Business Process Reengineering (BPR)

1. Process Deployment Organize for BPR BUSINESS PROCESS REENGINEERING (BPR) Innovate, Transform, Succeed Process Redesign Process Diagnosis © Operational Excellence Consulting. All rights reserved.

2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Acquire a comprehensive understanding of the principles and modern concepts of Business Process Reengineering (BPR). Familiarize with the distinctive characteristics of reengineered processes in the context of contemporary business practices. Learn a structured and technologically-informed approach to transform processes, optimizing them for maximum productivity. Gain insights into the profound impacts of BPR on organizational dynamics and acquire guidelines for effective change management in the digital era. 2 © Operational Excellence Consulting

3. CONTENTS 1 6 Key Concepts & Principles Process Redesign 2 7 Process Management Process Deployment 3 8 Overview of BPR Organizational Impact of BPR 4 9 Organizing for BPR Guidelines for Managing Change 5 10 Process Diagnosis Pitfalls to Avoid 3 © Operational Excellence Consulting

4. UNLEASHING TRANSFORMATION: THE BUSINESS CASE FOR BPR Meeting Dynamic Customer Expectations Strategic Evolution Amidst Fierce Competition Agile Response to Technological Shifts Breaking Down Silos Through Integration Future-Proofing Through Continuous Improvement Unleashing Digital Synergy for Operational Excellence Enhanced Financial Outcomes Through Innovation Adaptive CRM for Personalized Experiences 4 © Operational Excellence Consulting

5. BPR IN ACTION: TRANSFORMATIVE SUCCESS STORIES Improvement: Applied BPR to streamline document processing and workflow management. Result: Achieved substantial cost savings, increased productivity, and improved customer service through the integration of modern technologies. Improvement: Implemented BPR to restructure manufacturing processes and supply chain management. Result: Achieved cost savings, reduced production lead times, and improved overall production efficiency. Improvement: Employed BPR to optimize order fulfillment and logistics processes. Result: Realized enhanced operational efficiency, faster delivery times, and improved customer experience. Improvement: Employed BPR to optimize product development and supply chain processes. Result: Realized cost savings, faster time-to- market for new products, and increased competitiveness in the market. 5 © Operational Excellence Consulting

6. “ by information technology to achieve dramatic improvements in business performance.” BPR is the fundamental rethinking and radical redesign of business processes enabled HAMMER & CHAMPY 6 © Operational Excellence Consulting

7. WHAT BPR IS NOT: DEBUNKING COMMON MISCONCEPTIONS Not another idea imported from Japan Not outsourcing ● ● Not downsizing ● Not automation or implementing an IT system ● Not a bottom-up small group activity ● Not incremental improvement or a quick repair job ● Not transforming every aspect of your organization ● 7 © Operational Excellence Consulting

8. OPTIMAL CONDITIONS FOR BPR EFFECTIVENESS Shifting Focus to “Systems” and “Processes” Embracing the Necessity of Change Agreement on Key Processes Respecting and Empowering the Workforce Measuring What Matters Identify and align efforts with key processes that bring the most value to customers. Prioritize measurement of critical metrics for a meaningful impact on processes. Transition from a functional to a systemic perspective enhances BPR effectiveness. Acknowledging the need for change lays the foundation for effective BPR implementation. A culture of respect and empowerment is vital for fostering effective BPR initiatives. 8 © Operational Excellence Consulting

9. OBJECTIVES OF BPR Eliminating Repetitive, Paper-Intensive, Bureaucratic Tasks Improving Product/ Service Quality Significantly Reducing Costs Enhancing the quality of products and services through process optimization. Achieving substantial cost reductions through efficient process redesign. Streamlining processes by removing redundant, paper- heavy, and bureaucratic elements. 9 © Operational Excellence Consulting

10. SYNERGY BETWEEN RADICAL AND CONTINUOUS IMPROVEMENT Theoretical Capability Improvement Statistical Process Control Radical Improvement Incremental Improvement Time 10 © Operational Excellence Consulting

11. “ 94% of problems in business are systems-driven and only 6% are people-driven.” W. EDWARDS DEMING 11 © Operational Excellence Consulting

