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Articles / Business process
reengineering
Business Process
Reengineering (BPR) was developed by former MIT professor Michael Hammer,
whose original Harvard Business Review article gave examples of the
application of his technique. The article: "Reengineering work: don't
automate: obliterate" gave the example of Ford, which reduced its
accounts payable staff by 75% as a result of re-engineering.
The ideas in the
article were expanded by Dr Hammer and James Champy into the book
"Reengineering the Corporation" (HarperCollins, 1993). The book
starts by pointing out the failings of production-line techniques (for
manufacturing and clerical operations) in modern responsive enterprises.
The basis of
quality assurance and TQM is the understanding of business processes, and
their formalisation (QA) and improvement (TQM). BPR is about completely
re-thinking processes without too much analysis of the old version (for fear
of limiting the breadth of the redesign). BPR is high-risk, but can also
bring very high rewards.
BPR is
accomplished by setting up a reengineering team, comprising a number of
people who know the process to be reengineered, and a number who don't.
There is no formal methodology for running a reengineering session, but
Hammer cites a number of recurring themes of reengineered processes:
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several jobs
are combined into one: the process changes from an assembly line model
to a process team or case-manager one
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the steps in
the process are performed in a natural order, and work is performed
where it makes the most sense
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processes
have multiple versions: Hammer uses the term 'triage' to describe the
splitting of processes into more specialised processes - for example, a
large insurance claims process and a small insurance claim process
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checks,
controls and reconciliations are minimised, because the quality of work
improves, and because the number of external contact points are reduced
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hybrid
centralised/decentralised operations are prevalent, and often made
possible by the use of information technology
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information
technology is heavily used: shared databases, expert systems,
decision-support tools, interactive videodisk, automated parts tracking,
telecommunications
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workers are
empowered to make decisions, and their jobs are enriched because they
deal with multiple tasks instead of single ones; broader education
replaces simple task training
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people
performance is measured more in terms of results, instead of level of
activity; yet advancement comes to be based more on ability than on
performance
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management
style changes from supervision to coaching, and from scorekeeping to
leading; organisational structures become flatter
As well as a
reengineering team, Hammer sets out a number of other roles in the
reengineering process. A senior executive must authorise and motivate the
overall effort, and appoints the owner of the process (the manager
responsible for the process to be reengineered) to convene the reengineering
team. A steering committee at a higher level sets policy and strategy, and
monitors progress. A 'reengineering czar' provides expertise in
reengineering tools and techniques.
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