BPE (business process engineering)notes.pptx

new bpe presentation

1. Organization Technology Process

2. BPR Introduction, Examples, & Principles Introduction to BPR Problems BPR Definition Process Definition, Dimensions, and Examples BPR Status Reports Examples of BPR Ford Mutual Benefit Life Insurance Capital Holding Co. Taco Bell Others BPR Principles and Frameworks Principles A BPR Framework Approaches

3. Industrial Revolution’s Model of Organization and Production Complex work is broken down into simple and repetitive tasks that are performed in sequence by specialists . Specialization of labor: Individual jobs become simple Sequential processes: Coordinating people becomes more complex (The role of the hierarchy) Narrow and repetitive jobs: De-skilling the work forces Managers’ job is to control the quantity, cost, and quality of the work performed. Control as a dominant style Financial-oriented scoreboard Employees are organized by business function . Hierarchical structure

4. Problems Functional departments become barriers to change. Too much time and money are spent in ineffective coordination and communication. Too little time for doing work that really benefits customers. Overheads are soaring. Business processes are evolved over a period of time and are not designed to handle changing business environments or to take advantages of emerging technologies.

5. Process Evolution "We are structured today by historical accident. As we added products, we added functional stovepipes." "Processes in organizations have never been designed in the first place."

6. Definition of Reengineering The fundamental rethinking and radical redesign of core business processes to achieve dramatic improvements in critical performance measures such as quality, cost, and cycle time .

7. What Business Reengineering Is Not? Automating: Paving the cow paths. (Automate poor processes.) Downsizing: Doing less with less. Cut costs or reduce payrolls. (Creating new products and services, as well as positive thinking are critical to the success of BPR.)

8. A Cow Path?

9. Reengineering Is ... Obliterate what you have now and start from scratch. Transform every aspect of your organization. Extremist's View

10. Gordian Knot In a Greek legend, nobody could untie a knot tied by King Gordius of Phrygia. Many people tried to untie the knot, but nobody succeeded. ... until Alexander the Great found a smart and direct solution.

11. Definition of Process A process is simply a structured, measured set of activities designed to produce a specific output for a particular customers or market. -- Thomas Davenport Characteristics: A specific sequencing of work activities across time and place A beginning and an end Clearly defined inputs and outputs Customer-focus How the work is done Process ownership Measurable and meaningful performance

12. Types of Processes Dimensions & Type Examples Order from a supplier Develop a new product Approve a bank loan Manufacture a product Prepare a proposal Fill a customer order Develop a budget Organization Entity Inter-organizational Inter-functional Inter-personal Objects Physical Informational Activities Operational Managerial

13. Processes Are Often Cross Functional Areas Supplier Customer/ Markets Needs Value-added Products/ Services to Customers "Manage the white space on the organization chart!" "We cannot improve or measure the performance of a hierarchical structure. But, we can increase output quality and customer satisfaction, as well as reduce the cost and cycle time of a process to improve it."

14. Process-Orientation Process-orientation is the key to the BPR success Remove stovepipe functions Focus on cross-functional core process redesign “Link activities, functions, and information in new ways to achieve breakthrough improvements in cost, quality, and timeliness.” *

15. BPR Achieves Dramatic Improvement Ford reduced its account payable department by 75% Bell Atlantic cut the cycle time for installing carrier services for customer from 15 days to 3 days. IBM Credit Company reduce loan application turn around time from 6 days to 4 hours while loan applications increased by 100 times. No personnel was added.

16. Satisfaction with the Results of BPR Source: Deloitte & Touche, Leading Trends in Information Services, 1994. “50% to 70% of reengineering efforts fail to achieve the goals set for them.”