12. IDENTIFYING KEY PROCESSES IN BPR Customer-Centric Significance Success Determinants Core Competency Alignment Processes that directly impact customer satisfaction. Prioritize those pivotal for enhancing the customer experience. Processes critical for organizational success. Identify and prioritize those with a direct impact on overall success. Processes within the organization’s core competencies. Focus on optimizing processes aligned with the organization’s strengths. 12 © Operational Excellence Consulting

13. ESSENTIAL DIMENSIONS OF PROCESS MANAGEMENT Process Ownership Process Definition & Documentation Process Monitoring & Control Process Improvement Process Measurement Clearly defined responsibility for each process. Ensures accountability and streamlined decision-making. Clearly articulate and document each process. Facilitates understanding, training, and continuous improvement. Implement systems to monitor ongoing processes. Ensure adherence to defined standards and prompt corrective actions. Embrace a culture of continuous improvement. Regularly assess and enhance processes for optimal efficiency. Establish metrics to quantify process performance. Enables data-driven insights and identification of improvement areas. 13 © Operational Excellence Consulting

14. BREAKING SILOS IN BPR: TRANSFORMING CUSTOMER-CENTRICITY In BPR, smashing silos is the catalyst for a customer- focused transformation. IT Marketing Production 14 Source: Adapted from Lewrick et al. © Operational Excellence Consulting

15. DIGITAL TRANSFORMATION: KEY CONSIDERATIONS 1. Strategic Integration: Integrate digital solutions strategically for comprehensive process enhancement. 2. Data-Driven Insights: Harness data analytics for informed decision-making and process optimization. 3. Automation Synergy: Explore automation synergies to streamline repetitive tasks and improve efficiency. 4. User-Centric Design: Prioritize user experience in digital solutions to enhance usability and adoption. 5. Continuous Innovation: Foster a culture of continuous innovation, adapting processes to evolving digital trends. 15 © Operational Excellence Consulting

16. DRIVING BPR BREAKTHROUGH: STRATEGIC IMPERATIVES QUALITY LEADERSHIP ORGANIZATIONAL IMAGE INNOVATION CULTURE Attain or maintain quality leadership in the BPR journey. Enhance the organizational image among customers, suppliers, and stakeholders through transformative BPR initiatives. Boost motivation and morale within the workforce by fostering a culture of innovation and improvement. 16 © Operational Excellence Consulting

17. EXAMPLE OF MENTAL MODEL: GM’S CHEVROLET CAVALIER A classic example of a General Motors (GM) car model that reflects the mental model emphasizing styling over quality is the Chevrolet Cavalier. ● Introduced in the 1980s, the Cavalier was known for its distinctive styling and affordable price. ● However, it faced criticism for perceived lower build quality and reliability compared to competitors in its class. ● 17 © Operational Excellence Consulting

18. 4 PHASES OF BPR: PHASE DESCRIPTIONS 4. PROCESS DEPLOYMENT 1. ORGANIZE FOR BPR Involves implementing the process improvement plan, obtaining customer feedback on the results, revising the plan as appropriate, and rolling out the solution across the organization. Involves creating business process map, identify areas for reengineering, establish process ownership and initiate projects. Process Deployment Organize for BPR BUSINESS PROCESS REENGINEERING (BPR) 3. PROCESS REDESIGN 2. PROCESS DIAGNOSIS Process Redesign Uses the data collected in Process Diagnosis to evaluate and develop plans to improve processes. Involves determining requirements, mapping the processes, collecting process performance data, and rating processes based on these data. Process Diagnosis 18 © Operational Excellence Consulting

19. 4 PHASES OF BPR: KEY ACTIVITIES 1. ORGANIZE FOR BPR 4. PROCESS DEPLOYMENT Process Deployment § Create business process map § Prioritize areas for improvement § Establish process ownership § Form BPR team § Initiate project § Implement process improvement plan § Measure results § Obtain customer feedback on process performance § Do it all over again Organize for BPR BUSINESS PROCESS REENGINEERING (BPR) 3. PROCESS REDESIGN 2. PROCESS DIAGNOSIS Process Redesign Process Diagnosis § Benchmark the process § Develop solutions to close gaps § Get buy-in § Develop improvement plans § Determine customer requirements § Determine and document current process § Rate the process 19 © Operational Excellence Consulting

