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Saturday, May 2, 2009

Methodology

Although the labels and steps differ slightly, the early methodologies that were rooted in IT-centric BPR solutions share many of the same basic principles and elements. The following outline is one such model, based on the PRLC (Process Reengineering Life Cycle) approach developed by Guha.[10].

Simplified schematic outline of using a business process approach, examplified for pharmceutical R&D:
1. Structural organization with functional units
2. Introduction of New Product Development as cross-functional process
3. Re-structuring and streamlining activities, removal of non-value adding tasks
  1. Envision new processes
    1. Secure management support
    2. Identify reengineering opportunities
    3. Identify enabling technologies
    4. Align with corporate strategy
  2. Initiating change
    1. Set up reengineering team
    2. Outline performance goals
  3. Process diagnosis
    1. Describe existing processes
    2. Uncover pathologies in existing processes
  4. Process redesign
    1. Develop alternative process scenarios
    2. Develop new process design
    3. Design HR architecture
    4. Select IT platform
    5. Develop overall blueprint and gather feedback
  5. Reconstruction
    1. Develop/install IT solution
    2. Establish process changes
  6. Process monitoring
    1. Performance measurement, including time, quality, cost, IT performance
    2. Link to continuous improvement

-> Loop-back to diagnosis

Benefiting from lessons learned from the early adopters, some BPR practitioners advocated a change in emphasis to a customer-centric, as opposed to an IT-centric, methodology. One such methodology, that also incorporated a Risk and Impact Assessment to account for the impact that BPR can have on jobs and operations, was described by Lon Roberts (1994). Roberts also stressed the use of change management tools to proactively address resistance to change—a factor linked to the demise of many reengineering initiatives that looked good on the drawing board.

Some items to use on a process analysis checklist are: Reduce handoffs, Centralize data, Reduce delays, Free resources faster, Combine similar activities. Also within the management consulting industry, a significant number of methodological approaches have been developed.

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