REENGINEERING A PowerPoint Presentation By Matt Staufer
OVERVIEW • Reengineering Definitions • Brainstorming Exercise • Goal of Reengineering • The Nut and Bolts • Why does reengineering fail? • Use and Implementation • Example • Exercise • Summary • References
WHAT IS REENGINEERING? “The fundamental rethinking and radical redesign of the business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”
WHAT IS REENGINEERING? (Continued) “A radical change approach that integrates physical and technical solutions with organization structure, management infrastructure and organization cultural change solutions.”
WHAT IS REENGINEERING?“Quotes” • “ It’s basically taking an axe and a machine gun to your existing organization.” Computerworld, Jan. 24, 1994 • “ Reengineering must be initiated by someone who has enough status to break legs.” Planning Review, May/June 1993 • “ Reengineering will require a personality transplant. . . . a lobotomy.” Computerworld, June 1, 1987
GOAL OF REENGINEERING Reengineering is typically chartered in response to a breakthrough goal for rapid, dramatic improvement in process performance. Continuous improvement refines the breakthrough Breakthrough Improvement Continuous improvement activities peak; time to reengineer process
BRAINSTORMING EXCERCISE • How can an organization increase the likelihood that a reengineering process will provide lasting improvements for the agency?
NUTS AND BOLTSThe Reengineering Process • Select a reengineering team • Vital to the communication of the project • Important that they have the support and resources from top management • They should work as a team, and not focus on individuals • Recognition that the total redesign is necessary
NUTS AND BOLTSThe Reengineering Process • Establish Goals • Define and communicate what actions will be used • Vision of the results stated clearly • Analyze the gap between the current performance and desired performance • Focus on goals not specifications
NUTS AND BOLTSThe Reengineering Process • Identify the processes that need to be reengineered. • Determine the order in which processes must be changed • Priorities highlighted • Create time schedules
NUTS AND BOLTSThe Reengineering Process • Understand how reengineering may affect people and their jobs • Communication within the organization is vital • Reengineering should involve the people, management must be open to their suggestions • The people involved must be for, not against the reengineering process.
NUTS AND BOLTSThe Reengineering Process • Grasp the current process • Create outlines and maps of the current process • Diagnose the real problems • Better understanding of the current process will enrich the process of reengineering
NUTS AND BOLTSThe Reengineering Process • Redesigning of the Process • Think with fresh ideas • Creativity • Confidence
NUTS AND BOLTSThe Reengineering Process • Use the available tools • Benchmarking • Flowcharting • Computer simulation • Live simulation • Models • Surveys • Statistics
NUTS AND BOLTSThe Reengineering Process • Implement the reengineered process • Phase introduction • Pre-training
NUTS AND BOLTSThe Reengineering Process • Constantly evaluate the reengineered processes • Are employees adequately trained • Is the process working as hoped for
WHY DOES REENGINEERING FAIL? • Trying to fix a process instead of changing it • Ignoring everything except the process design • Quitting too early • Reengineering from the bottom up • Neglecting people’s values and beliefs • Being willing to settle for minor results • Assigning someone who does not understand reengineering to lead the effort
FOUR STAGES OF CHANGE • Shock • Anger • Denial • Acceptance
HOW TO IMPLEMENT • 3 steps to transition of change • 1. Discontinuation of the old way of doing business • 2. Migration • 3. Starting the new way of doing business
HOW TO IMPLEMENT3 steps to transition of change • 1. Discontinuation of the old way of doing business • Don’t be surprised by overreaction and resistance • Identify who is losing what and help them accept the importance of the loss • Communicate what is over and what is not • Mark the ending and avoid dragging it out • Compensate for losses
How to implement3 steps to transition of change • 2. Migration- letting go of the old way and beginning a new way • Communicate and keep people informed of progression • Strengthen and encourage intragroup connections • Create temporary systems or ways to deal with this period
How to implement3 steps to transition of change • 3. Starting the new way of doing business • Be consistent • Ensure quick success • Reward new behaviors, not old ones • Celebrate the success
Real World Example • Hallmark • Product cycle time was approximately 3 years • Two-thirds of their time was spent in developing the plan and concept for the card • Their goal was to get new products to market within one year • After successfully reengineering their process they were able to bring a new card to market eight months ahead of schedule
A Short Exercise • The four stages of change • List examples of processes in your organization that may be a candidate for reengineering.
Summary • Reengineering is the fundamental rethinking and radical redesign of the business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.” • A person’s resistance to change needs to be addressed and overcome • Why does communication fail?
Summary • Communication and is vital to a successful implementation • Hallmark, a successful reengineering story
Bibliography • Andrews, Dorine. “Choose the Right Recipe for Success.” Http://www.reengineering.com/aricles/apr96/Consjour.html. 04 May 2002. • "Business Process Reengineering." Http://www.business majors.about.../weekly/aa060898.htm?terms=reengineering02 May 2002. • "Business Process Reengineering and Organizational Change." Http://www.c3i.osd.mil/bpr/bprdc/7223c7.htm. 02 May 2002. • Russell, S. Roberta, Taylor, W. Bernard. Operation Management. Upper Saddle River: Prentice Hall, 2000. • Shandler, Donald. “It's Time to Reengineer Training.” Http://www.reengineering.com/aricles/apr96/Consjour.html. 04 May 2002.