Business Process Re-engineering (BPR)
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How do you cut costs and streamline workflows that are vital to your organization? Download the Business Process Re-engineering (BPR) presentation template to help your organization produce better products and yield higher ROI. BPR is a systematic overhaul to rethink and redesign business processes from the ground up and dramatically improve performance. The template includes slides on Function vs Process Orientation, BPR vs Continuous Improvement, BPR Phases, Common BPR tools, BPR service levels, Change Management, Gap Analysis, Business benchmarking, Value chain analysis and top BPR strategies, plus many more.
BPR decreases management layers, accelerates workflows, and optimizes time-sensitive activities to help your organization adapt to today's rapidly-paced business environment. Additionally, BPR puts a higher emphasis on client needs, which allows organizations to produce better products and yield higher ROI. Use this management framework to transform your organization from purely functional to lean, process-oriented, and collaborative. Read to the end, and we'll explain how Airbnb used BPR to overhaul its entire product team to streamline its product design process from days to 45 minutes.
Slide highlights
Function vs. process.
Businesses are often focused on being "function" oriented instead of "process" oriented. When an organization is focused on function as opposed to process, complex, exhausting procedures that take up a lot of overhead are prioritized over leaner, more streamlined practices. When the organization switches to a process-oriented focus, operations become more cost-efficient and lean. From a governance and organizational viewpoint, a functional structure is hierarchical and often bureaucratic – the time it takes to brainstorm, get ideas approved, implement and test solutions can be unnecessarily dragged out. In contrast, a flat organizational structure facilitates communications and expedites decisions.
1 questions and answers
What is the intercountry surface movement under article 5 of the NATO agreement?
The question is related to the NATO agreement, specifically Article 5, and not to the content provided which is about business processes and organizational structures. Therefore, the question is irrelevant to the content. However, to answer your question, Article 5 of the NATO agreement is not about intercountry surface movement. It is the cornerstone of NATO and states that an attack against one member is considered an attack against all members. It does not deal with transportation or movement between countries. For regulations on intercountry surface movement, one would have to refer to specific international transportation agreements or national laws.
The business environment of a process-oriented team is also more holistic. In the traditional functional model, responsibilities are divided up. Employees are individualistic and focus on their own roles and aren't driven by their impact on overall team performance. This also leads to a more rigid culture and a general lack of trust and autonomy. Execs can use BPR to orient around process, and become leaner with a flat organizational structure that focuses on the client and value chain to create a holistic, collaborative environment that tests faster with greater cost efficiency. (Slide 3)
BPR vs. Continuous improvement
When would an organization elect to use BPR over TQM, otherwise known as continuous improvement? The big difference between BPR and continuous improvement is that BPR is more radical and can lead to a complete redesign and overhaul of an organization's internal structures. Where continuous improvement attempts to make subtle enhancements to create gradual change, BPR makes radical change for high-impact, dramatic improvements. (Slide 4)
BPR can be roughly divided into four continuous phases: The first stage is "organize." Execs create a process map, prioritize areas for improvement, establish who will own each process, and then initiate the project. Second, comes the "process diagnosis." This stage usually entails a Gap Analysis or similar tool to evaluate how effectively the current process meets your goals, then rate its ability to meet customer requirements. Next is "process redesign'', where execs benchmark current processes, develop solutions to close the gap, and get buy-in from key stakeholders to develop their process improvement plan. Finally, "process deployment" is when execs implement the process improvement plan, measure their results, obtain feedback from customers, and complete the whole BPR process again. (Slide 7)
Common BPR tools
As BPR can be complicated to implement, there are some common tools business operators and managers can use. There are eight common tools execs can use inside the BPR framework. The first is IT to help implement process-oriented structures, automate process monitoring, and reduce delays and downtime. IT improvement solutions should be looked into to avoid process stagnation. For larger organizations, IT overhauls are a huge undertaking and can often create resistance to change.
Second is Change Management , which execs use to coach individuals and teams to overcome resistance to change, which typically follows a standard pattern. Business Benchmarking compares the organization's processes against its top competitor to strive for best-in-class performance. Value Chain Analysis inspects the entire value chain to lower costs and increase output across all business activities. Activity-based accounting is a process-oriented way to control costs so funds move away from areas of indirect benefit. Lastly, execs can implement tools to ensure teams self-monitor and are motivated to complete tasks autonomously. (Slide 8)
BPR service levels
So what impact does BPR have? This BPR service level graph BPR begins with a "definition" of the current process to nudge them towards more value and flows from specific to broad objectives. It demonstrates how BPR can possibly reshape an enterprise as it redefines the whole organization's strategic value proposition. As objectives progress, they lead to broader changes.