17. BPR and Other Organizational Initiatives Alias: Process Innovation Core Process Redesign (CPR) Relevant Initiatives in Organizations TQM Continuous Process Improvement Information Strategy Planning and Information Engineering IT for Competitive Advantages Related Initiatives in Public Sectors Reinventing the Government Functional Process Improvement (DOD)

18. Benefits of Reengineering Customer Service Process Timeliness Quality Reduce Cost Competitiveness New/Improved Technology Sales/Revenues

19. Reengineering for Achieving Strategic Goals

20. BPR Examples Ford: Accounts Payable Mutual Benefit Life: New Life Insurance Policy Application Capital Holding Co.: Customer Service Process Taco Bell: Company-wide BPR Others

21. Ford Accounts Payable Process* PO = Receiving Doc. = Invoice Accounts Payable Vendor Goods Receiving Payment Invoice Receiving document Purchasing Purchase order Copy of purchase order ? ?

22. Trigger for Ford’s AP Reengineering Mazda only uses 1/5 personnel to do the same AP. (Ford: 500; Mazda: 5) When goods arrive at the loading dock at Mazda: Use bar-code reader is used to read delivery data. Inventory data are updated. Production schedules may be rescheduled if necessary. Send electronic payment to the supplier.

23. Ford Procurement Process Accounts Payable Vendor Goods Receiving Payment Goods received Purchasing Purchase order Purchase order Data base

24. Ford Accounts Payable More than 500 accounts payable clerks matched purchase order, receiving documents, and invoices and then issued payment. It was slow and cumbersome. Mismatches were common. Before After Reengineer “procurement” instead of AP process. The new process cuts head count in AP by 75%. Invoices are eliminated. Matching is computerized. Accuracy is improved.

25. New Life Insurance Policy Application Process at Mutual Benefits Life Before Reengineering* 30 steps, 5 departments, 19 persons Issuance application processing cycle time: 24 hours minimum; average 22 days only 17 minutes in actually processing the application Department A Step 1 Department A Step 2 Department E Step 19 . . . . Issuance Application Issuance Policy

26. The New Life Insurance Policy Application Process Handled by Case Managers application processing cycle time: 4 hours minimum; 2-5 days average Application handling capacity double Cut 100 field office positions Case Manager Underwriter Physician Mainframe LAN Server PC Workstation

27. Approve customer credit application Event Subprocesses Result Credit application is submitted Complete application Evaluate application Decide on application Inform customer Set up customer Customer is notified, recorded, and enabled to place orders Case for action Vision · We’re losing market share to competitors offering fast or instant credit, and our image is declining. · Our paper-based workflow involves many starts and stops, and involves several departments and job functions. · We don’t’t capture the right information on the application, so we need to go back to the Customer repeatedly. · We can’t answer Customer queries about in-process applications · The effort and delay aren't’t justified for small Customers who pose minimal risk as a group. · Credit Representatives spend most of their time on small accounts, not on large ones where their expertise is needed. · Unless we fix the process, our market share will continue to erode and closure of the operation is likely. · We will offer instant, secured credit to small Customers. · Applications from large Customers will be handled in two days or less. · All staff will perform higher-value work, and have more authority-Credit Reps will focus on large clients, and Credit Admin Clerks will handle small applications completely. · Independent surveys will show that Customers perceive us as the Customer Service leader in our industry. · Once the new process is implemented, our market share decline will slow, and within one year we will again be growing at 12% per year. Actors Mechanisms Metrics · Applicant · Sales Representative · Credit Representative · Credit Administration Clerk · Credit Bureau · Word Processing Clerk · Marketing Administration Clerk · Customer Data Maintenance Clerk · Credit Application · Credit Report · Notification Letter · Sales System · 1 to 4 work hours and up to 7 elapsed days per application · 6 Credit Representatives · 150 applications per month, growing 10% per year · 75% approved, 25% declined · 85% of applications come from small Customers · 90% of our sales volume comes from 10% of Customers · 10% of applications come from previously denied Applicants, and 10% from former Customers · Small Customer bad debt write-offs are less than 2% of sales, and overall they are approximately 1% of sales Customer Credit Application Analysis

28. Capital Holding Co. - Direct Response Group* A direct marketer of insurance-life, health, property, and casualty-via television, telephone, and direct mail. In 1988, DRG president Norm Phelps and other senior executives decided that for our company, the days of mass marketing were over. Need to strengthen DRG's relationships with existing customers and target our marketing to those potential customers whose profiles matched specific company strategies. A new vision for DRG: The company needed to be exactly what most people didn't expect it to be an insurance company that cares about its customers and wants to give them the best possible value for their premium dollar.

