BPR Implementation process: an
analysis of key success & failure
factors
Dr. Syed Amir Iqbal.
INTRODUCTION:
70% of organizations FAIL in achieving BPR desired
results.
• Unsuccessful BPR reflects executives failure to implement properly
BPR has potential for increasing Productivity, Quality,
Customer satisfaction
BPR Implementation factors:
Change Management
Management competency & support
Organizational structure
Project Planning & Management
IT Infrastructure
BPR Success factors
Revising Reward & Motivation System:
Staff Motivation
• Crucial role in facilitating reengineering efforts
• Reward system should be revised as part of
BPR efforts
Effective Communication:
Required
Effective throughout the
Communication change process
at all levels
Empowerment:
Staff given
chance to
Empowerment participate in
redesign process
Human Involvement:
Should be consulted
at all stages on the
process & its leaders
including Line
Managers, Process
Owners, Workers
Training & Education:
- To increase training budget by
30~50%
- To educate people in IT related
innovation
Creating an effective culture for organizational change:
Culture
influences To support team
organization work &
ability to adapt integration of
change labour
Must conform to
new values,
management To encourage
processes by trust & honesty
newly among team
redesigned members
processes
Simulating the organization’s receptiveness to change:
• Preparing organization to respond positively
to BPR related change
Effective BPR
implementation
Committed & Strong Leadership:
Effective
Creative
Effective Strong Leadership
Thinking for BPR
Championship & Sponsorship:
Techno-
logical
Organizatio
n Risks Barriers Political
Economic
Management of Risk:
Loss of
personnel
Acceptance
of Change
Loss of
earnings
Risks
Risk Assessment of Required to deal
Reengineering with any risk at its
Efforts initial stage
An Adequate job integration approach:
Integration among
these factors required
for BPR project’s
success
Labour
Organizational
changes
Effective BPR Teams:
BPR Teams should be Cross
Functional, people from inside &
outside organizations to include
Determinants of effective BPR
Team:
Competency, Credibility,
Empowerment, Motivation,
Leadership
Training & Development Program
as per BPR vision
Appropriate Job Definitions & Allocation of Responsibilities:
Should have formal & clear job
descriptions of all jobs & responsibilities
Successful BPR requires Strategic
Alignment, Effective Planning, & Project
Management Techniques
Aligning BPR Strategy with Corporate Strategy:
BPR Strategy guides the alternation of
tasks & flow into integrated processes,
flow of material and people
Effective Planning & Use of Project Management Techniques:
Effective Planning
Effective use of Project Management
techniques
Managing people related issues
Comprehensive piloting of new design
Learning from errors
Adequate Resources:
Sufficient budget allocation require for
successful BPR Project
Appropriate Use of Methodology:
Should be Designed
BPR & Selected
CREATIVELY to
Methodology satisfy the current
needs
External Orientation & Learning:
Based on:
Customer Competitive Benchmarkin
Research Analysis g
Effective use of Consultants:
Specialise
skills
Unity
between Experience
members
Firm wide
Know-how
view
Building a BPR Vision:
• Building an Imaginative thinking ,
clear & compelling vision
Vision • Evaluating business strategy &
conducting customer based
assessment
Effective Process Redesign:
• Level of Process
Critical Knowledge
Components in • Documentation
successful BPR • Prototyping
Implementation • Identifying
process owners
Integrating BPR with other improvement approaches:
Using continuous improvement techniques increases dramatic gains
Adequate Identification of BPR Values:
BPR should focus on identifying reengineering
opportunities
Continuous focus should be maintained on BPR
Business Objectives
Adequate alignment of IT infrastructure & BPR strategy:
Dependable factors:
Building an effective IT infrastructure
Proper IS integration
Increasing IT function competency
Effective use of software tools
Building an Effective IT Infrastructure:
IT platforms
selection
Determination
Identification of of business
enabling process
technologies information
needs
IT
IT infrastructure is made up of:
Physical Intellectual Shared IT
assets assets Services Infrastructure
Adequate IT Investment & Sourcing Decisions:
• IT investment should be guided by
corporate strategies
• Starting Point: Translating the
strategic context into comprehensive
strategic statements
Adequate Measurement of IT Infrastructure Effectiveness on BPR:
• Measurement process starts with: Policies, Goals,
Monitoring, Auditing & Benchmarking
• Measures can be customized to fit the specific
need of organization
Proper IS Integration:
Communication
Networking
IS
Integration
Data Integration Sharing
Success of Integration effort depends on:
Level of Integration b/w organization planning & IS planning:
Top management support
User involvement
Leadership
Effective Communication
Systematic implementation
Increasing the IT functions competency :
Dependent
Factors
Effective Use of software Tools :
Improving
productivity
Eliminating Projects
non value ADVANTAGES Timely
added work Completion
High Quality
Results
BPR FAILURE factors
• Hiding uncertainties in communication
Problems in • Lack of motivation & reward
Communication
• Resistance to Change
Organizational • Fear of Job loss
Resistance • Fear, lack of optimism
• Lack of determination
Lack of Organizational • Lack of cross functional cooperation
readiness for change
Problems related to • Underestimating the human side
• Values ignorance
creating a culture for
• Lack of trust b/w management & employees
change
BPR FAILURE factors
Factors related to • Lack of top management attention &
management support
• Lack of support from Line managers
support
Problems related • Wrong sponsor
to championship & • Lack of champion
sponsorship
• Lack of cross functional project team
Ineffective BPR • Lack of BPR teams training
Teams • Lack of authority given to BPR team
Integration • Inflexible hierarchical structure
Mechanism & Job • Unclear definitions of job
definition
BPR FAILURE factors
• Inadequate planning for BPR Project
Planning & Project • Not enough time to develop new skills
Management
• Lack of clear performance objectives
Goals & Measures • Poorly defined needs
• Difficulty in measuring BPR performance
• Narrow technical focus
Inadequate Focus • Absence of strategic focus
& Objective • Short term view & quick fix mentality
• Missing process owners
Ineffective process • Inadequate focus on core processes
redesign • Narrowly defined processes
BPR FAILURE factors
• Unsound financial conditions
BPR Resources • Lack of required resources for BPR efforts
• Poor implementation by consultants
Ineffective use of • Lack of external consultants support for
consultants BPR process
• Optimizing lower level processes
IT Investment & • Premature IT outsourcing
Sourcing decisions
• Inadequate treatment of compatibility
Improper IS issues
Integration • Insufficient database infrastructure
BPR FAILURE factors
• Failure to deliver right IS applications on
Inadequate IS time
development • Rushing off IS development process
Ineffective • Lack of documentation
reengineering of • Loss of human system expertise
• Reengineering unfinished systems
legacy IS
CONCLUSION
Questions:
Q.1 Describe the causes why 70% of organizations do not achieve their
intended desired results from BPR?
Q.2 How rewards and motivation systems help in attaining successful BPR?
Q.3 Describe the characteristics of effective communication?
Q.4 Devise a road map of BPR implementation process? Highlight critical
success and failure factors on it also.
Q.5 How organization can cope up with resistance to change during BPR
implementation process?
Q.6 What is the role of leadership in BPR?
Q.7 State risk mitigation measures for BPR process?
Q.8 Describe failure factors related to management support ?
Questions:
Q.9 Describe the best practices that should be opted for BPR Project
Management.
Q.10 Devise a BPR vision statement assuming any organization that
intends to go for business process reengineering?
