BPR has been around for quite some
time: a lot has been written about it in
both the practitioner trade press and the academic research journals.
However, the controversy still remains if there is any accurate
description of BPR, or if BPR is just a fad: an appealing label to tag
on to whatever your company is doing to suggest that your latest and
greatest
work is 'in vogue.' To get some bearing about the question of what is BPR
and what is the role of information systems and human factors in that
process, you may like to start here.
What is BPR?
Start with Overview Article on
BPR that covers key concepts regarding BPR, Processes, Myths about BPR,
Relation between BPR and information technology, Role of IS function in BPR,
BPR Methodology, Failure of BPR Projects, and Future of BPR. It also
contains hyperlinks to selected
references. On a related note, you may also like to peruse the
diverse notions of 'Enterprise Architecture' as they are relevant to
planning and implementing organizational change. These notions are
presented in this Overview Article
on Enterprise Architecture within a framework of Strategic
Capabilities Architecture.
A few other papers that add to the perspective explained in the overview
paper are listed below for additional reading on: "What is BPR?"
Is BPR Out of Vogue?
Strategic
Planning Is BPR out of vogue? After a decade of
streamlining processes for efficiency, companies are adopting a more
proactive stance toward the future. The reborn Strategy must be "subversive":
it must challenge the internal company rules and industry
rules; it must be customer-oriented; and it must be based on "thinking in
terms of whole systems." Makes one think if BPR and the "new" Strategy
are really 'apples
and oranges'?
Does BPR Always Require External Consultants?
Some
Companies Reengineer Without Consultants Companies like Texas
Instruments and Harley Davidson are setting the precedent for
implementing reengineering initiatives with internal process
improvement teams. This article outlines the development of their
home-grown BPR initiatives that were implemented independent of external
consultants.
BPR Initiatives... For the Benefit of
Employees?
Balancing Work and Family
Short-sighted nature of BPR initiatives has been often criticized because
of their key emphasis on restructuring and downsizing [read
'dumbsizing']. BPR efforts have been expected to benefit the company
and in several cases the customers of the company. How often have we
heard of the BPR efforts oriented to the benefit of the
employees? Often we forget that the success of almost all BPR
initiatives depends upon the employees: in the final
analysis they are the persons responsible for delivering the
benefits to the customers and to the company. Here are some companies
that are turning the
'nuke
them' BPR philosophy on its
head. Business processes... meet... work processes.
Systemic View of Organizational Change
If you are interested in a "wholistic" perspective about management of
organizational change and organizational interdependence by deploying
information technology, you would like to read the paper titled Role of Information Technology in Managing
Organizational Change and Organizational Interdependence.
This synthesis of ideas from systems theory, organization
research and information technology practices, attempts to provide a
"wholistic" perspective of the relevant organizational and
technological issues. The synthesis suggests that the survival and
growth of organizations in an increasingly
turbulent environment would depend upon effective utilization of information
technology for aligning the organizational structure with environmental
preferences and for creating symbiotic interorganizational structures.
BPR: Incremental or Radical?
We are all familiar with the initial
thrust of BPR on 'forcing' radical change on the employees propounded by
Hammer and Champy. We are also aware of the criticism of such
'radicalism' and the later aboutturn of the above authors when they
suggested that BPR needs to take into consideration the human factors
necessary for successful implementation. The question remains: BPR,
should it be incremental or radical?
Our thinking is that the process
changes need to be radical in the sense that they are of framebending or
framebreaking nature. In other words, the assumptions underlying the
existing processes need to be surfaced and analyzed by considering
multiple and contradictory perspectives of the present and the future.
However, the implementation needs to be preceded by a well thought out
action plan that involves the employees at the various levels.
For a relatively recent case study of an organization that used such an
approach, peruse the story Enterprise
Systems: The Big Switch: Would You Shut Down Your Business to Bring Up A
New System? from CIO (Feb. 15, 1997). Going against the
generally accepted notion of reengineering business processes
piece-by-piece, the computer manufacturer Quantum replaced its worldwide
legacy systems with an integrated client/server system using the 'big bang'
approach. However, the 'big bang' required: a four year planning and
implementation process that involved managers and employees from all
business units; the ability to respond quickly to unforeseen situations and take decisive
actions; and the resolution to go through several testing cycles while
often remaining on tenterhooks.
Remain tuned in for more on similar issues...
