Introduction to Business Process Re-engineering

Business Process Re-engineering (BPR) is a management strategy aimed at improving

organizational performance by re-designing and optimizing business processes. BPR is a
systematic and radical approach to change, focused on transforming and streamlining core
business processes to achieve dramatic improvements in quality, efficiency, and customer
satisfaction. This article focuses on discussing Business Process Re-engineering in detail.
Table of Content
 What is Business Process Re-engineering (BPR)?
 Principles of BPR
 When You Should Consider BPR?
 Steps to BPR
 BPR Methodologies
 BPR Team Member Roles
 Benefits of BPR
 Challenges in BPR
 Conclusion
 FAQs
What is Business Process Re-engineering (BPR)?
Business Process Re-engineering (BPR) is a strategic approach to improve an organization's
performance by rethinking and redesigning its business processes. The goal of BPR is to
achieve significant improvement in parameters like cost, quality, service, and speed.
1. The aim is to improve customer satisfaction by improving the quality and speed of
services delivered.
2. It involves questioning the basic assumptions and principles of current business
processes.
3. It involves the collaboration of cross-functional teams to ensure all the aspects of the
processes are considered.
4. Its successful implementation requires effective change management strategies to
handle resistance to change.
Principles of BPR
Here are seven key principles of BPR:
 1. Focus on Desired Outcomes: BPR emphasizes organizing processes based on
desired outcomes, rather than individual tasks and designing processes that achieve
these outcomes efficiently.
2. Identify and Eliminate Non-Value-Adding Activities: BPR aims to eliminate non-
value-added activities by analyzing processes, thereby reducing waste and
unnecessary bottlenecks.
3. Integrate Multiple Steps: BPR emphasizes combining multiple steps and ensures
that information processing occurs as a part of the actual work process. This helps to
simplify the process and reduce delays.
4. Coordinate Geographically Dispersed Resources: BPR advocates to use of
technology to integrate and treat geographically dispersed resources as a centralized
source to create a unified process and improve accuracy.
5. Link Parallel Activities: BPR focuses on integrating parallel activities to enable
simultaneous processing and thus reducing the wait time and errors.
6. Empower Employees: BPR advocates to empower employees so that they can make
decisions at the point where the work is performed, thus enabling faster and more
efficient decision-making.
7. Capture Information Once at the Source: BPR emphasizes capturing information
once and ideally at the source to avoid duplication and errors. The same information
can be used throughout the process.
When You Should Consider BPR?
BPR should be considered under the following circumstances:
1. Significant Performance Gaps: When there is a significant discrepancy between
current performance and desired outcomes then there is a need to implement BPR.
2. Shift in Market Dynamics: In response to changes in market conditions, such as
changing customer demands, or emerging technologies, that require rethinking of
business operations.
3. Strategic Shift: When an organization undergoes a strategic shift such as launching
new products or changing business models, requiring alignment of processes with
new strategic objectives.
4. Customer Dissatisfaction: When there is customer dissatisfaction due to poor
quality, or slow service, thus indicating process redesign to enhance customer
experience.
5. Cost Reduction Needs: When there is a need to reduce operational costs without
compromising quality, there is the necessity of re-engineering processes to eliminate
waste and improve efficiency.
Steps to BPR
Here is a brief overview of how BPR works:
1. Identify Processes: This step involves identifying processes for re-engineering that
require the improvement most and will offer the greatest benefit from re-engineering.
2. Understand Existing Processes: Conduct a thorough analysis of current processes to
identify inefficiencies and bottlenecks.
3. Define Objectives: Set clear and specific goals for the re-engineering process such as
cost reduction, faster service, improved quality, and many more.
4. Form a Cross-Functional Team: Form a team of members from various departments
to bring diverse expertise to the re-engineering process.
5. Redesign Processes: Rethink and redesign processes from the ground up, focusing on
eliminating non-value-adding activities.
6. Implement Changes: Execute new process designs and ensure that all necessary
resources are available to facilitate a smooth transition.
7. Monitor and Optimize: Continuously track the performance of re-engineered
processes and make changes as needed to ensure that they meet the desired outcomes.
BPR Methodologies
Here are some of the BPR methodologies:
1. Hammer and Champy's Methodology
This methodology was introduced by Michael Hammer and James Champy.
Features:
1. Radical Redesign: It aims for dramatic improvements by redesigning the processes
from scratch.
2. Fundamental Rethinking: Features on questioning the basic assumptions of current
processes.
3. Leverage Technology: It focuses on using new technology to enable new ways of
working.
