Module: BPR Principles, Techniques And Methodologies
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Learning Objectives
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The fourth lesson in the
course on Business Process
Re-engineering explains the
principles, techniques and
methodologies used in a
BPR project.
After completing this topic,
you will be able to:
 State and define the
various BPR
principles
 Explain
implementing BPR
principles to gain
benefits
 Enumerate BPR tools
and techniques
 Explain various BPR
methodologies
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Module: BPR Principles, Techniques And Methodologies
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Introduction
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The ultimate goal of process
design is to suggest one or
many alternative solutions
to a given situation. The
best alternative should
satisfy the goal of the
organisation after taking
into consideration
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Module: BPR Principles, Techniques And Methodologies
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requirements already
changed or likely to be
changed. This lesson will
help us look at some of the
principles which govern the
creation of such
alternatives.
A methodology helps in
streamlining the plan for
placing the various process
elements in
synchronisation. A BPR
methodology gives us a
structured framework,
which provides a step-bystep roadmap that ensures
consistent and correct
results.
This lesson will enable us to
understand the approach to
be used for a BPR project.
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Principles of BPR
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Ultimate Solutions is thinking
about initiating a BPR project.
However, it is unsure about the
principles that it needs to follow
in a BPR project.
If you were an external
consultant entrusted with
helping the BPR initiative what
principles can you possible think
off in regards to a BPR project?
Think of some options and then,
Click the Principles of BPR
button to know more.
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Principles of BPR
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Principles of BPR
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Organise around outcomes not tasks
Assign one person or team to a task.
E.g. A sales representative at a cell phone store,
helping a customer choose a cell phone, packing
the cell phone for the customer and providing the
bill for the purchase.
Have those who use the output of the
process. To perform the process
In a reengineered system, a user is not
dependent on other department or function to
perform a task.
E.g. In a reengineered process, a marketing
manager would not have to submit a purchase
requisition to the purchasing department.
Merge information processing work into the
real work that produces the information
When the information processing work is merged
into the real work that produces information, the
probability of errors is reduced.
E.g. The person verifying the integrity of a
certain system should also file the report about
the integrity of the system.
Treat geographically dispersed resources as
though they are centralised
Decentralised divisions of an organisation are
inefficient since they maintain their own
information systems.
For e.g. Each of Hewlett-Packard’s fifty
manufacturing unit had its own purchasing
department increasing costs.
Link parallel activities during the process,
rather than at the end of the process
Perform multiple activities concurrently using
shared databases.
For e.g. Install a video-teleconferencing network
for two teams working in different locations on a
major project.
Put the decision point where the work is
performed and build control into the process
Delegation of decision-making powers with proper
control parameters in the process can greatly
speed up business processes.
For e.g. An employee working on a project should
be allowed to make a change in the software
application after conferring with his colleagues
without approaching a manager.
Capture information once at the source
Maintain or create information at one central
point which can be used by different functions in
an organisation.
Module: BPR Principles, Techniques And Methodologies
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For e.g. The customer records for a cell phone
company can be used by the billing, marketing
and collections department of the company.
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Principles of BPR in 1990s
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The principles of Business Reengineering emerged during the
early 1990s. Given below is a list
of some important principles
(Coulson-Thomas, 1994).
Click the Principles of BPR in
1990s button to know more.
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Principles of BPR in 1990s
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Principles of BPR in 1990s
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

Externally, focus on greater value for end
customers
Give customers and users a single point of
contact to harness resources and people
Internally, focus on harnessing more of
the potential of people and applying it to
those activities that identify and deliver
Module: BPR Principles, Techniques And Methodologies
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value to customers
Think and execute as much activity as
possible horizontally
Remove non-value added activities,
undertake parallel activities, speed up
response and development times
Concentrate on outputs rather than inputs
and link performance measures and
rewards to customer related outputs
Give priority to the delivery of value rather
than the maintenance of management
control
Network related people and activities and
virtual corporations are becoming
commonplace in some business sectors
Implement the system of work teams and
case managers extensively throughout the
organisation
Move discretion and authority closer to the
customer, and re-allocate responsibilities
between the organisation, its suppliers and
customers
Encourage involvement and participation
Ensure that people are quipped, motivated
and empowered to do what is expected of
them
Wherever possible, people should assume
full responsibility for managing and
controlling themselves
Work should be broadened without
sacrificing depth of expertise in strategic
areas
Avoid over-sophistication
Keep the number of core processes to a
minimum
Build learning, renewal and short feedback
loops into business processes
Ensure that continuous improvement is
build into implemented solutions
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Process Project Management
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Process Project
Management is normally
divided into two steps
(
):
 Vision and Goal
Setting
o Vision should
be rooted in
the guiding
principles
o Vision
statement
should be
forwardthinking in
approach
o Scope and
objectives for
the BPR
should be
well-defined
and
understood
o BPR projects
should be
actionable
o The team
which
prepares the
vision
statement
should be
contain
individuals
with different
skills
 Identifying
Processes for Reengineering
The following criteria
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Module: BPR Principles, Techniques And Methodologies
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needs to be applied
for identifying
processes for reengineering:
What processes are
currently most
problematic?
