Business Process Reengineering: Literature Review of Approaches and Applications

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Business Process Reengineering: Literature Review of Approaches and

Applications
Conference Paper · February 2013
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Business Process Reengineering: Literature Review of

Approaches and Applications
Muhammad Nauman Habib and Dr. Attaullah Shah
This study was conducted with the aim to collect and review the work
done so far in the field of BPR. Focus of this study was on providing a
comprehensive overview of overall development of BPR concept,
theories, models, approaches and outcomes, and success and failure
causes.
Design/Methodology/ Approach: study was based on secondary source
i.e. published and available researches in the field of BPR. Research
papers were critically reviewed and then were divided into sub headings
i.e. introduction, why do firm need change, background of BPR, BPR
methodologies, approaches, causes of success and failure, and BPR in
practice (both in public and private sectors).
Research Limitations: Study was restricted to the subject of available
researches (online) and to the specific objective i.e. to review the
progress in this field of BPR mainly management oriented and not to IT or
engineering etc.
Conclusion drawn was based on the previous research studies and it was
concluded that there is no universal approach to the BPR nor can it be
guaranteed that BPR will ensure the success of an organization.
Business Process Reengineering (BPR) is not an unknown word to the business world.
It has been more than two decades since it was introduced for the first time as a tool for
change in American business sector. Hammer (1990) was the first person who
introduced BPR and is considered as a father of BPR. BPR is a tool used for bringing
radical change in the business process and was adopted initially by the private sector
(US- based firms) in early 1990s as an replacement of total quality management (TQM,
a Japanese approach) (Hammer and Stanton (1995)). BPR is said to be a new
approach for the process management that brings radical change (improvement) in
organizational performance.
Hammer, M. & Champy (1993) thinks it as radical change and rethinking of overall
process to achieve overall performance in terms of cost, quality, service and speed,
while Davenport & Short (1990) calls it as a process of analysis and workflow redesign
in an organization. Talwar (1993) on the other hand emphasized on rethinking and
reconstructing the organizational structure, workflow and value chain.
In the era of technology, globalization and rapid change in customer’s need, it is
essential to realize the importance of change. Thus, Change is becoming necessity in
today’s environment of massive competition and drastic technological changes thus, it is
of great concern for the management and consultants to plan accordingly otherwise,
they (company) will get out of competition (out of market). BPR is an important tools
used for incorporating change and had proved to be the significant approaches due to
its features and the results produced by the effective utilization of these approach over
decades. Majed. Al-Mashari, Irani, and Zairi (2001) stated that, every firm wants to
achieve efficiency and effectiveness in reducing cost of production, improving quality of
product and also by providing timely and speedy products and services to the customer
thus, these requirements are well delivered by BPR. Thus, BPR is the only (consistent)
tool (if applied properly) will produce ground breaking results as said by Weerakkody,
Janssen, and Dwivedi (2011).
Gunasekaran and Kobu (2002) argued that the important feature of BPR adaptation is
because of its ability and utilization of Information technology (I.T) and computation. It
has been further stated that the gaining acceptance of BPR as a tool for change is due
to its openness towards the technology. Thus, the major role played in the success of
change process (BPR) is because of its development and ability to incorporate latest
technology.
However, on the other hand, failure rate recorded by Cao, Clarke, and Lehaney (2001)
is as high as 70%. Marjanovic (2000) also found the failure rate of BPR project is as
more than 70% therefore, planning and implementing the BPR properly is necessary.
This paper will focus on reviewing the available literature on BPR and will focus on the
overall development of BPR concept, theories, models, approaches and outcomes, and
success and failure causes. Every reengineering practitioner and BPR experts have
their own way of explaining and using this tool. Similarly, there are differences in the
approaches towards BPR and even various authors has shown differences in the
concepts as well as definitions of this approach (which will be discussed in detail in this
paper).Main objective behind this type of study will be to provide a comprehensive
discussion on the overall work done in parts on BPR in different phases and to identify
the gap so that the interested readers get a holistic insight of this concept and activities
in most comprehensive manner as well as to identify the gap for further study in this
field. Literature reviewed for this paper concentrated on identifying the need for change,
tools and approaches used for bringing change in the organization and the findings of
various studies conducted on the firms which utilized those tools for bringing change
however, the main focus will remain on discussing BPR as a tool for change,
introduction of BPR and development, approaches, methodology, success and failure
factors, and comparison of BPR with other tools used for change.
BPR is the tool for change thus, it is important to construct a base regarding the need
for change and why firms should bring change. The discussion below will start with the
importance of change and then it will be followed by background of BPR, literature on
BPR, approaches and applications of BPR in public as well as private sectors.
Why do firms need to change?

Keith Grint (1997) having his own point of view regarding change and called this as
―fashion‖ where every year a new fashion emerges. Archer and Bowker (1995) stated
that markets are changing drastically and these changes are demanding change in
production, traditional approach towards innovation, adaptation of latest technology to
produce high level of products and services and to adjust business as per market and
global needs. Businesses that do not change their approach are going out of
competition and soon will be vanished. Having a more focused discussion, Zinser,
Baumgärtner, and Walliser (1998) argued that the main cause of change for the firm are
mostly customer focused and that change aims to please, to attract and to retain
customers. Furthermore, bringing innovation for the purpose of maintaining competitive
position and utilization of advanced technologies is another reason. Similarly, some
companies adopt change for quality leadership, cost reduction and very few uses this
(reengineering) for creating differentiation of products and services offered. Similarly,

