Unit III Implementing BPR

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Published on March 7, 2014

Author: sreebaridula

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Unit III Implementation Process: Unit III Implementation Process Business Process Redesign: Two approaches to BPR : Systematic re-design: Identify / understand the existing process It is reviewing current processes and then making the relevant improvements Clean sheet approach: Rethinking the way the product / service is delivered and design a new process from the start It is like demolishing an old building and rebuilding instead of patching it up. Business Process Redesign Systemic Vs Clean Sheet Approach: Systemic Vs Clean Sheet Approach Systemic Vs Clean Sheet Approach: Systemic Vs Clean Sheet Approach Systematic Redesign Approach: Systematic Redesign Approach Clean Slate Redesign Approach: Clean Slate Redesign Approach Process Redesign Issues: Some Process Redesign Issues related to redesign include: Motivation – lack of motivation to enable redesign to processes Attitude – there may be resistance Knowledge – not all may have information on the processes Creativity – lack of creative ideas Innovation – not easy and challenging; thinking ‘out of the box ’ Process Redesign Issues Main and Supporting Process: Core Processes: Relate directly to external customers and central to business functions. Support Processes: They have internal customers and back-up of core-processes. They are more administrative, secondary activities. Management Processes: Help to plan , organize and control. Main and Supporting Process Rationale of BPR: Increase in Process Efficiencies Improvement in Customer Service Cost Reduction Data and Information Sharing Use of IT — right place at the right time Reduce Duplicate, Stove-Pipe Systems Reuse Technology Leverage New Technologies as Key Change and Efficiency Enablers Rationale of BPR Rationale of BPR: Foster fundamental re-thinking Focus efforts where impact is high Ensure a comprehensive, efficient effort Ensuring effective change management Deal with how the business works rather than the structure To improve inefficient business processes; To be the industrial leader; To reorganize business functions; To improve current industry position; To be among the industry leaders; and To dramatically turn the company's position around Rationale of BPR KEY Enablers: People Management and Leadership Organizational Culture Functional Expertise Stockpiling Instantaneous Reaction The New Assets and Their Management Performance Indicators KEY Enablers KEY Enablers: Love and Gunasekaran [1997] consider four enablers: IT- Information and technology , Total Quality Management, Human Resources, Organization Organizational enablers are grouped within two categories: 1) Structural 2) cultural. KEY Enablers KEY Enablers: Structural Enablers:  Structural enablers are used to demand a change in human resources management, mainly in training areas and reward systems. Mainly, there are three major structural enablers: Self managing work teams drive themselves and do not need a formal leader. Cross-functional teams involve several functions, so their members collaborate among themselves to get a result. General-purpose problem-solving teams are formed by persons from the same department and are in charge of solving different matters in a periodic way. KEY Enablers KEY Enablers: Cultural Enablers:  Cultural enablers include those norms, values, and beliefs about how things should be done. In a company with a rigid culture where everything must be specified and suggested by a superior, process change would be much more difficult. KEY Enablers KEY Enablers: Human Resource Enabler:  A third group of enablers is human resources. If a company needs motivated employees who accept changes, propose ideas, share, and are able to vary their style of working, then half of the effort should be centered around human resource management it would be necessary for workers to gain knowledge in team work and development of new tasks the company must motivate its employees through incentive systems and by allowing their involvement in the decision-making process KEY Enablers KEY Enablers: Information Technology Enabler:   IT enabler is a facilitator. Its role is crucial because it allows a company to alter processes in two ways: collaboration grade increase and mediation grade decrease through the implementation of shared databases and communication technologies. IT may help companies to obtain important improvements on variables such as costs, quality, and delivery time. KEY Enablers KEY Enablers -IT: KEY Enablers -IT Technology for BPR: Hammer (1990) considers it to be the key implementation of BPR. He says the use of IT is to challenge the assumptions inherent in the work processes that have existed since before the advent of modern computer and communications technology. He argues that at the heart of reengineering is the idea of discontinuous thinking. Discontinuous thinking is a way to recognize and break away from the outdated rules and fundamental assumptions that underlie operations. Technology for BPR Technology for BPR: Whisler (1970) defines information technology as the technology of sensing, coding, transmitting, translating, transforming information. Hammer and Champy (1993) says that information technology is an integral part of reengineering as an enabler since it permits companies to reengineer business process. Davenport & Short (1990) say that Information Technology and BPR have a recursive relationship. Technology for BPR Technology for BPR: It plays an important role by either enabling or constraining successful