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
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.