20. A SOLID CULTURAL FOUNDATION IS ESSENTIAL TO ENSURE DIGITAL TRANSFORMATION MANAGEMENT Alignment & Communications Role Modeling Skill Building Execution Focus Role modeling culture where leaders consistently adopt and demonstrate the new behaviors Communications that cascade the change story to every level of the organization Skill building approach to develop company-wide capabilities that meet unique technical requirements of the organization Formal systems and structures to ensure processes and targets reinforce to the desired changes and behaviors 20 © Operational Excellence Consulting

21. THREE STEPS COMPANIES CAN TAKE TO KEEP THEIR EMPLOYEES DURING AND AFTER DIGITAL TRANSFORMATION RESKILLING REDEPLOYING RETHINKING Training employers to equip employees with the skills they’ll need to perform the new roles required of them. Moving employees with specific skills to other parts of the organization where their skills will be more appropriate or useful. Looking at how current job descriptions and duties can be readjusted to accommodate new digital processes. 21 © Operational Excellence Consulting

22. SOME SKILLS AREAS TO DEVELOP WITHIN AN ORGANIZATION TO FULLY LEVERAGE & EMBRACE DIGITAL TRANSFORMATION BIG DATA ANALYTICS CLOUD COMPUTING MACHINE LEARNING CYBERSECURITY CHANGE MANAGEMENT Ability to glean valuable insights into consumer behavior to make strategic and operational adjustments to improve performance and gain competitive advantage. Implementing and managing cloud services are fundamental to digital transformation. It is critical that IT personnel know how to go about implementing one. An application of artificial intelligence that gives IT systems the ability to “learn” for themselves which is becoming increasingly important to many companies. The more companies depend on technology, the more they need to ensure the confidentiality, integrity and availability of data on premises and off. As social media, mobility, big data and cloud computing reshape how organizations operate, the ability to adapt business and digital processes is critical. 22 © Operational Excellence Consulting

23. MARKETING & IT HAVE TREMENDOUS ABILITY TO IMPACT CUSTOMER EXPERIENCE THROUGH COLLABORATION & CHANGE Marketing defines the vision of the company and value proposition for the customers. IT touches and enables every part of the business and is the ultimate orchestrator of change. Marketing IT 23 © Operational Excellence Consulting

24. TRANSFORMATION IMPERATIVES FOR THE IT DEPARTMENT Collaborative Integration Modernization of Infrastructure Embracing Innovation Agile Development Practices Data-Centric Approach Break down silos for cohesive collaboration between IT functions and other departments. Shift from legacy systems to agile, scalable, and cloud- based infrastructure. Foster a culture that encourages experimentation and embraces emerging technologies. Transition to agile methodologies for faster and more responsive development cycles. Prioritize data analytics and insights for informed decision- making. 24 © Operational Excellence Consulting

25. DIGITAL TRANSFORMATION STARTS WITH PEOPLE, NOT TECHNOLOGY The real challenge is how to change people’s mindsets, the company culture, and the way people think and do things. It’s a much more fundamental shift than simply adopting technology. 25 © Operational Excellence Consulting

26. UNDERSTAND WHY PEOPLE FEAR CHANGE Insecurity Concerns about job security and the uncertainty of change. Digital Transformation strategies: § Segment the audience for tailored communication. § Utilize the 4 P’s: Purpose, Process, Progress, and Problems. § Employ multiple communication channels and diverse voices. § Embrace honesty, signaling the potential for significant change. 26 © Operational Excellence Consulting

27. NAVIGATING RESPONSES TO CHANGE THE ENROLLMENT CURVE Middle Enrollers Late Enrollers Early Enrollers Slugs Initiators Die Hards 30% 15% 5% 15% 30% 5% Direction of Enrollment Critical Mass 27 Source: Adapted from Atlanta Consulting Group, Inc. © Operational Excellence Consulting

28. TOP TEN WAYS TO FAIL REENGINEERING 1. Don’t Reengineer, Just Say You Are 6. Skipping from Design to Implementation 2. Neglect Process Focus 7. Slow Reengineering Pace 3. Overanalyze Current Situation 8. Place Business Aspects Off-Limits 4. Lack Strong Executive Leadership 6. Conventional Implementation Style 5. Timid Redesign Approach 7. Ignore Employee Concerns 28 Source: Adapted from Hammer & Stanton © Operational Excellence Consulting

29. “ results.” Insanity is doing the same thing, over and over again, but expecting different ALBERT EINSTEIN 29 © Operational Excellence Consulting

30. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting