Summary: Improvement Approaches

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  • 1 BPR

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  • What is the goal of BPR?

    - dramatic improvement in critical, contemporary measures of performance (e.g. costs, quality, service and speed (Hammer and Champy 1993)
    - attain major business goals (Alter 1990)
    - achieve dramatic improvements in organizational performance (lowenthal 1994)
  • How does the BPR approach work? Where is emphasis on?

    focus on customer requirement
    Operation organized around process
      emphasis: on output
  • What is the history of BPR?

    - developed mid 80s 
    - early adopters: IBM, Xerox, Cigna
    - economic presures: forced managers to make radical changes
    - other pressures: increased competition and introduction of new (IC) technologies
  • What are the objectives/opportunities of BPR?

    - (dramatically) reduce costs
    - reduce lead times
    - (dramatically) improve customer services/employee quality of life
    - Reinvent basic rules of the business
    - Increase customer satisfaction
    - Increase organizational learning
  • What to change with BPR?

    • Value adding (for customer) business processes
    • Strategic and value adding processes (Hammer & Champy 1993)
    • key behavior levels of organization: jobs, skills, structure, shared values, measurement system and information technology
  • What are external change conditions for BPR?

    - often pays attention or is initiated by : economic and technical factyors
    - 3 major forces which initiate BPR projects (hammer and champy 1993)
    1. customer expectation
    2. high level of competition
    3. persistent change and pre-requisite in some markets
  • What are internal environmental change conditions for BPR?

    - scope: very large
    - readiness for change: not much attention is payed to this aspect
    - capabilties: top management: top-down leadership style; have to anticipate and cope with resistance
    - power: not key focus since power lies with top management  
    - Capacity: requires high capacity in terms of finances and time
    - preservation: BPR pays no attention to what needs to be preserved in organization
  • What are risks of BPR?

    - political coalition can form and derail change
    - lack of sufficient control to enforce change
    - lack of employee involvement leading to loss of talented people
    - technical incompetence
    - project unpreparedness
    - implementation is costly
    - Project is time-consuming
    - only 1 project an 1 process re-engineered at a time
    - 50-70% failure rate
  • Who initiates the BPR change?

    top management (=change leader)
  • Who implements BPR change?

    lower level managers and workers
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