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Unit 3: Business Process Re-engineering

This fact that the jobs are more demanding can be either an advantage or a disadvantage. It notes
depends on the view from where you consider it. Unskilled employees might get difficulties
to get along with the process changing. Some people are just not able to perform several
tasks. For such persons it will be probably difficult to survive within this new environment
which mostly leads to a personal failure in their job.
5. Authority: In a traditional oriented company the management expects from the employees
that they follow some specific rules. In contrast to that the reengineered companies do not
want employees who can follow rules; they want people who will make their own rules.
As management invests teams with the responsibility of completing an entire process, it
must also give them the authority to make the decisions needed to get it done.

3.9 Bpr challenges

The benefits of BPR are evident from the above examples, but are all BPR projects as successful
as those described? Unfortunately, studies have shown that the likelihood of a project failing is
greater than of it succeeding. In fact, some re-engineering experts estimate that up to 90 percent
of all BPR projects fail to meet all their intended objectives.

Re-engineering business processes is challenging because the concept is difficult to implement.
The possibilities of BPR success can be enhanced through an understanding of some of the
challenges and obstacles organizations may encounter:
1. Resistance: Often the most serious problem in re-engineering business processes is
resistance to change. Many people will go to great lengths to avoid adapting to new ideas
and ways of doing things.
2. Cost: A thorough examination and questioning of the way business is conducted is
expensive. So is starting with a clean sheet of paper and rethinking the company’s business
processes.
3. Job Losses: A reengineered system making maximum use of advanced technology will
usually result in employee layoffs. Before re-engineering runs its course, as many as 25
million jobs may be lost to BPR.
4. Tradition and Culture: The inefficient business processes that are being reengineered are
often decades old. The traditional ways of doing things often are a part of the organizational
culture. This means that the corporate culture will have to change, and changing corporate
culture is not an easy process.
5. Time Requirements: Re-engineering often takes two or more years. Consider what AT&T
had to do in one of its re-engineering projects: make massive changes in manufacturing,
shipping, installation, billing, and dealing with customers; significantly change the processes
for financial reporting and creating contracts and proposals; completely reorganize the
information system; write new policies and procedures manuals and change the job
descriptions of hundreds of employees; and create new ways to evaluate and reward the
employees in the new job functions.
6. Lack of Management Support: Many top managers, not convinced of the benefits of
re-engineering, are afraid of “big hype, few results.” Others bail out at the first sign of
difficulty. Without the firm commitment and ongoing support and involvement of top
management, re-engineering has little chance of succeeding.
7. Risks to Managers: Pushing a re-engineering project can be a risky career move. If it is a
success, managers are looked on with great favor in the organization. If it does not succeed,
they may be looking for a new job.

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