Meanwhile, to provide you with a more focused perspective on the various
issues relevant to Business Process Reengineering & Innovation, many other articles are
provided below along with extensive annotations.
BPR Papers
More Readings, Case Studies and Papers on BPR
- Business
Engineering and Process Redesign in Higher Education: Art or Science?
- An
Empirical Study of Practitioner Attitudes toward
Effectiveness of Business Process Reengineering Concepts and
Tools (Kohli & Hoadley)
- Transformation
of the IT Function at British Petroleum The paper provides BPX's
"Septagon Model" as a guide for other IS departments as they seek to
adapt to a new technological and economic environment.
- Building
a Change-Ready IS Organization This paper describes a successful
initiative to develop a change-ready IS organization at Bell Atlantic
-- a large telecommunications firm (1995 revenues: $13.4B) with a
long history of competing in local
voice and data markets, now facing a hypercompetitive environment.
- Business
Reengineering at
CIGNA Corporation: Experiences and Lessons Learned From the First Five
Years (Caron, Jarvenpaa & Stoddard 1994) (SIM International's 1994
Best Paper Award) BPR at CIGNA represents a contrast to
some general prescriptions: it started out as a "pilot;" it was sustained
"from the bottom up;" it was based upon a corporate environment that
encouraged learning [from failure]; it was adapted to national cultures; and
it was led by business divisions with IS as a partner in enabling
radical change.
- Conceptual Re-engineering at Nissan (1997)
- CASE Tools as
Organizational Change:
Investigating Incremental and Radical Changes in Systems Development
(Orlikowski) MISQ Paper of the Year 1993 Based upon empirical
findings from two organizations' experience in terms of incremental or
radical organizational change, this paper develops a conceptual and
theoretical framework for adoption of and use of such tools. The
findings underscore the importance of the social context of systems
development, the intentions and actions of key players, and
the implementation process followed by the organization.
- The Matrix of Change:
A Tool for Business Process Reengineering (Brynjolfsson et al.)
This paper contends that BPR efforts haven't
enjoyed exemplary
success rates because of a lack of tools for managing the change process.
To fill the void, this
paper proposes a tool for managing the change process by identifying the
interactions among processes.
- Why IS
Projects Fail?: A Case of Media Richness... The greatest threat to the
success of any IS project is the failure to communicate. This interview
highlights the pros and cons of face-to-face and electronic
communication with increasing project size and complexity.
- IS &
Risk
Management Changing environemental, technological and organizational
factors are forcing organizations to change the ways they study and
manage computer-related risks. Risk assessment should include the
opportunity cost of inaction or failure while doing a cost analysis of
the project investment.
- Business Process
Reengineering Analysis and Recommendations (Chu et al.) A review of
the BPR literature with an assessment of the princliples and assumptions
behind BPR, successes and failures, case studies and theoretical
alternatives. The key emphasis is on the role of IT in BPR with
references to Davenport's "ecological" model and Wheatley's "living
systems" model.
- The Market,
Technological and Industry Contexts of Business Process Re-Engineering in UK
Businesses (Macintosh & Francis) Report on the market,
technological and industrial context of BPR in the UK. Also covers a
history of BPR, its relationships with other management approaches, case
studies of UK companies, and implications of a BPR initiative.
- The Wider
Research context of Business Process Analysis (Coombs & Hull) Report
on the wider research context of Business Process Analysis w.r.t.
the various theories about management, organisation, production, etc,
which provide
the intellectual context for Business Process Analysis.
- BPR:
The Implementation Of Task Groups (Hofman) This article discusses
the philosophy and methodology for implementing task groups for the
implementation of BPR. Although, the concept is discussed within a context
of a production shop floor, however the issues are generalizable to
broader BPR contexts.
- Success
or Failure of Working in a
Product Group Oriented Manners (Hofman) This English translation of a
published article seeks to answer if 'Product Group' will be the next
buzzword in line of Quality Circles, Total Quality Management (TQM),
Total Productive Maintenance (TPM), Kaizen, Learning Organization, etc.
This article attempts to depict the linkages, and the progression paths,
between these seemingly disparate concepts in terms of Direct
Supervision/Skills (Knowledge), Standardization of Working Processes
(Regulations) and Standardization of the Output (Target).