Marjanovic (2000) conducted a study which supports the fact that business environment
is changing rapidly and it requires companies to change their way of doing business to
meet the expectations of customers and thus be able to survive.
Coulson-Thomas (1995) investigated to find out the type of firm that adopts change and
concluded that it is learning organization which adopts change and believes in
continuous learning and is always ready to accept changes.
Hence, it can be concluded that the need to change arises due to customers
(diversified), competition (local and global) and change (technology) O’Neill and Sohal
(1999). Thus, it is the business environment that is changing with a rapid pace and the
only way an organization can survive continual changes in the business environment is
to learn to manage and take advantage of change effectively. Furthermore, it can be
concluded that change is a continuous process which forces firms to adjust and readjust
there activities (process and services etc.) with every passing day.
During the period of organizational change, mostly the focus of an organization remains
of brining change in the organizational structure, organizational process, policies and
procedure. Subsequently, change can affect humans (employees), system, process,
organizational culture, and part of organization or the whole organization (depending on
the nature of change). To adopt the change and to cope with change, it is necessary to
know what kind of change a company want and to what extent? Therefore, it is
necessary to examine the type of change and the available tools for change.
Smith (2002) explains that organizational change means ―an intentional change in the
way the organization does business that affects the strategic position of the organization
vis-à-vis its competition”. Furthermore, the major organizational changes that are
frequently occurring includes; merger and acquisition, expansion of business (any type),
change in organization culture (including customer orientation), and bringing change in
technology (including ICT), process up gradation or reengineering, structural change,
total quality management (TQM), and change in strategies etc.
There are four major types of change in an internal environment of an organization;
Structural Changes, Strategic Changes, Process Changes, and People-centered
change. These changes are interlinked and change in one can lead to force an
organization to bring change in the other area as well. Process oriented changes are
commonly an attempt to develop overall workflow efficiency and productivity. They may
include implementing technology changes, such as robotics in manufacturing or
requiring sales teams to begin documenting and reporting activities in a new way. Thus,
among all the types of changes, this Process change is having a central value and
importance in an organization and is considered as the most difficult type of change as
well. (CliffsNotes.com).
BPR as a tool for organizational change
Development of BPR
Bhandiwad (1998) argued that in 1970s people were after productivity while in 80s the
trend shifted towards quality while since 1990s almost every organization is at least
talking about ―process improvement‖, ―process redesign‖ or ―process reengineering‖ as
a source (way) to cope with the dramatic changes in technology and competition.
Among various techniques and management approaches BPR is new and most
commonly used in this era of globalization and technology.
Venkartraman (1991) elaborates the birth of BPR in his study as for the first time effort
of BPR was to align the I.T with strategy. This effort started in 1984 during research
program at M.I.T. This was the first time that a proper procedure was developed and
had dramatic results in the 1980’s and 90’s. Later on researchers and scholars had
designed other process by studying and evaluating the outcomes as discussed by
McKay and Radnor (1998).
Grey and Mitev (1995) concluded that there are three essential Cs in BPR i.e.
customers, competition, and change. These Cs are in other word reasons why
companies are adopting BPR. They want to satisfy customer’s need and wants, achieve
competitive advantage and to move with constantly changing environment.
T. H. Davenport and Short (1990); (Hammer, 1990) are the pioneers in the field of BPR
who introduced this concept to the world and are known as the fathers of BPR. Hammer
& Champy (1993) defined Business process Research (BPR) as “the fundamental
rethinking and radical redesign of business process to achieve dramatic improvement in
critical contemporary measures of performance, such as cost, quality, service and
speed”. Another definition of BPR was from T. Davenport (1993), "encompasses the
envisioning of new work strategies, the actual process design activity, and the
implementation of the change in all its complex technological, human, and
organizational dimensions."
Changes in business process are named differently by various authors for example;
Habib (2011) collected the various definitions and approaches and stated that,
―Interpretation of business process varies from author to author (for example Hammer &
Champy (1993) thinks it as radical change and rethinking of overall process to achieve
overall performance in terms of cost, quality, service and speed, while Davenport &
Short (1990) calls it as a process of analysis and workflow redesign in an organization.
Talwar (1993) on the other hand emphasized on rethinking and reconstructing the
organizational structure, workflow and value chain. Petrozzo & Stepper (1994) call it
synergetic and synchronized redesign of firms’ process and overall system to improve
the operations (as cited in Greasley & Barlow, 1998). O’Neill & Sohal (1999) argued that
focus of the business process or change differs among many researchers. Hammer
(1990) called it BPR (Business Process Re-engineering), Davenport & Short (1990)
used BPR (Business Process Redesign), Harrington (1990) used term Business
Process Improvement while Business process transformation term was used by Burke
& Peppard (1993) etc. In all discussion, it is clear that the authors are obvious about the
importance of BPR and all agree on the result i.e. improved performance, efficient and
effectiveness, cost minimization and increase in production. In short it can be said that
radical improvement of organizational performance and process is the key aspect of
BPR‖.
According to Sentanin, Santos, and Jabbour (2008), the concept of BPR originated in
1990s enabling companies to improve productivity and relationships with customers and
reduce time to launch new products and services in terms of cost quality customer
satisfaction and shareholder’s value in link with the strategy by identifying the most
important processes of the company. It is to assess the stages of the company in line
with the processes the company is going through to enable a company for process
improvement process redesign and radical reengineering.
Similarly, Cao et al. (2001) considers BPR as a tool for managing change, increasing
productivity, reducing cost, tool for improving satisfaction of customers and quality of
products produced. Furthermore, Majed Al-Mashari and Zairi (2000) says that, BPR is
about bringing radical (major) change to provide satisfaction to customers, to achieve
competitive advantage, to improve quality of products and services, and to minimize
cost. In struggle for survival in this dynamic business environment, globally $2.2 billion
were spent on BPR between 1996- 2000 with an annual growth exceeding 46%. This
shows the urgency of companies towards adjusting their business in histrionic and
world-shattering changes.
Moreover, Goksoy, Ozsoy, and Vayvay (2012) considers BPR as a strategic tool for
organizational change and stated that firm needs to bring moderate change every year
and undergo a major change almost every fifth year if they want to survive in todays’
hypercompetitive environment.
Thus, BPR, with so many names and differences in the approach leads to create
confusion in the mind of readers therefore, it is necessary to review those approaches
and different schools of thoughts for the purpose to identify the areas of agreement and
disagreements.
Approaches to BPR and Schools of thoughts

