1. drmasanom 1 Chapter 5: Prepare for the Journey PROJECT METHODOLOGY

2. Objectives drmasanom 2 At the end of this unit, you will be able to: 1.0Identify the eight key decision points in any BPR project. 2.0Explain the steps of the BPR project methodology and the outcome for each of these steps. 3.0Explain the importance of a well-structured methodology. At the end of this unit, you will be able to: 1.0Identify the eight key decision points in any BPR project. 2.0Explain the steps of the BPR project methodology and the outcome for each of these steps. 3.0Explain the importance of a well-structured methodology.

3. 8 DECISION POINTS BPR PROJECT drmasanom 3 1.0Do we need to reengineer/redesign this business operation? -Boundaries, scope, and interface points? -How should we structure the project? -Who should be on the team? 2.0What is the end vision of the results of the reengineering/redesign? -Goals, priorities? -Values, principles reflected in the vision? 1.0Do we need to reengineer/redesign this business operation? -Boundaries, scope, and interface points? -How should we structure the project? -Who should be on the team? 2.0What is the end vision of the results of the reengineering/redesign? -Goals, priorities? -Values, principles reflected in the vision?

4. 8 DECISION POINTS BPR PROJECT drmasanom 4 3.0What is the detailed design for our reengineered business operation? -How do the processes function? -Systems and infrastructure needed. -Belief systems and culture that must be in place. 4.0Will our new design for the business operation work? 5.0What is the plan for getting that design implemented? -Time, Risks and Costs? 3.0What is the detailed design for our reengineered business operation? -How do the processes function? -Systems and infrastructure needed. -Belief systems and culture that must be in place. 4.0Will our new design for the business operation work? 5.0What is the plan for getting that design implemented? -Time, Risks and Costs?

5. 8 DECISION POINTS drmasanom 5 6.0Should we fund the implementation of the BPR? 7.0Is the implementation going as planned? -Corrections and changes to make to ensure complete transition to the vision environment. 8.0Is the reengineered/redesign business operation ready to take on responsibility for continuous improvement to the processes? -Yes – provide skills and knowledge to people to do it right. -No – keep working with them until they’re ready. 6.0Should we fund the implementation of the BPR? 7.0Is the implementation going as planned? -Corrections and changes to make to ensure complete transition to the vision environment. 8.0Is the reengineered/redesign business operation ready to take on responsibility for continuous improvement to the processes? -Yes – provide skills and knowledge to people to do it right. -No – keep working with them until they’re ready.

6. BPR PROJECT METHODOLOGY drmasanom 6

7. Step 1: Frame The Project drmasanom 7 Purpose: Decision to proceed/not proceed with project. Define and structure the project. Outcome: Project Framework Statement Provides concrete and documented evidence for the need to redesign. The data is required to create the vision the reengineered decision operation. Purpose: Decision to proceed/not proceed with project. Define and structure the project. Outcome: Project Framework Statement Provides concrete and documented evidence for the need to redesign. The data is required to create the vision the reengineered decision operation.

8. Step 1: Frame The Project drmasanom 8 Key Activities: 1.0Assemble analysis team – the core group of the project team 2.0Draft project frame – the team works on the scope, boundaries, and interface points for the reengineering effort. 3.0Conduct a current situation analysis (AS IS) – the team gathers data and analyzes the current situation; this means observing work flows, determine root causes of problems related to production, errors, etc. The results should prove or disprove the need for radical change to the business operation. Key Activities: 1.0Assemble analysis team – the core group of the project team 2.0Draft project frame – the team works on the scope, boundaries, and interface points for the reengineering effort. 3.0Conduct a current situation analysis (AS IS) – the team gathers data and analyzes the current situation; this means observing work flows, determine root causes of problems related to production, errors, etc. The results should prove or disprove the need for radical change to the business operation.

9. Step 1: Frame The Project drmasanom 9 Key Activities: 4.0Produce the Framework Statement – the analysis of the current situation is documented in a framework statement. 5.0Recommend project go/no-go decision – if the situation analysis supports the necessity of a reengineering project, then the analysis team must recommend how to proceed; specify desired outcomes; describe techniques necessary to achieve them; identify executive sponsor(s), a project director, core group, champion team members by name and organization unit; develop schedules and allocate funding. 6.0Contract with executive sponsors – be clear with your executives that you want a contract to create the reengineering design and develop an Implementation Plan. Key Activities: 4.0Produce the Framework Statement – the analysis of the current situation is documented in a framework statement. 5.0Recommend project go/no-go decision – if the situation analysis supports the necessity of a reengineering project, then the analysis team must recommend how to proceed; specify desired outcomes; describe techniques necessary to achieve them; identify executive sponsor(s), a project director, core group, champion team members by name and organization unit; develop schedules and allocate funding. 6.0Contract with executive sponsors – be clear with your executives that you want a contract to create the reengineering design and develop an Implementation Plan.

10. CAUSE AND EFFECT DIAGRAM drmasanom 10 The Ishikawa diagram is a graphical method for finding the most likely causes for an undesired effect.