29. Capital Holding Co.: Vision Caring, Listening, Satisfying... one by one Each of us is devoted to satisfying the financial concerns of every member of our customer family by: Deeply caring about and understanding each member’s unique financial concerns. Providing value through products and services that meet each member’s financial concerns. Responding with the clear information, personal attention and respect to which each member is entitled. Nurturing an enduring relationship that earns each member’s loyalty and recommendation.

30. Capital Holding Co.: Vision To carry out our vision we must: Find and serve people who have a strong sense of affiliation, reaching them through new or existing membership groups. Provide our members with a broad range of insurance and savings products. Communicate personally with each member through direct response, emphasizing telephone and technology to build close relationships.

31. Assumption : You can only trust your friends. Implications Lack of trust may indicate a lack of confidence in the organization and may impede the organization’s ability to implement change If ideas aren’t shared, there is likely to be less innovation. Withholding “bad news” gives an incomplete picture which can result in poor decisions. DRG Cultural Audit Findings Cultural Audit: First initiative under reengineering umbrella. It would be impossible to reengineer our systems and processes without an understand of the culture barriers - the people issue. Trigger major changes in human resource management - redesigning of promotion and reward systems.

32. The Underwritten Rules of the Game The most noble organization initiatives are doomed to failure if they require employees to behave in ways that conflict with water-cooler wisdom on how to get on in the company.

33. New Business Model: A Conceptual Breakthrough Target & Segment of Aggregate Market Use Individual Information Use Group Information Prospects Customers Sell & Renew Capture Individual Information & Personalized Service “I Think I Know.” “I Know for Sure.” Market Management Customer Management

34. A High-Level Service Process Model Today CSR Life A&H Micro- Data Letter- System Customer Corres. Policy film Entry shop Change What’s your policy #’s? Challis 3 Life 70 Micro-film Request Action Request Day 1 Micro-film Response Day 5 Increase my A&H coverage Give me information about my Life Policy beneficiaries Action Request Day 2 Input Requested Change Day 5 A&H change confirmation letter mailed to customer System Update Life Policy beneficiaries letter mailed to customer Day 6 Day 6 (Batch) Day 8 Customer receives two separate responses

35. Customer Management Team (CMT): A Flavor of How DRG Service Process Will Change Immediate Response to Customer Day 1 Answers Day 3-4 Day 1-2 Day 1 Send written acknowledgment Increase my A&H coverage Give me information about my Life Policy beneficiaries Customer CMT: Teleservice Representative System: Client-server architecture Outbound Paper

36. Taco Bell* “ We were going backwards - fast ... If something was simple, we made it complex. If it was hard, we figured out a way to make it impossible.” - Taco Bell CEO, John E. Martin Customer buy for $1 are worth about 25 cents. 75 cents goes into marketing, advertising, and overhead. Reengineering from the customer’s point of view. “Are customer willing to pay for these ‘ value-added’ activities?”

37. Taco Bell Corporate Vision: “We want to be number one in share of stomach.” Slashed kitchen: Kitchens : Seating capacity 70% : 30% ð 30% : 70% Eliminate district managers. Restaurant managers are given profit-and-loss responsibility. Moving cooking of meat and bean outside. Boost peak serving capacity at average restaurant from $400 an hour to $1,500 a hour. $500 millions regional company in 1982 to $3 billion national company in 1992.

38. Reengineering Example Which line is shorter and faster? Cash Lane No more than 10 items

39. Reengineered Process Key Concept: One queue for multiple service points Multiple services workstation

40. BPR Principles Organize around outcomes, not tasks. Have those who use the output of the process perform the process. Subsume information-processing work into the real work that produces the information. Treat geographically dispersed resources as though they were centralized. Link parallel activities instead of integrating their results. Put decision points where the work is performed and build controls into the process. Capture information once and at the source.

