Business Process Re-engineering

Business Process Re-Engineering

What Is Reengineering • It means starting over. • It means abandoning long-established procedures and looking afresh at work required to create a company’s product and service and deliver value to customer. • It means tossing aside old system and starting over. • It is business re-innovation and not business improvement or business enhancement or business modification.

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Re-engineering – A Definition The fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.

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Four Key Words of Re-engineering 1. Fundamental Why do we do what we do? Why do we do it the way we do? 2. Radical Means getting to root of things.

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Four Key Words of RE (Contd.) 3. Dramatic Not marginal or incremental improvement but about achieving quantum leaps in performance. 4. Processes Process oriented, not task, job, people, structure based. “collection of activities that takes one or more kinds of inputs and creates an output that is of value to its customers.” 5

What Re-engineering ISN’T Its not automation. It should not be confused with software engineering. Its not about restructuring or downsizing. Its not reorganizing or flattening of organizations. Its not like Quality Improvement, TQM, Kaizen techniques.

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What is Re-engineering Its just a new beginning.

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A million-dollar question before BPRE Which processes need to be reengineered and in what order?

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Choice is based on three criteria Dysfunction: which processes are functioning the worst? Importance: which are the most critical in terms of customer satisfaction? Feasibility: which are the processes that are most likely to be successfully reengineered?

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Techniques of BPRE Purpose Analysis Process Mapping Flow Charting Benchmarking Pareto Analysis Force Field Analysis IT Control Charts Risk Analysis / SWOT Analysis Creativity/ Out of the Box Thinking 10

How to Re-engineer

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How to Re-engineer (Contd.)

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Re-engineering Model Scope Project

Learn From Others Create To-Be Process Plan Transition Implemen t 13

Chase Manhattan Bank (Phase Approach to BPRE) Four steps to BPR 1. Energize 3. Focus 5. Invent 7. Launch 14

BPR v/s TQM

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BPRE v/s Quality Programs Magnitude

Improvement Innovation/ Reengineering Increment Radical

Improvement Sought

30-50%

10x-100x

Starting base

Existing Process

Top management Relatively low commitment

Blank sheet High

Role of IT

Low

High

Risk

Low

High 16

BPRE V/S KAIZEN Kaizen philosophy is more easy to implement. more people-oriented. requires long-term discipline BUT provides only a small pace of change.

The BPRER is harder. technology-oriented. enables radical change but it requires considerable change management skills.

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Succeeding at BPRE Drive from the top. Communicate. Treat people fairly & with respect. Ensure the right sponsor is chosen. Be clear about the purpose of redesign. Set aggressive re-engineering targets. Ensure that process matches the need of the markets they are to serve. Involve customers & suppliers in the redesign process. 18

Barriers to BPRE Potential barriers Hard implementation (IT, Resource, Legal) Soft implementation (Individual / Group Resistance) Potential causes of barriers Project (Contents, Management) People (Personality, Groups) Organization (Structure, Culture) Environments (Partner, Public) 19

Why BPRE Projects Failed? 1. Lack of Sustained Management Commitment and Leadership. 2. Unrealistic scope and expectations. 3. Ignoring the key stakeholders while implementing the BPR. 4. Poor Change Management Strategy. 9. Resistance to change. 10. Narrow technical focus. 11. Lack of tactical and strategic dimensions. Application only at tactical level rather than at strategic level. 12. Lack of motivation at all levels. 20

Have the BPRE Projects really Failed?

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BPRE Is Accepted By Hallmark Wal-Mart General Motors Corporation DELL Ford Motor Company Procter and Gamble Corporation IBM Kodak Atena Life & Casualty

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Conclusion BPR doesn’t offer a miracle cure on a platter. Nor does it provide a painless quick fix. Rather it advocates strenuous hard work and instigates the people involved to not only to change what they do but targets at altering their basic way of thinking itself.

IT CANNOT STOP

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Thank You BPRE "encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions.“

Success Mantra Of BPRE "If I had it to do over again, I would…"