©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.PresentationoftheReengineeringMethodologyArthurAndersenBusinessConsulting©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.Manyorganizationshavefoundincrementalqualityimprovementandordinarycostcuttingeffortstobeoflimitedbenefit.Inresponse,thesecompanieshaveincreasinglyturnedtobusinessprocessreengineering.BusinessProcessReengineeringAnintegratedprocesswhichrealignsandchangestheoperationsofabusinesswiththegoalofachievingaquantumincreaseinthevalueitdelivers......throughtheaggressivequestioningofallcurrentbusinesspractices,theunflinchingeliminationofallnon-valueaddedactivities,thedestructionofbusinessbarriersandthepursuitoftotalcustomersatisfaction.“Wehadtoundoa100year-oldconceptandconvinceourmanagersthattheirroleisnottocontrolpeopleandstay‘ontop’ofthings,butrathertoguide,energize,andexcite.”-JackWelch,CEOofGeneralElectric“Theoperationsofothercompaniesevolveovertheyearsandoftenlackintegratedprocesses...Westartedwitha[“blanksheet”]anddrewaclearpictureofwhoourcustomersareandwhattheywant,andweareshapingourorganizationspecificallytomeettheirneeds.”-WayneYetter,CEOofAstra/MerckASuccessfulChangeProgramRequiresaCommonDefinitionofReengineering©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.Thereengineeringprocesscanrangewidelyintermsofscopeandcomplexity.Yourgoalswilldeterminewhereyourreengineeringeffortliesinthechangespectrum.DegreeofChangeRedefinetheIndustryMatchBestPracticeStreamlineforEfficiencySingleFunctionCrossFunctional/OrganizationExtendedValueChainProcessDesignBusinessReengineeringOrganizationTransformationCreateBestPracticeScopeofChangeDefinetheOrganization’sChangeAgenda©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.OurApproachtoReengineeringEnsuresthataCompany’sStrategyisAlignedwithKeyElementsofitsBusinessProcessWhatdoesthenewprocesslooklike?-KeyActivities-MetricsKeyBusinessElementsOrganizationWhatorganizationstructureismostappropriate?-Decentralized-Centralized-TeamsTechnologyWhattechnologywillenablethenewprocess?-Hardware-SoftwarePeopleWhatcapabilitieswillberequiredforprocessworkers,andhowwilltheskillsbeacquired?-Train/HireMeasurementWhatmeasureswillbeusedtoevaluateanewprocess?-Speed,Cost-Accuracy©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.Stage1Stage2Stage3FunctionsDrivetheBusinessProcessesareAcknowledgedButFunctionsDominateCoreProcessesDrivetheBusinessMARKETINGOPERATIONSR&DMARKETINGOPERATIONSR&DCUSTOMERSCustomerServiceDeliveryRelationshipManagementProductDevelopmentReengineerBroadlyDefinedBusinessProcessestoOptimizeResults©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.AnExampleoftheProcessViewFinancialreportingShippingMfg.OrderentryCreditBilling/collectionFUNCTIONALVIEWPROCESSVIEW:OrderFulfillmentOrderentryCreditMfg.Ship-pingBillingFin.report✗CustomerOrderBankDeposit©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.AProcessOrientationFocusesTheOrganizationonitsCustomersMarket-DrivenProcessesManageFinancialOperations&CapitalProductionProcessOrderProcessingLogisticsCustomerServiceSales&MarketingProcessProductDevelopmentStrategicManagement&PlanningManageRiskDeployInformationTechnologyMangeHumanResourcesSupportProcessesCUSTOMERS©1996ArthurAndersen,AndersenWorldwide,SC.Allrightsreserved.•Uponimpactgreaterthan5mphanaccidentsigna...