What processes are
critical for objective
accomplishment and
have the greatest
impact on
customers?
What processes are
likely to be
successfully
redesigned?
What is the scope of
the Process Project
and what is the total
cost involved?
What are the
strengths and
weaknesses of the
re-engineering team
and what is the
commitment level of
the process owners
and the sponsors of
the BPR project?
Can continuous
improvement deliver
the required
improvements?
Is the process under
question outdated or
is the technology
which is used to
implement the
process outdated?
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Factors/Enablers of a Re-engineering Project
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Normally, the factors
that enable a BPR project
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are:

Information
Technology (IT)
 Organisational
cultures and
procedures
 Skills of BPR
practitioners
 Understanding of the
current processes
Creation of New Process
Designs
After studying the current
processes, the team can
start designing new
business processes. The
approach, normally followed
in this regard is:
 Start with a ‘clean
slate’
 Suspend current
rules, procedures
and values while
thinking of new ones
Implementation of BPR
projects (
)
After the processes are
redesigned, the
implementation of the
reengineered processes is
undertaken. During this
step ‘Management of
Change’ is an important
task. The support of the top
management is required all
throughout.
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While creating new processes,
the following techniques are
followed:
 Indicative Thinking
 Flow Charting
 Creative Process
Redesign
 Process Benchmarking
 Simulation
 Re-engineering Software
To understand the similarities
and differences between Re-
Process Redesigning Techniques and Tools
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engineering and Continuous
Improvement, Click the
Similarities and Differences
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Module: BPR Principles, Techniques And Methodologies
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IT provides a lot of
computer-based tools,
which can be sued during a
BPR project. These tools
enable different people to
work together and share
information.
During the planning phase,
there are different activities
are included in which
collaborative tools can help
by disseminating
information to the entire
organisation and avoids
mistakes such as not
involving all concerned
directly with the project
(
).
During the analysis phase
also there are different
activities where
collaborative tools can help
(
).
Examples of Generic
Collaborative Tools
 Chat (Audio and
Text)
 Whiteboard
 Bulletin Board
 Video
 Discussion Groups
(newsgroups)
 File Sharing Tools
 Presentation Tools
 Application Sharing
 Text Tools
 E-mail
 Instant Messaging
385
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activities
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Unit-6,
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Collaborati
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During
Planning
Phase
 Con
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ma
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Business Engineering Project Management
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Y
One way to classify BPR projects
is based on their organisational
scope (Ponce-de-Leon / Rai /
Melcher, 1995), which can be
narrow or broad.
Another way is to classify by
objective (Johansson / McHugh /
Pendlebury / WheelerIII, 1993).
To know more, Click the
Classification of BPR Projects
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Rows describe the organisational view. Columns
describe the objectives view.
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BPR Methodologies
X
Y
Based on the approaches
mentioned in the previous
screens listen below are four
representative
methodologies from the
academic, consulting and
user fields (
).
Click each methodology to
know more.
