Business Process Reengineering
Fundamentally reconsidering and radically redesigning of organizational processes. Explanation of Business Process Reengineering of Hammer and Champy.
The Business Process Reengineering method (BPR) is described by Hammer and Champy as 'the fundamental reconsideration and the radical redesign of organizational processes, in order to achieve drastic improvement of current performance in cost, services and speed'.
Rather than organizing a firm into functional specialties (like production,
accounting, marketing, etc.) and to look at the tasks that each function performs,
Hammer and Champy recommend that we should look at complete processes. From
materials acquisition, towards production, towards marketing and distribution.
One should rebuild the firm into a series of processes.
Value creation for the customer is the leading factor for BPR and information technology often plays an important enabling role. Compare: Relationship Marketing
Michael Hammer and James Champy
The main proponents of re-engineering were Michael Hammer and James Champy. In a series of books including Reengineering the Corporation, Reengineering Management, and The Agenda, they argue that far too much time is wasted, passing on tasks from one department to another. They claim that it is far more efficient to appoint a team who perform all the tasks in the process.
A five step approach to Business Process Reengineering
Davenport (1992) prescribes a five-step approach to the Business Process Reengineering model:
As an additional 6th step of the BPR method, sometimes you find: to adapt the organizational structure, and the governance model, towards the newly designed primary process.
Generic Circumstances that influence whether BPR is advisable
Although it is difficult to give generic advice about this, some factors that can be considered are:
Critics of the BPR approach
Reengineering has earned a bad reputation because such projects have often resulted in massive layoffs. In spite of the hype that surrounded the introduction of Business Process Reengineering, partially due to the fact that the authors of Reengineering the Corporation reportedly bought huge numbers of copies to reach the top of the bestseller lists, the method has not entirely lived up to its expectations. The main reasons seem to be that:
BPR compared to Kaizen
When Kaizen is compared with the BPR method is it clear the Kaizen philosophy is more people-oriented, more easy to implement, but requires long-term discipline and provides only a small pace of change. The Business Process Reengineering approach on the other hand is harder, technology-oriented, it enables radical change but it requires considerable change management skills.
Compare BPR with: Outsourcing | Change Phases | Catastrophe Theory | Organic Organization | Core Group Theory | Appreciative Inquiry | Positive Deviance | Forget Borrow Learn | Planned Behavior | Force Field Analysis | Kaizen | Value Engineering | Value Stream Mapping | Change Management | Six Change Approaches | Managing for Value | Dimensions of Change | Eight Attributes of Management Excellence | Five Disciplines | Ten Principles of Reinvention | Fourteen Points of Management | Blue Ocean Strategy | Bottom of the Pyramid