2012年3月4日 星期日

Week5 - Business Process Re-enginerring

Source / Reference:
1)BPR implementation process: an analysis of key success and failure factors
http://www.bus.iastate.edu/nilakant/MIS538/Readings/BPR%20success%20and%20failure%20factors.pdf
2)Reengineering Success Factors : BPR Principles
http://www.prosci.com/factors.htm


Subject: 
Lect 5 -What are the factors that affecting the success of BPR implementation?



Response:
By definition, Business Process Re-enginerring (BPR) refers to the fundamental re-thinking and radical re-design of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed (Michael Hammer & James Champy, 1993) which means that BPR requires radical transformation as opposed to incremental change. BPR will be implemented when an organisation' s current processes are irrelevant or broken or the organisation is experiencing desperation or crisis that there is a must to have a radical change in order to survive. However,to ensure a successful BPR implementation, the company should focus on the factors that affecting it.

In fact, the factors leading to the success of BPR can be divided into five dimensions, including Change of Management Systems Factors, Management Competence Factors, Organizational Structure Factors, BPR Project Management Factors and IT Infrastructure Factors.

Change of Management Systems Factors

1.  Revision of Motivations and Rewards Systems
     Since the existing reward systems may no longer appropriate for the new work environment, a new remuneration or reward system should be developed in order to cope with the BPR implementation and thus increase the staff motivation as well as their working incentive. This can maintain a smooth insertion of the new processes in the workplace.

2.   Effective Communication
     Effective communication is crucial for the success of BPR since a better communication between superiors and juniors can enhance the transmission of information which can improve the collaboration in work process.

3.  Empowerment
     BPR promotes the decentralization of power and right to lower levels so that the junior colleagues can have the right of decision making which will enhance their sense of work direction and engagement into the process. This can definitely increase their responsibility and accountability in work which is very essential in BPR implementation.


4. Training and Education
    An organization should offer a special training to the employees so that they can have both interpersonal and IT skills to cater with the process re-engineering.

Management Competence Factors

1. Committed strong Leadership
    Leadership has to be effective in order to have a clear vision of the business future. The vision must be widely spread throughout the organization so that every employee can be involved and motivated in the process re-engineering.

2. Championship and Sponsorship
  Champion is the one who persuade the top management of the need to change the organization, therefore the champion should be able to continually push the efforts of change in the re-engineering process.

Organizational Structure Factors
1.  Adequate Job Integration Approach
     The organization should match the work that fits to the employee which is called job labour integration. The employees can work more efficiently when they work in the area of their specialty and thus product quality, time and cost can be greatly improved.

2.  Effective BPR teams
    Cross functional team should be formed across departments to form a core powerful BPR team to supervise and monitor the progress of the process re-engineering in order to ensure the success of BPR implementation.

BPR Project Management Factors
1. Alignment of BPR Strategy with Corporate Strategy
    Since corporate strategy determines the objectives of the organization, while BPR strategy guides the tasks, processes, flow of people and information, etc. Therefore, there should be a careful alignment of corporate strategy with BPR strategy. 

2. Effective Process Redesign
    An effective process redesign is vital in BPR implementation such as process orientation, selection of core process, etc.

IT Infrastructure Factors

1.   Alignment of IT Infrastructure and BPR strategy
     IT strategic alignment is the integration of business strategy and IT strategy, which means re-engineering goals should be tied to the business objectives with the company strategic direction. Therefore, there are consistent strategies throughout the organization to ensure the success of implementing BPR.

In conclusion, the above factors are the key factors that affecting the success of BPR implementation, an organization should check these factors in order to have a successful approach of BPR.