Implementing Business Process Re-engineering is a systematic process aimed at achieving dramatic improvements in performance metrics like cost, quality, service, and speed by fundamentally redesigning the way work is done. It is a radical, rather than incremental, approach to change.
The BPR implementation process typically follows a clear, multi-step methodology:
1. Preparation and Initiation
- Identify the Need for Change and Define Goals: Clearly articulate the problems (bottlenecks, high costs, low quality, slow cycle times) and define clear, measurable objectives for the re-engineering effort (e.g., reduce processing time by 40%, cut costs by 30%). These goals must align with the organization’s overarching strategic objectives.
- Establish a BPR Team: Form a dedicated, cross-functional team with a mix of senior management (for championship and decision-making), process owners/subject matter experts (who know the current process intimately), and a re-engineering specialist or leader.
- Select the Process to Re-engineer: Prioritize processes that are critical to the business, are currently underperforming, or offer the greatest potential for dramatic improvement and customer value.
2. Analysis and Design
- Map and Analyze the Current State (As-Is): Document the existing process in detail (using flowcharts or process maps) to understand how it currently works. This step is crucial for identifying bottlenecks, redundancies, non-value-added activities, and pain points. Establish Key Performance Indicators (KPIs) to benchmark current performance.
- Design the Future State (To-Be) Process: This is the core, radical redesign phase. It involves challenging all existing assumptions and redesigning the process from a “clean slate” perspective, focusing on value creation and customer needs.
- Eliminate unnecessary steps and handoffs.
- Simplify and standardize workflows.
- Leverage Information Technology (IT) as a primary enabler for integration, automation, and data access.
- Assess Technology and Resource Requirements: Determine the new systems, tools, training, and organizational structure changes (e.g., job roles, team design) needed to support the redesigned process.
3. Implementation and Continuous Improvement
- Implement Changes: Deploy the new process, often in a phased approach or through a pilot program, to minimize disruption and test its effectiveness.
- Communicate the changes to all stakeholders.
- Provide comprehensive training to employees on new roles, skills, and systems.
- Ensure new technology infrastructure is in place and integrated.
- Monitor, Measure, and Refine: Continuously track the performance of the new process against the defined KPIs. Gather feedback and make necessary adjustments and optimizations. BPR should transition into a culture of continuous process improvement to ensure long-term success.
Critical Success Factors for BPR
Successful BPR initiatives share several key factors:
| Factor | Description |
| Top Management Commitment | Strong, visible leadership and sponsorship are non-negotiable to provide resources, overcome resistance, and drive the radical change. |
| Effective Change Management | Because BPR is a radical shift, managing employee resistance to change is vital. This requires effective, transparent communication, employee involvement, and appropriate training/education. |
| Focus on Customer Needs | The redesign must be customer-centric, aligning all new processes to deliver enhanced value and satisfaction to the end customer. |
| Adequate IT Infrastructure | IT is often the main enabler of the new, redesigned processes. The supporting systems must be robust, modern, and able to integrate disparate functions. |
| Clear Vision and Goals | The entire team must have a shared, clear understanding of why the change is happening and the measurable objectives being targeted. |
| Appropriate BPR Team | The team must have the right mix of skills, authority, and knowledge (both process and technical) to execute the redesign. |