Business Process Reengineering BPR is the means by

Business Process Reengineering (BPR) is the means by which an organization achieves radical change in performance as measured by cost, cycle time, service, and quality, by the application of a variety of tools that focus on a set of customeroriented core business processes. 1

Types of Reengineering l Type 1 - Process Improvement; cost-reduction focus l Type 2 - To achieve parity, or “best-inclass; ” competitive focus l Type 3 - Searching core business for breakpoints; rewriting the rules 2

BPR Process (1 of 2) l Frame the project l Create the vision, values and goals l Redesign the business operation l Conduct proof of concept Andrews & Stalick, Business Reengineering: The Survivor’s Guide 3

BPR Process (2 of 2) l Plan the implementation l Obtain implementation approval l Implement the redesign l Transition to a continuous improvement state 4

The Dimensions of Business Process Reengineering - Andrews & Stalick (1 of 3) l Physical/Technical Layer • Process structure • Technical structure • Organization structure 5

The Dimensions of Business Process Reengineering (2 of 3) l Infrastructure Layer • Reward structure • Measurement systems • Management methods 6

The Dimensions of Business Process Reengineering (3 of 3) l Value Layer • Organizational culture • Political power • Individual belief systems 7

The Top Ten Ways to Fail at Reengineering (1 of 2) 1. Don’t reengineer but say that you are. 2. Don’t focus on processes. 3. Spend a lot of time analyzing the current situation. 4. Proceed without strong executive leadership. 5. Be timid in redesign. Hammer & Champy, The Reengineering Revolution, 1995 8

The Top Ten Ways to Fail at Reengineering (2 of 2) 6. Go directly from conceptual design to implementation. 7. Reengineer slowly. 8. Place some aspects of the business offlimits. 9. Adopt a conventional implementation style. 10. Ignore the concerns of your people. 9

Benchmarking is the search for the “best practices” that will lead to superior performance of an organization. 10

Benchmarking is NOT l A cure for all organizational ills l A means to justify blatant personnel cuts l A one-shot program l A process cookbook with no creativity l A process to conduct industrial espionage l A one-way information flow l An improvement tool requiring little cost or effort 11

Benchmarking Approaches l Performance benchmarking • To identify candidates for conducting benchmarking studies l Process benchmarking • To identify the “best practices” 12

Types of Benchmarking ( 1 of 3) l Internal • Comparing yourself against a similar process, product, or service within your own organization 13

Types of Benchmarking (2 of 3) l Competitive • Comparing yourself against the toughest external competitor or against worldclass companies in your industry 14

Types of Benchmarking l (3 of 3) Generic/Functional • Comparing yourself against a worldclass company that is not even in your industry, but that uses a process similar to yours 15

Benchmarking Process ( 1 of 6) 1. Getting Organized • Obtain management buy-in • Communicate and educate benchmarking concepts • Plan the overall benchmarking process • Address fear and concerns 16

Benchmarking Process (2 of 6) 2. Preparing to Benchmark • Identify process to benchmark • Establish benchmark team • Understand existing process • Determine process metrics 17

Benchmarking Process (3 of 6) 3. Conduct Research • Who performs similar processes • Who performs the best • What information is needed 4. Select the organization to Benchmark • Establish a relationship • Reach an agreement on the exchange 18

Benchmarking Process (4 of 6) 5. Collect Data and Information • Identify sources of data/information • Site visits • Interviews • Third parties • Documents • Plan and collect data/information 19

Benchmarking Process (5 of 6) 6. Analyze and Adapt the Process • Compare the data/information • Determine process gaps • Establish improvement goals • Design the improved process • Estimate the improvement 20

Benchmarking Process (6 of 6) 7. Implement the New Process • Train the affected staff • Implement the process on a trial basis • Monitor the results • Adjust and adapt • Adopt the process • Celebrate 21