Duke Power underwent a business process reengineering effort in the 1990s to improve customer service and cut costs. The previous processes were inefficient, with inconsistent practices across regions. Reengineering defined and standardized key customer service processes. It provided frontline workers with better information and scheduling tools to complete work faster and meet new metrics. The changes faced resistance but training helped employees understand the benefits of standardized, efficient processes for customers. Duke continues reengineering to further improve technologies and reduce costs.

1. ONE COMPANY’S EXPERIENCE:
DUKE POWER
SUBJECT:- BUSINESS PROCESS REENGINEERING (BPR)
FACULTY :- PROF. K.K. JAIN
Presented by:
2013004: Akshay Jain
2013015: Cliffton Kinny
2013043: Pooja Somani
2013074: Vijay Jangir

2. AGENDA
• Introduction of Duke Power Company
• 5 Major Processes in Customer Service Operation
• Why Reengineering ?
• What was the process before reengineering?
• How reengineering Changed the process ?
• Change Management
• Learning !

3. Introduction of Duke Power Company
• Duke Power as most admired gas and electric company.
• Long recognized as an Industry Leader.
• Had received Awards for Efficiency , Customer Service, and
Environmental stewardship.
• In 1997 merger of Duke Power and Midstream Natural Gas.
• Richard B. Priory- Chairman, President and CEO of Duke Energy.
• Jimmy R. Hicks – Senior Vice President of Retail Services.
• E.O. Ferrell – Senior Vice President of Electric Distribution.

4. Introduction of Duke Power Company (Contd.)
• Serving 2 million Customers spread over 20,000 square miles in
North and South Carolina.
• Serving in different Thirteen Geographical Areas.
• Duke Power Company undertake reengineering in 1995

5. 5 Major Processes in Customer Service Operation
• Figure our Customer want,
Creating product, pricing,
setting Market Share Target.
• Interaction & Selling the Product
to keep Customer Happy
answering service Question.
• Product Built with Right Quality
and Delivery on time.
Developing Market
Strategies
Acquiring and
Maintaining the
Customers
Delivering Products
and Services

6. 5 Major Processes in Customer Service Operation
• After an Order is Completed,
You must bill the customer and
paid also.
• Make sure Customers have
power 24 hr. a day, 7 days a
week, 365 days a year. Process
that ensures smooth,
Continuous Service.
Calculating
and
Collecting
Managing
the Delivery
System

7. Why Reengineering ?
• Rick Priory (CEO) recognized that the Utility needed to cut costs and
further Improve its Customer Services irrespective of Quality of
service was already pretty high.
• Reengineering Required to make it remain Competitive when
Deregulation Arrived.
• Goal – Service to customer in the upper Quartile among electric
utilities in market.
• Realized need to Replace “Old Customer Information System” dated
back to 1971.

8. What was the process before reengineering?
• No consistent way of looking at thirteen geographical areas services. Thirteen
different ways with a little twist that fitted the politics of a particular area.
• Any time you wanted to change something to had to change it thirteen times
and everyone had at least as many reasons why that’s change would not work
in such area.
• For instance, under the old System - Customer would call in and request a
service visit that would print out at an operating.
• An administrative representation took the request from the printer and placed
it in a box based on the day the job was to be performed. Then the request
was transferred into a front line worker’s box on the day it was supposed to
do.
• No one made any attempt to deter mine whether a particular job would take
one hour or two hours and that is the reason inefficiency was high.
• Misinformation was uncontrolled.

9. What was the process before reengineering?
• There was no measuring tools used to measure the satisfaction level as well as
quality of services.
• For instance, Customer wants to power turned off at 1234 chambers street on
Monday and wants it turned on at 456 Westfield Road, the same day. Orders
was completed with in the promised time around 74% of the time but in actual
this should be 96 %.
• Due to lack of Scheduling , absenteeism was high at frontline workers and
services was getting delayed.
• Growth was not along with Inflation.
• There resistance from frontline performers of new system work.
• The linemen were used to receiving work on a daily basis form their
supervisors.

10. How reengineering changed the process ?
• Fist of all they realized firm needed to replace customer information
system, which dated back to 1971.
• They hired consultants for ideas in selecting an appropriate new
system.
• The made a game plan to sell this thing called reengineering to it
frontline performers, because they are going to execute the plan in
reality.
• Process manager made communication of new Customer Service
process benefits and made understanding of process plan.

