Chapter 5 Business Process Change

CHAPTER 5
BUSINESS PROCESS
CHANGE
Prepared by:
MS. NELDA A. ROSIMA
iNSTRUCTOR
What is organizational structure?
 A system that outlines how certain activities are directed in
order to achieve the goals of an organization.
 Determines how information flows between levels within the
company.
 Defines each employee’s job and how it fits within the overall
system.
Types of organizational structures
include:
a. Functional
b. Divisional
c. Team-based
d. Flat (Flatarchy)
e. Matrix structures
f. Circular
g. Network
What is Process
 A process is a cross-functional interrelated series of activities
that convert business inputs into business outputs
What is a Business Process
 A group of logically related tasks that use the firm's
resources to provide customer-oriented results in
support of the organization's objectives
 is a step-by-step outline of a specific business
function within a company. This process may
include both manual an automated step. A business
process change is a modification to a company's
existing business process. (Holmes, Troy, Sept. 2022)
Method Study Questions for
Process Analysis
 What does the customer need?
 operations are necessary?
 Can some operations be eliminated, combined, or simplified?….
 Who is performing the job?
 Can the operation be redesigned to use less skill or less labor?
 Can operations be combined to enrich jobs? ….
 Where is each operation conducted?
 Can layout be improved?
 When is each operation performed? Is there excessive delay or
storage?
 Are some operations creating bottlenecks?
 How is the operation done? Can better methods, procedures, or
equipment be used?
What is Product Process Matrix
 Merges the product life cycle which encompasses all
aspects of the product development process from ideation
to a product’s growth or decline with the process lifecycle,
the progression towards a more cost-effective and
productive standardized structure.
 Developed by Robert H. Hayes and Steven C. Wheelwright.
4 process stages
Objectives of BPR:
Speed
 Flexibility
 Quality
Innovation
Productivity
Characteristics of BPR
Radical Improvement
 Integrated Change
People Centered
Focus on End-Customers
Process-Based
Radical Improvement
 Sustainable
 Process improvements need to become
firmly rooted within the organization
 Stepped Approach
- Process improvements will not happen over night they
need to be gradually introduced
- Also assists the acceptance by staff of the change
Integrated Change
 Viable Solutions
Process improvements must be viable and
practical
 Balanced Improvements
Process improvements must be realistic
People-Centered
➢ Business Understanding
➢ Empowerment & Participation
➢ Organizational Culture
Process Based
 Added Value
BPR Initiatives must add-value over and above the
existing process
 Customer-Led
BPR Initiatives must meet the needs of the customer
Focus on End Customers
 Process improvements must relate to the needs of the
organization and be relevant to the end-customers to
which they are designed to serve
BPR Life Cycle:
Success Factors Of BPR
 Clear Vision for Transformation

 Reduction of Cycle time
 Greater Accuracy
 Increased customer satisfaction
 Reduced cost
 Change Management
Implementing a BPR strategy
Key Steps
 Select The Process & Appoint Process Team
 Understand The Current Process
 Develop & Communicate Vision Of Improved Process
 Identify Action Plan
 Execute Plan
Select the Process & Appoint
Process Team
 Two Crucial Tasks
Select The Process to be Reengineered
Appoint the Process Team to Lead the Reengineering
Initiative
Select the Process
 Review Business Strategy and Customer Requirements

Select Core Processes
Understand Customer Needs
Don‟t Assume Anything
 Select Correct Path for Change
Remember Assumptions can Hide Failures
Competition and Choice to Go Elsewhere
Ask - Questionnaires, Meetings, Focus Groups
Appoint the Process Team
 Appoint BPR Champion

Identify Process Owners
Establish Executive Improvement Team
Provide Training to Executive Team
Core Skills Required
 Capacity to view the organization as a whole

Ability to focus on end-customers
Ability to challenge fundamental assumptions
Courage to deliver and venture into unknown areas
Ability to assume individual and collective responsibility
Employ „Bridge Builders‟
Use of Consultants
 Used to generate internal capacity

Appropriate when a implementation is needed quickly
Ensure that adequate consultation is sought from staff so
that the initiative is organization-led and not consultant-
driven
Control should never be handed over to the consultant
Understand the Current Process
 Develop a Process Overview
Clearly define the process
Mission
Scope
boundaries
Set business and customer measurements Understand customers
expectations from the process (staff including process team)
 Clearly Identify Improvement Opportunities Quality
Rework
Document the Process
Cost
Time
Value Data
Develop & Communicate Vision of
Improved Process
 Communicate with all employees so that they are aware of the
vision of the future
 Always provide information on the progress of the BPR initiative -
good and bad.
 Demonstrate assurance that the BPR initiative is both necessary
and properly managed
 Promote individual development by indicating options that are
available
 Indicate actions required and those responsible
 Tackle any actions that need resolution
 Direct communication to reinforce new patterns of desired
behavior
Identify Action Plan
 Develop an Improvement Plan
Appoint Process Owners
 amplify the Process to Reduce Process Time
 Remove any Bureaucracy that may hinder implementation
 Remove no-value-added activities
 Standardize Process and Automate Where Possible
 Up-grade Equipment
 Plan/schedule the changes
Execute Plan
 Qualify/certify the process
Define and eliminate process problems
Evaluate the change impact on the business and on customers
Benchmark the process
Provide advanced team training
Limitations:
 Fear of Unknown and Failure
 Confusion surrounding BPR
 Ineffective BPR teams
 Problems related to organizational structure
 Problems related to BPR resources
 What is Business Process Outsourcing?
 BPO began with large manufacturing companies to aid with supply chain
management
 BPO is considered "offshore outsourcing" if the vendor or subcontractor is
located in a different country; for instance, in the case of customer support.
 2 main areas of BPO
1. Back office
2. Front office
THANK YOU FOR LISTENING!

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CHAPTER 5

 Clear Vision for Transformation

 Review Business Strategy and Customer Requirements

 Appoint BPR Champion

 Capacity to view the organization as a whole

 Used to generate internal capacity

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