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Chapter No. 8: Turnaround Management

Business Process Reengineering (BPR) involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in performance. It examines five components of a business - strategy, processes, technology, organization, and culture. The objectives of BPR include being customer-focused, increasing speed and flexibility, and improving productivity. It aims to eliminate redundant stages, drastically simplify work, coordinate entire processes, and continuously improve the system. BPR requires a radical change from the existing process and involves a long-term, top-down approach with large investments.

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76 views19 pages

Chapter No. 8: Turnaround Management

Business Process Reengineering (BPR) involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in performance. It examines five components of a business - strategy, processes, technology, organization, and culture. The objectives of BPR include being customer-focused, increasing speed and flexibility, and improving productivity. It aims to eliminate redundant stages, drastically simplify work, coordinate entire processes, and continuously improve the system. BPR requires a radical change from the existing process and involves a long-term, top-down approach with large investments.

Uploaded by

dhwani
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER NO.

8
TURNAROUND MANAGEMENT

BUSINESS PROCESS
REENGINEERING

OVERVIEW
BPR stands for Business Process

Reengineering. It refers to the analysis and


redesign of workflows both within and between
the organization and the external entities.
BPR is not- downsizing, restructuring,

reorganization, automation, new technology, etc.


It is the examination and change of five
components of the business- Strategy, Processes,
Technology, Organization, and Culture.

DEFINITION
Business Process Reengineering has been

defined as: fundamental rethinking and


radical redesign of business processes to
bring about dramatic improvements in
performance.

CHANGES IN THE WORLD OF WORK


From Conventional

To BPR

Functional departments

Process teams

Simple task

Empowered employees

Controlled people

Multidimensional work

Training of employees

Education of employees

Executives as scorekeepers

Executives as leaders

Mass production

Mass customization

ELEMENTS OF BPR
Radical

FEATURES
Several jobs
Employees empowered
Step in business process
Multiple versions
Reconciliation
Hybrid centralized/decentralized
Process- oriented
Creative use of IT

OBJECTIVES
Customer Friendliness

OBJECTIVES
Costumer focus
Speed
Compression
Flexibility
Innovation
Productivity

NEED OF BPR
Rapid change
Well informed
Intense competition
Customer
Change
Technology
Fragmented piecemeal system

STEPS
IN
BPR
IMPLEMENTATION
Develop the business

CENTRAL THRUST OF BPR


By eliminating the redundant stages
By drastically simplifying and rationalizing

work
By coordinating the entire process
By eliminating unwanted steps
By simplifying the system
By maintaining continuous effort

DISTINCTION
Attribute

Improvement

Reengineering

Level of change

Incremental

Radical

Starting point

Existing process

Clean slate

Frequency of
change

Continuous

One time

Time required

Short term

Long term

Participation

Bottom up

Top down

Risk

Moderate

High

Type of change

Cultural

Cultural / Structural

ADVANTAGES
Increase effectiveness
Helps to improve efficiency
Reduce cost
Meaningful job for employees
Improvement in organizational approach
Growth of business
Simplification of processes
Enterprise integration

DISADVANTAGES
Long and complex process
Not suitable for small businesses
Resistance
Not an effective way to focus
Gradual and incremental
Culturally biased
Business processes not redesigned

IT AND BPR
Manage BPR project
Link between various BPR drives
Provide platform
Cost benefit
Study complete supply chain
Judge impact of reengineered processes

DISTINGUISH BETWEEN TQM & BPR

ATTRIBUTE

TQM

BPR

Reducing or eliminating
errors

Innovation

Incremental change and


gradual improvement

Radical redesign and


drastic improvement

PARTICIPATION

Bottom -up

Top-down

FLEXIBILITY/
STANDARDIZATION

Standardization of
processes

Flexibility in operations

EXISTING/ NEW
PROCESS

Changing existing
process

Changing new process

TOOLS

Usage of statistical
process control

Enabling role of IT

FOCUS

Current practice

Start again

INVESTMENT

Small

Large

SPEED

Small steps

Long steps

PARTICIPATION

Each employee

Selected few

MEANING
CHANGE

TQM & BPR

THANK YOU

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