survey of bpr experiences in iran: reasons for success and failure

Case study

Survey of BPR experiences in Iran:reasons for success and failure

Mohammad Jafar Tarokh

Industrial Engineering Department, K.N. Toosi University of Technology, Tehran, Iran, and

Esmail Sharifi and Eslam NazemiIslamic Azad University of Tehran, Tehran, Iran

AbstractPurpose – This paper aims at studying the success and failure of BPR projects executed throughout Iran. For this purpose, effective indices and alsofactors of success and failure are to be investigated.Design/methodology/approach – Based on statistical analysis of efficiency indexes mean value and project effectiveness, as well as the test outputsfor the projects’ total success, it was proved that except for the two organizations, the rest lack necessary efficiency and except for two organizations,the others lack necessary effectiveness.Findings – The total success test outputs has verified the results of the two above-mentioned tests, so by 95 percent of assurance, it has to becommented that BPR projects executed in Iran have failed to reach predefined acceptable success.Practical implications – The lack of data from organizations is a big problem in BPR projects in Iran.Originality/value – The article recommends that every BPR project before execution needs deployment of success factors such as: preparation forchange, planning, recognition and design, evaluation, culture and change, information technology, and outcome in governmental organizations.

Keywords Business failures, Business process re-engineering, Organizational effectiveness, Iran

Paper type Case study

1. Introduction

The present is full of changes, transformation, and unrest, an

era in which, all the riches suddenly come into being and are

gone, because transformation has also been change, and there

is no escalating these changes.

Gary Hamel calls managers to shatter old business patterns

and strategies for new ones. He believes what undergoes

change, must not be viewed available. It should be free from

the appeal of the old patterns, and be viewed differently to

create such a pattern different from what has been so far, and

traditional competitors into struggle (Dudash, n.d.; Hague

et al., 2003). One of the most recognized strategies that put

this thought closer to operation is business process re-

engineering (BPR).

Another point is that its implementation and

settlement is more complex than the other management

approaches. On one side, re-engineering involves high

potentials of productivity increase by reducing process

time and cost, quality improvement and customer

satisfaction, and on the other hand, requires a basic

and fundamental change in the organization. For this

reason, about 70 percent of the re-engineering processes

fail in practice (Kala Naft Co., n.d.). Considering this

fact, re-engineering is considered as a high-risk process.

The scope of process effectiveness has been shown in

Figure 1 (Hie Kim and Gang, 2002; Iran Management

and Productivity Study Center, 2002).

Re-engineering organizations is a new phenomenon which

at least will continue existing until the majority of

organizations have changed from old task models of Adam

Smith, and Fredrick Taylor into new models (Davenport and

Short, 1990; Gulledge and Sommer, 2002). Organizations

that have successfully accomplished their re-engineering plan,

while achieving basic outputs in the short term, will enjoy

such a flexibility that enables them to change continuously.

In this paper, activities such as data collecting and

recording, data analysis of acquired information from

consultants, executives, employers was done. Finalization

and conclusion for the purpose of publishing experimental

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/0885-8624.htm

Journal of Business & Industrial Marketing

23/5 (2008) 350–362

q Emerald Group Publishing Limited [ISSN 0885-8624]

[DOI 10.1108/08858620810881629]

Received: February 2006Revised: May 2006Accepted: September 2006

350

knowledge and best practices (successful or unsuccessful) of

business process re-engineering projects in the country has

been performed.

2. Reasons for success and failure of BPR projects

Applying BPR projects is very complicated and the survey of

several factors of success /failure is needed to assure successful

application, so that it avoids falling into executive pitfalls. For

the success of a BPR project, several factors must be

provided. One of the most basic factors is the compliance of

the vision of the organization and removing doubts on BPR

efforts (Weske et al., 2004). Top managers of organizations

must be in charge of BPR execution, so that more effort is

made for its success. Another important factor for the success

of BPR is the depth of efforts in proportion to basic changes

required by the organization. These efforts in terms of types

of activities defined for the BPR projects are determined and

executed (Pears and Robinson, 1997).

In spite of this, some effective factors for the success of BPR

projects can be summarized as follow (Iran Management and

Productivity Study Center, 2001; Safari, 2001):. Close relationship between project activities and main

business objectives, and the organization’s strategy.. Locating BPR projects in the strategic direction of the

organization.. Project management and right team work.. Setting goals for radical redesign to stimulate stereotype

thoughts.. Pilot execution to test new designs and the effects of their

execution.. Allocation of suitable and competent executives to the re-

engineering teams.. Use of appropriate tools and procedures.. Ability for implementing the required information,

information technology infrastructures, and their

adaptation with process re-engineering.