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Module: BPR Principles, Techniques And Methodologies
Page 27 of 42
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The Hammer/Champy Methodology
Popup Description Text
Hammer and Champ define BPR as ‘a fundamental
rethinking and radical redesign of mission critical
business process’ (Hammer/Champy, 1993). Their
methodology breaks the project into six steps:
 Introduction to Business Re-engineering
— The current business situation is described
and the actions to be taken are outlined. The
vision for the company is introduced
 Identification of Business Processes —
The broad picture of how processes interact
within the company and in relation to the
outside world is identified
 Selection of Business Processes —
Processes, which once reengineered, will lead
to high value for company’s customers, are
selected
 Understanding the Selected Business
Processes — The performance of the current
processes as opposed to what is expected
from them in the future is scrutinized
 Redesign of the selected Business
Processes — The processes selected for
redesigning are redesigned with creativity and
lateral thinking
 Implementation of the Redesigned
Business Processes — According to this
methodology, implementation will be a
success once the first five steps are completed
properly
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The Davenport Methodology
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The Davenport Methodology
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Davenport places great emphasis on Information
Technology to the success of BPR. However, he also
states that organizational and human resource issues
are more central than technology issues. His
methodology covers six steps:
 Visioning and Goal Setting — Focus all
subsequent actions on company vision and
process goals. Cost cutting is considered
important. However, cost cutting should not
be at the cost of worker satisfaction, reduction
of time requirements and improvement of
process performance
 Identification of Business Process —
Module: BPR Principles, Techniques And Methodologies
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Page 28 of 42
Identifies the business process which should
be reengineered
Understand and Measure Process — Exact
functioning and performance of selected
business process is studied. This step is
differentiated from the Hammer/Champy
methodology because Davenport asks to
ensure that old practices are not ‘reinvented’
Information Technology — Study the
applicability of IT tools and applications for
the newly designed work process
Process Prototype — Design a functioning
prototype of the new Business Process for
further enhancements
Implementation — Implement the tested
prototype on a company-wide basis
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The Manganelli/Klein Methodology
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The Manganelli/Klein Methodology
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Manganelli/Klein emphasize concentration only on
those Business Processes that directly support the
strategic goals of the company and customer
requirements. The Manganelli/Klein Business Reengineering methodology Rapid-Re which is
supplemented by the Rapid-Re Re-engineering
Software toolset for Microsoft Windows, traces five
steps:
 Preparation — All persons directly involved
to define goals and to prepare for the BPR
project
 Identification — Define a customer oriented
process model of the organisation, as well as
select key business processes for redesign
 Vision — Define the current performance
level and the target level for the processes
 e-Design
o Technical Design — IT design to
support new processes
o Social Design — Design new work
environments for the people, including
organisational and personnel
development plans
 Transformation — Implement the
redesigned processes and work environments
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The Kodak Methodology
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The Kodak Methodology
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The Kodak organisation developed a BPR
methodology, inspired by Hammer/Champy, which
has five steps:
 Project Initiation — Covers project planning
and definition of all project administration
rules and procedures
 Process Understanding — Select a project
team, design a comprehensive process model
and assign process managers responsible for
the redesigned processes
 New Process Design — Redesign selected
Business Processes taking into account the
potential of IT
 Business Transition — Implementation of
newly designed processes
 Change Management — This step is
performed parallel to the first four steps
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Module: BPR Principles, Techniques And Methodologies
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Comparison of Different BPR Methodologies
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The four representative
methodologies assume that BPR
projects are being initiated by
the top management and carried
out by specially formed project
teams. To know more about the
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Comparison of Methodologies
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The comparison shows many
similarities:
 Approach is liner
 Similar to IT
implementation projects
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Which one of the following techniques is not used
while creating new processes?
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Indicative Thinking
2
Lateral Thinking
3
Flow Charting
4
Process Benchmarking
5
Re-engineering Software
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Option 2
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Module: BPR Principles, Techniques And Methodologies
Page 38 of 42
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Lateral Thinking is not used while creating new
processes.
Great! Lateral Thinking is not used while creating new
processes.
MRQ
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Which of the following are factors that enable a
BPR project?
Option Text [?]
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1
Information Technology (IT)
2
Organisational cultures and procedures
3
Customer request
4
Skills of BPR practitioners
5
Understanding of the current processes
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These are the factors that enable a BPR project.
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Module: BPR Principles, Techniques And Methodologies
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In this lesson, the
principles, techniques and
methodologies associated
with BPR were discussed.
The principles of BPR now
and in 1990s were
highlighted. The two steps
of process project
management were
discussed. The different
enablers of BPR were listed
and the different techniques
were listed. Different
methodologies such as:
 The
Hammer/Champy
Methodology
 The Davenport
Methodology
 The Manganelli/Klein
Methodology
 The Kodak
Methodology
were listed, explained and
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Module: BPR Principles, Techniques And Methodologies
Page 41 of 42
compared.
The different collaborative
tools in IT were listed. The
different ways to classify a
BPR project were listed and
their differences were
highlighted.
You have come to the end
of this topic. Please use the
Exit button to quit the
program or use the Menu
button to access the course
menu.
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