BPR is 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. BPR is analysis and design of workflows and processes within an organization. It is basically rethinking and re-design made to organizations existing resources. BPR Change the process not function, departments and task Reengineering is not reorganizing Reengineering is not downsizing Reason for reengineering: High competitions Innovation Speed Quality Phases of BPR 1. Begin organizational change. a. Asses the current state of organization. b. Explain the need for change. c. Illustrate the desired state. d. Create the communications campaign for change. 2. Building the reengineering organization a. Establish a BPR organizational structure b. Establish the rules for performing BPR c. Choose the personnel who will reengineer. d. Reengineering Organization-steps i. Important member of reengineering is executive leader ii. Process Owner-specific process of reengineering iii. Reengineering team iv. Steering Committee v. Lastly, reengineering specialist or consultant 3. Identifying BPR opportunities. a. Identify the core/high level processes. b. Recognize potential change-enablers c. Gather performance metrics within the industry. d. Gather performance metrics outside the industry. e. Select processes that should be reengineered. f. Prioritize selected processes. g. Organization follow three criteria's. h. Dysfunction (which process are the most ineffective) i. Importance(which processes have the greatest impact on customers) j. Feasibility(which processes are at the moment most susceptible to accomplish a successful re-design) 4. Understanding the existing process. a. Understand why the current steps are being performed. b. Model the current process. c. Understand how technology is currently used. d. Understand how information is currently used. e. Understand the current organizational structure

f. Compare current process with the new objectives. g. Evaluate pre-existing business strategies. h. Consult with customers to know their desires. i. Determine customers actual needs. j. Formulate new process performance objectives. k. Establish key process characteristics. l. Identify potential barriers to implementation. 5. Reengineering the process. a. Ensure the diversity of the reengineering team. b. Question current operating assumptions. c. Brainstorm using change levels. d. Brainstorm using BPR principles. e. Evaluate the impact of new technologies. f. Consider the perspectives of stakeholders. g. Use customer value as the focal point. h. ERP system i. Supply chain intelligence technologies j. Business intelligence technologies k. Internet technologies l. Distributed computing platform m. Client/Server architectures n. Workflow automation technologies o. Groupware 6. Blueprint the new business system. a. Define the new flow of work. b. Model the new process steps. c. Model the new information requirements. d. Document the new organizational structure. e. Describe the new technology specifications. f. Record the new personnel management systems. g. Describe the new values and culture required. 7. Perform the transformation. a. Develop a migration strategy. b. Create a migration action plan. c. Develop metrics for measuring performance during implementation. d. Involve the impacted staff. e. Implement in an iterative fashion. f. Establish the new organizational structures. g. Assess current skills and capabilities of workforce. h. Map new tasks and skill requirements to staff i. Re-allocate workforce. j. Develop a training curriculum. k. Educate the staff about the new process. l. Educate the staff about the new technology used. Advantages of BPR Performance improvement Increase in profits

 Increase in productivity Better business practices Enormous cost reduction Speed up business processes Improvement in employee satisfaction Improvement in quality Improvement in customer service Profitability Disadvantages of BPR BPR has bad reputation for major layoffs. It never change management thinking. Lack of management support for the initiative and thus poor acceptance in organization. Exaggerated expectations regarding the benefits of BPR Underestimation of resistance to change within organization. Implementation of generic best practices that do not fit specific company needs. Over-trust in technology solutions. BPR Implementation steps

Select the Process Two Crucial Tasks Select The Process to be Reengineered Appoint the Process Team to Lead the Reengineering Initiative Review Business Strategy and Customer Requirements Select Core Processes Understand Customer Needs Dont Assume Anything Select Correct Path for Change Remember Assumptions can Hide Failures Competition and Choice to Go Elsewhere Ask - Questionnaires, Meetings, Focus Groups Appoint the Process Team Appoint BPR Champion Identify Process Owners

 Establish Executive Improvement Team Provide Training to Executive Team Core Skills Required Capacity to view the organization as a whole Ability to focus on end-customers Ability to challenge fundamental assumptions Courage to deliver and venture into unknown areas Ability to assume individual and collective responsibility Employ Bridge Builders Use of Consultants Used to generate internal capacity Appropriate when a implementation is needed quickly Ensure that adequate consultation is sought from staff so that the initiative is organization-led and not consultant-driven Control should never be handed over to the consultant Understand the Current Process Develop a Process Overview Clearly define the process Mission Scope Boundaries Set business and customer measurements Understand customers expectations from the process (staff including process team) Clearly Identify Improvement Opportunities Quality Rework Document the Process Cost Time Value Data Carefully resolve any inconsistencies Existing -- New Process Ideal -- Realistic Process Develop & Communicate Vision of Improved Process Communicate with all employees so that they are aware of the vision of the future Always provide information on the progress of the BPR initiative good and bad. Demonstrate assurance that the BPR initiative is both necessary and properly managed Promote individual development by indicating options that are available Indicate actions required and those responsible Tackle any actions that need resolution Direct communication to reinforce new patterns of desired behavior Identify Action Plan Remove no-value-added activities Standardize Process and Automate Where Possible Up-grade Equipment Plan/schedule the changes

 Construct in-house metrics and targets Introduce and firmly establish a feedback system Audit, Audit, Audit Execute Plan Qualify/certify the process Perform periodic qualification reviews Define and eliminate process problems Evaluate the change impact on the business and on customers Benchmark the process Provide advanced team training Benefits From IT Assists the Implementation of Business Processes Enables Product & Service Innovations Improve Operational Efficiency Coordinate Vendors & Customers in the Process Chain Computer Aided BPR (CABPR) Focus Business Processes Process Redesign Process Implementation BPR Challenges Common Problems Process Simplification is Common - True BPR is Not Desire to Change Not Strong Enough Start Point the Existing Process Not a Blank Slate Commitment to Existing Processes Too Strong REMEMBER - If it aint broke Quick Fix Approach Process under review too big or too small Reliance on existing process too strong The Costs of the Change Seem Too Large BPR Isolated Activity not Aligned to the Business Objectives Allocation of Resources Poor Timing and Planning Keeping the Team and Organization on Target