Training on Bpr Concepts

Training on

Business Process Reengineering

Concepts and outcomes of BPR

1. Definition of process

- process is a group of related tasks that together create value for a customer. In simple terms, Process is whole jobs that together create end result that benefit the customer. - To connote something as a process there has to be -Tasks -the tasks shall be related to each other- the tasks being together shall create value to the customer

In other word:

A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers.

2. Reengineering Defined

The concept of BPR was successfully popularized by two sets consultants: Hammer and Champy (1993) and Davenport (1993).Reengineering means:

-Challenging the status quo-'Starting over‘-A 'fresh start', 'blank sheet' start.

Generally, reengineering is creation, reinvention of new way of doing business, recreation of the different new form organization.

It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical, contemporary measures of performance, such as cost, quality, service level, and speed". (Hammer, 1993)

This definition contains four key words. FundamentalRadicalDramaticProcessesThese are pillars or building blocks of BPR.Having said these let us see each one by one

.

Fundamental-A fresh start, blank sheet review.- Starts challenging the status quo by asking basic questions about company and how they operate:- - Why do we do what we do? And why do we do it the way we do?- Reject all rules and assumptions that underlie the foundation of your organization. Reengineering takes nothing fore granted. It ignores what is and concentrates on what should be.- Reengineering begins with no assumption and given- You unlearn all rules, assumptions, principles and techniques that underlie the way your organization is organized and been conducted, but start afresh.- Reengineering first determine what a company must do, then how issue comes latter

B. Radical- Radical redesign means getting to the root of things.- Not improving the existing system to make better.- Not superficial change, or modification- Throwing away the old- Disregarding all existing structures and procedures and inventing completely new ways of doing work.- Reengineering is about business reinvention - not business improvement, business enhancement or business modification.

C. Dramatic

- Reengineering is not about making marginal or incremental improvement but about achieving quantum leaps in performance.- It is about bringing drastic cost reduction, (e.g. not 10% but 10X) dramatic improvement in quality, speed and service level.

D Processes

- It is only business processes the object of reengineering- It is processes not the organizations, or parts of it such as department, or work units to be redesigned in reengineering.- Organizations It can not (and should not) reengineer the department or work unit, but business processes that to be redesigned.- Processes mean simply- a set of activities together produce a result of value to a customer.

Reengineering is responding to the reality in order to live within today's new business world.

It is the fitting system for today’s business environment. This is the new approach of doing business: new approach to work.

1.The need for change:

>The globalization

Business companies, government organizations, public enterprises all of them regardless of their size or any natural existence has been facing very challenging business environment that can determine their existence, success or failure.

Driving forces for a changeThree forces, separately and in combination 3cs drive the changes. These are

Customer, Competition and Change.

1. Customer

The dominant force in the seller-customer relationship has shifted from seller to

customer. A mass market no longer exists in real term.

Customer has upper hand; Because:

- They have choices.

- The role of technology - access to information.

Customers (business customers and individual consumers) know what they want,

know what they want to pay for it, how to get it as their needs and preferences.

2. Fierce Competition

The phenomenon of mass marketing has broken.

The traditional competitive strategies: lower price and highest quality, and best service

become standard for almost all competitors.

The shit in customer-seller relationship and the technology changes the nature of

competition.

3. Change

Change becomes constant.

The pace and nature of the change also changing

The nature of change becomes fast, flexible

Today nothing is constant or predictable - the customer demand, the technology, the

competition.

3. What Reengineering is not?

Trying to repair or improve the existing system so that they work better. But abandoning long established procedures and looking afresh.Trying to make incremental improvement such as 10%, but dramatic change such as 10X.Reengineering is not automation or computerization

Reengineering is not restructuring or downsizing

Reengineering is not reorganizing, delayering or flattering an organizationReengineering is not quality improvement, Total Quality Management (TQM)Reengineering is not decentralizing or outsourcingReengineering is not about incremental change, but step change, dramatic change

4. The Basic Characteristics and Common features of Reengineered Business Processes

-Several jobs are combined into one- Worker Make decisions- The steps in the process are performed in a natural order ("Delinearizing")- Non-value adding activities and handoffs in the process are eliminated.- Processes have multiple versions- Work is performed where it makes the most sense.- Checks and Controls are Reduced- Reconciliation is minimized-A case manager provides a single points of contact

5. The Implication of Reengineered Processes on the Organizational System

Work units change-from functional departments to process teams

Kinds of process teamsa. Case teamb. Virtual teamsc. One man team

Jobs Change-from simple tasks to multi-dimensional workPeople's roles change-from controlled to empowered

Job preparation changes - from training to educationFocus of performance measures and compensation shifts - from activity to results

Advancement /promotion/ criteria change-from performance to ability Values changes - from protective to productiveOrganizational structures change from hierarchical to flatManagers change - from supervisors to coachesExecutives change - from scorekeepers to leaders.

May,2007May,2007 110110

Jobs &

Structure

BusinessProcess

Management & Measurement

System

Value&

Beliefs

The Business System Diamond

Choosing the processes to reengineerThe selection should be based on criteria.

The Criteria

Three major criteria:

Dysfunction - Process that is in deepest trouble.

- Broken process.

Importance - Process that have the greatest impact on the

company's customer. Highest link to its mission

Feasibility - Processes that at the moment most

susceptible to successful redesign.

The Hardest part of Reengineering

Achieving reengineering succeed is a challenging but

achievable. The challenge is hard and tough.

The difficult is:

Living through change:

The challenge in beginning the change;

Totally, this is new world of work: paradigms shift:- the difficulty,

the hardest part of reengineering is getting people to this new

world. It is tough and challenging.

This is called resistance to change

Principles for Overcoming Resistance to change

Principle one: Resistance is natural and inevitable: Expect it

Principle Two: Resistance does not always show its face

Principle three:Resistance has many motivations: Understand it

General misunderstanding.- Personal self interest- Fear of unknown- Lack of skills to cope up with new world of work.- Different assessment of the change.- Deliberate ignorance (e.g. political motivation)

Principle four:

Deal with the root of the resistance, not on symptoms

Principle five: There is no one way to deal with resistance: Manage it

In general, five Is:

Incentives,

information,

intervention,

indoctrination, and

involvement are approaches for dealing with resistance.

BPR is Not an option, but a necessity.

There is no choice, but let go ahead.

Use clear and loud voice!

Absolutely damage the bridge!

No way, no choice, but only go ahead.

Thank u