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Phase 1: Begin Organizational Change • Assess the current state of the organization • Explain the need for change • Illustrate the desired state • Create a communications campaign for change Phase 2: Build the Reengineering Organization • Establish a BPR organizational structure • Establish the roles for performing BPR • Choose the personnel who will reengineer Five Keys to a Successful Redesign 1. Set an aggressive reengineering performance target. The target must span the entire business unit to ensure sufficient breadth. 2. Commit 20% to 50% of the chief executive's time to the project. The time commitment may begin at 20% and grow to 50% during the implementation stage. 3. Conduct a comprehensive review of customer needs, economic leverage points, and market trends. 4. Assign an additional senior executive or hire a reengineering expert to be responsible for the implementation. This person should spend 50% or more of his or her time on the project. 5. Conduct a comprehensive pilot of the new design. The pilot should test the design's overall impact, as well as the implementation process, while at the same time building enthusiasm for full implementation. ... And Four Ways for it to Fail 1. Assign average performers. Companies often shy away from assigning their top performers to the redesign project for fear of impacting business unit performance during the redesign. This is a critical misjudgment. 2. Measure only the plan. Though most companies invest a lot of resources in estimating the effects of the redesign on cost, quality, and time before implementation, they rarely follow through with a comprehensive measurement system that can track the new process's performance as it is actually being rolled out. 3. Settle for the status quo. Most companies have difficulty thinking outside their own skill level, organizational structures, or system constraints. Help from an outside expert can becrucial here. Moreover, companies that do come up with innovative approaches find them watered down by political infighting during the implementation stage. 4. Overlook communications. Companies always underestimate the level of communication that must occur during the implementation stage. It helps to assign a top-level manager to develop and implement an on-going communication program. Phase 3: Identify BPR Opportunities • Identify the core/high-level processes • Recognize potential change enablers • Gather performance metrics within industry • Gather performance metrics outside industry • Select processes that should be reengineered • Prioritize selected processes • Evaluate pre-existing business strategies • Consult with customers for their desires • Determine customer's actual needs • Formulate new process performance objectives • Establish key process characteristics • Identify potential barriers to implementation Phase 4: Understand the Existing Process • Understand why the current steps are performed • Model the current process • Understand how technology is currently used • Understand how information is currently used • Understand the current organizational structure• Compare current process with the new objectives Phase 5: Reengineer the Process • Ensure the diversity of the reengineering team • Question current operating assumptions • Brainstorm using change levers • Brainstorm using BPR principles • Evaluate the impact of new technologies • Consider the perspectives of stakeholders • Use customer value as the focal point BPR Principles: • Several jobs are combined into one; • Workers make decisions; • The steps in a process are performed in a natural order; • Processes have multiple versions; • Work is performed where it makes the most sense; • Checks and controls are reduced; • Reconciliation is minimized; • A case manager provides a single point of contact; • Hybrid centralized/decentralized operations are prevalent. Phase 6: Blueprint the New Business System • Define the new flow of work • Model the new process steps• Model the new information requirements • Document the new organizational structure • Describe the new technology specifications • Record the new personnel management systems • Describe the new values and culture required Phase 7: Perform the Transformation • Develop a migration strategy • Create a migration action plan • Develop metrics for measuring performance during implementation • Involve the impacted staff • Implement in an iterative fashion • Establish the new organizational structures • Assess current skills and capabilities of workforce • Map new tasks and skill requirements to staff • Re-allocate workforce • Develop a training curriculum • Educate staff about the new process • Educate the staff about new technology used • Educate management on facilitation skills • Decide how new technologies will be introduced • Transition to the new technologies • Incorporate process improvement mechanismsShort version 1. Begin Organizational Change (bpr) A. Assess the current state of the organization (bpr) B. Explain the need for change (bpr) C. Illustrate the desired state (bpr) D. Create a communications campaign for change (bpr) 2. Build the Reengineering Organization (bpr) A. Establish a BPR organizational structure (bpr) B. Establish the roles for performing BPR (bpr) C. Choose the personnel who will reengineer (bpr) 3. Identify BPR Opportunities (bpr) A. Identify the core/high-level processes (bpr) B. Recognize potential change enablers (bpr) C. Gather performance metrics within industry (bpr) D. Gather performance metrics outside industry (bpr) E. Select processes that should be reengineered (bpr) F. Prioritize selected processes (bpr) G. Evaluate pre-existing business strategies (bpr) H. Consult with customers for their desires (bpr) I. Determine customer's actual needs (bpr) J. Formulate new process performance objectives (bpr) K. Establish key process characteristics (bpr) L. Identify potential barriers to implementation (bpr) 4. Understand the Existing Process (bpr) A. Understand why the current steps are performed (bpr) B. Model the current process (bpr)C. Understand how technology is currently used (bpr) D. Understand how information is currently used


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Sac State OBE 152 - Business Process Reengineering Outline

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