41. BPR Principles - Derived Redesign process steps such that they are perform in a correct order. Combine several process steps into one. Design for parallel subprocesses whenever possible to reduce waiting time between tasks. Integrate subprocesses. Processes may have multiple versions. Remove complex, exceptions, and special cases. Empower human potentials. Give front-line workers the responsibility to make decisions. Provide mechanism in the process to encourage individual, team, and organizational learning

42. Information, Not Automation An individual without information cannot take responsibility; an individual who is given information cannot help but take responsibility. Jan Calzon CEO, Scandinavian Airlines

43. BPR Principles - Derived (Continued) Perform the work where it makes sense. Reduce controls and checks. ==> Build in feedback mechanisms at each steps to minimize the need for the checkpoints and control. Minimize reconciliation. Eliminate multiple external contact points. ==> Use case managers to provide a single point of contact for customers. One-stop customer service or customer service center. Design processes with centralized and decentralized operations. Coordinate inventory, buffers, and other assets by sharing data cross organization boundaries. JIT, continuous replenishment, supplier shelf management. Strive for “doing things right the first time”. Eliminate rework and iteration.

44. A BPR Framework Organization Job skills Structures Reward Values Technology Enabling technologies IS architectures Methods and tools IS organizations Process Core business processes Value-added Customer-focus Innovation

45. Approaches to BPR Focus on core business processes. Use information technology to enable new business processes, not just to automate existing ones. Start with a clean sheet of paper and think out-of-the-box. Consider all aspects of the process. Adopt a BPR methodology. Use proven methods and tools in analyzing and redesigning the process. Manage the implementation and change process from the beginning.

46. Managing BPR Projects BPR Life Cycle Management BPR Team Structures

47. Business Process Reengineering Life Cycle The BPR life cycle approach decomposes business reengineering projects into inter-related phases in which a set of integrated structured methods and tools is applied to specific tasks in each BPR phases. Each phase and its detailed tasks contain clearly defined goals and deliverables.

48. Three Life Cycle Models of BPR Define business goal Analyze the business process Redesign the process Implement the new process Measure the new process Develop business vision & process objectives Identify processes to be redesigned Understand and measure existing processes Identify information technology levers Design & build a prototype of the process Mobilization (Get serious) Diagnosis (Get started) Redesign (Get crazy) Realization (Get real) Wang Hammer Davenport and Short

49. Methodology Components Phase Task Step Work Breakdowns Participant Role BPR Team Structures Concept Method Tool Methods and Tools Deliverable Apply to Use Are Involved in

50. Business Process Reengineering Life Cycle Define corporate visions and business goals Identify business processes to be reengineered Analyze and measure an existing process Identify enabling IT & generate alternative process redesigns Evaluate and select a process redesign Implement the reengineered process Continuous improvement of the process Visioning Identifying Analyzing Redesigning Evaluating Implementing Improving Manage change and stakeholder interests BPR-LC Ó Enterprise-wide engineering Process-specific engineering

51. Phase 1: Visioning Apply to enterprise-wide reengineering effort. Develop overview of current and future business strategies, organizational structure, and business processes. Develop organizational commitment to reengineering. Develop and communicate a business case for action. Create a new corporate vision. Set stretched goals. Prioritize objectives. Assess implementation capabilities and barriers. Define corporate vision and business goals

52. Case for Action Business context : What is happening, what is changing, and what is newly important in the environment in which the company operates. Business problem : The major concern of the company. Marketplace demands : New performance requirements that cannot be met by the company. Diagnostics : Why the company cannot meet the new performance requirements? Why the incremental improvement is not enough? Cost of inaction : Consequences of not reengineering.