Also to achieve success in these projects, the following aspects

have to be considered (Dorsa, 2001; Iran Management and

Productivity Study Center, 1995a, 2002):

. The rate of success for BPR projects depends on their size,

and scope of coverage. Projects with wider scopes are

rather large with prolonged duration, so they have less

chance to succeed for executive problems.. The current advancements in IT infrastructures and

e-commerce will result in more dynamism of BPR projects

and promotion of their position.. Like organizational change, and implementation of IT

projects, the success of BPR projects highly depends on

organizational elements and setting grounds for

accompanying those elements.

Different aspects cause the success and failure of BPR

projects. These projects may seem successful because of

reaching operational process advantages (time and cost

reduction, or quality promotion); however, because there is

no possibility of transferring advantages and profitability to

the bottom of the organization or not developing the total

organization performance, it may seem unsuccessful:. One obstacle for successful execution of the project is the

resistance of elements that executives believe to have the

most profit.. Unsuitable change management.

In this regard, Al-Mashari and Zaire (1999), have focused on

factors which output in BPR efforts. They have categorized

these factors in sub groups that show different dimensions

relevant to application of BPR. These dimensions are:

1 Change management and culture of change.

2 Competencies and support of management.

3 Organizational structure.

4 Project management and planning.

5 IT infrastructures.

The effective factors of success or failure of BPR projects in

organizations have been illustrated in Figure 2 (Bain &

Company, 2005; Kala Naft Co., n.d.).

3. Goals, method, hypotheses of research, datacollection and statistical sample

3. 1 Research goals

This research has been conducted by aiming at studying the

success and failure of BPR projects executed throughout the

country. For this purpose, effective indices of success and

failure have been defined and used. These indices have been

determined on the basis of studies made in the literature of

BPR. The indices have been considered as follows (Al-

Mashari and Zaire, 1999; Bain & Company, 2005):. preparation for change;. planning;. recognition and design;. evaluation;. culture and change;. information technology; and. outcome.

Figure 1 Scope of re-engineering impacts

Survey of BPR experiences in Iran

Mohammad Jafar Tarokh, Esmail Sharifi and Eslam Nazemi


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3.2 Research method

In this research we use multi case study by using literature

review and interview with executives, managers, employers,

and end-users and also distribute questionnaires.

For this purpose the statistical sample is determined and

use cluster sampling. The statistical clusters were randomly

selected. Then among the cluster, the statistical sample is also

randomly selected. Therefore among all project, 13 available

BPR projects selected as a research cluster. After that about

40 people form these organizations complete the

questionnaires and do interviews. The results of these

activities lead to measurement of seven indices.

The stages of conducting the research can be viewed in

Figure 3.

3.3 Research assumption

The research hypotheses have been stated in two conditions,

the overall project conditions, and indexes of efficiency and

effectiveness conditions.

Figure 2 Effective factors in success/failure of BPR projects




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352

The overall project hypotheses claim that the executed BPR

projects by 95 percent of confidence shows successful

outputs.

Also indices of efficiency and effectiveness hypotheses state

that BPR projects from efficiency and effectiveness point of

view are at 95 percent of confidence above the average.

The overall project hypotheses for each of the 13

organizations and the indices of efficiency and effectiveness

hypotheses for the seven indices factors in all organizations

have been calculated separately.

3.3.1 Overall condition of the project hypotheses

The total hypotheses: studying BPR projects executed in Iran

show successful results.

The particle hypotheses: BPR project was successfully

executed in each of the 13 organizations.

3.3.2 Indexes of success hypotheses

The total hypotheses: studying the BPR projects executed in

the country, from the viewpoint of covering the indices of

success shows a higher than average level.

The particle hypotheses: studying the BPR projects

executed in the country, independently compared to any of

the seven factors shows a higher than average level.

3.4 Statistical sample

The statistical sample was collect from the following projects

and organizations:

1 Redesigning the structure and executing processes of

the Ministry of Labor and Social Affairs (MLSA) (Iran

Management and Productivity Study Center, 1995a).

2 Redesigning the structure and executive processes of the

Ministry of Foreign Affairs of Iran (MFA) (Iran

Management and Productivity Study Center, 1995b).