- Business Process
Analysis - A Letter from America (Arunachalam & Subramanian)
Abstract of a report on the recent innovations implemented by
American companies and by the US government.
- Business
Processes - A Natural Approach (Ferrie) Discussing the "natural
system" aspect of BPR with references to such efforts at Rolls Royce
Aerospace Group. Focus on the non-linear, people-related aspects drawing
on the science of complexity.
- Best
Practice Basics & Foundations Also of interest:
- Quantification
of Best Business Practices: An Essay of Competitive Consequence
- In
Search of "Best Practices" (Computerworld) Another article
crticizing "best practices," this one by Paul Strassmann. In his
analysis he found that the Premier 100 firms were all different, in just
about every conceivable manner. "Excellence" arises from the way an
organization harmonizes its resources, something akin to Porter's
argument of 'complementarities.'
- Process
Management and Reengineering (Seminar) Council of the Great City
School's seminar outline provides a snapshot of basic BPR terms, the
theoretical bases, the pros & cons of BPR and lessons learned. The
emphasis is upon the systemic basis of BPR.
- Is
Re-engineering Possible in the Public Sector?: A Brazilian Case
Study (Kock & McQueen)
- Coopers & Lybrand Consulting's BreakPoint BPR (Goldsmith & Maniace) This article reviews the changes that have recently been implemented in Coopers & Lybrand's BreakPoint BPR
methodology, along with the relevant tools and methods. The details of the C&L
BPR methodology are discussed in the related article
Coopers
& Lybrand Consulting's BreakPoint BPR
which reviews the
BreakPoint BPR Methodology as a three-phased process based upon
an interdisciplinary approach. The three phases of this approach:
Discover, Redesign, and Realize, provide a BPR framework that is
purported to take the contextual and cultural issues into consideration.
- "Valuing IT through Virtual Process Measurement" (Postscript: 2232 K)
- BPR Project
Management: A Radical Approach to Project Team Organization
(American Programmer) How to overcome the four critical hurdles in
reengineering: (a) Lack of cross-organizational commitment, (b)
Deliverable complexity, (c) Environmental complexity, and (d)
Unrealistic expectations.
- Process
Improvement Through Defect Analysis: With Specific Application to
the Order Fulfillment Process Defect analysis is based on notion of
success or failure of individual transactions' performance as
experienced by customers. The paper argues against aggregation of data
and recommends some tools for 'defect analysis.'
- The
Fad That Forgot People (Davenport) Reviewing the organizational
destruction cast by reengineering, Davenport reviews its evolution form
a 'decent' fad to a $51 billion industry in 1995. He discusses how the
various concepts became 'repackaged' under the label of BPR, and how it
led to the decline of various companies. The punchline is: "information
technology is only useful if it helps people do their work better and
differently." Ironically, he notes, companies are still throwing money
at technology -- instead of working with the people in the organization
to infuse technology.
- Articles
on Quality Management, BPR & Related Topics (HCI, Australia)
- The Enabling Role of EDI in BPR Arguing for a strategic perspective for EDI, this paper reviews case studies whcih involved the implementation of EDI
accompanied by reengineering of the business processes.
- The
Electronic Antidote to Slow Business: With Bucks, EDI Can Add Zip to
Routine Commerce Based on a review of the potential benefits and
disadvantages of EDI, the author argues for the use of EDI within a
larger framework of process improvement. Internet is proposed as an
alternative solution [to EDI] since it can overcome some of the key
limitations of EDI.
- Framework
for Managing Process Improvement
- KPMG's
Managing Transformation in the New Economy This report analyzes
how the business environment is being shaped into a "new economy"
of knowledge-based businesses by various forces and the related
strategic issues that need to addressed by the managers of
organizations. Executive Summary & Downloadable File
- The
Hocus-Pocus of Reengineering (Strassmann) Strassmann criticizes the
rhetoric of reengineering as propagated by Hammer in terms of metaphors
that convey violence and destruction. Contrasting this radical "morality of
warfare" with "morality of commerce", he argues in favor of evolutionary
approaches to deliver better and more permanent improvements: "Evolutionary
change stimulates morale and imagination, creating conditions for
rewarding organizational learning and for inspiring employees to discover
innovative ways to deal with adversity and competitive challenges."
