The reason behind success or failure for implemententation of Business Process Reengineering (BPR)
Bpr implementation process an analysis of key success & failure factors
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Transcript of Bpr implementation process an analysis of key success & failure factors
BPR IMPLEMENTATION PROCESS: AN ANALYSIS OF KEY SUCCESS & FAILURE FACTORS
Prepared By:
Sana Fatima
Anum Iqbal
BACKGROUND INFORMATION
Intense world-wide competition has forced organizations toreengineer their old fashioned processes to achieve newheights of success. However, business process reengineering(BPR) implementation is a difficult task and manyorganizations have failed to achieve the expected results.Through reorganizing, eliminating some processes and findingnew ways of doing things, BPR helps organizations to changetheir old fashioned structures into innovative processes.Successful implementation of BPR brings many benefits tothe organization.
Business process reengineering is dramatic change thatrepresents the overhaul of organizational structures,management systems, employee responsibilities andempowerment, performance measurements, incentivesystems, skills development, and the use of informationtechnology. BPR assists in increasing productivity throughreduces process time and cost, improved quality andcustomer value. 2
BPR SUCCESS FACTORS
LEARNING POINTS
FACTORS RELATED TO CHANGE MANAGEMENT
SYSTEMS AND CULTURE
Establish positive attitude in adapting change and learningorganizational culture.
As a part of BPR effort staff should be motivated through areward program.
Communication is needed throughout the process; Effectivecommunication should be done inside and outside theorganization
Responsibility and accountability should be defined
All employees must have proactive approach and should beactively involved.
Training and development of skills is one of the mostimportant element of successful implementation of BPR
Establish such culture where people share same goals, andtends to do teamwork
People should not be reluctant to change4
FACTORS RELATED TO MANAGEMENT SUPPORT
Strategic and effective leadership is required
BPR team must be able to persuade top
management to understand the need of change
and implement BPR
Top management should continuously assess the
risk involved in acceptance of change and plan
strategies to handle risk
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FACTORS RELATED TO ORGANIZATIONAL
STRUCTURE
Organizations should follow process based approach,
Job and labor integration should be followed so that
series of task would be done effectively
BPR team should have expertise, creative and
competent. They should be have the empowerment as
well
After the implementation of BPR, management should
inform employees regarding new redesigned job duties
and responsibilities
Carefully align corporate strategy with BPR strategy
Proper planning should be timely done with efficient use
of project management technique6
SETTING PERFORMANCE GOALS AND MEASURES
Adequate resources, knowledge and sufficient budgetshould be effectively used.
Disciplines approach and sound methodology should beused.
Assessment and measurement of customer changingneeds and competitive analysis is required.
Consultant helps to bring skills expertise and experienceto organization. Though this activity is time consumingbut it is effective.
Long-term, clear and creative vision for BPR bymanagement is needed.
Continuous improvement like TQM is suggested to beintegrated with BPR to achieve drastic change.
BPR value can be achieved by focusing in findingopportunities 7
FACTORS RELATED TO IT INFRASTRUCTURE
IT infrastructure and BPR should be aligned with each other
Adequate understanding and identify enabling technologiesfor redesigning business process
While making the decision of sourcing IT, the level ofsupplier’s IT expertise, skill and deployment cost should beconsidered.
Multi sourcing is effective if strategic IT components areinsourced and non critical components are outsourced
Information should be timely , consistent, complete andaccurately shared.
IT structure should support BPR effectively, Informationsystem (IS) should be effectively used to the fullest potential.
To improve BPR productivity software tool contributes inresulting higher quality
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BPR FAILURE FACTORS
LEARNING POINTS
FACTORS RELATED TO CHANGE MANAGEMENT
SYSTEMS AND CULTURE
Lack of communication, hiding uncertainties, poor andinadequate communication between BPR teams and other crossfunctional department cause hindrance in the implementation ofBPR.
If the employees are reluctant to change and they fear about theirjob security, losing the control and responsibility they currentlyhave, then they will resist towards the change of BPR.
Lack of coordination from cross-functional departments, lack ofskills and determination by the management or if the employeeshave not identified yet the need of change management.
The management should not underestimate the role of politics,tendency of copying others and organizational culture. Ignoranceof the value of employee’s, lack of trust between managementand employees can lead to failure.
Though BPR is implemented but if the employees are not trainedand developed their skills, then the implementation will beineffective.
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FACTORS RELATED TO MANAGEMENT SUPPORT
Commitment and support from top management to
line managers is needed.
BPR require huge investment, viable sponsorship
from senior management is essential.
Choosing the right BPR leader is itself a challenge
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FACTORS RELATED TO ORGANIZATIONAL
STRUCTURE
Difficulty in identifying appropriate BPR team
members.
Unless the BPR teams are properly trained and are
assigned with the responsibility they will not be able
to execute the BPR strategies.
Inflexible organizational structure
Lack of authority provided to BPR team
Conflict between BPR team responsibilities and
functional team responsibilities due to unclear job
defined and insufficient communication between
them12
FACTORS RELATED TO BPR PROJECT
MANAGEMENT
Inability of management to control BPR efforts
Management focus on incremental change rather than radicalprocess
Problems faced due to improper planning and projectmanagement
BPR is long term procedure which requires time. If enoughtime is not provided for planning, developing, and executingBPR strategies it will ultimately lead to failure.
If the employees are unclear about objective for BPR project
Organizations are unaware or find it too difficult to measureBPR project performance and tend to go for easy measuresno matter they are reliable or not
Organization have narrow focus, emphasis on short termgoals rather than strategic view and lack of BPR vision
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Emphasis on automation of existing process withoutredesigning the processes
If organization has unsound financial condition
In sufficient resources for BPR project
Inadequate determination of core process and scope ofchange
Organization is expecting too high or unreal scope byimplementing BPR
Did not allow external consultants’ support
Choose inappropriate consultants for BPR
Organization holds insufficient knowledge regardingmethodologies of BPR
Wrong sourcing decision made 14
FACTORS RELATED TO IT INFRASTRUCTURE
Insufficient telecommunication, database
infrastructure, IT infrastructure
Failure in developing right information system
Inability to change current information system due
to lack of human and IT expertise
Inadequate understanding by the employees
regarding IT infrastructure
Reluctant to not to learn new technology
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