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Reengineering

nizational structures—to achieve a dramatic improvement Implementing solution—Larger-scale pilots and
in business performance. BPR has been described as a rad- phased implementation, measurement systems,
ical new approach to business improvement, with the full implementation in all relevant aspects of the
potential to achieve dramatic improvement in business company
performance. BPR should not be considered downsizing,
Instituting continuous improvement strategy—Ongo-
restructuring, reorganization, and/or new technology. It is ing improvement and measurement of new
the examination and change of five components of the
processes and systems
business strategy, process, technology, organization, and
culture. Many companies continue to experiment with
reengineering, even if they have failed in previous FACTORS FOR SUCCESS
attempts. Several key factors affect the success of BPR. The objec-
tives of reengineering should be specified clearly, such as
MOTIVATION FOR improved customer service, reduced costs, and improved
REENGINEERING quality of work performed. Also required are management
The motivations for reengineering are many, including to: support and vision; a strong, committed project leader;
clearly established objectives; organized change manage-
• Reduce costs/expenses (the most cited business- ment; and an effective methodology. Team members must
driven reengineering project goal)
share a clear vision of the objectives and goals, have a com-
• Improve financial performance mon focus and understanding of what is to be done, and
• Reduce external competition pressure support the project. Activities critical for broad acceptance
of what is proposed include: (1) constant and relevant
• Reverse erosion of market share
communication, (2) employee training for implementa-
• Respond to emerging market opportunities tion of reengineering outcomes, and (3) transition plan-
• Improve customer satisfaction ning, including reevaluating short-term goals and targets.
• Enhance quality of products and services
FACTORS THAT LEAD TO FAILURE
REENGINEERING PROJECT Factors that contribute to unsuccessful efforts in BPR are
GUIDELINES failures in:
A common approach for a BPR project includes the fol- • Change management—insufficient attention to
lowing phases:
proper design and implementation
Planning and launching—Team selection, objective • Technological competence—inadequate identification
setting, scope definition, methodology selection, of what is needed
schedule development, consultant selection,
• Strategic planning—limited view of range of plan-
sponsor negotiations, change management plan-
ning, team preparation ning prerequisite for strategy
• Time frame—inability to predict optimum time
Current state assessing and learning from others—
High-level process definition, benchmarking, required
customer focus groups, employee focus groups, • Management support—range of management
technology assessment involved is too narrow

Designing solution—Process design, enabling tech- • Human resources—erroneous assessment of quality of
nology architecture, organizational design, job in-house personnel
design
• Process delineation—lacks sufficient specificity to be
Developing business case justification—Cost and ben-
informative
efit analysis, business case preparation, presenta-
tion to key business leaders • Tactical planning and project management—unskillful
in identification of relevant aspects
Developing solution—Detailed process definition,
system requirements writing and system develop-
ment, training development, implementation KEY OBSTACLES TO SUCCESS
planning, operational transition plan, pilots and Experiences in planning and executing reengineering proj-
trials ects have shown that key obstacles to success are:

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 639