BPR. IT can also become an inhibitor of Reengineering if the Organizations' IT structure is inadequate or inflexible. IT has the power to break the rules and make people think inductively and give the company a competitive advantage IT can be used to make proactive decisions to improve business performance. Technology for BPR Cross-Functional Team: A cross-functional team is a group of people with different functional expertise working toward a common goal . It may include people from finance, marketing, operations, and human resources departments. Typically, it includes employees from all levels of an Organization. Cross-Functional Team Need for Cross functional Team: Today's corporations have entered a new business era with rapidly changing markets and technology. With this rapidly changing and highly competitive world of business, companies are forced to produce in a timely and error-free manner. There is a never-ending pursuit for perfection with no room for error, as firms must compete for a limited market share for their goods and services. In light of this, traditional corporate structuring must be revised to address the needs of today's market place Need for Cross functional Team New Management Model A shift from functional to cross functional paradigm: New Management Model A shift from functional to cross functional paradigm New Management Model A shift from functional to cross functional paradigm: New Management Model A shift from functional to cross functional paradigm Leading Innovation Empowering Cross-Functional Teams: Cross-functional teams composed of members from different departments Cross-cultural teams composed of members from different cultures or countries. Cross-functional teams are regarded as a means to manage social collaboration and concept creation. Example: Cross-functional teams are teams established to: design and develop new products; chose and implement new technologies throughout organization; to improve the service-profit chain, and to control product costs. Leading Innovation Empowering Cross-Functional Teams Mentoring: Definitions Mentoring is a term used to help, advise and guide employees through the complexities of the business. Mentoring is a mutual learning partnership in which individuals assist each other with personal and career development through coaching, role modeling counseling, sharing knowledge and providing emotional support. Offline help from one person to another in making significant transitions in knowledge, work or thinking. Mentoring Mentoring: Creating possibilities and providing guidance and support to others in a relationship of trust; it includes facilitating, bringing visions to life and enabling people to achieve. A mentor is that person who achieves a one-to-one developmental relationship with a learner; and one whom the learner identifies as having enabled personal growth to take place. A Mentor is a: Friend Philosopher Guide Mentoring Mentoring: Identify your own mentors: Who took an interest in my welfare and development at a time when I was taking on challenges, such as starting a new job? Who has been a useful role model in my life? Who helped me uncover and use a hidden talent or ability? Who helped me face and resolve a difficult situation in my personal and / or professional life? Who challenged me to acquire a new vision and take a new direction? Mentoring A Mentor & A Coach: The Difference:   Coaching earlier seen as a remedial activity; mentoring as positive, developmental intervention. Coaching is seen more skill related, with specific capabilities-linked outcomes Line managers often called upon to coach. Mentoring positioned much more around the whole person and the big picture Line manager, due to performance management responsibility, not seen as appropriate to take a mentoring role. Coaching is normally short term; Mentoring is long term. Coaching addresses specific issues; Mentoring --- larger issues Coaching (the How); Mentoring (the Why) A Mentor & A Coach: The Difference Mentoring: Important aspects of mentoring::  Need to be both people and task oriented hould like to contribute to professional development of others Must be a good listener Have empathy, not sympathy Must be creative Should not injure the mentee’s self-esteem Need political savvy Good at generating alternatives Need comfort at the feeling level Held in high esteem by people working with Don’t make decisions for the mentee Don’t develop dependency Be a role model to the mentee Should have actively sought mentors themselves Mentoring Possible Forms of Mentoring Help: Specific Learning Functions General Career Development function Personal help functions Possible Forms of Mentoring Help Possible Forms of Mentoring Help: Specific Learning Functions Learning technical skills and knowledge Learning current jobs Learning organizational culture Learning organizational policies Being prepared for future jobs / promotions Possible Forms of Mentoring Help Possible Forms of Mentoring Help: General Career Development functions Obtaining challenging tasks Obtaining protection Obtaining sponsorship, recommendations Obtaining endorsement for acts / views – Making career moves Getting achievements showcased Clarifying work / Career goals Possible Forms of Mentoring Help Possible Forms of Mentoring Help: Personal Help Functions Obtaining counseling Obtaining moral support / encouragement Obtaining a Role Model Obtaining praise Obtaining a confidante Achieving friendship Achieving trust Possible Forms of Mentoring Help The Meeting and Sharing process: The Mentor: Listens Questions Summarizes Seeks options Seeks goals Asks for priorities The Meeting and Sharing process