Muthu, Whitman, and Cheraghi (1999) in their study focused on presenting a
consolidated methodology for business process reengineering (BPR) however, their
approach was based on the shortcomings of the previous studies and models (see in
table:1) (presented by Furey, Timothy.R., (1993), Harrison, Brian.D., Pratt, Maurice.D.,
(1993), Manganelli, Raymond.L., Klein, Mark.M., (1994), Mayer, Richard.J., Dewitte,
Paula.S., (1998), Underdown, D. R.,(1997)) and provide their own model for BPR.
Muthu et.al,(1999) stated that BPR is the process for those who wants 10 times
improvement thus, it should not be used for minor improvement in business processes.
Before incorporating BPR, the authors insists on having process maps (department
wise) as an important tool for getting insight of the area that needs radical change.
However, authors were unable to provide any evidence that how to develop process
map and how to compare “As-Is business process” and “To-Be roadmap for
reengineering”.
Activity Furey, Timothy.R., (1993), Harrison et. al (1993)
 Set Direction  Determine Customer Requirements &Goals

 Baseline and for the Process
Benchmark  Map and Measure the Existing Process
 Create the Vision  Analyze and Modify Existing Process
 Launch Problem  Design a Reengineered Process:
Solving Projects  Implement the Reengineered Process
 Design
Improvements
 Implement Change
 Embed Continuous
Improvement
Activity Manganelli et. al (1994) Mayer, et. al (1998) Underdown (1997)
 Preparation  Motivating  Develop vision &

 Identification Reengineering strategy
 Vision  Justifying  Create desired
 Technical & Social Reengineering culture
design  Planning  Integrate &
 Transformation Reengineering Improve
 Setting up for enterprise
Reengineering  Develop
 As Is Description technology
& Analysis: solutions
 To-Be Design
and Validation
Consolidated methodology based on previous studies (shown in Table 1) was named

IDEF0 (Integration Definition for Function Modeling) comprised of five steps; prepare for
BPR, Map and Analyze As-Is process, Design To-Be process, Implement and Improve
continuously. However, this model is unable to provide anything new or ground breaking
solutions. As the major focus of this model was to combine the previous work while
authors were unable to add something new to the existing BPR process and model.
Furthermore, the model is followed by series of other models IDEF1, IDEF2, IDEF3 etc.
with the help of ―Structured Analysis and Design Technique (SADT)‖ which is complex
software and is only used for developing model based on information provided.
Moreover, in conclusion of the paper, researchers were unable to provide any validation
and success ratio of this model. BPR is customized approach and is different needs,
implication and varies from organization to organization therefore, it is very difficult to
provide a consolidated model equally applicable in every organization.
Coulson-Thomas (1995) argued that it is learning organization which adopts change
and believes in continuous learning and is always ready to accept changes thus, BPR is
made for such organizations. This study was based on the findings of COBRA
(constraints and opportunities in business restructuring – an analysis), a team designed
to study BPR projects, experiences and studies and report to Commission of the
European Communities. Their task was to organize seminars, workshops, discussion
forums and case based interviews to study current practices, policies and
methodologies of BPR in practice and later on come up with guidelines and suggestions
for private, public and voluntary sectors. 80 cases were examined and BPR was
divided into two sub methods (i.e. Davenport’s BPR approach to process improvement
or process simplification and Hammers’ re-engineering). Comparison of both processes
is given in Table below;
Table: Simplification or Re-engineering

