Professional Documents
Culture Documents
Spectrum of Change
Automation
Rationalization of procedures Reengineering
Paradigm shift
Automation
refers to computerizing processes to speed up the existing tasks. improves efficiency and effectiveness.
Rationalization of Procedures
refers to streamlining of standard operating procedures, eliminating obvious bottlenecks, so that automation makes operating procedures more efficient. improves efficiency and effectiveness.
refers to radical redesign of business processes. Aims at eliminating repetitive, paper-intensive, bureaucratic tasks reducing costs significantly improving product/service quality.
Paradigm Shift
refers to a more radical form of change where the nature of business and the nature of the organization is questioned. improves strategic standing of the organization.
Key Words
Fundamental
Why do we do what we do? Ignore what is and concentrate on what should be.
Radical
Key Words
Dramatic
in deep trouble. Companies that see trouble coming. Companies that are in peak condition.
Business Process
a collection of activities that takes one or more kinds of inputs and creates an output that is of value to a customer.
5
BPR is Not?
BPR may sometimes be mistaken for the following five 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 spin-off companies.
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.
16
Continuous Improvement
Incremental Existing process Bottom-up Narrow, within functions Moderate Statistical control Cultural
17
What is a Process?
A specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action.
A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives
Why Reengineer?
Customers
Demanding Sophistication Changing Needs
Competition
Local Global
Customer Demands
expect us to know everything to make the right decisions to do it right now to do it with less resources to make no mistakes expect to be fully informed
Why Reengineer?
Competition
Local Global
Change
Technology Customer Preferences
Performance
The Cs related to
Organization Re-engineering Projects
The 3Cs of organization Reengineering: - Customers The 4Cs of effective teams: - Commitment
- Competition
- Change
- Cooperation - Communication
- Contribution
Key Steps
Select The Process & Appoint Process Team
Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan Execute Plan
1.
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 BPR Champion Identify Process Owners Establish Executive Improvement Team Provide Training to Executive Team
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
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 organizationled and not consultant-driven Control should never be handed over to the consultant
2.
Scope
Boundaries
Set business and customer measurements Understand customers expectations from the process (staff including process team)
2.
Rework
Data
3.
3.
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
3.
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
Develop an Improvement Plan Appoint Process Owners Simplify the Process to Reduce Process Time Remove any Bureaucracy that may hinder implementation
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
5. 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
To avoid failure of the BPR process it is recommended that: BPR must be accompanied by strategic planning, which addresses leveraging Information technology as a competitive tool. Place the customer at the centre 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 who will actually do the work.
The Information technology group should be an integral part of the reengineering team from the start. BPR must be sponsored by top executives, who are not about to leave or retire. 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.