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 The
Business Process Reengineering method (BPR) is described by Hammer and Champy
as 'the fundamental reconsideration and the radical redesign of organizational
processes, in order to achieve drastic improvement of current performance
in cost, services and speed'.
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 Champy
The 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 Reengineering
Davenport (1992) prescribes a five-step approach to the Business Process
Reengineering model:
- Develop the business vision and process objectives: The BPR method
is driven by a business vision which implies specific business objectives
such as cost reduction, time reduction, output quality improvement.
- Identify the business processes to be redesigned: most firms
use the 'high-impact' approach which focuses on the most important processes
or those that conflict most with the business vision. A lesser number of
firms use the 'exhaustive approach' that attempts to identify all the processes
within an organization and then prioritize them in order of redesign urgency.
- Understand and measure the existing processes: to avoid the repeating
of old mistakes and to provide a baseline for future improvements.
Compare: Scientific
Management
- Identify IT levers: awareness of IT capabilities can and should
influence BPR.
- Design and build a prototype of the new process: the actual design
should not be viewed as the end of the BPR process. Rather, it should be
viewed as a prototype, with successive iterations. The metaphor of prototype
aligns the Business Process Reengineering approach with quick delivery of
results, and the involvement and satisfaction of customers.
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 advisable
Although it is difficult to give generic advice about this, some factors
that can be considered are:
- Does the competition clearly outperform the company? Compare:
Turnaround Management
- Are there many conflicts in the organization?
- Is there an extremely high frequency of meetings?
- Excessive use of non-structured communication? (memos, emails, etc)
- Is it possible to consider a more continuous approach of gradual, incremental
improvements? (see: Kaizen).
Critics of the BPR approach
Reengineering 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 assumes that the factor that limits organization's performance is
the ineffectiveness of its processes. This may or may not always be true.
Also BPR offers no means to validate this assumption.
- BPR assumes the need to start the process of performance improvement
with a "clean slate", i.e. totally disregard the status quo.
- BPR does not provide an effective way to focus the improvement efforts
on the organization's constraints. (As done by Goldratt in the
Theory of Constraints).
- Sometimes, or maybe quite often, a gradual and incremental change (such
as Kaizen) may be a better approach.
- BPR is culturally biased towards the US way of thinking. (see:
Cultural Dimensions)
BPR compared to Kaizen
When 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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BPR - Time Reduction versus Cost
"Doing away the manual processes and bringing in technology and tools to make a process time efficient is one way of doing BPR.
However, technology and tools also come at a certain cost. That's why decision makers are often hesitant to invest in automation without evaluating the business gains. Business dynamics are causing automation to change as well, this is inevitable. Time windows are shrinking, customers are very demanding. They are wiser compared to yesterday. They want value additions and higher value for their money.
To retain, sustain and enhance organization's business/revenues customer base you must have processes with:
- Reduced errors; meaning greater reliability
- Enhanced controls; meaning precision
- More delivery in less time; meaning the processes go faster
- Less physical and mental fatigue; meaning safer working environment
A word of caution. Just because something can be automated that doesn't mean they should be. Automating is not always a good thing to do. Some people may fall into the trap of thinking that if something can be automated, it should be. But that is like someone purchasing a robotic lawn mower, while he enjoys mowing the lawn...
And remember boons and banes (pros and cons) don't travel alone. They always come in pairs." |
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Deterministic Machines Concept in BPR
"Hi all, could anyone give me a clarification regarding deterministic machines concept in BPR please? How can BPR be viewed in the view of deterministic machine view?" |
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Developing a Standard Framework for BPR
"After reviewing literature, I think that there exists no standard process of BPR. Every company redesigns its processes in its own way.
I believe different cultures, strategies and organizational structures are the main reasons of adapting so many different methods to BPR.
However, I do believe there is a need for a standard framework which could be applied to any BPR case. We could measure the performance and through continuous improvement enhance the project.
I'm currently doing an MBA research on how to succeed a BPR. To collect your opinions on my ideas, I create a survey. Could you please help me to fill in it in order to understand whether my ideas are right and feasible?
Please click on this link to take the survey. Thank you in advance for your help." |
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Is BPR Helping ERP or is ERP Helping BPR?
"I am a PhD student and my area is BPR. I just want to know your expert opinion (just general) regarding the relationship of BPR and ERP.
It is a fact that BPR uses technology for efficiency however, I have come across that ERP is doing the same.
So my question is how are these two tools interrelated, and which one is helping the other?
Is BPR used to implement ERP or is ERP helping BPR?" |
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Cases and Causes of BPR Failure / BPR Disasters
"Hello,
I'm doing research on BPR failure cases. Unfortunately, I can't find any cases to illustrate my research. Could you please tell me where I can find this kind of cases?
Thank you in advance." |
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Alignment of BPR and IT Solution Approach
"I am conducting research as part of a Masters degree on the combination of business process change methodologies i.e. radical and continuous improvement and IT solution approach such as Commerical Of the Shelf (COTS, package software), Business Process Management Systems (BPMS) / workflow management systems and custom-build used in organisations.
From literature there is evidence that some combinations may not be well suited which may lead to lack of alignment between business service and IT. Also discovered through literature is that there might be factors that influence the use of such combinations e.g. cost, time, standardisation, core processes etc.
For example, the use of BPR and custom development may give a very good alignment because processes with problems are identified, re-engineered and a system custom built to support it. But the cost and time involved in such a project may deter some organisations from going for such option.
The combinations I am looking at are:
1. BPR and COTS
2. BPR and BPMS / workflow systems
3. BPR and custom development.
If you have any experience or knowledge of any of this combinations, please react.
