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Business Process Reengineering
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Fundamentally reconsidering and radically redesigning of organizational processes. Explanation of Business Process Reengineering of Hammer and Champy. |
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Rather than organizing a firm into functional specialties (like production,
accounting, marketing, etc.) and to look at the tasks that each function performs,
Hammer and Champy recommend that we should look at complete processes. From
materials acquisition, towards production, towards marketing and distribution.
One should rebuild the firm into a series of processes. Value creation for the customer is the leading factor for BPR and information technology often plays an important enabling role. Compare: Relationship Marketing Michael Hammer and James ChampyThe main proponents of re-engineering were Michael Hammer and James Champy. In a series of books including Reengineering the Corporation, Reengineering Management, and The Agenda, they argue that far too much time is wasted, passing on tasks from one department to another. They claim that it is far more efficient to appoint a team who perform all the tasks in the process.
A five step approach to Business Process ReengineeringDavenport (1992) prescribes a five-step approach to the Business Process Reengineering model:
As an additional 6th step of the BPR method, sometimes you find: to adapt the organizational structure, and the governance model, towards the newly designed primary process.
Generic Circumstances that influence whether BPR is advisableAlthough it is difficult to give generic advice about this, some factors that can be considered are:
Critics of the BPR approachReengineering has earned a bad reputation because such projects have often resulted in massive layoffs. In spite of the hype that surrounded the introduction of Business Process Reengineering, partially due to the fact that the authors of Reengineering the Corporation reportedly bought huge numbers of copies to reach the top of the bestseller lists, the method has not entirely lived up to its expectations. The main reasons seem to be that:
BPR compared to KaizenWhen Kaizen is compared with the BPR method is it clear the Kaizen philosophy is more people-oriented, more easy to implement, but requires long-term discipline and provides only a small pace of change. The Business Process Reengineering approach on the other hand is harder, technology-oriented, it enables radical change but it requires considerable change management skills.
Book: Hammer and
Champy - Reengineering the Corporation -
Book: Davenport
- Process Innovation -
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Compare BPR with: Outsourcing | Change Phases | Catastrophe Theory | Organic Organization | Core Group Theory | Appreciative Inquiry | Positive Deviance | Forget Borrow Learn | Planned Behavior | Force Field Analysis | Kaizen | Value Engineering | Value Stream Mapping | Change Management | Six Change Approaches | Managing for Value | Dimensions of Change | Eight Attributes of Management Excellence | Five Disciplines | Ten Principles of Reinvention | Fourteen Points of Management | Blue Ocean Strategy | Bottom of the Pyramid
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| § Tsegay Tafere (Ethiopia) | BPR in Ethiopian Government | "I feel that BPR is a penecea for the kind of sickness like the Ethiopian bureaucratic system is in. As the country is striving to get out of where she is now, it is a true means or tool to fundamentally rethink the status quo and bring dramatic improvement. To this effect, I suggest that it has to be done with good knowledge. However, BPR is not a nuclear science. One should not be a top notch scientist in management in order to engage in it. I believe that it is the pain that is the main driving force in reinventing the obsolete work process. When I think of how it started, it was in the actual work and by the actual leaders of businesses with the intention of creating a responsive system. I don't think those peaple had been fully knowledgeable with BPR or so." |
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| § GUDUKASSA (Ethiopia) | BPR can't be applied in Ethiopia | "This is coz we first must change our attitude towards job & its security, here we have the highest no of unemployment with less skilled manpower if we want to implement it (BPR) we increase this rate so why not we try to apply the Kaizen method?" |
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| § Unknown (India) | BPR | "For some employees in the organisation, BPR stands for Blood Pressure Raiser, for others it means Blood Pressure Reliever. :-)" | |
| § Binne (Ireland) | What is BPR? | "Accoring to Scott Adams (The Dilbert Principle), re-engineering was created as an antidote to quality programmes. In re-engineering, all of the natural incompetence stored in the firm is unleashed on a monumental scale." |
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| § Tania (South Africa) | BPR | "BPR consultants do not need to understand the processes in fact it is better that they do not. Documenting existing processes with the view on improving and radically redesigning them relies on the consultant or process leader having no preconcieved ideas." |
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