Business reengineering is the act of radically changing how the work is done.

There are nine dimensions to business reengineering that we divide into three layers, Climbing up in this hierarchy means "more concrete/easiest to change", and "less concrete/difficult to change" vice versa. By understanding each of these layers and their dimensions, business reengineers can formulate a successful project strategy.

1. Physical/technical layer

Many business reengineers mistakenly focus their efforts here, since these dimensions are what people easily see and do. If the three dimensions are out of balance, many operational problems can occur.

  a. Process structure

Processes produce business outcomes ­ the business products. Processes are grouped into work, information and time flows to show their interdependencies, The true purpose of process is to produce a "quality" outcome in a timely predictable manner. Processes, in and out of themselves, are meaningless ­ it is the outcomes that are important. We can often find multiple organization units duplicating the work of a single process or no organization unit performing a whole process.

  b. Technology structure

The technology structure consists of the automated communication, networking, and computer systems used to support the process structure. The sensible application of technology depends on the competent integration of technology with work process.

  c. Organization structure

The organization structure defines who performs, manages, and is accountable for each business process.

2. Infrastructure layer

This layer is involved with the interpretation of policies and procedures.

  a. Reward structure

The reward structure regulates behaviour.

  b. Measurement systems

The measurement systems define the feedback processes that provide information on process performance.

  c. Management methods

Management methods consist of practices and techniques used to supervise, develop, and support the people who perform the business processes.

3. Value layer

These almost invisible dimensions define the organization¹s culture and drive behaviours.

  a. Organizational structure

Organizational structure consists of the unspoken, collective rules and belief of the organization.

  b. Political power

With political power, individuals manipulate and shape the actions and behaviours of others. Political power can originate from formal authority or personal power.

   c. Individual belief systems

Individual belief systems are the attitudes and mental models that individuals apply to themselves those they work with and the work itself.

When is Reengineering the Answer?

  A. Actual Poor Quality

1. The explosion of chaos and bureaucracy,

2. Thinking for customers,

3. Automation of existing bureaucracies,

4. Bottlenecks and disconnects in critical cross-organizational work,

5. Elusiveness of accountability,

6. Chaos from downsizing,

7. The turmoil of integration and merger.

  B. "Perceived Power" Quality (by internal and external customers)

1. Lack of "big picture" concept and poor communication,

2. Inattention to deal,

3. Designer arrogance and customer exclusion,

4. Focus on correction, not error prevention,

5. Measurement problems,

6. Focus only on external customers.

* Reengineering takes a lot of time and money.

* Reengineering implementations are difficult and messy. It is like trying to live in your house during a major renovation.

* Business reengineers must show clearly:

   - the necessity for change,

   - the alternative to change.

Critical Success Factors for BPR Projects

1. A business focus ­ a focus on all dimensions (process, technology, organization),

2. A systematic and fact-focused methodology and project approach,

3. Time,

4. Partnership participation,

5. Visible and active leadership: Shift from event or crisis management style to a process management style encouraging a learning-oriented rather than a blame-oriented approach.

Goal of Reengineering

The goal of reengineering is to create an organization, which is:

   - learning,

   - productive,

   - quality-focused in terms of added-value, cost sensitivity, responsiveness and functionality,

   - customer-driven.

We have to change the frame too, not only to fix the picture within the frames. Conventional boundaries between customers, producers, suppliers and distributors became irrelevant, since change is not slowing down but accelerating.

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