Title

Understand the Current Process Current performance capabilities need to be studied through tools like:

Flow ChartsFishbone DiagramsQuality Function Deployment

Observation and participation in process Dont over study the current process BackDefinitionThe Term is Coined by Michael Hammer

Reengineering is the 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

3CsCustomerChange CompetitionRe-Engineering DefinitionRe-engineering is nor reorganizing or restructuring.Re- engineering also does not mean downsizingRejection of the classical concept of labour specialization and engineering of tasks.

Re-engineering focuses on rethinking.Eliminates works that is not necessaryConsiders more effective ways of doing workRe-engineering is about creating value for customersValue- Lower cost, High quality and increased response time.

This definition has 4 key wordsFundamentalRadicalDramaticProcesses

Business Process According to Davenport business process is a set of logically related tasks performed to achieve a defined business outcome.Why BPR?To Accelerate slow processes, To Improve productivity, and To Control costs.

These improvements lead to:

Increased customer satisfaction, Increased productivity and market shareGreater employee satisfaction, and ultimately Increased profits.

Need For BPRBusiness EfficiencyImproved TechniquesNew requirementsFacilitates MatchEliminates HierarchyBPRAccording to Hammer and champy BPR can be defined as Re-engineering the corporation, a manifesto for business revolutionDrivers of BPR BusinessCustomer CompetitionChangePrinciples of ReengineeringBy DavenportOrganize around outcomes not tasks

Have those who use the output of the process perform the process

Merge information-processing work into the real work that produces the information

Treat geographically dispersed resources as though they were centralised.

Put the decision point where the work is performed and build control into the process

Link parallel activities instead of integrating their results.

Capture information once- at the source

Transformational Scope of BPR

ChangeQuantum LeapFocusStart Again FrequencyOne ShotScopeBroad,Cross FunctionalParticipationTop-Down HighRisk and RewardHighType of ChangeStructural,Culture,RolesRole of ITKey EnablerAidsMethods and ToolsCompanies Currently Engaged in BPR

Source:Cutter Consortium June,19,2002

Person Responsible for BPR

Source:Cutter Consortium June,19,2002Industries that ReengineerHeavyMore recently Still laggingInsuranceElectronicsRetailersTelecommunicationsComputersBanksElectric PowerUtilitiesChemicalsGovernment AgenciesThe Reengineering ProcessDevelop the Business Vision and Process ObjectivesUnderstand the Current ProcessesIdentify the Processes to be ReengineeredDesign the Reengineered ProcessEvaluate Enablers of ReengineeringImplement the Reengineered processThe Mckinsey WayDiagnostic Redesign ImplementationI-6 months3-6 months2-4 months(11)(8)(8)5 Final ConsiderationsObjectiveApproachScopeReengineering is a targeted effort to gain substantial improvements in business unit performance.by reconfiguring activities and information flowthat are sufficiently broad to comprise core processesOne time EffortConcurrent information and activity flow redesignActivity/information required to deliver ValuesMajor Bottom line ImpactFocus on high leverage areasCut across organizational boundariesBreakthrough Performance GoalsDriven by fact baseHolistic Process ViewSimultaneous ImprovementsIterative DesignPhased Impact

Steps in BPRPhase 1: Begin organizational changePhase 2: Building the Reengineering organizationPhase 3: Identifying BPR opportunitiesPhase 4: Understanding the existing processPhase 5: Reengineer the ProcessPhase 6: Blueprint the new Business systemPhase 7: Perform the transformationPhase 1Begin Organizational changeAssess the current state of the organizationExplain the need for changeIllustrate the desired stateCreate a communication campaign for changePhase 2Building the reengineering organizationEstablish a BPR organizational structure.Establish the roles for performing BPR.Choose the personnel who will reengineer.Phase 3Identifying BPR opportunitiesIdentifying the core/high- level processes.Recognize the potential change enablersGather performance metrics within the industryGather performance metrics outside the industry5. Select the process that should be reengineered6. Prioritize selected process7. Evaluate pre-existing business strategies.8. Consult with customers to know their desires9. Determine the customers actual needs10. Formulate new process performance objectives11. Establish key process characteristics12. Indentify potential barriers to implementatiom

