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Business Process Reengineering

Industry : IT Services Functional Area : Business Processes
Activity:  1 comments  323 views  last activity : 07 06 2010 20:18:04 +0000
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Reengineering implies changes of various types and depth to a system, from a slight renovation to a total overhaul. BPR concepts are still being developed and are very much in flux. Due to some initial problems with implementation and new buzzwords creeping in, the term "Process Improvement" is being increasingly used instead.

BPR is the complete or partial "reinventing" of how business processes are done, to attain major performance improvement. It questions the underlying assumptions and principles, including what, why, by whom, and even, if—things should be done.

These tips will contribute by stating and helping to clarify a number of important principles, plus some useful insights, techniques and hints - 40 in all...

  1. Start with clean sheet of paper, mission statement, vision

  1. "Reinvent" how the business is run, don't just make incremental changes, don't automate the mess you already have

  1. Customer-driven, anticipate customer needs

  1. Involve customer early in the process

  1. Achieve continuous, rapid improvement—gradual improvements may not suffice

  1. Challenge existing approach

  1. Use benchmarking, get ideas from other industries

  1. Define product/process relationships, avoid functional "silos"

  1. Set a hierarchy of: customer, product, process, function, activity

  1. Compress time

  1. Eliminate bottlenecks

  1. Reduce number of steps, complexity, levels, people

  1. Reduce defects

  1. Increase flexibility

  1. Empower people, but with strong leadership, clear mission & beliefs

  1. Make education a way of life

  1. A "System" consists of missions, leadership, goals, objectives, metrics, policies, procedures, education, training, organization, personnel, tools—not primarily a computer project

  1. "Ownership" is important

  1. Focus on eliminating non-value added activities/ assets/costs

  1. Use simple approaches, not complex sophistication

  1. Decentralize, unless there are compelling reasons to do otherwise

  1. Streamline, Simplify, automate, integrate, in that order

  1. Employ the conference room pilot approach

  1. Selectively implement policies, procedures, checkpoints, controls, accountability, and metrics

  1. Use "discontinuous thinking" techniques

  1. Insiders lead, outsiders augment

  1. Small teams, but with a "guiding hand"

  1. Develop common processes, where it makes sense- At a minimum, come up with common data attributes, macro processes, data exchange conventions, etc.

  1. Bias towards "vanilla" approaches wherever practical

  1. Leverage investment, people, and resources

  1. Set ambitious "stretch" goals. Don't worry if they are missed. Worry about how much improvement is made

  1. Project leaders should lead, not make all the decisions

  1. Avoid "Paralysis by Analysis." You'll never have all the facts

  1. Don't use just functional organizations to define processes- they tend to replicate existing paradigms

  1. Phase implementation to reduce risk and optimize rate of benefit gains

  1. Use cellular and self-directed work teams

  1. Avoid building a new bureaucracy/theocracy of Reengineering high priests/ priestesses

  1. Use flow diagrams, dictionaries, business rules, to define system—avoid lengthy prose and technical documentation- Results should be suitable for training, auditing and desk reference

  1. Maintain master running issues status lists

  1. New process designs will win by default if not contested by a set deadline

  1. Employ the living flow chart approach to model systems

  1. Deliver more than you promise.

 
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1 comments on "Reengineering: 40 U$eful Hints"
  Commented by  Alok Kapoor, Project Lead, Satyam Computer Services Ltd    | 07 01 2008 08:08:14 +0000
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