11. How reengineering changed the process ?
• How a process organization works?
There are players who
 Execute maintenance work,
 Execute new customer work,
 Who deal with problems as they arise,
 The manager to teach them processes.
• Defining and analyzing primary customer service operation processes
 Developing market strategies
 Acquiring and maintaining the customer
 Delivering products and services
 Calculating and collecting
 Managing the delivery system
 Supporting the business.

12. How reengineering changed the process ?
• Reengineering means fundamentally changing the way you provide
service-and value-to the customer.
• Try to take the advantage of information technology to minimize the
number of hands-off, eliminate steps, and widen you current span of
control.
• Putting data in the hands of frontline performers, who can serve customer
with minimal guidance and on the spot respond and saves money.
• As a process owner responsible for delivering products an services to
analyzes & develop the activities from the moment a customer calls for
new service until the power usage is determined.

13. How reengineering changed the process ?
• Top-Down approach taken to implemented, reason the fragmentation
was embedded in the organization’s culture, which was needed to
change.
• Separation of Strategic work form Tactical works – People in the
field that their job was to execute the processes as well as they
could, while responsibility for redesigning the process and managing
the resources it required was allocated to process owner. (Which was
not before)
• Output of the process was interacted with input of the another
process and impact on customer. That is each processes measured in
a way that kept the customer at the center.
• For Instance, a Billing process was measured in terms of accuracy.

14. How reengineering changed the process ?
• Made connection between Actions to be taken to complete the
process, plus overall cost and Satisfaction of customer. This
measures the performance of frontline workers.
• “Score Card” concept, Which sets specific goals for each process.
One of them was that minimum of 96% of orders had to be
completed by the day they promised.
• Made measurement system in which everyone can radically see the
goal and act on this knowledge.
• Focus on making sure information is accessible and communicated
to responsible person for the actual delivery of service to frontiline
worker.

15. How reengineering changed the process ?
• Developed pay incentives- that is, achieve a certain level above the
standard and there will reward for it
• Setting Standard Time for each processes – Ranging from the heavy
construction involved in setting up poles, pulling wire, hanging
transformers, and the like to routine work, such as dealing with a
customer’s broken backyard light or a meter base that was pulled
away from the house.
• Every morning administrative team organize the work into packages
that the workers would pick up when they came in.
• Implemented Color –coding to designate levels of priority:
Yellow – for work committed to the customer today.
Blue – for work due within three days
Green – for work that can be done any time.

16. How reengineering changed the process ?
• With metrics to guide us, we were able to organize and synthesize a
very basic set of steps so that we could do tasks the same was
everywhere.
• Centralized vacations Scheme & Scheduling.
• Process owners and geographical are jointly accountable for the
work.
• Processes stretch horizontally across the work, while decision
making is compressed vertically to become part of work itself.
• Supervisors now more facilitator, make sure the worker has
everything necessary to accomplish the assigned tasks.

17. Change Management
• Spent a great deal of time educating employees about process-managed
work: why it works the way it does, what we expect from
it, what our problems were and how reengineering would solve
them, and why the old way of working would not solve those
problems.
• Training about how you perform your new work process.
• Though training time-consuming and expensive, worth to
understand the business implications of making decisions. They
could not have succeeded without it.
• Made perception “ we do the same job in the same way,
everywhere.”

18. Learnings !!! (from the reengineering)
• Nothing happens on day 1.
• Efficiency goes down a while but don’t give up.
• Make understanding with builders that true reengineering never
quits.
• Change always painful.
• Every time questions arises, “Are we doing the right thing”. But feel
genuinely believed that we are and keep confidence up to continue
and complete project at predetermined time.

19. Learnings !!! (from the reengineering)
• Burn bridges behind us. If you make a more gradual transition,
people will try to slide back into things the way the did them
before.
• Can not go with old ways, because those employees and their
position were gone. Make new process work, and this create a
sense of commitment.
• Hard to make believe to frontline performers to believe that the
system would work.
• To be successful, should be stubborn and consistent.

20. Learnings !!! (from the reengineering)
• Phase wise implementation like from 1st regions and 2nd, 3rd,4th.
• You can check what you did in 1st phase for improvements.
• Top level commitment and inclusion.
• Choosing the right people is so important for implementation.
• Reengineering is not once you have to continue for improvements.
• First time is always hard to implement.

21. Future Reengineering
• Duke Power is installing mobile data terminals inside their trucks.
• Which means they will reduce the areas in which we have
dispatchers form twenty to four.
• Will eliminate the manual retyping of order into the computer,
because when orders is completed on the truck terminal.
• It will go automatically go back to the mainframe.
• Duke Power’s Leaders emphasize that education is the antidote to
the confusion and misinformation that may surround the term
“Reengineering”.