Phase 4Understanding the existing process

Understand why the current steps are being performed.Model the current processUnderstand how technology is currently usedUnderstand how information is currently usedUnderstand the current organisational structureCompare current process with new objectivesPhase 5Reengineer the processEnsuring the diversity of the reengineering teamQuestion current operating assumptionsBrainstrom using change leversBrainstrom using BPR principlesEvaluate the impact of new technologiesConsider the perspective of stake holdersUse customer value as the focal point

Phase 6Blueprint the new business systemDefine the new flow of workModel the new process stepsModel the new information requirementsDocument the new organizational structureDescribe the new technology specificationsRecord the new personnel management systemsDescribe the new values and culture required

Phase 7Perform the transformationDevelop a migration strategyCreate a migration action planDevelop metrics for measuring performance during implementationInvolve the impacted staffImplement in an iterative fashionEstablish the new organisational structures

7. Assess current skills and capabilities of workforce8. Map new tasks and skill requirements to staff9. Reallocate work force10. Develop a training curriculum11. Educate the staff about the new process12. Educate the staff about the new technology used13. Educate the management on facilitation skills

Decide how the new technologies will be introducedTransition to the new technologiesIncorporate process improvement mechanisms.Re-engineering the structureLeaderProcess ownerRe-engineering teamSteering committeeRe-engineering czarExamplesFORD (the extra staffing levels in the accounts payable section were reduced by 75 % )

ALU LADDER CORPORATION (succeeded to be the French market leaders )

STOMIL SANOK S.A. (Time reductions in production cycle time are over 90%.)

Why BPR Projects Fail? Almost 70% of the BPR Projects fail. The biggest obstacles that reengineering faces are:

Lack of sustained management commitment and leadership

Unrealistic scope and expectations;

Resistance to Change.

Change management and BPRAssemble a change management teamEstablish a new direction for the organizationPrepare the organization for changeSet up change teams to implement changeAlign structure,systems and resources to support change.

Identify and remove roadblocks to changeAbsorb changes into the culture of the organisationBPR and ITOvercome barriersFacilitate reengineering designHelps in gathering and analyzing informationFacilitate process oriented approachFacilitate databaseIdentify alternative businessHandled and controlled contigency

Reengineering Recommendations BPR must be accompanied by strategic planning.

Place the customer at the center of the reengineering effort -- concentrate on 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. Reengineering Recommendations Case teams must be comprised of both managers as well as those will actually do the work.

BPR projects must have a timetable, ideally between three to six months, so that the organization is not in a state of "limbo".

BPR must not ignore corporate culture and must emphasize constant communication and feedback.

Thank YouSources:www.prosci.comBPR Action Kit Michael Balle:AdvantagesIncreases effectivenessReduces costProvides meaningful jobs to employeesImproves organizational approachFacilitates growth of business

LimitationsReengineering too many processes at initial stagesInadequate trainingUnclear knowledge of Re-EngineeringWastage of timeFear of failureDelay in showing resultsInadequate resourcesLimited awareness among employeesChart10.830.17

NO17%YES83%

Sheet1YES83%NO17%CEO19CIO16Business Process Manager11Process Owner /Divison Vice President7IT Manager4Chairperson of the Board3Director3Director Corporate Process Office3CTO3CFO8COO4Others19

Sheet1000000000000

Person Ultimately Responsible for BPR

Sheet200

Sheet3

Chart31916117433338419

&APage &P

Sheet1YES83%NO17%CEO19CIO16PM11DVP7IT Manager4Chairperson3Director3DCP3CTO3CFO8COO4Others19

Sheet11916117433338419

Person Ultimately Responsible for BPR

Sheet20.830.17

Companies Currently Engaged in BPR

Sheet3