53. Objectives for Business Reengineering Improve customer satisfaction Shorten cycle time Improve output quality Cut down costs Increase competitiveness Maintain the leadership position

54. Business Vision, Strategy, and Processes Enterprise-Wide Vision Business Strategy Process Visualization Determine who we are and what we are doing about Define the right things to do Do the right things right

55. Phase 2: Identifying Construct high-level process map Develop a process hierarchy Build enterprise-wide data models (optional) Evaluate the processes Select processes to be reengineered Prioritize and schedule processes to be reengineered Identify business processes to be reengineered

56. TI Semiconductor Business Process Map Manufacturing Capability Development Strategy Development Product Development Customer Design & Support Order Fulfillment Concept Development Manufacturing Market Customers Customer Communication

57. A Generic High-Level Process Map Market Customer Develop strategy Understand customer needs & develop solutions Attract and retain customer Deliver products and services Deliver supporting services Organization Learning

58. Using Value Chain to Identify High-Level Processes Added Value Corporate Infrastructure Inbound Logistic Operation Outbound Logistic Service Sales and Marketing Primary Activity Supporting Activity Human Resource Management Procurement Technology Deployment

59. High-Level Process Diagram of Firm X

60. High Level Segmentations of Enterprise Processes

61. Logical Functional Process Model

62. Methods & Guidelines in Selecting Processes Identify processes to be redesign: Systemic & exhaustive approach: Information engineering can be used to identify critical business processes using activity-data matrix. High-impact & intuitive approach: Use facilitated workshops or extensive interviews involving senior management. Guidelines: 2~5 business processes at a time Identify owners of business processes. Expand the scope of a process been analyzed

63. Criteria for Selecting Processes Broken Bottleneck Cross-functional or cross-organizational units Core processes that have high impacts Front-line and customer serving - the moment of the truth Value-adding New processes and services Feasible

64. The 9-Grid Model for Selecting Processes to Reengineer Risky business Pick low hanging fruits Pick low hanging fruits Bark up the wrong tree Good for a serious pilot project Pick low hanging fruits Bark up the wrong tree Fruitless Effort Fruitless Effort Implementation Difficulty Process Impacts High Medium Low High Medium Low Woof!

65. Phase 3: Analyzing Conduct preliminary scoping. Develop a high-level AS-IS baseline process model (work flow model). Avoid analysis paralysis by conducting preliminary analysis at fairly high level. Surface purpose and assumptions of the process (Ask WHY?). Perform activity-based costing: costs can be assigned based on actual activities and productivity. Reveal hidden time and nonvalue-added activities. Measure cycle-time and quality. Measure profitability in terms of task, product, and customer type. Analyze and Measure an Existing Process

66. Interview Questions What makes it go? Is anyone else involved? Does the name of the step accurately convey the result? Are all outcomes shown? If there is a handoff,how does it get there?

67. PROCESS of Gathering Requirements P: Plan to interview R: Rehearse interview O: Open interview C: Collect data E: End interview S: Summarize interview S: Synthesize interview

68. Establish a Common Base of Knowledge The process and business strategies Customer requirements World-class benchmarks

69. EXECUTING WAITING TIME TIME INVOLVEMENT EFFICIENCY COST Cycle time Idle PeopleScrap 　　　　　 Cost per 　　 execution Work time Transit Departments Rework Time worked Queue Handoffs Defect by type Cost of defects Setup Job Errors Fixed versus classifications variable costs Labor unions Iterations Locations Customer contacts Languages Complaints Countries/ Compliments cultures Whatever else is relevant

70. Process Model Process decomposition Process dependency or work flow ICOM of a process as defined in IDEF Inputs: information and materials Outputs: Products and services Controls: Policy, specification, and timing Mechanism: Resources including people, tools, and facility.

