CONDITIONS RIPE FOR BPR (HAMMER STYLE) Unarticulated/out-of-date rules Not right first time Sequential process Lack of focal point of responsibility Worker desire for autonomy Management trust of workers Lack of ability to respond

SUMMARY OF BPR PRINCIPLES (HAMMER STYLE) 1. Focus on outcomes, not tasks 2. With those who use the output, doing it themselves 3. And processing the information too 4. Without regard to geographic barriers 5. Linking functions (interdependence) 6. And allowing decision making authority (empowerment)

BPR RISKS Transition is hell -- may lost customers Transition never ends -- when is enough? Legacy systems will get in the way Current information technology still has its limits

BPR SCOPE Reinvent the business you’re in And/Or Reinvent what business you’re in

IT-ENABLED BUSINESS TRANSFORMATION Establishing Direction Design/RedesignImplementation Defining a broad vision for change Building infrastructure – Human – Technical – Capital Clarifying the vision and establishing the focus for change – Organizational and interorganizational prototypes Gaining commitment – Cascading levels of agreement Assessing risk/return Selecting partners Developing detailed design – Business process redesign – Management process redesign (structure, control, HRM, culture) – Information technology Implementing technology -- applying project manage- ment techniques to keep on schedule & within budget Managing risks Detailed cost-benefit analysis Developing education & communication materials Developing roll-out schedule Implementing change Managing organizational learning Feedback and Evaluation Source: Applegate, L.M., “IT-Enabled Business Transformation”, Boston: Harvard Business School Publishing, 1992.

REENGINEERING PROCESSMobilizationDiagnosisRedesignTransition  Create a Business Process Map  Appoint Process Owners and Establish Governance Structure  Formulate Reengineering Strategy  Determine Process Prioritization  Assign Reengineering Team Members  Bound and Scope the Process  Understand Customer Needs  Understand the Current Process  Identify Weaknesses in the Existing Design  Set Targets for New Designs  Create Breakthrough Process Design Concept  Redesign the Entire Business System  Develop Detailed Process Design  Build Laboratory Prototype  Test, Simulate, Learn, and Iterate  Implement Initial Field Release (Pilot)  Realize Initial Benefits  Adjust the Business Systems  Develop Supporting Infrastructure  Rollout and Institution- alize  Implement Succeeding Releases

REVIEW OF FIVE STEP PROCESS (D & S) 1. Vision & Process Objectives -- Who & How is This Determined? – Input From Customers/Marketplace – Technology Transfer from Another Company/Industry – An Executive Brainstorm 2. Processes to Be Redesigned – Exhaustive (Getting Something Done?) – High Impact (One Gets Better -- Others Get Worse?)

3. Existing Processes – Don’t Repeat Problems – Likely Doing Something Right 4. IT Levers (Discuss Table) 5. Prototype of New Process – Building Prototypes Not Easy – Pilot Identification & Control

KEYS TO THE DEMISE OF BUREAUCRACY Knowledge of people -- is there a gap developing? Are people committed to continuous learning? Willingness to accept responsibility for decisions/actions -- we’re going in two different directions at the same time. Not every job needs reinventing or can be reinvented with current technology. Board of Directors fulfilling their role