Business process Re-

engineering

The assumption of an absolute determinism is the

essential foundation of every scientific enquiry.― Max Planck,

Dilawar Abbas

A definition of Business Process Re-engineering?

Business Process Re-Engineering is the

Fundamental rethinking and Radical redesign of

Business Processes to achieve Dramatic

improvements in the critical measures of

Performance such as

Cost, Quality, Service, Efficiency and Speed.

Re-Engineering is NOT

Automation for existing ineffective processes.

Sophisticated computerization of obsolete processes.

Playing with organization structures.

Downsizing - doing less with less.

Reorganizing.

Change Management

ISO9000

Reason for Re-engineering

OLD ERA

High Depends

Efficiency

Control

NEW ERA

High Competition

Innovation

Speed

Service & Quality

. . . follow process and progress

will follow.

Effectiveness

To improve service and

satisfy customer needs,

while lowering costs.

Automation

use technology to automate

the

"AS-IS" process to make it

happen faster

V/S

Difference between Automation &

Business Process Re-Engineering

Business Process Re-Engineering is

about Innovation

Making New Wine and

putting it in a New BottleLike putting OLD Wine in

a New Bottle

Automation is using technological

tools to perform OLD Processes, in

a NEW way,

3 Goals of Business Process Re-Engineering

Customer Friendliness Effectiveness Efficiency

• Meeting customer

requirements closely

• Providing

convenience

• Outcome based

approach

• Gaining loyalty of

customers

• Image and branding

• Cost

• Time

• Effort

4 Steps in Business Process Re- Engineering

Understanding the Current Process

"AS IS" study - mapping current process

Analysis of Root Causes for Inefficiencies

Identification of Problems, Issues

Inventing a New Process ('TO BE'

Process)

Survey of Best Practices

Consultation of Stakeholders

Constructing the New Process

Bringing in New Law and Rules

Adopting Disruptive technologies

Automation

Selling the NEW way of functioning

Change Management

Communication Strategy

9 Changes Occasioned by Business Process

Re-Engineering

Work Units Change • from functional departments to process teams

Job Changes • from simple task to multiple-dimensional work

People's role change • From controlled to empowered

Job preparation changes • from training to education

Measures of Performances & Compensation Change • from activity to results

Criteria for career advancement change • from performance to ability

Values change • from protective to productive

Organizational Structure Change • from hierarchical to flat

Executive change • from scorekeepers to leaders

Critical Success Factors in Business Process

Re-Engineering

1. Clear Vision for Transformation

2. Top management commitment

3. Identification of Core Processes for Business Process Re-Engineering

4. Ambitious Business Process Re-Engineering Team

5. Knowledge of Re-Engineering techniques

6. Engaging external consultants

7. Tolerance of "genuine failures"

8. Change Management

Critical Failure Factors in Business Process

Re-Engineering

1. Trying to Fix a process instead of Changing it.

2. Lack of focus on Business-critical Processes

3. Lack of holistic approach

4. Willingness to settle for minor results

5. Quitting too early

6. Limiting the scope of Business Processing Engineering by existing constraints

7. Dominance of existing corporate culture

8. Adopting bottom-up approach

9. Poor leadership

10. Trying to avoid making anyone unhappy

11. Dragging the Business Process Re-Engineering exercise too long.

Scope of Business Process Re-Engineering

Intra-functional

Small scope within department, least impact

Inter-functional

Horizontal view across departments, more impact

Inter-organizational

Broad view including entire supply & delivery chain, most impact

Re-Engineering guidance and

relationship of Mission and Work

Processes to Information

Technology.

Mission

Work Processes

Decisions

Technology

Information

Defines Accomplish

Execute Guide

Consider Supports

Employ Process

Why Organizations do not Re-Engineer

Complacency

Political Resistance

New Developments

Fear of Unknown and Failure

The essence of Business Process Re-

Engineering is

Transformation

The essence of Business

Process Re-Engineering is

Transformation

A 4-Pronged Approach to Transformation

Transformation

Transforming Process

• Eliminate

• Simplify

• Automate

• Base of Trust

• Integrate

• Join Up

• Legislate

Transforming Culture

• Competency

• Helful

• Polite

• Professional

• Adaptation of Change

Using Technology

• Enterprise wide Architecture

• Centralized System

• Unified Database

• Unified Networks

• Web Based System

Transforming People

• Training

• Change Management

• Consultation

• Empowerment

• Education

• Awareness

Change Management

Change is only possible when

people are dis-satisfied.

Satisfied people do not need

change

What Change Management Is & What

it is Not

1. Change management is not a stand-alone process for designing a business solution.

2. Change management is the processes, tools and techniques for managing the people-side of change.

3. Change management is not a process improvement method.

4. Change management is a method for reducing and managing resistance to change when implementing process, technology or organizational change.

5. Change management is not a stand-alone technique for improving organizational performance.

6. Change management is a necessary component for any organizational performance improvement process to succeed, including programs like: Six Sigma, Business Process Reengineering, Total Quality Management, Organizational Development, Restructuring and continuous process improvement.

7. Change management is how we drive the adoption and usage we need to realize business results.

Change Advisory Board

A change advisory board (CAB) delivers support to a change management team by approving requested changes and assisting in the assessment and prioritization of changes. This body is generally made up of IT and Business representatives that include: a change manager, user managers and groups, technical experts, possible third parties and customers (if required).

It is advised to form a Change Advisory Board in-order to manage the Change Planning & Implementation.

ChairmanChange Advisory Board

Permanent Board Members

Temporary Board Members(Department Based)

We are what we repeatedly do.

Excellence then, is not an act, but a habit.

Readiness Analysis

1. Is there a compelling business need for strategic change?

2. Is the organization prepared to challenge it status quo?

3. Would it have the courage to create a new vision?

4. What's the degree and quality of sponsorship and commitment of senior management?

5. Are they prepared to be deeply involved?

6. Do they have the energy to follow through the entire change process?

7. Is the organization prepared to commit resources (time, energy, money) to

undertake the Business Process Re-Engineering project?

8. What is the overall organization's attitude towards change?

9. Is the organization prepared to overcome resistance to change?

10. You create dissatisfaction, if you want people to change.

Business Process Re-Engineering

Team Composition

1. Top Management: CEO / COO as SPONSOR

2. Senior & Middle Management in EXECUTIVE TEAM

3. Selected Senior & Junior Management Staff to form

PROCESS TEAMS

4. Enthusiastic and energetic individual as Business Process

Re-Engineering Coordinator

5. Business Process Engineers

Thank You