Process Simplification Process Reengineering
 Incremental change  Radical transformation
 Process-led  Vision-led
 Within existing framework  Review framework
 Improve application of technology  Introduce new technology
 Assume attitudes and behavior  Changes attitudes and behavior
 Management-led  Director-led
 Various simultaneous projects  Limited number of corporate
initiative
Despite the vows delivered by reengineering in the field of change, Mansar and Reijers
(2007) focused on the concept of redesign (also known as Business process redesign
(BPR)) which is less fruitful and less risky as compared to reengineering. The focus of
study was to identify the best practices in this field for which a framework was designed
having six major components (i.e. Customers, Products/Operation view, Behavioral
view, External environment, Organization: structure, and Organization: population) as
authors considered them as best practices in implementation. Furthermore, this
framework was based on the selection of ten best practices of BPR in the past (most
frequently used) i.e. Task elimination, Task composition, Integral technology, Empower,
Order assignment, Specialist-generalist, Integration, Parallelism, and Numerical
involvement.
Keith Grint (1997) having his own point of few regarding change and called this as
―fashion‖ and every year a new fashion emerges. Every type of approach i.e. TQM,
BPR, JIT, BSCs (balance score card) and other TLAs (three letter acronyms) are all in
line with any related fashion. These approaches itself possess some characteristics that
are causing problems. Author further divides his work into two categories i.e. waves and
drowning.
Macdonald (1995) argues that the nature of business environment is changing
dramatically, the competitive pressure and demand of customers are increasing day by
day therefore, alone TQM (steady improvement) will not be sufficient and there is a
need for radical change for the organizational sustainability and survival. One of the
misconceptions about process redesign is that most of the firm’s considering it as a
BPR because redesign engages companies in designing cross-functional teams and is
having customer focus as well however, it focuses on redesigning existence processes
for improvement with the help of cross-functional boundaries thus in broader sense it is
what TQM is all about. However, the only difference between process redesign and
earlier approaches is that it uses I.T for development. Lastly reengineering (BPR) is
―fundamental rethink and radical redesign of business processes‖ with an objective to
meet companies requirements that cannot be achieved through improvement processes
with dramatic improvements. Furthermore, dramatic changes via BPR will be achieved
by cutting down product development cycle (50%), reducing delivery time, cost
reduction by 60 to 80%, and at the same time service improvement is what BPR does.
BPR is radical but involves high risk, time consumption, costly while it provides dramatic
results (see Figure).
Failure recorded in this radical change is 50 to 70% however the same is resulted in
TQM. An author suggests that BPR and TQM are ―complementary rather than in
opposition‖. TQM will provide cultural framework for BPR as TQM focuses on change of
behavior and attitude while this change can create a supportive environment for BPR
implementation. As combination of BPR and TQM will overcome the deficiencies of
each other e.g. BPR is management driven while TQM is people driven, BPR is top to
bottom while TQM is bottom top approach, BPR focus of coping with external pressure
while TQM is used to deal with issues that are arises internally thus, to implement
radical change it is essential to create an internal environment and culture supportive.
Thus, the above discussion can be summarized with the statement that there are
differences in the opinion and approaches of scholars. Pruijt (1998) argues that there is
a lot of contradiction between authors’ point of view about BPR. Some authors
interprets and see BPR as ―a break with Taylorism‖, few consider it as a ―direct
continuation of Taylorism‖, other consider it as ―very different from continuous
improvement‖ while there are some who refuses to point out any major difference
between BPR and continuous improvement. According to author, BPR is having four
various identities i.e. BPR as management fad (BPR-F), BPR as a neo-Taylorist
movement (BPR-N), BPR as a euphemism for downsizing (BPR-D), BPR as a non-
normative label for business process oriented change efforts (BPR-P). ―BPR as
management fad (BPR-F) is derived from management consultancy and literature and
there are authors like Peter Drucker, Hammer and Champy believes that BPR is new
and it has to be done. BPR as a neo-Taylorist movement (BPR-N) is considered as a
new or modified form of Taylorist movement where BPR focuses on integration
business process and on cross-functional borders however, in contrast to Taylorism of
division of labor, skills and control, BPR shows no concern over these attributes.
Moreover, BPR focuses on radical change while the fads of change management and
implementation remains same to Taylorism. Taylorism involves HR in decision making
and supporting the role of HR in an organization however, Neo-Taylorism has
characteristics i.e. a top-down streamlining of operations, unproblematic acceptance of
typical Taylorist solutions, asserting that the outcome for workers is an upgraded work
content. Furthermore, BPR-F has replaced TQM largely while there are substantial
difference among TQM and BPR-N (TQM gives control to subordinates, while BPR
does not, Managers who believes TQM is not working have adopted BPR as more
authoritarian approach). BPR as a euphemism for downsizing (BPR-D) is of the point of
view that in either way (directly or indirectly) BPR results in downsizing (in some cases
50 to 90%). In last, BPR as a non-normative label for business process oriented change
efforts (BPR-P) thinks that BPR is not that young phenomenon and it is full of history
where almost every firm has reengineered even before the name BPR was coined.
However, there have been additions to this process and still it remains open for
contribution and refining. Furthermore, there is a wide chance of choosing between
radical and incremental change with the help of workforce (bottom top approach) or
without them (top to bottom). Thus, this means that BPR is not as an axe, it is up to the
choice of decision makers that they swallow BPR as continuation to Taylorism or they
consider it unique.
Methodologies and frameworks

Mansar and Reijers (2007) focused on the concept of redesign (also known as Business
process redesign (BPR)) which is less fruitful and less risky as compared to
reengineering. The focus of study was to identify the best practices in this field for which
a framework was designed having six major components (i.e. Customers,
Products/Operation view, Behavioral view, External environment, Organization:
structure, and Organization: population) as authors considered them as best practices
in implementation. Furthermore, this framework was based on the selection of ten best
practices of BPR in the past (most frequently used) i.e. Task elimination, Task
composition, Integral technology, Empower, Order assignment, Specialist-generalist,
Integration, Parallelism, and Numerical involvement. The aim of the study was to find
out the use and impact of those practices in the field of redesign thus, for investigation,
a survey was designed with the sample of UK and Dutch BPR practitioners (60 from UK
and 31 from Dutch) with an average of 20 years of experience in this field. The
response rate was 20 and 42 % respectively. The results indicated that most of the
concern among BPR framework components was towards the customers and followed
by product and information system (3.72, 3.40 and 3.36 mean respectively). It further
revealed that the most practice of BPR was of task elimination (removal of unnecessary
tasks from the job) with a high percentage of 94, as well as 94 % used was Integral
business technology, followed by task composition (89% used), Parallelism (88%), while
organization structure (order assignment) was the least used best practice by the
practitioners in the field of business process redesign with only 53 % usage by them.
Thus it has been concluded that customers are the key reason for redesigning of
business process and the best practice most frequently adopted for that purpose was of
task elimination (for fast and efficient service) and inclusion of IT in the organization.
However, almost similar is the purpose of most of the organizations that adopted
reengineering and showing the same concern (reason) for incorporating change. Thus,
this study also helped in showing the similarities that are possessed in redesign and
reengineering.
Motwani, Kumar, Jiang, and Youssef (1998) presented a framework on BPR (as shown
in figure bellow) comprising of six phases (stages). At the initial stage (phase 1), it is of
very importance that the top management realize and understand what they want and
why they want it? It is also very important that the top management should show their
full commitment towards the initiative. In the second stage, vision is required to make all
the energy to run in the right direction thus, it is also the task of the top management to
provide a proper vision and objectives to the rest of the employees so that the activities
of the firm are channelized. Third stage is related to the benchmarking, where the
current process and activities are evaluated to find out the areas of real concern and
then establish the baseline for the BPR project. Forth stage is related to transformation
where pilot study takes place and the work is evaluated to calculate the scope of
change and the resources needed for this transformation. When this pilot study is
conducted successfully then stage 5 is about the implementation where the BPR project
is implemented organization wide. This stage is very crucial thus it requires support of
top management and the commitment of middle managers to educate employees,
provide leadership, alignment of the structure, implementation of IT and modification of
reward system so that the integration is completed as a successful project. To avoid
resistance, a proper and continuous communication should be there among all levels of
the organization. The last stage of this model is about monitoring and evaluation of the
whole project where the success of the project is monitored regularly as well as the
areas that needs modification (continuous improvement) are also identified.
Luo and Tung (1999) undertaken a study on devising a framework which will help in
selecting appropriate BPR modeling method with an aim that many organizations are
adopting BPR due to increase in competition and dynamic business environment (local
as well as internationally). Availability of complete information at the time of BPR
planning and then right tools selection for the analysis of situation that best suits
organizational requirements is vital for BPR success. According to authors Business
Process modeling (BPM) is defined as ―The techniques for characterizing and analyzing
business processes‖. There are many methods and software that helps researchers and
practitioners in designing BPM however, selection of right approach to BPR is still vital.
Researchers in this study insist on selecting BPM method that is having desirable
perspective towards BPR and the organizational objectives. Base of this study relied on
several types of business processes suggested by previous studies (Denna et al.
(1995), Davenport and Short (1990) and Curtis et al. (1992)) focusing on different
aspects of BPR process and its objectives. Denna et al. (1995) identified three basic
types: 1 acquisition /payment, conversion and sales/collection (as discussed in the
paper acquisition or payment and sales/collection is having almost similar procedure in