The Mentee: Informs Clarifies Listens Lists options Selects goals Prioritizes The Mentee Decides Critical Success Factors: Success factors are a collection of lessons learned from reengineering projects. Reengineering team members and consultants that have struggled to make their projects successful success factors that lead to successful outcomes for reengineering projects. These include: Top Management Sponsorship (strong and consistent involvement) Strategic Alignment (with company strategic direction) Compelling Business Case for Change (with measurable objectives) Proven Methodology (that includes a vision process) Effective Change Management (address cultural transformation) Line Ownership (pair ownership with accountability) Reengineering Team Composition (in both breadth and knowledge) Adequate budgetary support Right people for the right job and the right kind of motivating for people to be creative and apply their knowledge to the redesign of business processes Change tolerance Empowered and collaborative workers Critical Success Factors Strategic Dimensions of BPR : Developing and prioritizing the key business objectives Defining the process structure and assumptions Identifying the tradeoffs between processes Identifying the new product and market opportunities Coordinating the reengineering effort Developing a human resources strategy Strategic Dimensions of BPR BPR Model: BPR Model are of two types: Descriptive Model. Ex: Flight Simulator Symbolic Model: They can be divided into Static Models: Where time is not a factor Ex: Spreadsheets, Queuing Models Dynamic Models: System variables are expressed as a function of time. Ex: Simulation Model BPR Model BPR Model: BPR Model Discrete Event Model : They are of two types Stochastic(Random) Deterministic (Pre-established) Simulation Model: The two types of Simulation Models are Continuous Model : Based on Mathematical equations Discrete Event Model : Based on discrete entities that flow through a sequence of events in time. (Material Handling, Manufacturing). Contemporary BPR Methodologies: Process Reengineering Life Cycle (PRLC) Methodology BPR Methodology Brian Fitzgerald and Ciaran  Murphy (1996) Integrated BPR Methodology by Subramanian Muthu , Larry Whitman, and S. Hossein Cheraghi Chase BPR Methodology K. Evans BPR Methodology Object-Oriented Business Engineering Methodology (OO-BEM) by Ivar Jacobson, Agneta Jacobson and Maria Ericsson Accenture BPR Methodology McKinsey BPR Methodology BPR – Life Cycle Contemporary BPR Methodologies Process Reengineering Life Cycle (PRLC) Methodology : Process Reengineering Life Cycle (PRLC) Methodology BPR Methodology: Muthu , Whitman, and Cheraghi (1999) summarize 5 methodologies: Methodology #1: Underdown (1997) Methodology #2: Harrison and Pratt (1993) Methodology #3: Furey (1993) Methodology #4: Mayer and Dewitte (1998) Methodology #5: Manganelli and Klein (1994) BPR Methodology Methodologies of BPR : Methodologies of BPR PowerPoint Presentation: ABC- Approximate Bayesian computation CHASE BPR METHODOLOGY: CHASE BPR METHODOLOGY BPR Evans Methodology (1993): BPR Evans Methodology (1993) Object-Oriented Business Engineering Methodology (OO-BEM) by Ivar Jacobson, Agneta Jacobson and Maria Ericsson: Object-Oriented Business Engineering Methodology (OO-BEM) by Ivar Jacobson, Agneta Jacobson and Maria Ericsson Reengineering Directive The Reengineered Corporation Accenture BPR Methodology : Accenture BPR Methodology McKinsey BPR Methodology: McKinsey BPR Methodology BPR – Life Cycle: BPR – Life Cycle Baseline Rules : Benchmarking : To provide opportunities to examine practices in other organizatons with similar conditions. Collaborating : to involve stakeholders so that they may see the real impact BPR can have on their work. Communicating : to keep stakeholders informed throughout the various stages of BPR and provide them the opportunity to raise and address concerns. • Meeting : to maintain support from and gain stakeholders sign-offs at each stage of the BPR. Baseline Rules Key Steps in BPR Pilots: Key Steps in BPR Pilots Tools and Techniques of BPR : Process Visualization Flowcharting Waste analysis Ownership Analysis Benchmarking Resource Domination Analysis Force field analysis Pareto Analysis Segmentation Tools and Techniques of BPR Product life cycle analysis Input / Process / Output diagrams Control Systems Design Measures of Performance Design Culture Development Supplier development Postponement and Mass Customization Impact / Ease Analysis Risk analysis Simulation Other Tools and Techniques: Decision Support System Knowledge-based models Work flow reengineering Control Systems Design (A method of identifying appropriate control systems techniques for the new situation) Risk analysis, SWOT, and FMEA (Failure Mode and Effects Analysis) Simulation (One of the methods of testing the new design prior to implementation.) 1. Flow Diagramming-based simulation tools 2. System Dynamics-based simulation tools 3. Discrete Event-based simulation tools Other Tools and Techniques Other Tools and Techniques: Benchmarking (To identify alternative strategies, organization, processes, procedures and methods.) "Flowcharting" (To identify current or future information, material, or document flows.) Change management (Force field Analysis & Relationship Mapping, To identify cultural constraints) Waste analysis (To identify waste in the current process.) Pareto Analysis (also known as the 80/20 rule - a simple technique for choosing the most important changes to make where many possible courses of action are competing for attention) Other Tools and Techniques

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