11. drmasanom 11

12. PARETO CHART drmasanom 12 A special form of vertical bar graph that displays information in such a way that priorities for process improvement can be established. It shows the relative importance of all the data and is used to direct efforts to the largest improvement opportunity by highlighting the "vital few" in contrast to the "many others."

13. Step 2: Create The Vision, Values, and Goals drmasanom 13 Purpose: Create a picture of what the operation wants to become. Project executives sponsors and the project team must agree to the vision of the reengineered environment and its supporting values and goals. Outcome: Vision, Values, and Goals Statement. Key Activities: 1.0Prepare for project kickoff meeting and vision session. 2.0Conduct the project kickoff meeting – promote and formally announce the project 3.0Conduct the vision session – team develop and agree on the vision, values, and goals for the project. Purpose: Create a picture of what the operation wants to become. Project executives sponsors and the project team must agree to the vision of the reengineered environment and its supporting values and goals. Outcome: Vision, Values, and Goals Statement. Key Activities: 1.0Prepare for project kickoff meeting and vision session. 2.0Conduct the project kickoff meeting – promote and formally announce the project 3.0Conduct the vision session – team develop and agree on the vision, values, and goals for the project.

14. Step 2: Create The Vision, Values, and Goals drmasanom 14 Key Activities: 4.0Create the Vision, Values & Goals Statement – this document becomes the primary means of communicating the purpose of the reengineering project throughout the organization. 5.0Validate the Vision, Values & Goals Statement – the team revises or refines the statement after the vision statement has been circulated throughout the organization. Key Activities: 4.0Create the Vision, Values & Goals Statement – this document becomes the primary means of communicating the purpose of the reengineering project throughout the organization. 5.0Validate the Vision, Values & Goals Statement – the team revises or refines the statement after the vision statement has been circulated throughout the organization.

15. Step 3: Redesign the Business Operation drmasanom 15 Purpose: Design a new way of doing business that is in alignment with the vision, values, and goals. Outcome:Redesign Blueprint Consisting of Physical/Technical Infrastructure, and Value Components. The blueprint provides the foundation for a realistic and feasible implementation and enables the team to estimate Implementation costs and forecast implementation benefits. Purpose: Design a new way of doing business that is in alignment with the vision, values, and goals. Outcome:Redesign Blueprint Consisting of Physical/Technical Infrastructure, and Value Components. The blueprint provides the foundation for a realistic and feasible implementation and enables the team to estimate Implementation costs and forecast implementation benefits.

16. Step 3: Redesign the Business Operation drmasanom 16 Physical/Technical Component What work will be required to produce the products or services? What business policies, practices and controls needed to ensure effective performance? What information do we need to operate effectively? Who will do what work? What computer systems, communication networks, and other technologies must be used to enable the work to be done effectively? Physical/Technical Component What work will be required to produce the products or services? What business policies, practices and controls needed to ensure effective performance? What information do we need to operate effectively? Who will do what work? What computer systems, communication networks, and other technologies must be used to enable the work to be done effectively?

17. Step 3: Redesign the Business Operation drmasanom 17 Physical/Technical Component of the Blueprint is structured into four distinct models: a.Process Model: is the core of the Blueprint and depicts work processes in the reengineered environment. -Key business outcomes (e.g. products, services) and criteria for judging their quality. -Business processes required to produce and support the business outcomes. - Description of how those processes relate to each other, including work flows, information flows and timing dependencies. Physical/Technical Component of the Blueprint is structured into four distinct models: a.Process Model: is the core of the Blueprint and depicts work processes in the reengineered environment. -Key business outcomes (e.g. products, services) and criteria for judging their quality. -Business processes required to produce and support the business outcomes. - Description of how those processes relate to each other, including work flows, information flows and timing dependencies.

18. Step 3: Redesign the Business Operation drmasanom 18 A process must create or transform physical items or data. A process must add value to an outcome. b.The Information Model: describes all data required to perform and make decisions within the reengineered business. c.Organization Model: defines the new or existing organization structure, job positions, and job configurations (such as team structures) required to perform and support the redesigned processes. d. Technology Model: documents the databases, applications, communications, and networking required to support the redesigned business processes. A process must create or transform physical items or data. A process must add value to an outcome. b.The Information Model: describes all data required to perform and make decisions within the reengineered business. c.Organization Model: defines the new or existing organization structure, job positions, and job configurations (such as team structures) required to perform and support the redesigned processes. d. Technology Model: documents the databases, applications, communications, and networking required to support the redesigned business processes.

19. Step 3: Redesign the Business Operation drmasanom 19 Infrastructure Component a.Management strategy b.Management system Value Component a.Organizational culture b.Power utilization c.Belief systems. Infrastructure Component a.Management strategy b.Management system Value Component a.Organizational culture b.Power utilization c.Belief systems.