3 Redesigning processes and macro structure of the staff

of Mostazafan and Janbazan Foundation (MJF) (Iran

Management and Productivity Study Center, 2000).

4 Study and survey of the organization and formation of

the Ministry of Roads and Transportation to present a

suitable organizational pattern (MRT) (Iran


5 Redesigning the order of research and training in the

Ministry of Jihad-Agricultural (RTMJA) (Iran


6 Continuous improvement of processes in Iran Khodro

Co (IKC).

7 Study and survey of process structure in Civil Aviation

Organization of Iran, and Airports Company of Iran

(CAO).

8 Process reengineering in the Ministry of Health and

Medical Education, Research Deputy (MHMER)

(Safari, 2001).

9 Reengineering structure of organization processes in

Ministry of Cooperation (MC) (Ministry of

Cooperation, 2002).

10 Reorganizing the Association of Industry Managers

(AIM) (Iran Management and Productivity Study

Center, 1995b).

11 Process reengineering in the Ministry of Science,

Research and Technology (MSRT).

12 Information producing and recovery process

reengineering in the Iranian Information and

Documentation Center (IIDC).

13 Reengineering Butane Co. (BC).

The selected projects were either contents similar to BPR

projects or introduced as a BPR project. In most projects, the

scopes defined were up to designing stage, and did not

include execution phase (for example projects performed by

Management & Productivity Research Center, and Ministry

of Health and Medical Education, Research Deputy which

has been deleted form sample). Of course, the

implementation phase and redesigned processes were on the

employers’ obligation. In this direction, 37 interviews with

project stakeholders, including executives, managers,

employers, and end-users has been studied.

In addition to the interviews, to collect information and

views of the stakeholders, over 40 questionnaires (statistical

sample) were distributed among them. The spectrum used in

the questionnaire was multiple (five choices) with average 3.

3.5 Method of data collection

To collect required information for the survey of success/

failure of projects, two methods, structured and unstructured,

have been used. Our main reference for data collection was:

1 Reference list of document plans.

2 Relevant information on the plans in general, such as:. General specification of plans including start and

delivery time, duration of the contract, employers,

executives, and managers.. Executive specifications including objectives, scope of

execution, methodology, and outputs of executing

plans which have been accomplished through

completion of project in identification by using

documentation or performing interviews.

3 Regarding success or failure of plans, viewpoints of

executives, managers, employers, and end-users were

Figure 3 Research stages




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353

collected through interviews and completion of

questionnaires.

3.6 Method of data analysis

In many cases, due to inaccessibility to the universe, it is

required to generalize the sample output to the total universe.

This is done by conducting statistical hypotheses test.

3.6.1 Establishment of the H0, versus the H1

The following hypotheses are proposed:

H0. Studying the BPR projects executed in the country

does not show successful results in their execution (i.e.

the score for BPR project success equals or is lower

than the average) H0: m #3.

H1. Studying the BPR projects executed in the country,

shows successful results in their execution (i.e. the

score for BPR project success is above the average) H1:

m . 3.

3.6.2 Determining the value of a

The value of a is set to 0.05, which means the significant level

of recognition or the meaningful of the test.

3.6.3 Statistical calculations

Considering the insufficient number of samples, a one way

none parametric analysis binomial test has been used. Finally

for calculating, and determining The Z0 value, Binomial

distribution has been estimated as normal distribution. So,

the non-parametric statistic value is as follows:

Z0 ¼ P 2 P0½ �= P0 12 P0ð Þð Þ=n½ �0:5

(P ¼ 0:5 and P0 is the percentile observed for H0 test, and n is

the sample size.)

3.6.4 Critical value of Z

The value of Z0 is compared to the value of Za=25 1:96 from

the normal standard table. If the value of Z0 is greater than

1.96, then the H0 is rejected, otherwise we cannot reject H0

(remember that we assume significant level is equal to 0.05).

4. Survey of the outputs

Study outputs on BPR projects in organizations have been

presented in three sections: “survey of questionnaires

outputs”, “effective factors in BPR projects” and “survey of

BPR characteristics”. The survey of BPR characteristics, the

projects have been surveyed in terms of completion of

different stages, and rate of efficiency and effectiveness for

these projects, and have been compared with each other in

model (Figure 4).

The effective factors in projects studied, which have been

extracted from interviews and documents have been

separately collected and presented for each organization,

also the priority for each one has been determined (Table I).

