A BPR Framework

Business Process ReengineeringA BPR FrameworkA BPR FrameworkOrganizationJob skillsStructuresRewardValues TechnologyEnabling technologiesInformation System (IS) architecturesMethods and Tools IS OrganizationsProcessCore Business ProcessesValue-AddedCustomer-FocusInnovation

Participants in BPRLeader- A senior executive who initializes the BPR.Process Owner- owner of Specific Process for which reengineering is focused.Re-Engineering Team- group dedicated to the particular process, who diagnose the existing process and oversee its re-design and implementationSteering Committee: A policy making body of a senior manager who develops BPR strategy and monitors its progressRe-Engineering Czar: An individual responsible for developing re-engineering techniques and tools within the company.

The 3 Rs of Reengineering-3 Basic PhasesRethinkRedesignRetool

Suggested Framework for BPR (I)In general, keywords for successful BPR are creativity and innovationbut BPR projects also need structure and discipline, preferably achieved by following a well thought-out approach.

BPR Framework of Roberts (1994)Starts with a gap analysis and ends with a transition to continuous improvement.The gap analysis focuses on three questions:The way things should beThe way things areHow to reconcile the gap between 1 and 2

Roberts Framework for BPR

OpportunityassessmentCurrent capabilityanalysisProcess DesignRisk and impactassessmentTransition planPilot testInfrastructuremodificationsImplementationand transitionTracking andperformanceContinuous improvementprocessBPR Framework of Lowenthal (1994)Consists of 4 phasesPreparing for change3.Designing for changePlanning for change4.Evaluating changePhase 1 Goals Building management understanding, awareness and support for changePreparing for a cultural shift and acquire employee buy-inPhase 2 Assumption Organizations need to adopt to constantly changing marketplaces Phase 3 - MethodTo identify, assess, map and design A framework for translating process knowledge into leaps of changePhase 4 MeansEvaluate performance during a specified time frame

Suggested Framework for BPR (II)

Lowenthals Framework for BPRPreparing forchangePlanning forchangeDesigningchangeEvaluatingchangePhase IPhase IIPhase IIIPhase IVBPR Framework of Cross, Feather & Lynch (1994)AnalysisIn depth understanding of market and customer requirementsDetailed understanding of how things are currently doneWhere are the strengths and weaknesses compared to the competition2.DesignBased on principles that fall into six categoriesService Quality relates to customer contactsWorkflow managing the flow of jobsWorkspace ergonomic factors and layout optionsContinuous improvement self sustainingWorkforce people are integral to business processesInformation technologyImplementationTransforming the design into day to day operations

Suggested Framework for BPR (III)

Cross et als Framework for BPR CustomerRequirement analysisDesignspecificationsHigh-level designDetailed designPilot newdesignTransform the businessBaselineanalysisCurrent process reviewDesign optionsModel/validatenew designBuild in CIfeedbackDesignprinciplesAnalysisPhaseDesignPhaseImplementationPhaseThe reengineering movement advocates radical redesign and rapid revolutionary implementation and changeA revolutionary change tacticTurns the whole organization on its headHas potential to achieve order of magnitude improvementsIs very costlyHas a high risk of failureTo reduce risks and costs of implementation many companies end up with a strategy of radical redesign and evolutionary implementation tacticImplementing the feasible plans given current restrictions

Implemented process is usually a compromise between the original process and the ideal blueprinted process design

Revolutionary vs. Evolutionary ChangeThe critical element in choosing between a revolutionary and evolutionary approach is timeIf the firm is in a reactive mode responding to a crisis a revolutionary approach may be the only optionIf in a proactive mode an evolutionary tactic might work

Revolutionary vs. Evolutionary ChangeElementEvolutionary Change ModelRevolutionary Change ModelLeadershipInsidersOutsidersOutside resourcesFew, if any, consultantsConsultant led initiativePhysical separationNo, part time team membersYes, off-campus siteCrisisNonePoor performanceMilestonesFlexible FirmReward systemUnchangedNewIT/process changeProcess firstSimultaneous process and IT changeElements of evolutionary and revolutionary change theoriesBasic principle People directly affected by or involved in a change process must take active part in the design and implementation of that changeReal change is achieved through incremental improvement over timeChange should come from within the current organizationShould be carried out by current employees and leadershipShould be adapted to existing resources and capabilities flexible milestonesShould be based on open and broad communicationNew processes and procedures are implemented before introducing new IT systems

The Evolutionary Change Model (I)Advantages of an evolutionary change tactic compared to a revolutionary approach Less disruptive and riskyIncreases the organization's ability to changeDisadvantagesTakes a long time to see resultsDoes not offer the same potential for order of magnitude improvementsVision must be kept alive and adjusted over time as external market conditions change

The Evolutionary Change Model (II)Based on the punctuated equilibrium paradigmRadical change occurring at certain instancesLong periods of incremental change in betweenRevolutionary changeHappens quicklyAlters the very foundation of the business and its cultureBrings disorder, uncertainty, and identity crisesNeeds to be top drivenRequires external resources and new perspectivesInvolves tough decisions, cost cutting and conflict resolutionThe change team is small and isolated from the rest of the organizationAvoid undue influence from current operationsCommunication with people in the process is on a need to know basis

The Revolutionary Change Model (I)Advantages with a revolutionary implementation approachDrastic results can be achieved quicklyIf successful, the ideal blueprinted design is put in placeDisadvantages with a revolutionary change tacticVery strenuous for the organizationHigh probability for failureDiverts top management attention from the external marketplaceGoes against core values of many organizationsEmpowermentBottom-up involvementInnovationSecrecy creates uncertainty about the future roles of individual employees resistance to change

The Revolutionary Change Model (II)