For instance, as process efficiency improves with BPR and new BPR best practices are leveraged, the focus on function-specific projects expands into core business processes, and value expansion happens. Value chains are focused on and optimized through business process redesign and as the redesign reaps benefits for the organization, an entire enterprise-wide transformation occurs. As this occurs, the organization's strategic value is ultimately redefined and more innovative. (Slide 11)
Change management
To solidify an organization's transformation with the BPR framework, the need to manage expectations into a long-lasting transformation is key. That's why leaders should pay attention to change management to assist their organizations through transitional times. The change management curve represents the stages of this transition, with the initial shock and denial, to anger and fear as the old ways are disrupted, and eventually a stage of acceptance that becomes a long-lasting commitment to the change.
You can use the change management curve as a timeline. Edit the stages on this slide to fiscal quarters, for example, to represent where in the process your organization falls and where it hopes to be over a year's time. (Slide 13)
Airbnb business case
What does that transformation look like in action? In May of 2015, Airbnb had a process problem. Designers had to wait on engineers to write code to visualize mockups on-screen, while engineers had to wait for researchers to validate a product, only to learn some of their fundamental assumptions were off. This approach used research as a validation tool and lacked true engagement between teams at the earliest stages of the process. Their product designers, engineers, and researchers operated in a functional capacity instead of a process-oriented one.
Through a collaborative BPR process, the 300-person product team spent nine months to entirely revamp the process to improve efficiency and capture more value. They created a single digital collaboration environment where designers and engineers could work together in real-time to update and redesign prototypes. This took a process that used to take days for product revisions and reengineered it to take 45 minutes. In this instance, Airbnb used IT to streamline their systems, change management to coach the team through a nine-month whole system redesign, and changed their internal value chain to prioritize outcomes instead of features. And they incorporated the research team early into the process so the design could be iterative, streamlined, and tested early to achieve the best results.
This process orientation ultimately made the product team more lean, holistic, team-oriented, and autonomous as workers knew they could trust each other since the digital platform showed all updates and data in one place. If your current workflows are holding back more profitable outcomes, you need this presentation. Download the Business Process Re-engineering (BPR) presentation for more slides on Gap Analysis, benchmarking, value chain analysis, and top BPR strategies, plus many more to save time and hours of work.
Business Process Reengineering (BPR) PowerPoint Template
Business Process Reengineering is the perfect change management tool to radically change your business. Use BPR to transform your company into a powerful, modern and process-oriented organization in the shortest possible time. The templates in this PowerPoint set support and guide you through the entire BPR process. Present the importance and potential of the restructuring with your own figures and processes using the templates provided. We have also included professionally designed diagrams to explain the process of reengineering step by step, maximizing the acceptance and support of your employees and colleagues.
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Business Process Reengineering can transform your company into a powerful, process-oriented organization. Radical Change Business Process Reengineering is a method for radically redesigning business processes. The entire organization is subjected to a complete redesign. A previously function-oriented organization transitions into a process-oriented company. The goal of this restructuring is to achieve significant improvements in costs, service, quality and lead times. Reengineering is a four-step process involving the four Rs: Renewing, Revitalizing, Reframing and Restructuring. The standardized procedure is designed to ensure that all the employees and departments within an organization are integrated into the process, delivering the optimum result for the company. Visualize New Structures This PowerPoint template can be used to create a presentation to help you introduce your company to the benefits, potential and processes of BPR. It helps to form an optimal starting position for successful redesign. Thanks to the process flow charts and organization chart templates in this set, you can present your proposed new structures and processes in the best possible way. With the Business Process Reengineering Set for PowerPoint, You Can:
- utilize state-of-the-art data-driven analysis tools to visualize and check the potential and results of proposed process reengineering
- present the phases of the BPR process using professionally designed diagrams
- sustainably improve how your organization's business processes are structured
This PowerPoint template contains:
- Definition of BPR
- Function oriented vs. process oriented
- Mindmap: the BPR environment
- The 4 Rs of reengineering
- Understanding BPR
- Aims of BPR
- BPR implementation chart
- BPR in 5 phases
- BPR circuit
- Benefits and criticism
- Templates: process flow diagrams
- Templates: organization charts
- Templates: timeline
- Templates: process flow
- Templates: gap Analysis
- Templates: benchmarking
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Business process re-engineering is a strategy in business management where workflows are analyzed and, if possible implemented to improve the performance and the services offered by a company. "Workflows", huh? That means processes, steps, phases... Exactly the kind of infographics that you'll find in this template! All of them incorporate different elements that follow a certain order or direction! Customize them with your own information and adapt the colors to your brand's!
