Business Process Reengineering

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Business Process Reengineering

• Business Process Reengineering (BPR) is the
  means by which an organization achieves radical
  change in performance as measured by cost, cycle
  time, service, and quality, by the application of
  a variety of tools that focus on a set of
  customer-oriented core business processes.

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Types of Reengineering

• Type 1 - Process Improvement
• cost-reduction focus
• Type 2 - To achieve parity, or best-in-class
  competitive focus
• Type 3 - Searching core business for breakpoints
  rewriting the rules

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BPR Process (1 of 2)

• Frame the project
• Create the vision, values and goals
• Redesign the business operation
• Conduct proof of concept
• Andrews Stalick, Business Reengineering The
  Survivors Guide

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BPR Process (2 of 2)

• Plan the implementation
• Obtain implementation approval
• Implement the redesign
• Transition to a continuous improvement state

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The Dimensions of Business Process Reengineering
- Andrews Stalick (1 of 3)

• Physical/Technical Layer
• Process structure
• Technical structure
• Organization structure

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The Dimensions of Business Process Reengineering
(2 of 3)

• Infrastructure Layer
• Reward structure
• Measurement systems
• Management methods

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The Dimensions of Business Process Reengineering
(3 of 3)

• Value Layer
• Organizational culture
• Political power
• Individual belief systems

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The Top Ten Ways to Fail at Reengineering (1 of 2)

• 1. Dont reengineer but say that you are.
• 2. Dont focus on processes.
• 3. Spend a lot of time analyzing the current
  situation.
• 4. Proceed without strong executive leadership.
• 5. Be timid in redesign.
• Hammer Champy, The Reengineering Revolution,
  1995

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The Top Ten Ways to Fail at Reengineering (2 of 2)

• 6. Go directly from conceptual design to
• implementation.
• 7. Reengineer slowly.
• 8. Place some aspects of the business off-
• limits.
• 9. Adopt a conventional implementation style.
• 10. Ignore the concerns of your people.

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Benchmarking

• Benchmarking is the search for the best
  practices that will lead to superior performance
  of an organization.

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Benchmarking is NOT

• A cure for all organizational ills
• A means to justify blatant personnel cuts
• A one-shot program
• A process cookbook with no creativity
• A process to conduct industrial espionage
• A one-way information flow
• An improvement tool requiring little cost or
  effort

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Benchmarking Approaches

• Performance benchmarking
• To identify candidates for conducting
  benchmarking studies
• Process benchmarking
• To identify the best practices

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Types of Benchmarking ( 1 of 3)

• Internal
• Comparing yourself against a similar process,
  product, or service within your own organization

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Types of Benchmarking (2 of 3)

• Competitive
• Comparing yourself against the toughest external
  competitor or against world-class companies in
  your industry

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Types of Benchmarking (3 of 3)

• Generic/Functional
• Comparing yourself against a world-class company
  that is not even in your industry, but that uses
  a process similar to yours

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Benchmarking Process ( 1 of 6)

• 1. Getting Organized
• Obtain management buy-in
• Communicate and educate benchmarking concepts
• Plan the overall benchmarking process
• Address fear and concerns

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Benchmarking Process (2 of 6)

• 2. Preparing to Benchmark
• Identify process to benchmark
• Establish benchmark team
• Understand existing process
• Determine process metrics

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Benchmarking Process (3 of 6)

• 3. Conduct Research
• Who performs similar processes
• Who performs the best
• What information is needed
• 4. Select the organization to Benchmark
• Establish a relationship
• Reach an agreement on the exchange

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Benchmarking Process (4 of 6)

• 5. Collect Data and Information
• Identify sources of data/information
• Site visits
• Interviews
• Third parties
• Documents
• Plan and collect data/information

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Benchmarking Process (5 of 6)

• 6. Analyze and Adapt the Process
• Compare the data/information
• Determine process gaps
• Establish improvement goals
• Design the improved process
• Estimate the improvement

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Benchmarking Process (6 of 6)

• 7. Implement the New Process
• Train the affected staff
• Implement the process on a trial basis
• Monitor the results
• Adjust and adapt
• Adopt the process
• Celebrate