Why BPR fails so often

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Why BPR fails so often?:

Why BPR fails so often? Joanna Gandecka CIS 6108 College of St. Scholastica 4/15/2013

What is BPR?:

What is BPR? BPR – Business process redesign/reengineering “Thorough rethinking of all business processes, job definitions, management systems, organizational structure, work flow, and underlying assumptions and beliefs. BPR's main objective is to break away from old ways of working, and effect radical (not incremental) redesign of processes to achieve dramatic improvements in critical areas (such as cost, quality, service, and response time) through the in-depth use of information technology”

Why should we redesign?:

Why should we redesign? BPR if done correctly can be very effective and positive. Success stories: Duke Energy – the customer service respond time as well as quality of work improved after major redesign IBM – redesign allows faster and more efficient work (from 7-days to 4 hr )

Why reengineering fails?:

Why reengineering fails? Two major points: The actual reengineering process The human factor “The mistakes are all there, waiting to be made.” - Sergei Tartakower

Failure due to the process:

Failure due to the process Trying to fix a process instead of changing it Not focusing on the business process Ignoring impact on other processes/scope Quitting too early/settling for minor results

Reengineering takes time:

Reengineering takes time http://icandoalliwant.tumblr.com/post/47364237379/positivelifetips-its-a-process-its-a-process

The Human Factor:

The Human Factor Wrong person in the leadership position Trying to make reengineering happen from the bottom up Neglecting people’s values and beliefs Individual resistance

Common cause of Reengineering failure:

Common cause of Reengineering failure James Champy in an interview by Kinni (1994) said that the main reason for failure doesn't live in the design. It however is the implementation. Even if it has worked in the lab taking it to thousands of people is not an easy process. Management needs to be involved and consistent in the execution of change.

Risks associated with BPR:

Risks associated with BPR Financial Risk Technical Risk Project Risk Functional Risk Political Risk

Summary:

Summary Peoples habits are important and need to be put into consideration. Know gain vs risk for the BPR project It is a full change not just a quick fix It will take time

References:

References Clemons, E. K., Row, M. C., & Thatcher, M. E. (1995). Identifying Sources of Reengineering Failures: A Study of the Behavioral Factors Contributing to Reengineering Risks. Journal of Management Information Systems, 12 (2), 9-36. Hammer, M., & Champy , J. (2001). Reengineering the corporation: a manifesto for business revolution . New York: HarperBusiness . Hammer, M., & Stanton, S. A. (1995). Beating the Risks of Reengineering. Fortune, 131 (9), 105-114. Kinni , T. B. (1994). Reengineering: Righting wrong organizations (Vol. 243, pp. 14): Penton Publishing. Kock , N. (2007). Systems analysis and design fundamentals: A business process redesign approach. Thousand Oaks, CA: Sage Publications .

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