Presentation on theme: "Radical Change: Business Process Re-Engineering"— Presentation transcript:
1 Radical Change: Business Process Re-Engineering John Davis
2 What is it?Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.i.e. A rejection of incrementalism.Proposed by Hammond 1988
3 Why do it? New focus on customer needs Unleash creative potential of the organisationRecognise the increasing competitive nature of businessOpen up new marketsDownward pressure on costs
4 What makes it special?Concentration on horizontal movements and processes across the organisationIdentification on non-added value activitiesRadical nature of approachConcentration on outputs rather than inputsRedefines the role of the manager
5 The Spectrum of BPR Local & Limited Threat to Survival Risk Paradigm BusinessRe-engineeringParadigmShiftSustainable StepChangesOngoingRenewalTransformationMindsetChangeGainsProcessRe-engineeringProcessImprovementNoneIncrementalLocalScopeBusiness Wide
6 Process Improvement Adopted by most firms but is it BPR? Function orientedUsually aimed at reducing delaysThe process itself is not challengedOften: little critical appraisalVery little impact on the business as a whole
7 Process Re-Engineering Involves fundamental rethinkingUsually involves radical streamliningOften starts with the question “should we be doing it all?”Has an effect on the “bottom line”However, if only 1 or 2 processes are redesigned, much of the business is untouched
8 Business Re-Engineering Involves step changes across all processesUsually greater emphasis on design and appraisalInvolve significant to-level commitmentNeeds active Involvement of managementSuccess seen on all processes and the performance as a whole
9 Transformation Where next after BPR? Is there a need for continuous radical changeOften the questions are:-Why do they exist?What are they trying to achieve?
10 Tests for transformation might include: The company has step change improvements for all processesThere is a perception that the business is dramatically better than 5 years agoA belief amongst customers & employees that the organisation is easier and better to work withThere is an organisation wide clarity of purpose
11 Ongoing RenewalThose who go though BPR recognise that the process once started never stopsNew mind-sets have become part of the organisation
12 BPR is not compulsory Change may be managed in other ways Creative thinkingBenchmarkingCulture change innovationWhat makes BPR relevant is the role of IT
13 Does it work? The evidence is scanty Can an organisation cope with perpetual change?Can a firm reduced in size through BPR compete in the long runWhat about those cultures which do not easily accept criticism of authority?
14 DangersThe word re-engineering suggests a view of the organisation as a machine. Is this correct?Does BPR mean continuous short term thinking
15 Wrap-Up Is it all a fashion? Is it the only way to get dramatic improvements?Do employees really see themselves as empowered?Case studies of successful BPR suggest that these companies had a culture of good communications anyhow and so BPR was not so difficult. Is this always true?