20. Step 3: Redesign the Business Operation drmasanom 20 Key Activities: 1.0Prepare for the Blueprint sessions. 2.0Conduct the Blueprint sessions - the team develops and reaches consensus on the business operation redesign. 3.0Document the Blueprint – write a concise and understandable document. 4.0Validate the Blueprint - refine or correct the blueprint before publication. Key Activities: 1.0Prepare for the Blueprint sessions. 2.0Conduct the Blueprint sessions - the team develops and reaches consensus on the business operation redesign. 3.0Document the Blueprint – write a concise and understandable document. 4.0Validate the Blueprint - refine or correct the blueprint before publication.

21. Step 4: Conduct Proof of Concept drmasanom 21 Purpose:To refine the estimate of the project’s expected benefits and to see if the business operation design performs as expected. Outcome:Benefits statement – presents qualitative and quantitative benefits of implementing the business operation redesign based on the results of the simulation or pilot tests. Key Activities: 1.0Determine need for proof of concept – hard data, commitment to implementation, radical change, initial cost estimates, realistic expectations. 2.0Select a proof of concept approach – simulation or pilot test? 3.0Develop proof of concept requirements and plan. Purpose:To refine the estimate of the project’s expected benefits and to see if the business operation design performs as expected. Outcome:Benefits statement – presents qualitative and quantitative benefits of implementing the business operation redesign based on the results of the simulation or pilot tests. Key Activities: 1.0Determine need for proof of concept – hard data, commitment to implementation, radical change, initial cost estimates, realistic expectations. 2.0Select a proof of concept approach – simulation or pilot test? 3.0Develop proof of concept requirements and plan.

22. Step 5: Plan the Implementation drmasanom 22 Purpose:Develop a realistic action plan for implementing the reengineering Blueprint. Outcome:Implementation Plan (provides the road map)- a detail implementation and action plan with specific milestones and process owner identified. Key Activities: 1.0Prepare for the implementation planning sessions. 2.0Conduct the implementation planning sessions. 3.0Document the Implementation Plan. 4.0Validate the Implementation Plan. Purpose:Develop a realistic action plan for implementing the reengineering Blueprint. Outcome:Implementation Plan (provides the road map)- a detail implementation and action plan with specific milestones and process owner identified. Key Activities: 1.0Prepare for the implementation planning sessions. 2.0Conduct the implementation planning sessions. 3.0Document the Implementation Plan. 4.0Validate the Implementation Plan.

23. Step 6: Obtain Implementation Approval drmasanom 23 Purpose:To get the funding and resources to begin Blueprint Implementation. Outcome:Funded Resource Request – human resources, facilities and equipment, and direct budget for external consulting, and training. Key Activities: 1.0Develop the approval strategy – ensure that all stakeholder executives have the opportunity to become involved in the decision making for the implementation. 2.0Ask for approval. Purpose:To get the funding and resources to begin Blueprint Implementation. Outcome:Funded Resource Request – human resources, facilities and equipment, and direct budget for external consulting, and training. Key Activities: 1.0Develop the approval strategy – ensure that all stakeholder executives have the opportunity to become involved in the decision making for the implementation. 2.0Ask for approval.

24. Step 7: Implement the Redesign drmasanom 24 Purpose: To transition the business operation from the current environment to the reengineering environment. Outcome: Measurement results – should show movement toward the reengineering goals as stated in the Vision, Values, and Goals Statement. In the form of progress reports and measurement results. - frequency and volumes of transactions - number of customer inquiries, complaints and responses. - number of errors, discrepancies, changes and corrections. - elapsed or dedicated time required for process cycle. - customer satisfaction with services performance and products delivered. Purpose: To transition the business operation from the current environment to the reengineering environment. Outcome: Measurement results – should show movement toward the reengineering goals as stated in the Vision, Values, and Goals Statement. In the form of progress reports and measurement results. - frequency and volumes of transactions - number of customer inquiries, complaints and responses. - number of errors, discrepancies, changes and corrections. - elapsed or dedicated time required for process cycle. - customer satisfaction with services performance and products delivered.

25. Step 7: Implement the Redesign drmasanom 25 Key Activities: 1.0Consistent periodic meetings – regular meeting to share learning, monitor implementation progress, and resolve issues as they arise. 2.0Celebrate success – people who make them happen should be rewarded. 3.0Conduct critical reflections – project team should work proactively with the line organizations to anticipate problems with the implementation work. Key Activities: 1.0Consistent periodic meetings – regular meeting to share learning, monitor implementation progress, and resolve issues as they arise. 2.0Celebrate success – people who make them happen should be rewarded. 3.0Conduct critical reflections – project team should work proactively with the line organizations to anticipate problems with the implementation work.

26. Step 8: Transition to a Continuous Improvement State drmasanom 26 Purpose: To bring closure to project team activities and have line organizations continue to improve the reengineered environment. Outcome:Continually improved performance – through improved process reducing unproductive activities and increasing customer satisfaction. Key Activities: Ongoing measurement and critical reflection by operations units. Purpose: To bring closure to project team activities and have line organizations continue to improve the reengineered environment. Outcome:Continually improved performance – through improved process reducing unproductive activities and increasing customer satisfaction. Key Activities: Ongoing measurement and critical reflection by operations units.