Finally, the impact of these factors on success or failure of the

project has been presented in the form of a conceptual model

(Figure 5).

4.1 Survey of BPR based on questionnaires’ results

In this section, the situation of BPR projects execution

throughout Iran from the viewpoints of people involved has

been dealt with. The surveys have been made through

questionnaires data analysis. These questionnaires were

circled among peoples involved in projects respectively,

executives, managers and employers. Most of the

questionnaires completed and returned were related to

executives (it is worth mentioning, projects of those

organizations that did not answer the questionnaires, have

not been consider in calculations).

The questions were designed and investigate seven aspects,

preparation of organizations for change, project planning and

scheduling, recognition of present situation and designing

desirable process situation, evaluation of project execution,

organizational culture and change, information technology,

and project outcomes.

The results were collected and analyzed. In Table I, score 1

means very poor, and score 5 means very good organizational

performance. The results of questionnaires’ analysis have

been presented in Table I.

The formula for calculation of values in this Table is as

follow:

f j ¼P13

i¼1 aij=13;;j ¼ 1; :::7

pi ¼P7

j¼1 aij=7;;i ¼ 1; :::13

where:. f i ¼ The average of each factor.. pj ¼ The average of organization performance.. aij ¼ score of the axis j for the organization i.

Evidently, the numbers in Table II have been derived from

Table I. Which are separated by effectiveness and efficiency

indexes. As an example, a sample calculation has been

presented below:. Efficiency of the RTMJA: E ¼ (2.39 þ 2.5 þ 2.94 þ

2.56)/(4 *5) ¼ 0.52 or 52%. Effectiveness of the RTMJA: Ef ¼ (2.92 þ 3.33 þ 3.30/

(3 *5) ¼ 0.64 or 64%

As you can see the average of these two indices in 13 Iranian

organizations are respectively 53 and 52 percent.

4.2 Survey of efficiency and effectiveness of the projects

Generally by studying the total factors surveyed in the

questionnaires, these factors can be divided into two groups of

effective factors on efficiency, and effective factors on project

performance effectiveness (Figure 6) which will influence the

final results.

The effective factor on efficiency focuses on the right

performance of execution stages of BPR projects. The

effective factor of projects’ effectiveness focuses on factors

which affect project outputs. In this way by surveying the

averages in questionnaires, the efficiency of projects’

effectiveness can be presented as Table II (these amounts

have merely been drawn from the questionnaires’




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354

information, and reflect the views of executives, consultants,

and employers).

To be more exact in surveying efficiency and effectiveness of

the subject projects, the results in Table III have involved

hypotheses tests for efficiency and effectiveness. According to

Table IV, it is observed that only two organizations, Iranian

information and Documentation Center, and Ministry of

Science, Research and Technology (MSRT), possessed the

desired effectiveness. According to Table V, Ministry of

Science, Research and Technology, and The Iranian

Information and Documentation Center (IIDC) possessed

desired efficiency. Also as included in Table VI, the total

survey of The Iranian Information and Documentation

Center merely showed the desired condition.

According to the results of the BPR project success test

results in Table VI, it is observed that basically, BPR project

execution hasn’t been acceptably successful.

4.3 Statistical survey of indices

In surveying any of the seven indices, some hypothesis has

been put forward. The test results have merely come below

for the preparation index of the organization. Other results

are the same as this. Results of the survey and testing

hypothesis along with raw data and statistical data have been

presented in Table II. According to the test output, none of

the seven factors scored above the average, so the total

assumption rejects H1 and accepts H0 which leads to

unsuccessfulness of BPR projects in Iran. For example test

Figure 4 Characteristics of BPR projects execution in Iran




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355

Table

ISi

tuat

ion

ofB

PRpr

ojec

tsin

diff

eren

tef

fect

ive

fact

ors

Factors

Row

(i)

Organ

ization

Preparationfor

chan

ge

Planning

Recognitionan

d

planning

Evaluation

Culture

and

chan

ge

Inform

ation

technology

Outcome

Organ

izationperform

ance

(pi)

Organ

ization

rank

1RT

MJA

2.39

2.50

2.94

2.56

2.92

3.33

3.30

2.85

3

2M

HM

ER2.

332.

502.

551.

502.

502.

001.

502.

1311

3M

JF2.

832.

833.

413.

333.

693.

173.

703.