71. Process Data Basic Overall process data: Customers and customer requirements Suppliers and suppliers qualifications Breakthrough goals Performance characteristics: Cost, cycle time, reliability, and defect rate. Systems constraints: Budgetary, business, legal, social, environmental, and safety issues and constraints. Measure critical process metrics Cycle time Cost Input quality Output quality Frequency and distribution of inputs

72. Identified Broken Processes* Terminal Disease Symptom: Extensive data exchange , redundancy, rekeying Disease: Arbitrary fragmentation of a natural process Just In Case Symptom: Excess buffers of assets, e.g., inventory Disease: System slack to cope with uncertainty Over-inspection Symptom: High ratio of checking and control to value adding Disease: Incompetence and mistrust because of fragmentation Rework Symptom: Frequent rework and iteration Disease: Inadequate feedback along process chain Special Cases Symptom: Too many exceptions and special cases Disease: Graduate accretion onto a simple process

73. Analyzing a Process Why? What are the underlying assumptions? How do the assumptions affect process structure? Are the assumptions still valid? Can you make them invalid? How would changing the assumptions affect the work and its value? Who does the work? Are you assuming that a specialist must do the work? When? What is the flow of the work? Are you assuming that one group must finish (collecting all data) before another group can begin? Where is the work performed? Are you assuming that decision must be made at the headquarters? What resources are required? Are you assuming that local inventory is required for good service?

74. Phase 4: Redesigning Identify enabling IT & generate alternative process redesigns Information Technology Business Reengineering How can IT support business processes? How can business processes be transformed using IT? Technology-driven Business-pulled

75. Phase 4: Redesigning Information Technology Business Reengineering How can IT support business strategies and business processes? Technology-driven Business Vision & Strategy Business-pulled How can business strategies be changed business processes be transformed using IT?

76. Three Steps in Redesigning Processes Simplification: Task: Change business rules or procedures of a specific task Workflow: A process chain is simplified by elimination of nonvalue -adding activities Integration: Redesign tasks into a logical and effective process. A reengineered process often crosses functional boundaries. It offers opportunity for eradicating interdepartmental redundancies and restructuring the organization. Automation: Usually accompanies nontechnical redesign of organization structures and procedures. All reengineering costs and benefits can be projected into a model. Reengineering often pays for itself - sources of funding for technology investments are frequently cost savings generated by organizational change.

77. Steps in Redesigning Generate new visions for the process Create ideas for dramatic changes Identify core sub-processes Identify enabling technologies Design alternative new processes Estimate cost/benefit/risk involved in alternative process redesigns

78. Phase 5: Evaluating Develop criteria of evaluating alternatives of redesigned processes Evaluate design alternatives Select and recommend a reengineered process Evaluate and select a process redesign

79. Evaluation Criteria Costs Design and implementing the business process Hire and train employee Develop supporting IS Purchase of other equipment and facilities Benefits Customer requirements Breakthrough goals Performance criteria Constraints Risk Technology availability and maturity Time required for design and implementation Learning curve Cost and schedule overrun

80. Phase 6: Implementing Plan IT implementation Plan organization implementation Conduct a pilot project Develop a prototype system Technical Design Social Design Evaluate results from the pilot project and the prototype Prepare large-scale roll out Implement the reengineered process

81. Phase 7: Improving Develop performance measurement and reward systems in the reengineered process Monitor process performance constantly Improve the process on a continuous basis Improve the process continuously

82. Elements of Integrated Process Management Process Reengineering Process Monitoring Process Improvement Integrated Process Management

83. Target Design Visioning: Price Waterhouse Business Analysis Level Strategic Tactical Operational Information Facts Problems Opportunities Visioning Workshop Facilitation Participation Consensus High-Level Goals Desired end state Scope of vision External View Best practices BPR principles Technologies Industry & functional Vision People & culture Processes Systems & IT Organization & Structure Performance measures & targets Process Design Segment processes Select high-return process redesign opportunities Perform detailed redesign of business processes Target Environment Design People & culture Processes Systems & IT Organization & structure

