Business Process Re-engineering03 – Process Re-Design & Process Improvement

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Beginning Process Re-Design

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Process Re-design

Two approaches to BPR:• Systematic re-design

- identify / understand the existing process- It is reviewing current processes and then making the

relevant improvements• Clean sheet approach

- Rethinking the way the product / service is delivered and design a new process from the start

- It is like demolishing an old building and rebuilding instead of patching it up.

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Defining processes

A simple way to begin defining processes:• Identify a set of processes

- executives work back from their own responsibilities (they know their work processes best)

• Rationale to establish main processes

- identify major and minor processes

- categorise processes as innovation, delivery and infrastructure

- group related processes together

• Define process boundaries

- what is the process owner’s control?

- where is the process customer’s involvement?

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Guidelines for selecting processes

Processes selected for re-engineering should be:• Major contributors to core competencies (key processes for

e.g. marketing & sales)• Ready for change – at an acceptable level of risk (some

processes may take a very long time for change)• Able to produce early successes (early hits)• Interrelated with other processes (across functions or

departments)

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Definition of Visualisation

To enable radical changes and dramatic improvements to processes:

• Visualisation is:– moving a process from an ‘As-is’ state to a ‘To-be’ state– the creative process of developing achievable visions of the

‘To-be’ state• Visualisation involves:

– understanding what others do well– deciding attainable but tough improvement targets (“stretch

goals”)– thinking ahead of the competition to achieve the competitive

“edge”– a high level design to pragmatic solutions for the current

business state

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Process Redesign Issues

Some of the issues related to redesign include:

• Motivation – lack of motivation to enable redesign to processes

• Attitude – there may be resistance• Knowledge – not all may have information on the

processes• Creativity – lack of creative ideas• Innovation – not easy and challenging; thinking ‘out of

the box’

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BPR Project Structure

&

Methodology

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BPR Project Structure

Strategy

Analysis

Visualisation

Deployment

ContinuousImprovement

Insight

Invent

Implement

Develop full understanding of current situation

Invent new ways of achieving business objectives

Transition from current situation to new ways

Optimise performance

Stages to a BPR Project

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Strategy

Strategy

Deliver:BPR plan

Scope and planInterviews &

SurveysDevelop

Assessment

Insight

Stages to a BPR Project

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Analysis

Analysis

Deliver:ComprehensiveunderstandingQuick hits

Current Process Problems:Assumptions

Metrics

Tools and Techniques

Baseline ofcurrent operations

Insight

Stages to a BPR Project

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Visualisation

Visualisation

Deliver:Implementableprocesses tomeet objectivesBusiness case

Benchmarks; BestPractice

Stretch goals Invent newprocesses

Tools and Techniques

Evaluateoptions

Invent

Stages to a BPR Project

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Deployment

Deployment

Deliver:Implementableprocesses tomeet objectivesBusiness case

Processdesign

Deploymentplan

Implementnew IT

Staff - training & organisation

IT Strategy

Implement

Stages to a BPR Project

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Continuous improvementImplement

Continuous Improveme

nt

Performancemeasurement

Fine tune newprocesses

TQM

Deliver:Optimisedprocesses;Measuredimprovement

Stages to a BPR Project

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BPR Methodology

Generic Methodology

1. Create a Reengineering Framework • to build a comprehensive foundation and framework for

the entire process reengineering change effort that will create the required focus, direction, and motivation necessary to sustain itself.

2. Identify Customers and Determine Needs • to develop a concrete and comprehensive understanding

of the customers of the targeted process, and their needs and wants, that will result in a redesigned business process that clearly provides added value to the customer.

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3. Map the Existing Process • to gain an understanding of the "what" and "why" of the

targeted process that will reinforce the need for significant change and provide a basis for the redesign step.

4. Measure Process Performance • to gain the needed performance understanding of the

targeted process through the collection of appropriate and relevant data, and to translate the data into redesign goals

BPR Methodology

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BPR Methodology

Davenport & Short

• Identify processes for innovation • Identifying change levers (enabling or transformation

technologies) • Developing process vision • Understanding and improving existing process

• Designing and prototyping the new process

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BPR Methodology

Hammer & Champy– Identify the core process using process mapping. – Identify process requiring reengineering – High level understanding of the current process from a customer

perspective – Process redesign using the following principles (Hammer 1990):

• Organize around outcomes not task • Have those who use the output of the process perform the process • Subsume information-processes work into the real work that produces the

information • Treat geographically dispersed resources as though they were centralized • Link parallel activities instead of integrating their results • Put the decision point where the work is performed and build control into the

process • Capture information once and at the source.

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Barriers to BPR

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• Potential barriers – Hard implementation– Soft implementation

• Potential causes of barriers– project– people– organisation – environments

Barriers to BPR

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Barriers to BPR