most of the organizations while conversion i.e. production and operation mainly vary
from company to company thus is crucial in nature to the success of BPR project.
Davenport and Short (1990) elaborates business processes in terms of entities, objects
and activities. Entities refer to the consideration of all processes ranging from internal-
personal to inter-functional and above all inter-organizational process. Objects refer to
the type of (physical or informational) area of organization that need to be handled and
activities (operational or managerial) that requires consideration. According to Curtis et
al. (1992) as discussed in study identified most common perspectives of BPR modeling
i.e. functional, behavioral, organizational, and informational. Moreover, authors are of
the opinion that before undertaking BPR one should consider better understanding of
existing process and then mapping new process (alternative) process and preparing
measurement (evaluation) tools. Similar to other studies discussed in literature this
study is also of the opinion not to rely on single model instead of concentrating on
multiple modeling processes. A framework for selecting BPM method should be based
on certain pre-defined objectives that require clear perspective and characteristics for
reengineering. Objectives can be classified into three categories; communication (clear
understanding, simplicity, clarity in terms of process, knowledge and reason for
change), analysis (aim to analyze and improve existing process and identifying the
areas that are of main concern) and control (managing and monitoring the modeling and
later stages).
Salegna and Fazel (1996) argues that although TQM (total quality management) and
BPR are two prevalent techniques used for change but most of the efforts to transform
this effort as a successful projects is turned out as a failure. Authors justify their
statement as being of having lack of integrated framework for implementing those
projects and further due to not having alignment with company’s plan (Vision and
mission), competitive environment, culture of organization and its strategic objectives.
Many of the management teams consider TQM and BPR as mutually exclusive and
choose any one of them however, in the perceptiveness of authors the quality and
reengineering should be unified for sound results. Both approaches will provide
successful results only in case they are properly linked with strategic objectives of
organization and properly planned however, there is difference between the tools and
techniques and the areas that are covered by these approaches. However, both are
known for its payoffs i.e. reduced time-cycle, cost efficiency, customer and employee
satisfaction. For the success of both
Majed Al-Mashari and Zairi (2000) presented a holistic framework for BPR
implementation (See Figure).
It has been proved by above discussion that BPR is having no universal approach,
model or system that can be used for reengineering by firms all across the globe.
Despite of the differences, there are several factors that are considered and reported
time to time as causes of success and failure therefore, it is important to discuss those
factors as well.
Causes of success and failure

Cao et al. (2001) considers that there may not be a single reason that causes high rate
(about 70%) of failure to BPR implementation however; there may be several reason
that contributes to the failure of implementing change successfully. Objectives of this
study were to provide a ―holistic view of managing change‖ and to discuss the possible
methodology for incorporating change. According to the authors (based on previous

