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Business
Process Re-Engineering
A methodology first developed by Coopers & Lybrand
and made famous by Michael Hammer and James Champy, in
the early 90's. BPR is essentially, the deconstruction
and reconstruction of the core business processes, to
eliminate non-value added tasks, bottlenecks and time.
BLMC’s BPR Methodology is highly structured and
begins with an Assessment of the enterprise, focusing
the performance of the core business processes, compared
to best practices. If it is determined that there is significant
opportunity, a BPR project is rolled out in a three phased
approach.
The
Discover Phase (Phase 1)
The Discover Phase is essentially a high-level examination
of the company’s product development and product
fulfillment processes and the supporting sub processes.
The objective of this phase is to identify the business
improvement opportunities measured in terms of performance
gaps between "stretch" goals or Best Practices
and the current "as-is" state of the process.
The Discovery Phase strives to secure organizational buy-in
for each opportunity to provide the justification for
redesigning. During this phase the company selects the
appropriate processes on which to focus, identifies the
Best Practices that must be achieved, and clearly defines
the current level of performance. It also begins to identify
the potential for short-term improvements and alternative
process treatments such as outsourcing. The business culture
is analyzed to identify possible barriers to successful
change and begin developing strategies for overcoming
these barriers. This phase is based on a clear understanding
of the organizations’ future vision and the underlying
strategy for reaching a higher level. This implies that
the client’s strategy drives our definition and
selection of core business processes and, to a large extent,
the choice of treatment we wish to impose on each process
from short-term improvement to longer term redesign.
The
Redesign Phase (Phase 2)
The Redesign Phase is the analysis and reengineering of
a specific process. The scope narrows from the entire
company and its vision and strategy to the process vision
and the specifications needed to achieve “Best Practices”
performance levels. The technology architecture and the
change management actions required to realize the process
vision are also designed during this phase. Redesign activities
reflect a midpoint in terms of level of detail and organizational
involvement. The process is analyzed at a greater level
of detail than required during the Discover Phase, but
not down to the everyday operational level of detail needed
to implement the new process during the Realize Phase
(Phase 3). Similarly, the redesign specifications produced
by Phase 2 do not attempt to describe every detail and
anticipate every possible situation. The redesign describes
what the process should do and defines the target performance
and behaviors. The Realize Phase completes the design
to the lowest level of detail and implements the new processes,
organization and behavior at the day-to-day operating
level. As the process analysis and redesign moves to a
lower level of detail, the composition of the BPR teams
will also change. The top level executive team involved
in Phase 1 may evolve to a steering committee, with the
BPR team composition modified to reflect the emphasis
on a specific process and the requirement for additional
knowledge about that process.
The
Realize Phase (Phase 3)
The Realize Phase is where the benefits promised in the
earlier phases become a reality. Implementation may take
minutes (policy changes), days (procedures), or months
(systems), depending on the nature and extent of the changes.
It is only after the successful implementation of the
redesigned process that the benefits begin to be realized.
BPR is an iterative process that takes place at successive
levels of detail -- the Realize Phase takes place at the
lowest level of detail. BPR typically begins at the top
of an organization and moves down to the levels that must
ultimately implement the day-to-day process changes required
by the redesign. The preceding phases concentrated on
developing strategy, vision, and a sense of what the process
should do. The Phase 3 teams are charged with determining
how to bring about the required process changes. At the
same time, they need to understand what has taken place
in the first two phases so that they can build upon that
foundation. Outstanding communication during the early
stages of Phase 3 is critical.
Organizational
Restructuring
Organizational Restructuring is a detailed methodology
developed to evaluate and support changes in process restructuring
that puts the right resources and management structure
in place. This follows other process work, and speaks
to the need to fix the processes before you fix the organization.
In many cases, the organization that managed the old processes
is not sufficient to manage the new processes.
Outsourcing
and/or Off-Shore Strategies
This is a process treatment used in BPR that that determines
which non-core processes or activities should be moved
out of the flow and either outsourced, sent off shore,
or both. Designing and Implementing a Program management
structure to effectively manage these new suppliers is
a key success factor. This is sometimes discussed as a
Variable Cost Strategy and includes both the components
as well as the design scope.
Product
and Facilities Rationalization
This methodology provides the tools for the analysis around
the capacity, cost and use of current facilities and aids
in making decisions around the number and location of
facilities, relative to the strategy. The methodology
also focuses on the implementation of the simplification
of facilities and /or products, with the objective of
improving the bottom line.
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