing and planning
• Keeping the team and organisation on target

26. How to Avoid BPR Failure
• BPR must be accompanied by strategic planning
• Place the customer at the centre of the
reengineering effort
• BPR must be "owned" throughout the organisation,
not driven by a group of outside consultants.
• Case teams must be comprised of both managers as
well as those who will actually do the work.

27. Why does re engineering fail?
• Trying to fix a process instead of changing it
• Ignoring everything except the process design
• Quitting too early
• Reengineering from the bottom up
• Neglecting people’s values and beliefs
• Being willing to settle for minor results
• Assigning someone who does not understand
reengineering to lead the effort

28. Remember the human response to
change too.
• Shock
• Denial
• Anger
• Acceptance
• Experimentation
• Integration

29. Exercise
• Consider an area of your work which you
believe would benefit from process re
engineering