84. Rapid Re Approach Preparation Recognize need Develop executive consensus Train team Plan change Identification Model customer Define & measure performance Define entities Model processes Map organization Map resources Prioritize processes Vision Understand process structure Understand process flow Identify value-adding activities Benchmark performance Determine benchmark drivers Estimate opportunities Envision and integrate the internal & external ideal Solution: Technical Design Model data & reexamine process linkages Instrument and informate Consolidate interfaces & information Redefine alternatives Relocate & retime controls Modularize & specify deployment Apply technology Plan implementation Solution: Social Design Empower customer contact personnel Define jobs, teams, skills, Specify management structure, org. boundaries, & transitional org. Specify job changes & career paths Deign change mgmt prog. Design incentives Plan implementation Transformation Build & test the system Train staff Pilot new process Define transition Continuous improvement Source: Adapted form Manganelli & Klein, The Reengineering Handbook , AMACOM, 1994.

85. Enterprise Engineering - A Framework for Change Continuous Process Improvement Business Process Redesign Business Re-engineering Learning Organization Strategic Visioning Information Infrastructure Development Organization and Culture Development

86. BPR Team Structures “The LEADER appoints the PROCESS OWNER, who convenes a REENGINEERING TEAM, with assistance from the BPR CZAR and under the auspices of the BPR STEERING COMMITTEE.” (Hammer and Champy, 1993)

87. Stakeholders of the Reengineering Project End users, operators, managers of the process Gainers and losers of benefits Employees who may be affected Decision makers Controllers of resources Suppliers and customers of the process

88. BPR Team Size: up to 8 members in the core team augmented by subject-matter experts when needed. Commitment: half- to full-time. Skills: team skills, process engineering, quality, information systems, benchmarking, organizational and job design, and change management. Composition: Employees, customers, suppliers, and external consultants.

89. Facilitated BPR Meetings Centered around a workshop: It is an organized, controlled, and structured process Participated by users, managers, and IS personnel (if necessary) User orientation Management direction IS technical assistance Facilitated by a BPR facilitator to ensure thorough analysis Employ a BPR analysis and design methodology to ensure usable requirements or specifications Focused on a consensus-based decision making process Use multi-media audio-visual equipment or BPR tools to bridge knowledge gap among participants

90. Qualifications of a BPR Facilitator Is skillful in team building and leading Manages group process and dynamics Has energetic and outgoing personality Summarizes discussion Is a good communicator (listening and speaking) Has project management ability Has mastered facilitation skills Understands BPR methods

91. BPR Team Experiences at Charles Schwab The real battle of reengineering is to learn how to translate the best intentions into the best of plans and, ultimately, into the best of products, processes and systems. Current systems can not provide a single view of any one customer’s business with the firm. Reengineer to survive, to sustain growth , to maintain leadership position, to transform businesses. BPR should be driven by customer satisfaction. You may need to reengineer the reengineering process.

92. Lessons Learned People tend to focus on the shortcoming of existing systems, rather than entirely new way to deliver services to customers . Task-oriented people in BPR teams may not be able to see and change the big picture. You need data about your customers, their needs, and your competitors before you start. Work hard at building a consensus of purpose and an identity for the BPR team. Members should not see themselves as representatives of various functional units brought together to protect their interests. They should work as a team to benefit the business. Insist on direct and active upper management participation such that the team will have the political cloud to actually reengineer and will know the changes in business strategies.

93. Vision A statement of the future business environment and how the company will operate in that environment. Vision is the result of dreams in action . It is a positive image of the future that is the strongest motivator for change. Characteristics Common purpose: worth the effort Positive feeling and diffuse fear Clarity and values Capture the imagination Inspires and empowers Should have "reach" and "range"

94. Mission A statement of the basic purpose or reason for the company to exit. Lines of questioning What business are we in? What is the geographic scope? What markets do we serve? What products and services do we provide? What are the critical successful factors of the organization? How can we achieve our competitive advantage?

95. Mission: Examples AT&T: Our business is service Gerber: Babies are our business Du Pont: Better things for better living through chemistry

96. Strategic Visioning Process Past Present Future Context Stories Insight Visions Foresight

97. Five Bold Steps Vision Vision Mission 1. step 2. 3. 4. 5. Value Supporting Trends Challenges