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Business Process Reengineering
Fedex. gulf air. hong kong productivity council. industry ... the fad that forgot people,' mansueto ventures llc. www.fastcompany.com/online/01/reengin.html ... – powerpoint ppt presentation.
- The history of radical management
- BPR is defined as "the analysis and design of workflows and processes within organizations1
- BPR has also been described as the critical analysis and radical redesign of existing business processes to achieve breakthrough improvements in performance measures.2
- Michael Hammer, besides being one of the founders of BPR, he is also the president of Hammer and Co., a management education company. Hammer started out as a engineer and was a professor at MIT in the computer science department. Both TIME (1996) and Business Week (2002) listed Hammer as one of the Top 25 most influential businessmen of all time.
- James Champy is the co-author of Reengineering the Corporation with Michael Hammer. He started his career as a civil engineer at MIT. He also passed the bar at Boston College Law School and taught at MIT for some time. He was the CEO for CSC Index and is now the Chairman of Perot Systems consulting practice.
- In the introductory chapter of Reengineering the Corporation, the authors liken their book to Adam Smiths Wealth of Nations in terms of importance and continuing influence.
- Business Process Reengineering was influenced by Taylors Scientific Management. However, the dehumanization of the workers under Taylorism created problems. Workers slaved for hours under difficult labor conditions and became little more than the machines they worked on. Taylors ideas provided a backbone for BPR, but drastic changes were necessary.
- BPR was also influenced by the Gilbreths Time and Motion Studies. Similar to Taylors ideas, the Gilbrethian efficiency studies increased both the workforce productivity and the dehumanization of the workplace. Changes needed to be made in order to make way for a new century of business.
- Scientific Management lead William Deming to develop Total Quality Management, yet another efficiency strategy that helped Japanese business reform after WWII.
- Hammer created reengineering as a logical extension of his computer science background. In an interview with Wired magazine, Hammer agreed to an interviewers analogy that a reengineering plan is an organizational hack an algorithm for programming real life. The bits are people. The routines are business processes. (Wired, 1995)
- Hammer himself was a one of the famous Cambridge hackers during the 60s and 70s and parlayed his computer expertise into management with the Index Group, a management-consulting firm in Cambridge. There he met with James Champy, co-founder of Index, and from there the two co-authored their best-selling business bible
- First published in 1993, Reengineering the Corporation became the handbook for businesses in the 90s.
- It was subtitled A Manifesto for Business Revolution.
- The tag line states Forget what you know about how business should work. Most of it is wrong!
- Michael Hammer also co-authored The Reengineering Revolution in 1995. When Hammer noticed companies succeeding when they implemented BPR, he wanted to document what techniques individual companies used to achieve their goal.
- He also noticed companies doing badly after implementing BPR and wanted to know why they were failing.
- 1 reason cited by corporations
- Improving efficiency
- Competitive pressure
- Desire to improve poor customer satisfaction
- Desire to improve poor quality of products and services
- Develop the Business Vision and Process Objectives
- Identify the Processes to be Redesigned
- Understand and Measure the Existing Processes
- Identify IT Levers
- Design and Build a Prototype of the New Process
- Third study in a series conducted over a five year period
- 327 organizations participated
- Companies encompassed 53 countries
- According to Prosci, The results of the 2002 study combine the most current findings with those of the past two studies to provide a comprehensive and comparative view of business process reengineering projects.
- Hong Kong Productivity Council
- Industry Practice, Tata Consultancy Services
- Infosys Technologies Ltd - Quality (Corporate Services Group)
- Institute for Technology and Management
- Lockheed Martin Mission Systems
- Management Consulting
- Marriott Senior Living Services
- University of Missouri
- Vetri Software (India) Ltd
- American Express reported reducing its annual costs by over 1 billion through reengineering.
- ATTs Global Business Communications Systems unit turned a nine-figure loss into a nine-figure profit
- the Semiconductor Group of Texas Instruments reduced their cycle time of its order fulfillment process by more than half.
- Progressive Insurance reduced the cycle time of its claims process from weeks to days, and dramatically improved customer satisfaction while reducing costs. The revenue per employee increased by over 70 percent.
- Viewed BPR as a way of life
- Not radical, all-or-nothing change rather, a realignment of strategy and agenda
- Sustained "from the bottom up, with learning transferred "across.""3
- Took into consideration the differences in management cultures in different countries
- Team members demonstrated strong dedication to the project.
- The team had strong commitment and support from top management.
