1. A PowerPoint Presentation By Matt Staufer
REENGINEERING
A PowerPoint Presentation By
Matt Staufer
This slide presentation was prepared as a course requirement for Operations Management at Boise State University

2. OVERVIEW Reengineering Definitions Brainstorming Exercise
Goal of Reengineering
The Nut and Bolts
Why does reengineering fail?
Use and Implementation
Example
Exercise
Summary
References
Re-engineering is the focus of this PowerPoint presentation. This slide indicates what will be covered in the following slides.

3. WHAT IS REENGINEERING?
“The fundamental rethinking and radical redesign of the business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”
Hammer and Champy's definition of reengineering.
Most people think of reengineering as reducing costs. Quality, service and speed are three other important measures often overlooked.
Shandler, Donald. “It's Time to Reengineer Training.” Internet May 2002.

4. WHAT IS REENGINEERING? (Continued)
“A radical change approach that integrates physical and technical solutions with organization structure, management infrastructure and organization cultural change solutions.”
Reengineering is not reorganizing or downsizing. Reengineering can launch your company into a future growth environment.
Andrews, Dorine. “Choose the Right Recipe for Success.” Internet May 2002.

5. WHAT IS REENGINEERING? “Quotes”
“ It’s basically taking an axe and a machine gun to your existing organization.” Computerworld, Jan. 24, 1994
“ Reengineering must be initiated by someone who has enough status to break legs.” Planning Review, May/June 1993
“ Reengineering will require a personality transplant a lobotomy.” Computerworld, June 1, 1987
Fun quotes to get the participants thinking

6. GOAL OF REENGINEERING
Reengineering is typically chartered in response to a breakthrough goal for rapid, dramatic improvement in process performance.
Continuous improvement
refines the breakthrough
A 50 to 100 percent performance improvement is common within 12 months.
This figure shows that once continuous improvements have reached their peak, it is time to reengineer the process. Continuous improvements will refine the reengineer breakthrough further.
Taken out of class textbook page 255.
Russell, S. Roberta, Taylor, W. Bernard. Operation Management. Upper Saddle River: Prentice Hall, 2000.
Breakthrough
Improvement
Continuous improvement activities
peak; time to reengineer process

7. BRAINSTORMING EXCERCISE
How can an organization increase the likelihood that a reengineering process will provide lasting improvements for the agency?
Brainstorming is a technique used to enhance group productiviey by encouraging interaction among members to express their ideas noncritically.
Let the participants' imagination run wild. Remember, no ideas are bad ideas at this stage. Write down everyone's ideas on one list.

8. NUTS AND BOLTS The Reengineering Process
Select a reengineering team
Vital to the communication of the project
Important that they have the support and resources from top management
They should work as a team, and not focus on individuals
Recognition that the total redesign is necessary
Members should be selected that have the knowledge and can effectively communicate with each other as well as the rest of the company. Members should represent different areas of the organization, not just top management. The more varied the individual skills used, the better chance at a successful team.

9. NUTS AND BOLTS The Reengineering Process
Establish Goals
Define and communicate what actions will be used
Vision of the results stated clearly
Analyze the gap between the current performance and desired performance
Focus on goals not specifications
At this early stage, careful analyization can indicate whether or not a process needs to be reengineered. It is important that limitations or specifications are not set, this could harm the creativity of the team.

10. NUTS AND BOLTS The Reengineering Process
Identify the processes that need to be reengineered.
Determine the order in which processes must be changed
Priorities highlighted
Create time schedules
This step help identify which processes need to be reengineered and require immediate changes. The order in which process are changed can be important as to not interfere with another process while changing a current process. A reasonable time schedule is important to keep the process in check

11. NUTS AND BOLTS The Reengineering Process
Understand how reengineering may affect people and their jobs
Communication within the organization is vital
Reengineering should involve the people, management must be open to their suggestions
The people involved must be for, not against the reengineering process.
The reengineering process will have complications if the people involved are resistant to the change. Training and ongoing communication will be useful in this process
A future slide will visit the reactions to change

12. NUTS AND BOLTS The Reengineering Process
Grasp the current process
Create outlines and maps of the current process
Diagnose the real problems
Better understanding of the current process will enrich the process of reengineering
At this stage the better understanding of your current process will be important to the identification of problems.

13. NUTS AND BOLTS The Reengineering Process
Redesigning of the Process
Think with fresh ideas
Creativity
Confidence
After compiling all the information gathered, the team should be ready to move on to the redesigning process. Understand that the failure rate is high, and the goal is success.

14. NUTS AND BOLTS The Reengineering Process
Use the available tools
Benchmarking
Flowcharting
Computer simulation
Live simulation
Models
Surveys
Statistics
A combination of these tools have proved to be vital to a successful reengineering process. An organization should research which one will be useful for their application.

15. NUTS AND BOLTS The Reengineering Process
Implement the reengineered process
Phase introduction
Pre-training
At this stage the process is introduced.
Slide will follow on the implementation of a reengineering process.

