Suggested Framework Unit 1

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Information about Suggested Framework Unit 1

Published on March 7, 2014

Author: sreebaridula


Business Process Reengineering: Business Process Reengineering A BPR Framework A BPR Framework: A BPR Framework Organization Job skills Structures Reward Values Technology Enabling technologies Information System (IS) architectures Methods and Tools IS Organizations Process Core Business Processes Value-Added Customer-Focus Innovation Participants in BPR: Participants in BPR Leader- A senior executive who initializes the BPR. Process Owner- owner of Specific Process for which reengineering is focused. Re-Engineering Team- group dedicated to the particular process, who diagnose the existing process and oversee its re-design and implementation Steering Committee : A policy making body of a senior manager who develops BPR strategy and monitors its progress Re-Engineering Czar : An individual responsible for developing re-engineering techniques and tools within the company. The 3 ‘R’s of Reengineering-3 Basic Phases: The 3 ‘R’s of Reengineering-3 Basic Phases Rethink Redesign Retool PowerPoint Presentation: Suggested Framework for BPR (I) In general, keywords for successful BPR are creativity and innovation… …but BPR projects also need structure and discipline, preferably achieved by following a well thought-out approach. BPR Framework of Roberts (1994) Starts with a gap analysis and ends with a transition to continuous improvement. The gap analysis focuses on three questions: The way things should be The way things are How to reconcile the gap between 1 and 2 PowerPoint Presentation: Robert’s Framework for BPR Opportunity assessment Current capability analysis Process Design Risk and impact assessment Transition plan Pilot test Infrastructure modifications Implementation and transition Tracking and performance Continuous improvement process PowerPoint Presentation: BPR Framework of Lowenthal (1994) Consists of 4 phases Preparing for change 3. Designing for change Planning for change 4. Evaluating change Phase 1 – Goals Building management understanding, awareness and support for change Preparing for a cultural shift and acquire employee “buy-in” Phase 2 – Assumption Organizations need to adopt to constantly changing marketplaces Phase 3 - Method To identify, assess, map and design A framework for translating process knowledge into leaps of change Phase 4 – Means Evaluate performance during a specified time frame Suggested Framework for BPR (II) PowerPoint Presentation: Lowenthal’s Framework for BPR Preparing for change Planning for change Designing change Evaluating change Phase I Phase II Phase III Phase IV PowerPoint Presentation: BPR Framework of Cross , Feather & Lynch (1994) Analysis In depth understanding of market and customer requirements Detailed understanding of how things are currently done Where are the strengths and weaknesses compared to the competition 2. Design Based on principles that fall into six categories Service Quality – relates to customer contacts Workflow – managing the flow of jobs Workspace – ergonomic factors and layout options Continuous improvement – self sustaining Workforce – people are integral to business processes Information technology Implementation Transforming the design into day to day operations Suggested Framework for BPR (III) PowerPoint Presentation: Cross et al’s Framework for BPR Customer Requirement analysis Design specifications High-level design Detailed design Pilot new design Transform the business Baseline analysis Current process review Design options Model/validate new design Build in CI feedback Design principles Analysis Phase Design Phase Implementation Phase PowerPoint Presentation: The reengineering movement advocates radical redesign and rapid revolutionary implementation and change A revolutionary change tactic Turns the whole organization on its head Has potential to achieve order of magnitude improvements Is very costly Has a high risk of failure To reduce risks and costs of implementation many companies end up with a strategy of radical redesign and evolutionary implementation tactic Implementing the feasible plans given current restrictions  Implemented process is usually a compromise between the original process and the “ideal” blueprinted process design Revolutionary vs. Evolutionary Change PowerPoint Presentation: The critical element in choosing between a revolutionary and evolutionary approach is time If the firm is in a reactive mode responding to a crisis  a revolutionary approach may be the only option If in a proactive mode  an evolutionary tactic might work Revolutionary vs. Evolutionary Change Element Evolutionary Change Model Revolutionary Change Model Leadership Insiders Outsiders Outside resources Few, if any, consultants Consultant led initiative Physical separation No, part time team members Yes, “off-campus site” Crisis None Poor performance Milestones Flexible Firm Reward system Unchanged New IT/process change Process first Simultaneous process and IT change Elements of evolutionary and revolutionary change theories PowerPoint Presentation: Basic principle People directly affected by or involved in a change process must take active part in the design and implementation of that change Real change is achieved through incremental improvement over time Change should come from within the current organization Should be carried out by current employees and leadership Should be adapted to existing resources and capabilities  flexible milestones Should be based on open and broad communication New processes and procedures are implemented before introducing new IT systems The Evolutionary Change Model (I) PowerPoint Presentation: Advantages of an evolutionary change tactic compared to a revolutionary approach Less disruptive and risky Increases the organization's ability to change Disadvantages Takes a long time to see results Does not offer the same potential for order of magnitude improvements Vision must be kept alive and adjusted over time as external market conditions change The Evolutionary Change Model (II) PowerPoint Presentation: Based on the punctuated equilibrium paradigm Radical change occurring at certain instances Long periods of incremental change in between Revolutionary change Happens quickly Alters the very foundation of the business and its culture Brings disorder, uncertainty, and identity crises Needs to be top driven Requires external resources and new perspectives Involves tough decisions, cost cutting and conflict resolution The change team is small and isolated from the rest of the organization Avoid undue influence from current operations Communication with people in the process is on a “need to know” basis The Revolutionary Change Model (I) PowerPoint Presentation: Advantages with a revolutionary implementation approach Drastic results can be achieved quickly If successful, the ideal “blueprinted” design is put in place Disadvantages with a revolutionary change tactic Very strenuous for the organization High probability for failure Diverts top management attention from the external marketplace Goes against core values of many organizations Empowerment Bottom-up involvement Innovation Secrecy creates uncertainty about the future roles of individual employees  resistance to change The Revolutionary Change Model (II)

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