- The team shared a clear vision of the objectives and goals and had a common focus and understanding of project success.
- The team utilized consultants as part of its reengineering strategy.
- 70 of BPR projects fail3
- Only 47 of the companies in Proscis study met their project objectives to within 10
- According to one of the self-proclaimed creators of BPR, around 1993 the modest idea of BPR had become a monster.4
- Lack of sustained management commitment and leadership
- Unrealistic scope and expectations
- Resistance to change
- When Hammer wrote The Reengineering Revolution, he said, Failure is not caused by cosmic rays, bad luck, or other factors outside of human control. Failure is caused by people who dont know what theyre doing and who dont pursue reengineering the right way.(Hammer2)
- BPR has been used as the scapegoat for any and all problems if something did go wrong when implemented. Companies misused the term to sack people or downsize. Anyone could invoke the term BPR and it could mean anything. It was a buzz word that not enough people understood fully, and was therefore utilized improperly. Many criticisms of BPR that arose did so because they did not understand the processes.
- People, not the bottom line, are the most important assets of a company
- IT alone can not improve a companys financial status technology is only useful if it helps people do their work more efficiently.
- Companies should underpromise and overdeliver4
- Clarity is key
- 1Davenport, T.H. Short, J.E. (1990). "The New Industrial Engineering Information Technology and Business Process Redesign," Sloan Management Review, pp. 11-27.
- 2Grover, V., Jeong, S.R., Kettinger, W.J. Teng, J.T.C. (1995). "The Implementation of Business Process Reengineering," Journal of Management Information Systems, 12(1), pp. 109-144.
- 3Malhotra, Y. (1998). Business Process Redesign An Overview, BRINT Institute. www.kmbook.com/bpr.htm
- 4Thomas, A. (1995). The Fad That Forgot People, Mansueto Ventures LLC. www.fastcompany.com/online/ 01/reengin.html
- Hammer, M. Champy, J. (1993) Reengineering the Corporation, Harper Business
- Hammer, M. Champy, J. (1995) The Reengineering Revolution, Harper Business
- www.prosci.com
- www.brint.com
- www.wired.com/wired/archive/3.08/reengineering_pr. html
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Business Process Reengineering
Mar 28, 2019
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Business Process Reengineering. Maciej Derulski. What is a business process?. “A set of related activities that together achieve a defined business outcome and add value for customers” Purchasing Manufacturing R & D Marketing Sales. Types of Business Processes. Operational (core)
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Business Process Reengineering Maciej Derulski
What is a business process? • “A set of related activities that together achieve a defined business outcome and add value for customers” • Purchasing • Manufacturing • R & D • Marketing • Sales
Types of Business Processes • Operational (core) • Purchasing • Marketing • Manufacturing • Order processing • Managerial • Strategy • Direction • Support • IT • Finance • HR
Business Process Reengineering (BPR) • “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.” (Hammer & Champy 1993)
Michael Hammer • 1990, Michael Hammer published an article which claimed information technology is being used primarily to automate existing processes rather than using it to eliminate non value adding work.
Michael Hammer • Claimed: • Lots of work doesn’t add value for customer • This work should be removed and not accelerated through automation
Forces Driving BPR • Changes in the external environments • Particularly competitive & technological environments • Changes in customer wants, needs, and expectations
Where do you begin? • high-level assessment of the organization's mission, strategic goals, and customer needs. • Does our mission need to be redefined? • Are our strategic goals aligned with our mission? • Who are our customers? What do they want or need? • The organization must first re-think what it should be doing before it can decide how to do it best
Change Simulation • Remember the change simulation? • What was the first thing you did? • A high level assessment of organization’s mission, strategic goals, and customer needs.
Business Process Analysis • A business process can be decomposed into specific activities which can be measured, modeled, improved, re-designed, or eliminated.
Advantages of BPR • Enterprise Integration • Worker empowerment • Number of steps in a process are reduced • Organization becomes more efficient and hence more profitable
Disadvantages of BPR • Resistance to change • Higher demand on workers
Principles of BPR • Process point of view • Focus on generating more value for customers • Focus on activities which deliver value • Eliminate non-value adding activities • Keep amount of core processes to a minimum
Principles of BPR • Human point of view • Network related people and activities • Encourage involvement and participation • Make sure people are equipped, empowered and motivated
Wal-Mart • Reengineered supply chain by effectively using information technology • Inventory levels are tracked and ordering is automated
Wal-Mart • Manufacturers are linked into WalMarts system and receive automated orders • Makes WalMart very efficient at distributing products to its retail stores, and reduces storage costs.
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