studies) organizational change requires change four dimensional change i.e. change in
organizational process, structure or design, change in organizational culture and
change in organizational politics (i.e. change in organizational power distribution etc.). If
one wants to bring change in any dimension, it will raise a need for change in the other
dimension (as they are interrelated and interdependent). However, it is a well-known
fact that every department and function of an organization is interrelated and
interdependent. Subsequently, a negligence towards the other issue may create
problem and will result is failure. Thus, authors of this study suggest not to use a single
method rather insists on use of multiple methods to incorporate change and implement
BPR successfully. However, change in culture is considered to be very difficult to mend
and it is one of the major reasons that were not highlighted in their arguments. This
study concluded that BPR is a process that is used for bringing radical change in an
organization but it is having over emphasis on bringing change in organizational
process and it almost ignores the rest of three dimension that are likely to deal more
frequently with the human (workforce) and behavioral side of organization and suggests
that different approaches should be used for different dimensions of change and the
interaction of different dimension should be considered while bringing change. The
arguments provided in this study are valid to some extent however, the purpose of BPR
is to bring a radical change into every part and process of organization therefore several
researchers are of the opinion to educate the change and provide training before it
takes place (Habib and Wazir (2012))
Belmiro, Gardiner, Simmons, and Rentes (2000) studied BPR in UK and Brazilian
companies who adopted BPR. In both countries, firms are lacking the basic concepts of
BPR and this leads to the birth of so many unanticipated problems and issues and
problems. These issues play role as a barrier and finally a failure to all the efforts. This
is due to more focus on short term objectives rather than long-term orientation, among
the sample firms; stream lining was done successfully but proper reengineering was yet
to be conducted. Ignorance towards HR, team building, job security and organizational
culture are the major causes of failure. This is due to lack of basic awareness and
ignorance of understanding the process flow and not communicating the causes of
redesigning. Thus the researchers recommends that all those companies who are in
thinking or implementing process of reengineering should work on organizational
structure, re-work design, reducing burden and to increase flexibility and
competitiveness, firms’ should reduce the number of layers between company and
client. Furthermore, emphasis should be given to training and education. For educating
and implementing the radical change, top management should play their role. Finally,
authors suggested that educational institutes are having an important role in fulfilling the
market need by providing educated fresh blood to the economy and also in mentoring.
Luo and Tung (1999) stated that, availability of complete information at the time of BPR
planning and then right tools selection for the analysis of situation that best suits
organizational requirements is vital for BPR success.
Majed Al-Mashari and Zairi (1999) conducted an extensive study on the analysis of
success and failure factors of BPR implementation process (both soft and hard factors).
Literature suggests that these factors broadly includes; change management,
management competency and support, organizational structure, project planning and
management, and I.T infrastructure. Change management is one of the most important
factor which plays vital role in successful implementation of any change brought into the
organization. Change management includes adjusted human and social related
changes as well as adjustment to organizational culture. This includes adjusting reward
system to bring motivation, communication channels (top to bottom, bottom to top,
horizontal and vertical), shifting power and accountability to as lower level as possible (
empowerment), involve personal from every level and cross functional departments and
encourage participation, educate employees about the change taking place and provide
them exclusive training (also suggested to increase 30-50% training budget),
organizational culture is an important attribute in change management so common
goals may play an important, and openness to change i.e. positive perception towards
change and support the change process. Management competencies and support is
another important factor in success of BPR. This factor includes; commitment from top
management and transformational leadership having strong will to bring and manage
change, and risk management (planning and managing) skills. Next success factor
defined in this study was of organizational structure including; adequate job integration
approach (organizational structure that is also known as HR infrastructure of an
organization should be adjusted as per need of BPR to support the radical change), to
support BPR firm needs to develop cross functional and effective team (that is skillful,
experienced, competent and credible), and proper definition of job (i.e. job description,
specification) and distribution of responsibilities. Yet another factor which is related to
BPR project management is a very basic and fundamental factor for success and sub
factors in this category includes; creating a link of BPR strategy with organizational
(corporate) strategy and effective planning for project management. To identify and
measure organizational performance and defining goals to achieve will serve as a
benchmark and roadmap for BPR success and it includes; arranging and providing
sufficient resources to achieve goals, organization should setup their own methodology
that best fit to their organization and helps in achieving goals effectively and efficiently,
keeping an eye on external environment (for customer research, analysis of competitors
and setting standards), (if needed) hire the expertise of consultants and take advantage
from their skills, constructing a sound vision for the organization, redesigning the
process effectively that clearly explains the core and supporting process, link BPR with
TQM and Organizational development (OD) etc., and this profit should create values for
all stakeholders. Finally the factor that is known as call of the day i.e. Information
technology is among the most important factor for the success of BPR which includes;
interaction of IT infrastructure with BPR strategy, transforming process with the help of
latest technology, IT induction at every level of organization, developing information
system (IS), and effective use of software tools.
However, same factors may be a cause for failure thus they need to be considered,
planned and worked very carefully. BPR process may fail due to change management
and factors including are; problems with communication i.e. change may not be
communicated properly, failure may be due to poor communication or lack of reward
and motivation, resistance to change is one of the common factor faced by most of the
organization and one of the biggest barrier in change. Furthermore, lack of
organizational readiness for change, cultural changes, and lack of training and
education might be other reasons for failure caused by change management system not
properly management. Support from top management is also found to be a cause of

failure as lack of commitment, support and absence of leadership, championship and
lack of sponsorship from top management might be reasons for failure. Some authors
are of the opinion that organizational structure with flaws might cause failure to BPR as
ineffective BPR teams and problems with integration, lack of description and allocation
of duties and responsibilities are of key concern. Some other factors that may be
caused as failure including; lack of BPR project planning and consideration, lack of
proper modeling and ineffective design of goals, having no or narrow focus on
technology, resource allocation, and selecting wrong I.T structure for organization.
Most of the time reengineering effort fails because of resistance as it is considered as a
threat to middle management. Other reasons for BPR failures are communication gap,
always aiming for profitability from top management while employees resists because
they consider failure as too risky and resulting in bankruptcy, lack of commitment and
lack of coordination among cross-functional groups. Bureaucratic system will not work in
BPR as in process of change organization needs to involve workforce and empower
them. According to author, there is a strong need for empirical work in the field of BPR
to test the theories and concepts in reality as very less focus is on this side of effort
however, the work of authors itself was not empirical Grey and Mitev (1995).
First factor proposed by Hammer and Staton (1995) as success is Reengineering
Leadership. Success of reengineering project’s needs ―process orientation‖ by top
managers. Whenever change is planned in an organization it should be communicated
throughout the organization in a motivating way, so that employees may welcome the
change process (Davenport 1993, Grint et.al 1993). Style of Implementation is the third
factor change should be made according to organizational resources.
Drago and Geisler (1997) also pointed towards the mistakes management is making as
undertaking BPR and therefore it is not that much fruitful to them as it should be. As this
technique is to improve productivity, reduce cost, and improve efficiency and the quality
of goods and services to the end users. Thus, it requires change in organizations’ vision
and mission statements as well as in the whole process. Information technology (I.T)
and adaptation of latest technologies are the key ―enablers‖ of the success of BPR and
it is essential for the survival in todays’ dynamic business environment. Among many of
problems faced by BPR is lack of sufficient preparation. BPR in early 90s was one of
the top most subject (issue) to talk over and thus without estimating the worth of this
process so many companies adopted BPR as a tool for change and ignoring other
change process. The perceived importance given to this process and ignorance of the
other change processes was one of the problem and reason for increase in the chances
of failure. Top management should know what type of improvement they need, how
they want to achieve and what is the best source of achievement of such performance.
There are other problems that includes; lack of proper planning, narrow scope, lack of
direction, improper involvement of I.T, and considering a change as a normal process
may also create problems and results in insufficient planning for BPR. At the time of
implementations, problems that can be faced include; lack of management commitment
towards implementation of BPR, status quo (i.e. not willing to change their attitude),
unable to communicate vision and organizational goal (expectations from BPR), focus
on cost reduction, not utilizing I.T, not supporting employees (involved directly or
indirectly in implementation process), top and middle managements’ unwilling to change
management style, not considering change as a strategic while considering it as