282

4C

AO

2.56

2.72

2.89

2.22

3.17

2.11

3.03

2.67

7

5M

LSA

1.75

2.50

2.36

1.75

3.06

1.67

2.85

2.28

10

6M

FA1.

752.

502.

361.

753.

061.

672.

852.

2810

7M

RT1.

752.

502.

361.

753.

061.

672.

852.

2810

8IID

C3.

833.

173.

273.

672.

753.

333.

103.

301

9M

SRT

4.00

3.33

3.91

2.17

1.75

1.67

2.00

2.69

6

10

MC

3.08

3.18

2.55

3.13

1.55

1.35

1.95

2.40

9

11

IKC

3.17

3.25

3.15

3.24

2.05

1.45

2.23

2.65

8

12

AIM

2.05

2.14

2.67

1.47

4.00

3.25

3.41

2.71

5

13

BC

2.02

2.35

3.19

1.36

3.29

3.15

3.61

2.80

4

fi2.

422.

672.

832.

283

2.33

2.95

Fieldsurvey

ranking

54

37

16

2




Volume 23 · Number 5 · 2008 · 350–362

356

assumption for “preparation of the organization for change”

is stated below:. Establishment of H0 & H1 hypothesis:. H0: Surveying the executed BPR projects in proportion to

the organization’s factor of preparation for change equals

or is lower than average (opposite to what was claimed).

. H1: Surveying the executed BPR projects throughout the

country, in proportion to the organization’s factor of

preparation for change shows above average

(accomplished claim).. H0: m # 3.. H1: m . 3.. Amount of a is 0.05. The amount of a in the whole

research equals 0.05, so the critical test value in this

confidence level is equals 1.96 (according to the standard

normal table).

Table II Efficiency and effectiveness of the projects

Row Organizations Efficiency (%) Effectiveness (%)

1 RTMJA 52 64

2 MHMER 44 4

3 MJF 62 7

4 CAO 51 55

5 MILSA 42 50

6 MFA 42 51

7 MRT 41 51

8 IIDC 69 61

9 MSAT 67 36

10 MC 60 32

11 IKC 64 38

12 AIM 42 71

13 BC 45 71

Total 53 52

Figure 5 Conceptual model for location of the projects surveyed in BPR categorization

Figure 6 Categorization of effective factors on BPR projects




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357

. Statistical test value. Regarding to the low amount of the

sample size (n ¼ 40), the none-parametric two way test

with normal distribution estimate has been used.

Z0 ¼ P 2 P0½ �= P0 12 P0ð Þð Þ=n½ �0:5 (P ¼ 0:5, P0 is the

observation percentile for H0 theory. P0 ¼ 18=40 ¼ 45%).

Therfore: Z0 ¼ 0:52 0:45½ �= 0:45 12 0:45ð Þð Þ=40½ �0:5. Statistical conclusions. With regard to the amount 0.64, it

is obvious that the statistical value is in H0 area, so it is

concluded that the H0 hypothesis can not be reject, and

there is no reason to accept H1.

4.4 Characteristic survey of BPR projects executed in

Iran

In this part, some general and common information between

different projects executed in Iran has been presented. In

terms of creating relative understanding and recognition of

format and nature of each project, this information is

important. Although it does not analyze success or failure of

BPR projects, By comparing the characteristics of each

project with BPR project factors which has been presented in

the literature of this subject, it can be realized to what extent

these projects have approached a complete BPR project.

This information has been presented on the survey of

documents study for each project, interviews performed and

questionnaires distributed, as a general perception from the

collection of surveys. This information has been summarized

in Figure 4.

Considering the coping of project’s characteristics with

existing factors for a BPR project, is as well as rate of goal

achievement, or in other words, rate of project success (see

Figure 7). Generally, a comparison between projects, in

approaching the ideal BPR project can be presented.

Obviously, a meticulous judgment in this regard, calls for a

broader field survey, testing and statistical assumptions.

The structure of the Figure 7 is based on two dimensions:

Coping with execution stages of BPR projects, and acquiring

developed project objectives. On this basis, the projects are

categorized in four conditions: Unsuccessful, efficient but

ineffective, effective but inadaptable, and finally efficient and

effective.

1 Unsuccessful. Projects that have not covered BPR project

stages, and have not achieved their prospective goals

either.

2 Efficient but ineffective. These projects have progressed

according to schedules adjusted for BPR projects, but for

some reasons have failed in achieving their prospective

goals.