I am looking forward to hear your opinion on this. Thank you." |
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BPR Works only Top-Down
"I am a BPR envangelist and in my experience BPR is only effective if it starts from the top, i.e. when senior managers accept the challenge to first revamp their mental models of management before they engage in the process. Otherwise all BPR efforts will not work." |
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Reward Management During Business Reengineering
"More often than not, Kenyan organizations in need of adapting to changes in the competitive business environment fail to satisfy the needs of the diverse groups of employees within the company. Many employees are exiting, new ones joining in and others face the dilemma of what to do in the wake of the change.
How can a company in the middle of BPR manage it's reward systems to satisfy all groups of employees while at the same time remaining competitive?" |
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Personal Business Process Reengineering?
"Would anyone help me with one doubt here, can the concept of BPR be implemented in anyone’s personal life to have a radical change? Or is BPR specifically for business need only?" |
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BPR Through E-governance Initiatives
"In the public sector field of a government like India, implementing a 100% BPR would be difficult. Because the waste processes & positions identified out of such exercises would be of greater portion and the government itself would be unsure on how to cleanup such wastes. Rather, the focused initiatives to bring many processes under the E-Governance umbrella is a good trade-off to improve the processes (especially done through ppp business model) and at the same time leaving the "government workforce" greatly unaffected." |
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BPR is Like A Pipeline Through Pour Water
"We know that drinking water comes through a tube for transporting clean water even when it's going through pour water. Without the pipe we do not get clean water. Similarly, to bring change in our country we need to implement BPR. Otherwise, for how many years we keep changing?" |
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Misunderstandings around BPR
"Many people misunderstand the concept of BPR as a natural phenomenon or for resisting changes to roll back from its unfavorable impact. Say downsizing.
Such people are heard in quoting wrong sayings like "Blood Pressure Raising", but the truth is BPR by itself is not the problem, but the people are who aggravate or mitigate critics of BPR." |
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Business Process Reengineering can be abused
"I learned that BPR is a helpful tool for developing countries to break their old and unproductive thinking ans system. But I also realized that incompetent leaders can simply abuse it." |
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ERP and Business Process Reengineering
"Business process reengineering involves radically changing the status quo to fulfil customer's expectation and keep them coming back. This involves change management thinking and implementation of organisational principles. ERP helps in integrating data from functional departments into one single system, thereby giving the whole system one view of same data. I think successful implementation of BPR will not be possible without ERP?" |
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BPR supported by TQM
"After we implement BPR on the ground we should use TQM as a continuous improvement tool or cal it Kaizen or other tools to maintain the system and satisfy the "moving target" customers needs." |
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Mental Transformation Required to Implement Business Process Reengineering
"BPR is a tool for making a fundametal ,radical & dramatical change but what is most important is mental transformation required to implement it. I believe if we understand it we can bring a revolutionary chane in our work culture & solve many of our problems in service delivery.
I think we need to design to bring a great satisfaction for our citizens & feel our gaps in service delivery." |
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BPR needs Positive Thinking
"BPR doesn't need a special management skill, rather it needs positive thinking and a changing way of thinking." |
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BPR is needed in Ethiopia
"I believe BPR is an important change management tool. It is a radical tool. You can't help or solve all the bureacratic mess created on customers with any other tools - be it Kaizen , TQM, etc.
That is why the Government of Ethiopia at all levels is using this tool to fight bureacracy and bring dramatic improvements in public service delivery." |
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Required Management Skills
"BPR requires highly skillfull management and deep knowledge of what needs to be done. Is it possible to do BPR with less knowledge of what must be done?" |
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BPR in agricultural research?
"Is BPR applicable for the agricultural research sector? Is there anyone in the world who can share me the experience how to reengineer the agricultural research system?" |
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Selective Application
"Authors and consultants like Michael Hammer often present big ideas, because that is the realm they deal with as academics. I think that being a good practitioner means taking the good ideas and applying them, as opposed to applying the concepts wholesale. I would agree with Hammer very much that most organizations waste a lot of time passing on work from one department to another. What can we do to remove these artificial boundaries?" |
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Costs of BPR - Any ideas?
"Hoping that someone can point to some reference providing info on how much a BPR activity would cost -- some percentage of overhead expenses??" |
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What Knowledge is Required for BPR?
"The underlying assumption on BPR presented in this article is "task completion through unified team effort". But how is this possible in the practical business world?
There aren't any group of members knowledgeable enough on all business processes. That`s the core reason of existence of organization to achieve more through collective endeavours.
An example: a normal product design & development process requires cross-function participation and activities from:
- MARKETING -- for voice of customer information,
- ENGINEERING -- for product specification development,
- MANUFACTURING -- for existing manufacturing capacity understanding,
- PRODUCTION -- for lead time understanding, and
- QUALITY -- for performance excellence." |
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Quotes on Business Process Reengineering
"Do you know some deep, famous or funny quotes on Business Process Reengineering? Quotations? Proverbs? Please share them as a reaction to this posting and mention the author. To get started, here's my favorite: 'Reengineering must be fundamental, radical and drastic.' - Michael Hammer & James Champy 1993, American management consultants" |
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BPR: Lean business processes
"Jeff Hall in Management Services, Winter2006, Vol. 50 Issue 4, encourages the adoption of a lean approach to business process improvement. Lean is about building world class processes that deliver best quality, lowest cost and shortest cycle time through the elimination of waste. With lean being applied to business process, businesses could have a single process team who would be responsible for anything involving the end-to-end ordering-fulfilling-invoicing process thereby reducing waste in the process." |
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Business Process Reengineering Special Interest Group
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Business Process Reengineering Education & Events
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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
Return to Management Hub: Change & Organization | Marketing
| Strategy |
Supply Chain & Quality
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