operational process, not justifying paradigm shift and poor team development, and
ineffective decision making abilities are the problems faced during implementation. In
response to problems discussed above, authors in this study suggested that companies
undergoing through radical change should plan effectively each and everything (from
vision till goal setting and also plan the implementation), involve the most loyal and
willing people to change, select areas and emphasize on efficiency and effectiveness,
always keep contingency plans and design effective control system.
However, authors were unable to provide any statistical evidence to the problems and
their ratio (commonality) of occurrences. Moreover, the guideline provided is not
justified. Additionally BPR proves is customized and varies from company to company
(based on requirements) thus, these needs to be tested.
Ranganathana and Dhaliwal (2001) undergone to study the success and failure of BPR
efforts in Singapore because of the fact that Singapore has been ranked very high on
the basis of technology use and is one of the top competitive country. Findings of
survey revealed that 64 firms (i.e. 50.4%) were having BPR projects while 37 firms
(29.1) had strong intentions for BPR projects in near future while this ratio was less in
USA (45%). Findings also revealed that private MNCs and other small local businesses
are having more of BPR (current) projects than public sector firms (having intention to
undertake BPR within 3 years). BPR was used by manufacturing firms (29.82%
implemented and 40% planned intention) more than others followed by, retailing
(21.05% on going and 8.57% planning to undertake) and financial sector (17.54%
undertaken while 20% planned). Furthermore, the major motive behind BPR project in
Singapore was found to be for improving efficiency (mean= 4.40) followed by customer
service improvement (mean of 4.08), cost reduction (mean of 3.68), and lastly to
increase profitability (3.56). Additionally, question was asked from the respondents to
identify the role of key members in BPR efforts (top management, IS executives,
functional executives and external consultants) and the findings were that the
respondents consider top management to act as initiators and as BPR champions while
the role of IS executives should be of BPR project coordinators and facilitators, role of
functional executives was defined to be of communicators mostly and the role of
external consultants should majorly be of project facilitators. Finally, the problems in
BPR effort were found to be of lack of adequate human and financial resource
(mean=3.24) as a major problem and followed by having no capable IT expertise in the
firm (with mean of 3.21), lack of support (3.19), lack of BPR champion (3.18),
cooperation between cross-functional teams (3.18), difficulty in adopting right process,
organizations’ supportive structure, lack of vision, and least problems were arise from
lack of adequate IT infrastructure in the firm.
Abdolvand, Albadvi, and Ferdowsi (2008) assessed the readiness of two companies
from Iran towards the BPR and to understand the degree of success and failure factors
effect on the readiness. These factors were derived from previous studies, CSF was
categorized in four main and 17 sub categories (factors) while only one failure factor
(category) of resistance to change was taken for this study (see figure below).
Ahmad, Francis, and Zairi (2007) conducted a study on identification of CSF of BPR in
higher educational sector. It was found that the common CSFs were;
 Teamwork and quality culture
 Quality management system and satisfactory rewards (motivational incentives)
 Change management (very difficult to deal with HR)
 Less bureaucratic and participative
 IT/ IS
 Project management
 Adequate financial resources
As these CSFs are proved to be the most significant contributors in the higher
educational institutes of Malaysia and the previous studies has also confirmed that they
are important for the success of BPR regardless on sector, firm or departments. Authors
have also suggested that for better results, OD (organizational development) for
managing change in the organization so that employees gets satisfied in all aspects and
they get the right amount of information as required.
BPR in practice (Public and private sector)