3 Effective but inadaptable. By covering different stages from

BPR project phases, these projects have achieved goals

other than BPR prospective goals.

4 Efficient and effective. By adapting determined BPR project

schedules, these projects have reached their prospective

goals.

The analysis for the projects surveyed in this study according

to the pattern above has been presented as Figure 5.

Based on Figure 5, it can be observed that projects of

government organizations such as the Ministry of Foreign

Affairs, Ministry of Labor and Social Affairs, etc. . . . have the

same condition in the figure, which mostly have their projects,

not been executed. This condition can be due to legal

obstacles such as waiting for the designed structure approval

by the Management and Planning Organization, and legal

obstacles in the way of planning suitable processes, and

Table III BPR project success indexes test results

Indexes Hypothesis Number of observations (n) Frequency (PO) Test level (P) Statistical values Test result

Preparation for change H0: m # 3 18 0.45 0.50 0.64 H1 reject

H1. m . 3 22 0.55

Total: 40 1.00

Planning H0: m # 3 15 0.40 0.50 1.24 H1 reject

H1: m . 3 22 0.60

Total: 37 1.00

Recognition and designing H0: m # 3 23 0.60 0.50 21.29 H1 reject

H1: m . 3 17 0.40

Total: 40 1.00

Evaluation H0: m # 3 25 0.64 0.50 21.82 H1 reject

H1: m . 3 14 0.36

Total: 39 1.00

Culture and change H0: m # 3 11 0.30 0.50 2.65 H0 reject

H1: m . 3 26 0.70

Total: 37 1.00

Information technology H0: m # 3 17 0.44 0.50 0.75 H1 reject

H1: m . 3 22 0.56

Total: 39 1.00

Outcomes H0: m # 3 24 0.63 0.50 21.66 H1 reject

H1: m . 3 14 0.37

Total: 38 1.00




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existing management obstacles, and the vastness of these

organizations. On the contrary, organizations such as Butane

and the Association of Industry Managers with more

executive independence have reached more BPR project

goals and executions.

The position of the surveyed projects in categorization of

BPR projects is based on the conceptual model (see Figure 5).

It is clearly evident that the conceptual model results are

consistence with the statistical test results. For, merely, The

Ministry of Science, Research and Technology (MSRT), and

The Iranian Information and Documentation Center (IIDC)

have effective and efficient conditions. This result was also

concluded in section 3.3.

5. Managerial implications

Today, organizationmanagers in Iran against with competition,

customer and change forces and have a serious challenges from

inside and outside of organization. In the inside of organization

there are some factors such as resistance against change, no

flexibility,didnotaccess toabsorb thenewexpertise information

technology for organization and employee, and produce

products and services with low quality and high cost are

serious challenges for management of organizations.

On the other hand exist of competitors and high knowledge

customers based on using new information technology creates

earnestly threats for managers from outside of organizations.

Table IV BPR project effectiveness test results

Organization Hypothesis Number of observations (n) Frequency (PO) Test level (P) Statistical values

RTMJA H0: m # 3 5 0.55 0.50 20.353

H1: m . 3 4 0.45

9 1.00

MHMER H0: m # 3 3 0.43 0.50 0.347

H1: m . 3 4 0.57

7 1.00

MJF H0: m # 3 4 0.67 0.50 21.03

H1: m . 3 2 0.33

6 1.00

CAO H0: m # 3 3 0.38 0.50 0.693

H1: m . 3 5 0.62

8 1.00

MLSA H0: m # 3 2 0.40 0.50 0.456

H1: m . 3 3 0.60

5 1.00

MFA H0: m # 3 2 0.40 0.50 0.456

H1: m . 3 3 0.60

5 1.00

MRT H0: m # 3 2 0.40 0.50 0.456

H1: m . 3 3 0.60

5 1.00

IIDC H0: m # 3 4 0.80 0.50 22.12

H1: m . 3 1 0.20

5 1.00

MSRT H0: m # 3 3 1.00 0.50 286.589

H1: m . 3 0 0.00

3 1.00

MC H0: m # 3 3 0.43 0.50 0.347

H1: m . 3 4 0.57

7 1.00

IKC H0: m # 3 4 0.44 0.50 0.340

H1: m . 3 5 0.56

9 1.00

AIM H0: m # 3 3 0.38 0.50 0.61

H1: m . 3 5 0.62

8 1.00

BC H0: m # 3 5 0.45 0.50 0.316

H1: m . 3 6 0.55

11 1.00




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The main challenge for management is to design the

organization structure base on functionality and upon to Adam

Smith concept.This concept tells that organizations should give

services to knowledge customers with new rules (competitive

and change). So the managers should forget the previous

traditional patterns and have a different approach to new

business processes.

