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Business Proces Reengineering (BPR). Fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance -Hammer. History. Began as thinking in the 1990s. Started as a revolution with phrases such as:
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Business Proces Reengineering (BPR) Fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance -Hammer
History • Began as thinking in the 1990s. • Started as a revolution with phrases such as: • ...taking and ax and machine gun to your existing organization... • ...shoot the dissenters... • ...reengineering will require a lobotomy... • ...what you do with the existing structure is nuke it! • ...break legs... • ...the way you deal with resistance is a bloody ax... • ...we will run over you with the train... • Has a tarnished history because of badly managed projects.
Motivation • poor financial performance • external competition • erosion of market share • emerging market opportunities.
BPR is not • downsizing • restructuring • reorganization • automation • new technology • etc. But…..
Focus areas • Involvement of Top management • Heavy use of "Change Management"
Change management Quy Nguyen Huy • Formal structures • Changed through commanding • Work processes • Changed through engineering • Beliefs • Changed through teaching • Social relationships • Changed through socializing
BPR today Example: Implementing an ERP system
Organize around outcomes, not tasks • Away with the assembly-lines
Have those who use the output of the process perform the process. • Away with specialists
Subsume information-processing work into the real work that produces the information. • Have department that gets information also process it.
Treat geographically dispersed resources as though they were centralized • Have a server.
Link parallel activities instead of integrating their result • E.g. testing in software development.
Put the decision point where the work is performed, and build control into the process. • E.g. sales the does accounting.
Capture information once and at the source. • Have a server.