MacIntosh (2003) examined BPR project and its applications in both private and public
sectors of UK (United Kingdom), from private sector a manufacturing firm was selected
while from public sector two higher educational institutes were selected for study.
Number of staff involved during planning of BPR were; In FixCo there were 15 (all stuff
later on involved in training and implementation), while in Edu1 there were 12 (35 in
process of redesign) and in Edu2 were 18 (37 in implementation). However, time of
adaptation varied significantly i.e. October 1993-May 1995 (FixCo), November 1996-
March 2000 (Edu1) and March 2001-January 2003 (Edu2). Common attribute in all
these processes are the cross-departmental interaction and increasing value for end
user. Model used were also different (i.e. FixCo used IDEF0 designed by consultants,
Edu1 used DFD (Data Flow Diagrams) with the help of planning team while Edu2 used
flow charts designed by internal planning team. Process mapping was done with the
help of generic (FixCo) and context specific (edu1 and edu2). FixCo and edu2 used
BPR as radical change while edu1 used it for incremental change. Thus the result
shows that there were significant improvements in performance of FixCo and edu2
while no improvements were recorded in edu1. Furthermore, FixCo and edu2
readjusted their organizational structure according to the need of radical change while
edu1 had brought no change in structure moreover, roles were also redefined in these
organizations except edu1 and time taken at implementation of BPR in edu1 was more
compared to rest of the firms in this study.
Study of Archer and Bowker (1995). has shown an important aspect of BPR and its
result i.e. BPR should be used for radical change not for incremental change and
organizational structure should also be adjusted as needed. Furthermore, roles must be
defined and it should be implemented as soon as it is planned and communicated.
However, the sample organizations selected were not as they were supposed to be i.e.
either all sample should be from higher education or from production.
A method (comprising of five steps) to undertake BPR project i.e. Prepare study,
Analysis of current business processes, Redesign the processes, Implement
redesigned processes, and continuously improve the process while the method
suggested by Burke and Peppard comprised of four steps i.e. Have a vision, Identify
and understand the current business processes, Redesign the processes, Implement
redesigned processes. Furthermore, the results stated that most of the firms’ consider
technology (IT) as an important factor of BPR. Moreover, study also revealed that there
are many critical success factors for any BPR project i.e. communicating a clear vision
100%, staff participation 100%, instilling process ownership 95%, process improvement
teams with staff from all levels 90%, instilling a BPR culture 90% and organizing staff
around the process 90%.
K. Grint and Willcocks (1995) said that ―The reengineering process should be scoped
correctly‖. Project members should be authorized to take decisions for making change
in management systems before implementation of reengineering projects. Change
should be made according to organizational resources. Research design of this study is
quantitative. Online questionnaire was used. Senior managers and project leaders were
the population of the study. 1000 Australian both public and private organization’s top
managers and project leaders were taken as sample. 69 % of respondents stated that
decision of reengineering process is taken in their organizations for ―cost reduction‖.
While increase in ―worker productivity‖ is the second important factor (46%) followed by
increase in ―satisfaction level of customer‖ was third factor (45%), fourth factor was
―cycle time reductions‖ (36%) and fifth factor was ―defects reduction‖(24%).
Hammer and Stanton (1995), stated that three factors scores should be more than 24,
28, and 18, respectively, with the total more than 75 if the firm want to go for
reengineering process. Results have shown that Hammer and Stanton have set their
―threshold scores‖ very high. In a two tailed correlations test results showed that all
correlations between the four readiness variables are significant at the 0.001 level.
―Correlations with success are negative.‖ Then linear regression is used, adjusted R-
square results showed that for these regressions it was poor, for senior managers it is
0.097 (n=132) and for project leaders it is 0.028 (n=95). Hence it showed that Hammer
and Stanton’s ―diagnostic variables are not good predictors of success of reengineering
projects.
Jurisch, Ikas, Palka, Wolf, and Krcmar (2012) conducted a study to identify the success
factors of BPR in both public and private sectors with the help of previous studies and to
highlight the majors elements that are required for successful implementation of BPR in
public sector. Study was based on 67 previous published research papers (29 public
sector, 16 private and remaining were general). However, the selections of papers were
not on the basis of most citation rather it was on the availability and relevancy of title
and abstract. Findings (analysis of previous studies) of this study revealed that there are
five dimensions;
1. Project scope: before starting BPR, its scope must be defined along with the
realistic expectations, clear vision and goals.
2. Top management commitment: is one of the most important dimensions for the
success of BPR.
3. Availability of resources: sufficient resources (BPR know-how, I.T, and others)
are also required to insure success.
4. Project management: plays vital role at the implementation phase (particularly
process analysis and suitable implementation mapping)
5. Change management: plays exclusive role in the success of change process
Sub-categories of these dimensions are shown in figure below. According to the
authors’ finding, top management commitment and support is the central dimension
while the remaining revolves around it.
Upon further investigation, authors’ found that there is significant difference in the
approaches of public and private sector BPR projects and this is the major reason for
differences in success ratios of both sectors (See figure below). On the basis of
dimensions found in literature authors concluded five propositions for successful
implementation of BPR in public sector;
Proposition 1: Public organizations are less likely to initiate BPR efforts,
Proposition 2: Public and private organizations derive differing benefits from BPR
projects.
Proposition 3: BPR efforts need to be initiated top-down in order to guarantee economic
as well as political support and feasibility.
Proposition 4: A small-scale approach to BPR will increase success rates of BPR
endeavors in the public sector and,
Proposition 5: Sharing of knowledge and experiences via trans-institutional knowledge
management platforms would positively impact the implementation of BPR in public
administrations.
Thus, BPR in public sector is not different from private sector however, the situations
are different and the reasons for adaptation vary among these sectors. Furthermore, no
breakthrough discussion was revealed in this study. However, in some cases public
sector firms are directly in competition with private sector e.g. Pakistan International
Airline (PIA), Pakistan steel mills etc. needs to adopt similar BPR as adopted by private
sector. Moreover, there is a strong need for empirical study to testify the propositions
that are elaborated from previous studies.
Conclusion
In this paper, BPR was discussed in depth and width from its origin to the practical
implantation and results. Literature showed that BPR is universal approach however; it
is lacking agreement between researcher’s point of view as well as practitioner’s
approaches. Different authors are having their own explanation and methodology for
BPR and similarly it is concluded from the literature that BPR is customized approach
i.e. every firm is using it in their own way to fulfill their requirements and needs.
Furthermore, it is also found that the concept of BPR is mostly misunderstood and it is
used just for IT induction or redesign of an organization. There is still a need for
exclusive and universally acceptable model for BPR as well as a commonly applicable
methodology.
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Muhammad Nauman Habib Attaullah Shah

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Judicial Efficiency and Leverage View project

PhD Thesis View project

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Business Process Reengineering: Literature Review of

Why do firms need to change?

(reengineering) for creating differentiation of products and services offered. Similarly,

BPR as a tool for organizational change

Approaches to BPR and Schools of thoughts

 Set Direction  Determine Customer Requirements &Goals

Activity Manganelli et. al (1994) Mayer, et. al (1998) Underdown (1997)

 Preparation  Motivating  Develop vision &

Consolidated methodology based on previous studies (shown in Table 1) was named

Table: Simplification or Re-engineering

Methodologies and frameworks

paper acquisition or payment and sales/collection is having almost similar procedure in

Causes of success and failure

methodology for incorporating change. According to the authors (based on previous

properly management. Support from top management is also found to be a cause of

management style, not considering change as a strategic while considering it as

BPR in practice (Public and private sector)

Ranganathana, C., & Dhaliwal, S. J. (2001). Asurvey of business process reengineering

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