2. The Davenport Methodology
This methodology was developed by Thomas H. Davenport in 1993.
FeaturesDevelop:
1. Process Prioritization: Identify and prioritize the processes based on their strategic
importance and impact.
2. Understanding Current Process: Analyze and document the current process to
identify bottlenecks.
 3. Redesign Processes: Develop new process designs following the best practices.
3. Manganelli and Klein's Methodology
This methodology was developed by Ron Manganelli and Michael Klein in 1994.
Features:
1. Strategic Alignment: It focuses on ensuring that the reengineering efforts align with
the organization's strategic goals.
2. Analysis of Current Process: Conduct a comprehensive analysis of the existing
process to under the current performance.
3. Detailed Plans: Develop detailed plans to guide the transition from the old to the new
process.
4. Kodaks's Methodology
This methodology was developed by Eastman Kodak Company in the 1990s.
Features:
1. Customer-Centric Approach: This methodology focuses on meeting and exceeding
customer expectations.
2. Form Cross-Functional Teams: This involves forming cross-functional teams by
involving teams from different departments to ensure a holistic approach to process
improvement.
3. Use New Technology: Use new technology to enable new processes and improve
efficiency.
5. Rummler-Brache Methodology
This methodology was developed by Geary Rummler and Alan Brache.
Features:
1. Systemic View: It focuses on understanding the organization as a system of
interrelated processes.
2. Performance Improvement: The project is on improving the interaction between
processes, people, and technology.
3. Cross-Functional Collaboration: Engage cross-functional teams to ensure
comprehensive process redesign.
BPR Team Member Roles
Here is a brief overview of the BPR team member roles:
1. Executive Sponsor: Responsible for overall direction and support for the BPR
project.
 2. BPR Project Leader: Responsible for leading and managing the project. The project
leader is also responsible for coordinating activities and ensuring that the project
milestones are met.
3. Process Owners: They are responsible for providing in-depth knowledge of the
current process.
4. BPR Team Members: They are responsible for collecting and analyzing data,
conducting process analysis, and redesigning activities.
5. IT Specialists: Responsible for identifying and implementing technology solutions to
support new processes.
6. Finance Analysts: They are responsible for analyzing the financial implications of
process changes.
Benefits of BPR
Here are some key benefits that can significantly impact organizational performance and
efficiency:
1. Increased Efficiency: It aims to streamline processes, reduce cycle times, and
eliminate redundancies, leading to improved operational efficiency.
2. Cost Reduction: Organizations can lower operational costs by optimizing processes
and reducing costs.
3. Improved Quality: Redesigned processes include built-in quality checks, resulting in
higher quality outputs and fewer errors.
4. Improved Customer Satisfaction: It focuses on improving overall customer
satisfaction by aligning the processes with customer needs.
5. Employee Empowerment: Involving employees in process redesign leads to a more
motivated workforce.
6. Improved Financial Performance: BPR can lead to improved financial performance
through cost savings, better resource utilization, and increased revenues.
7. Continuous Improvement: It encourages an environment of continuous
improvement, enabling organizations to be more adaptable to market changes.
Challenges in BPR
Here are common challenges in BPR initiatives:
1. High Costs: Implementing BPR can be a costly and time-consuming process,
requiring significant investment in resources, including technology, training, and
consulting fees. This can be a significant barrier for small or cash-strapped
organizations.
 2. Resistance to Change: Implementing BPR can be a difficult and complex process
that requires significant changes to an organization's culture, processes, and people.
Employees may resist the changes, especially if they feel their job security is at risk,
leading to decreased morale and increased turnover.
3. Focus on Short-term Goals: BPR initiatives may focus on short-term goals, such as
reducing costs, without considering the long-term impact on the organization's overall
strategy and goals.
4. Lack of Top Management Support: Without support from senior management, BPR
initiatives may lack the necessary resources and authority to succeed.
5. Unclear Objectives: Unclear goals can lead to confusion and difficulty in measuring
success.
6. Risk of Failure: BPR is a high-risk strategy that can fail if not implemented properly.
The failure to gain employee support, lack of a clear strategy, or poor planning can all
lead to a BPR initiative's failure.
7. Disruption to Operations: Implementing BPR can disrupt the day-to-day operations
of the organization, leading to decreased productivity, customer dissatisfaction, and
revenue loss.
Conclusion
In summary, BPR can be a powerful tool for organizations seeking to transform their business
processes and improve performance. However, the costs, resistance to change, risk of failure,
disruption to operations, and focus on short-term goals are all potential disadvantages that
organizations should carefully consider before embarking on a BPR initiative.