Underlying Principles Fundamental, Radical,Dramatic Radix : Business reinvention(not business improvement, business enhancement) Processes: Collection of activities that takes one or more kinds of input and creates an output that is of value to the customer
BPR Features Process Orientation Ambition Rule Breaking Creative use of IT
Who undertake Reengineering Companies in deep trouble(Ford-Early 80s) Not yet in trouble but see trouble coming New competitors Changing customer requirements Altered regulatory framework Peak Condition (GE, Wal-Mart etc.)
Misunderstandings about BPR BPR is not same as automation BPR is not restructuring or downsizing(less with less to more with less) BPR is not delayering or flattening : BPR may result in flatter organization (BPR targets the process structure rather than organization structure)
BPR vs. TQM Commonality Importance of processes Need of process customers and work backwards TQM : Within the framework of company’s existing processes – seek to enhance with continuous incremental improvement – Kaizen BPR : Seeks breakthroughs, different approach to change management
BPR : The Path to Change Starting Over Rejecting conventional wisdom and assumptions of the past Rejects Adam Smith’s Industrial Paradigm like hierarchical control, division of labour BPR : search for new models of organizing work