A
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Business process re-engineering
In 1990s, business process re-engineering, or BPR, emerged. Inspired by
a book by Michael Hammer and James Champy1, consultants told
companies not to bother with incremental improvements, but to abolish
everything, go back to the drawing board and redesign all the business
processes involved in producing something, whether a product or a service. They
said that this redesign should be:
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B
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The benefits
of BPR
For its
supporters, these are some of the strengths of BPR:
a. leadership: strong
leadership is important; changes are imposed from above; there is visible
commitment from leaders for change.
b. people management: fewer
management layers mean larger, more challenging jobs
c. policy and strategy:
clearer fit between the organization and its declared purpose and goals
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EXERCISES
14.1
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Gordon Greer, production manager at a car components manufacturer (see
Unit 10) is talking about a car company that he supplies called Autoco. Replace
the underlined words and phrases with expressions from A opposite. Pay attention
to the grammatical context.
‘One example of (1) restructuring
that I know was quite (2) basic: Autoco, one of our customers,
wanted to simplify its supplier payment system.
Before, there were three
documents relating to every delivery. We got a purchase order from
Autoco, a delivery note accompanied the goods when they were delivered to
them, and then we sent an invoice. There were 300 employees in their accounts
department. Within the department there were sub-departments, each
dealing with payments for different groups of suppliers, and each with
its own head.
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14.2
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Look at these
criticisms (1-6) that have been made of BPR. Match each criticism to one of
its claimed benefits (a-f) in B opposite.
1. Results may be harmed by
the chaos and confusion that BPR brings to the organization.
2. People can be left
demotivated and demoralized by radical change.
3. Smooth, gradual,
incremental introduction of completely new processes is not possible.
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