BPR deals with the analysis of current and future processes of a business with the goal of improving current processes. The key to BPR is for organizations to look at their business processes from a "clean slate" perspective and determine how they can best construct these processes to improve how they conduct business.
BPR can be an overwhelming task given that the goal is to improve an entire business structure and, to a certain degree, an organizational philosophy. The implementation of information technology to not just automate rote tasks and valueless work but to obliterate them entirely - this can be a difficult sell given that most organizations often cling to old philosophies and fear the notion of radical change.
In order to "sell" someone on the benefits of BPR, they must be able to see the results. Businesses and organizations are bottom-line industries where measures of performance (such as cost, quality, service, and speed) are the norm. Therefore, the measures of BPR must be displayed in a similar fashion.
Using Performance Measures
To figure out an efficient, accurate and appropriate performance measure, we must first understand the purpose of BPR. One of the key concepts to BPR is radical change; therefore, we must measure key shifts, noted improvements and observable differences in two major areas - organizational performance and customer satisfaction.
As with any measurement tool, we must start with a basic standard by which all changes are compared. These benchmarks are important building blocks for any performance measure. These will have to be defined the implementation of BPR, so we can create the basis for a before-and-after effect early in the process.
The following model is known as the "Balanced Scorecard" (image courtesy of Balancedscorecard.org) :
According to Balancedscorecard.org, the balanced scorecard is "is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results."
In short, the Balanced Scorecard is thorough and investigative report involving a series of measures that will chart out the success of a particular organization. By associating each measure with one or more expected values/targets, managers of the organization can be alerted when organizational performance is failing to meet their expectations.
Perhaps the most compelling feature of the Balanced Scorecard is that it shows a vision that goes beyond the black-and-red world of finance; it looks at how businesses rates in the fields of investment in customers, suppliers, employees, processes, technology, and innovation.
These performance measures are just a few of the reasons why the balanced scorecard has become an oft-copied blueprint for measuring a company's visions and objectives. Some of these measures include:
Financial - Cash flow, ROI, Financial Result, Return on capital employed, Return on equity
Customer - Delivery Performance to Customer, Customer satisfaction rate, Customer retention
Internal Business Processes - Number of Activities, Opportunity Success Rate, Learning & Growth, Investment Rate, Illness rate.
No comments:
Post a Comment