- The
Roots Of Business Process Reengineering (Strassmann) Reengineering
has been practiced since 1920s under different labels, however its
recent radical incarnation is attributable to dismal economic
performance and decreased productivity of American corporations:
"Reengineering is certainly not a breakthrough in management thinking,
but a convenient bandwagon on which management and consultants could
readily hop in search of a quick remedy to unfavorable financial health
of U.S. industrial corporations that had been festering for a long time.
"
- Reengineering
(Excerpt from The Politics of Information Management): Strassmann
- The
Effect of Outside Consultants Involvement over the Success of BPR
Projects
- A
Model Management Approach to Business Process Reengineering
- Enterprise
Information Systems Integration and Business Process Improvement
Initiative: An Empirical Study
- Here Comes SAP
- Desperately
Seeking SAP Support (Datamation 1997)
- Dealing
with the Aftershock of a New SAP Implementation (Datamation 1997)
- How
to Find the Right R/3 Consultant (Datamation 1997)
- Implementing
R/3 info on the Web (Datamation 1997)
- Linking Systems: Integration Nightmare
: Sounding the Alarm (CIO Koch, Nov '96) If you work toward
tightly integrated
companywide systems, that's what you may get. The price of tight
integration may be slow response and reduced flexibility in face of
changing business needs.
- CIO
special issue on SAP This series of articles suggest that SAP may
not represent a common remedy for all ills related to the firm's
business processes. Installation of software is just one part... having
the people and processes follow the enterprise resource planning (ERP)
mandate is perhaps the greater challenge. Firms may adopt one of the
profiled strategies: the Big Bang strategy, the Franchising strategy, or
the Slam Dunk strategy. However, the 'integrated streamlining' offered by
SAP may not be the optimal strategy for all firms, especially those with
nimble and autonomous work units. Also see
Packaged
Application Strategies and SAP: Breaking
the Rules.
- CIO's SAP Online
Forum
- CIO's
List of SAP Resources A list of hotlinks to SAP related sites and
SAP related books.
- Behind
Good Products Are Methods that Work A less than 'radical' approach
propagated by AMA based on ideas of Ray Manganelli, the author of
The Reengineering Handbook: A Step-by-Step Guide to Business
Transformation. Discusses how the
'step-by-step' method was deployed by Bell & Gossett Co., an ITT unit
manufacturing pumps and valves.
-
Should You Take the Reengineering Risk?
- Tools for
inventing organizations: Toward a handbook of organizational processes
- Does
Information Technology Inhibit Corporate Reengineering? (IW)
Contrary to general thinking, this 1994 CSC Indexsurvey shows that
information technology is considereed by top executives as one of the key
inhibitors of business reengineering. Legacy systems, often created
to serve independent departments, often hinder the process of the
development of the IT infrastructure required for reengineering.
- Grammatical Models of
Organizational Processes (Pentland) This paper proposes the metaphor
of grammar for describing organizational processes and develops it
into a rigorous model for describing and theorizing about organizational
work processes. It is argued that a special class of models based on
the metaphor of grammar can provide unique insights into the sequential
structure of organizational processes.
- Process
Grammars: A Generative Approach to Process Redesign (Brian T.
Pentland)
- Teaching
About Reengineering (Davenport)
- Process
Grammars: A Generative Approach to Process Redesign (Brian T.
Pentland)
- Reengineering for
Results: Keys to Success from Government Experience (by Dr. Sharon
L. Caudle)
- Papers
on Process Modelling (Software & Organizations) IPG Publications
- Business
Process Modelling: Papers (Yu)
-
Modelling the Organization: New Concepts and Tools for Re-Engineering
- Business
Process Reengineering (BPR) Fundamentals (DoD)
- Planning for Business
Process Reengineering (DoD)
- GAO BPR
Assessment Guide (DoD)
-
Business Process Reengineering (BPR) Process Model (DoD)
-
Designing Tools to Support Business Process Reengineering
-
Human and Organisational Aspects of Business Process Reengineering
-
Business Process Reengineering : Definitions and Models Revisited
- BPR
Articles Compilation from Electronic College of Process Innovation
Also of related interest:
Tools and
Techniques for Business Process Reengineering,
Glossary of
BPR Terms,
Bibliography Listing
by Topic, and
Government
BPR Project Reports.
- Articles on
Reengineering and Benchmarking (APQC's Continuous Journey Magazine)
- Benchmarking:
A Quick Overview from CIO
- Articles on Business Process Redesign (BPR-L)