16. NUTS AND BOLTS The Reengineering Process
Constantly evaluate the reengineered processes
Are employees adequately trained
Is the process working as hoped for
This is a continual process, which should be evaluated as needed.

17. WHY DOES REENGINEERING FAIL?
Trying to fix a process instead of changing it
Ignoring everything except the process design
Quitting too early
Reengineering from the bottom up
Neglecting people’s values and beliefs
Being willing to settle for minor results
Assigning someone who does not understand reengineering to lead the effort
It has been estimated that approximately two-thirds of reengineering projects fall short of their predicted outcomes, or fail completely. Here are some common errors to avoid that can increase the likelihood that a reengineering project may fail
“Re-engineering Why is so Often Fails.” Internet May 2002.

18. FOUR STAGES OF CHANGE Shock Anger Denial Acceptance
Think about the transition from shock to acceptance and how an organization may overcome them.
Shock- usually the first reaction once a change has been announced. " Where in the world did this come from?" "Why?"
Anger- if change is viewed in a negative way, people may react in anger. They blame other persons and begin to not accept or support the change. "It wont work and I will not accept this." This can be very damaging to a process and needs to confronted.
Denial- this person begins to make excuses as to why he or she should not be held accountable for anything that may go wrong. " Dont blame me if this doesn't work, it wasn't my idea."
Acceptance- this is the goal an organization needs to get all employees to. This person has accepted the change and begins to invision his or her role in the new situation. "How can I help my organization in this process."

19. HOW TO IMPLEMENT 3 steps to transition of change
1. Discontinuation of the old way of doing business
2. Migration
3. Starting the new way of doing business
Change is a process as itself; it must be recognized and treated as such. Throughout the three transition stages open and honest communication is crucial for the successful reengineering of a process.
Change is a process that takes time, resources, energy, and the assistance of management.

20. HOW TO IMPLEMENT 3 steps to transition of change
1. Discontinuation of the old way of doing business
Don’t be surprised by overreaction and resistance
Identify who is losing what and help them accept the importance of the loss
Communicate what is over and what is not
Mark the ending and avoid dragging it out
Compensate for losses
Assisting people through the process of change is a vital process to a successful new system. Change can not happen overnight, therefore, an organization must provide the resources and training to help overcome change.
Step 1: Discontinuation of the old way
Do everything possible to restore a person's sense of having control over their situation. Give information clearly, over and over. Communicate on a regular basis.

21. How to implement 3 steps to transition of change
2. Migration- letting go of the old way and beginning a new way
Communicate and keep people informed of progression
Strengthen and encourage intragroup connections
Create temporary systems or ways to deal with this period
Step 2 Migration
This is the in-between part of the transition. Defenses may be weakened. People will begin to question, "Was this the right thing to do." At this stage it is important to re-enforce the positive aspects of the change and look towards a common goal.

22. How to implement 3 steps to transition of change
3. Starting the new way of doing business
Be consistent
Ensure quick success
Reward new behaviors, not old ones
Celebrate the success
3. Starting the new way
At this final stage, it is important to make sure that lasting change takes place. Continual rewarding of new behaviors will help reinforce this new beginning to a changed process. Don't reward old behaviors.

23. Real World Example Hallmark
Product cycle time was approximately 3 years
Two-thirds of their time was spent in developing the plan and concept for the card
Their goal was to get new products to market within one year
After successfully reengineering their process they were able to bring a new card to market eight months ahead of schedule
Hallmark is a successful example of reengineering. Hallmark had assumed that most of the product development was spent mostly in printing and production rework time. To their surprise, they learned that two-thirds of their time was spent in developing the plan and concept for the card.

24. A Short Exercise The four stages of change
List examples of processes in your organization that may be a candidate for reengineering.
Hopefully after this presentation the participants will have a new outlook on reengineering and can apply it to their own jobs.

25. Summary
Reengineering is the fundamental rethinking and radical redesign of the business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”
A person’s resistance to change needs to be addressed and overcome
Why does communication fail?

26. Summary Communication and is vital to a successful implementation
Hallmark, a successful reengineering story

27. Bibliography
Andrews, Dorine. “Choose the Right Recipe for Success.” May 2002.
"Business Process Reengineering." majors.about.../weekly/aa htm?terms=reengineering02 May 2002.
"Business Process Reengineering and Organizational Change." May 2002.
Russell, S. Roberta, Taylor, W. Bernard. Operation Management. Upper Saddle River: Prentice Hall, 2000.
Shandler, Donald. “It's Time to Reengineer Training.” May 2002.
Andrews, Dorine. “Choose the Right Recipe for Success.” May 2002.
"Business Process Reengineering." majors.about.../weekly/aa htm?terms=reengineering
02 May 2002.
"Business Process Reengineering and Organizational Change." May 2002.
Russell, S. Roberta, Taylor, W. Bernard. Operation Management. Upper Saddle River: Prentice Hall, 2000.
Shandler, Donald. “It's Time to Reengineer Training.” May 2002.