Business Process Re-Engineering (BPR) - Definition, Phases & Benefits

Definition

Phases of Business Process Reengineering (BPR)

1. Begin organizational change
2. Building the reengineering organization
3. Identifying BPR opportunities
4. Understanding the existing process
5. Reengineer the process
6. Blueprint the new business system
7. Perform the transformation

1. Begin Organizational Change: 

• Analyze how the organization operates and decide on the level of change needed. This assessment helps determine if a radical transformation (BPR) or smaller improvements (e.g., Total Workplace Management - TWM, kaizen) are required.
• Identify harmful operating procedures and establish a clear vision for the future. Creating a well-defined vision with measurable goals helps employees focus their efforts.
• Maintain active communication to keep everyone engaged and working towards common goals. Clear and consistent communication throughout the organization is essential to avoid confusion and resistance.

2. Build the Reengineering Organization: 

• Form a dedicated BPR team with a high-level executive as a leader. The executive must have the authority and influence to make crucial decisions for successful BPR.
• Appoint process owners responsible for specific processes and redesign efforts. Process owners are accountable for ensuring the successful implementation of changes.
• Consider a steering committee to monitor progress and involve external specialists if needed. A steering committee can provide guidance and ensure the overall strategy stays on track. External specialists may bring valuable insights and expertise.

3. Identify BPR Opportunities:

• Select core processes with high potential for improvement. Prioritizing processes with significant impact allows the organization to focus its efforts effectively.
• Gather performance metrics from within and outside the industry. Benchmarking against industry standards helps identify areas for improvement.
• Prioritize processes based on success potential and impact on the organization. Choosing processes that can show quick success builds momentum and enthusiasm.

4. Understand the Existing Process:

• Thoroughly analyze and model current processes. Understanding the current state is crucial for identifying inefficiencies and areas for improvement.
• Examine reasons behind current process steps and technology usage. Understanding why certain steps exist helps in making informed decisions during redesign.
• Compare the existing organizational structure with new objectives. Identifying gaps helps ensure that the new structure supports the reengineered processes.

5. Re-engineer the Process:

• Form a diverse reengineering team to question assumptions and brainstorm ideas. Different perspectives bring fresh insights and creativity to the redesign process.
• Consider BPR principles, new technologies, and customer value during brainstorming. BPR principles help challenge traditional thinking, and customer value ensures customer satisfaction.
• Explore alternative ways to improve processes and eliminate inefficiencies. A thorough exploration of ideas leads to more robust redesign solutions.

6. Blueprint the New Business System:

• Develop detailed plans (blueprints) for the reengineered processes. Blueprints provide a roadmap for implementation and ensure a clear understanding of the changes.
• Define the new flow of work, information requirements, and organizational structure. Clear definition facilitates smooth transitions during implementation.
• Address cultural changes necessary to support the new processes. Cultural alignment is vital to ensure that the organization embraces the changes.

7. Perform the Transformation:

• Develop a migration strategy and action plan. A well-planned strategy helps manage the transition smoothly and minimizes disruptions.
• Involve the workforce in the implementation process. Employee involvement fosters ownership and commitment to the new processes.
• Provide training and education to adapt to the changes and use new technologies effectively. Proper training ensures that employees can successfully operate in the reengineered environment

Benefits of Business Process Reengineering (BPR)

1. Increased Effectiveness: BPR helps organizations identify their core functions and eliminate any inefficient or obsolete processes. This leads to a more streamlined and effective way of doing business.
2. Reduced Overall Cost and Cycle Time: By eliminating wasteful steps and optimizing processes, BPR leads to cost savings and shorter cycle times, making the organization more efficient.
3. Meaningful Work for Staff: BPR promotes greater staff involvement and empowerment. Employees are engaged in meaningful work and have a sense of ownership in the redesigned processes.
4. Improved Organizational Approach: BPR allows organizations to break away from outdated business rules and adopt new, innovative approaches. This leads to a reduction in new product and process activity time.
5. Solidified Business Focus: BPR helps organizations align their processes with their strategic objectives, ensuring a more focused and cohesive approach to business operations.
6. Business Growth: With radical improvements in processes, BPR can lead to a significant improvement in the organization's industry position. This, in turn, can drive business growth and competitiveness.
7. Increased Customer Base: BPR's focus on customer value and satisfaction leads to improved products and services. This can attract new customers and strengthen relationships with existing ones.
8. Downsized Company Structure, Empowering Employees: Through BPR, organizations can streamline their structures, making them more agile and responsive. This empowers employees to make decisions and take ownership of their responsibilities.

FAQs

1. Begin Organizational Change
2. Build the Reengineering Organization
3. Identify BPR Opportunities
4. Understand the Existing Process
5. Re-engineer the Process
6. Blueprint the New Business System
7. Perform the Transformation

1. Planning Phase: Identify objectives and develop a strategic plan.
2. Analysis and Redesign Phase: Thoroughly analyze and redesign processes.
3. Implementation Phase: Implement changes, train employees, and monitor performance.