Business Process Re-engineering (BPR)
The official definition:
"The fundamental rethinking and radical redesign of business processes
to bring about dramatic improvements in performance."
Overview
BPR looks at a business in terms of its outputs, and specifically the
processes needed to produce those outputs. It aims to reduce the various
'handoffs', where work is passed from one individual / section/ department
to another, causing interrupted workflow, poor quality and delays. BPR
lies in the 'radical innovation' area, of closing the internal gaps of
existing processes. BPR is associated with discontinuous change and
'breaking the china'.
BPR Principles
- Rethink the business process while ignoring organisational / structural
constraints.
- Build the organisation to support the processes, not the processes
around the organisation.
- Organise work around the natural flow of information (material or
Customers). i.e. around the outcomes of a process rather than the tasks
that go into it.
- Strive for dramatic performance improvement by radical rethinking and
redesign.
- Involve those who use the output of the process in the BPR.
- Use empowerment to allow decision making at the point where the work is
performed.
Methods for Identifying Processes
To identify a process we need to think in terms of systems. Once we
have identified a system, we can then map the system to identify its
component parts. (See Systems Thinking)
Davenport (1993, pp. 41-2) suggested the following techniques for
identifying processes:
The next step is to prioritise the processes identified to determine
which to tackle first. This process is then subjected to a 'Process Vision
Workshop'. The results of the workshop should be stored in a Process
Concept Worksheet. The workshop needs to addresses the following
issues:
An initial vision statement:
- What does the process do?
- What is the process definition?
- What is its
objectives?
- What are its attributes.
Main process characteristics:
- How will it work?
- What is the transformation process?
- What are the inputs and outputs?
Performance measures and objectives:
- What does it have to achieve?
- How will we measure it?
Critical success factors:
- What things have to go right in order for the process to be deemed
successful?
Potential barriers to implementation:
- What could go wrong?
- What is the risk analysis? (Resource allocation; Culture; Technical;
Product factors; Markets)
References:
Open University, Managing Technology, T840, Block 3, pp. 37-46 and
Block 8,
Davenport, T. H. (1993) Process Innovation. Reengineering work through
information technology, Boston Mass. Harvard Business School Press.
Hammer, M. & Champney, J (1993) Reengineering the Corporation. A
Manifesto for Business Revolution, London, Nicholas Brearley
Hammer, M. & Stanton, S. A. (1995) The Reengineering Revolution:
The Handbook Harper Collins. |