Therefore managers must have the process approach and

design organizations with new approach. The processes must

have value added for customers. By this way it is expected that

these organizations can produce product and services with

high quality, low cost, high speed and have sufficient

flexibility.

6. Conclusion

Our organizations at the moment are facing many problems.

The main part of them is rooted in uncoordinated business

affairs. Processes function like veins whose task is running

affairs inside the body of the organization. However in the

executive system, for not reviewing mode of doing the jobs,

variety and complexity of organizations, these processes have

severely become inefficient. For this reason, to direct at

efficiency increase, customer-centricity, and global

competition, as the first step, organizations need to

reengineer their business processes.

According to the results achieved from this survey, it is

observed that not exactly identifying the problem by

Table V BPR project efficiency test results

Organization Assumption Number of observations (n) Frequency (PO) Test level (P) Statistical value

RTMJA H0: m # 3 5 0.42 0.50 0.515

H1: m . 3 7 0.17

12 0.58

MHMER H0: m # 3 4 0.67 0.50 21.03

H1: m . 3 2 0.33

6 1.00

MJF H0: m # 3 4 0.50 0.50 0.0

H1: m . 3 4 0.50

8 1.00

CAO H0: m # 3 8 0.67 0.50 21.252

H1: m . 3 4 0.33

12 1.00

MLSA H0: m # 3 3 0.38 0.50 0.693

H1: m . 3 5 0.62

9 1.00

MFA H0: m # 3 3 0.38 0.50 .693

H1: m . 3 5 0.62

8 1.00

MRT H0: m # 3 3 0.43 0.50 .347

H1: m . 3 4 0.57

7 1.00

IIDC H0: m # 3 0 0.00 0.50 99.984

H1: m . 3 4 1.00

4 1.00

MSRT H0: m # 3 1 0.15 0.50 97.1

H1: m . 3 3 0.85

4 1.00

MC H0: m # 3 5 0.45 0.50 0.316

H1: m . 3 6 0.55

11 1.00

IKC H0: m # 3 4 0.44 0.50 0.340

H1: m . 3 5 0.56

9 1.00

AIM H0: m # 3 3 0.43 0.50 0.347

H1: m . 3 4 0.57

7 1.00

BC H0: m # 3 3 0.38 0.50 0.61

H1: m . 3 5 0.62

8 1.00




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employers, consultants, and lack of experience of the

consulting companies and their experts, not paying

sufficient attention to the stakeholders in redesigned

processes, not prioritizing redesigned processed, no

competition in Iran’s special condition, and lack of

necessary training, all make serious obstacles for process

based organizations.

So it is suggested that, prior to executing BPR projects, it is

necessary every organization have an exact plan for accepting

change, initially for managers, and later for the staff, and then

BPR projects be executed.

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Table VI BPR project success test results, separated by projects

Organization Assumption Number of observation (n) Frequency (PO) Test level (P) Statistical Value

RTMJA H0: m # 3 9 0.43 0.50 0.600H1: m . 3 12 0.57

21 1.00MHMER H0: m # 3 4 0.57 0.50 0.399

H1: m . 3 3 0.437 1.00

MJF H0: m # 3 4 0.29 0.50 1.731H1: m . 3 10 0.71

14 1.00CAO H0: m # 3 7 0.35 0.50 1.37

H1: m . 3 13 0.6520 1.00

MLSA H0: m # 3 8 0.62 0.50 0.993H1: m . 3 5 0.38

13 1.00MFA H0: m # 3 8 0.62 0.50 0.993

H1: m . 3 5 0.3813 1.00

MRT H0: m # 3 8 0.62 0.50 20.445H1: m . 3 5 0.38

13 1.00IIDC H0: m # 3 1 0.14 0.50 2.744

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MSRT H0: m # 3 7 0.64 0.50 22.53H1: m . 3 2 0.36

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H1: m . 3 5 0.4212 1.00

BC H0: m # 3 4 0.44 0.50 0.340H1: m . 3 5 0.56

9 1.00

Figure 7 Conceptual model for categorization of BPR projects




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Corresponding author

Mohammad Jafar Tarokh can be contacted at: mjtarokh@

kntu.ac.ir




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