BPR Implementation Methodology

Submitted by Vinoth Mariyaraj(10MBA1077) Edward Dennis Praveen(11MBA1015)

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BPR Implementation
BPR is therefore an approach and takes the form of a project, typically having seven phases:1. 2. 3. 4. 5. Discover Analyze and Document the redesigned Process(es) Involve and rebuild Reorganize and re-train Establish the redesigned process(es) & redesign the work teams. 6. Measure Performance 7. Continuous redesign and improvement
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1. Discover Phase: A problem or unacceptable outcome is identified and desired outcome determined This includes:a) Business Needs b) Processes Involved c) And Effectiveness of Monitoring & measurement Plans.
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2. Analyze the Existing Processes and Document the Redesigned Processes: Analyze the current business processes & determine new & re-designed Processes
Establish Process Flow Charting for Redesigned Processes Measure, Test, Analyze, and Finalize the Redesigned Processes Use Benchmarking Information, where required
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3. Involve and Rebuild Phase: Redesign & Rebuild the Work Teams. The teams must rethink and fully understand the redesigned or new Process(es). Everybody should be involved for the agreed Action Plan

4. Reorganize and Retrain: For New Technology and New or Redesigned Processes. BPR may involve Substantial Investment in Training and Top Managements Commitment / Support.

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5. Establish the Re-designed Process(es) With Re-designed Work Teams: It is critical for the success of BPR and depends on the scope of the Business Process(es). It therefore includes:

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Establish & Implement the Re-designed process(es) with Re-designed work teams (where required) Overall Process Sponsor or Champion (Effective Managerial Skills) Process Owner (Resolver of Process Bottlenecks) Team Leader or Process Manager (Motivator & Resource Provider) Facilitator (Coordinator & Support Services) Team Members (Knowledge, Skills, Attitudes)
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Business Process Reengineering (BPR)

Measurement of BPR outcomes: There are no consistent reliable measures available BPR could be measured during the evaluation stage in terms of:
Process performance: cycle time, cost, customer satisfaction. IT performance: downtime, system use. Productivity indices: orders processed per hour.

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Business Process Reengineering (BPR)

Indicators for success: Work units change from functional departments to process teams. Task-oriented jobs become multi-dimensional, process oriented roles. Employees are empowered with authority and responsibility for a process and its outcome. Example Customer Care Airtel

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Business Process Reengineering (BPR)

Differences between traditional IT implementations and BPR:
Basis for comparison
Essence Approach Style Perspective Goal Change Domain

Traditional IT Implementations
Problem solving Incremental improvement Analytical Micro perspective Enhancement Limited Functional area

BPR implementations
Reinventing work Radical change Creative &innovative Macro perspective Paradigm-break Wholistic scope Entire business system

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Mexican Survey
Acc., to survey, BPR impacted mainly in management cost (82 %), production cost (57%) and distribution cost (39%) reductions 500 business from Mexico Top 30 business applied BPR and had impressive results. (P.T.O)
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Areas of Reported Achievements

Improvements in %
69 62 59 59 52 45 41 38 38 34 34 28 28 21 17 14 11

Cost Reduction Time Optimization Better Service Efficiency Productivity Increase More Precise Information for Decision Taking Quality Improvement Better Financial Control Better Profitability Hierarchical Levels Reduction Technology Update Personnel Motivation Sales Increase Market Survival Reduction of Business Losses Environment Impact

Increase Market Penetration 20-Mar-12

Mahindra Case Study

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RISKS IN BPR
Project Risk Categories Definition

Financial Risks

The project does not yield the high Return-of-Investment expected.

Technical Risks

Business process oriented Information Technology solutions either are not available or not working.

General Project Risks

The organization is looking for solutions outside its competence or the project team is not performing.

Functional Risks

The organization is confronted with a reorganization plan, which is not applicable to the kind of business the company is in.

Political Risks

People confront the project (resistance), or the project gradually loses commitment by upper management.

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CASE STUDY

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Implementation Barriers

Hard Implementation Barriers Soft Implementation Barriers

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Hard Implementation Barriers

IT Problems Resource Problems Legal Obstacles

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Soft Implementation Barriers

Type A Resistance Type B Resistance Internal Individual Resistance Internal Group Resistance External Resistance

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Business Process Reengineering (BPR)

Challenges associated with BPR: Poor Leadership Poor or inconsistent communication Exclusion of current employees

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Business Process Reengineering (BPR)

Critics to BPR:
BPR assumes that the factor that limits organization's performance is the ineffectiveness of its processes. This may or may not always be true. Also BPR offers no means to validate this assumption. BPR assumes the need to start the process of performance improvement with a "clean slate", i.e. totally disregard the status quo. BPR does not provide an effective way to focus the improvement efforts on the organization's constraints. Sometimes, or maybe quite often, a gradual and incremental change may be a better approach. BPR is culturally biased towards the US way of thinking.

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BPR is Not?
BPR may sometimes be mistaken for the following four tools: 1. Automation is an automatic, as opposed to human, operation or control of a process, equipment or a system; or the techniques and equipment used to achieve this. Automation is most often applied to computer (or at least electronic) control of a manufacturing process. 2. Downsizing is the reduction of expenditures in order to become financial stable. Those expenditures could include but are not limited to: the total number of employees at a company, retirements, or spinoff companies.

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BPR is Not?
3. Outsourcing involves paying another company to provide the services a company might otherwise have employed its own staff to perform. Outsourcing is readily seen in the software development sector. 4. Continuous improvement emphasizes small and measurable refinements to an organization's current processes and systems. Continuous improvements origins were derived from total quality management (TQM) and Six Sigma.
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Business Process Reengineering (BPR)

Addressing people issues:
Intervention for overcoming organizational resistance Intervention for culture change and Dealing with the 'survivor syndrome' of the change receptionist. Survivor syndrome appears after firing some employees when implementing BPR, other employees show decreased motivation and morale, guilt, anger, and skepticism.

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Reengineering Recommendations
BPR must be accompanied by strategic planning, which addresses leveraging IT as a competitive tool. Place the customer at the center of the reengineering effort -concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service.

BPR must be "owned" throughout the organization, not driven by a group of outside consultants.
Case teams must be comprised of both managers as well as those will actually do the work. BPR must not ignore corporate culture and must emphasize constant communication and feedback.

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