Business process reengineering (BPR) is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed (Hammer and Champy, 1993). Unlike continuous improvement, it starts from a blank sheet and usually uses technology to do the work in a new way.
Common process problems and fixes
Chapter 14 of the book lists four common problems and their solutions:
| Problem | Fix |
|---|---|
| Unnecessary activities that add no value | Remove them |
| Activities in the wrong order | Change the order |
| Missing steps that cause errors | Add the missing steps |
| Processes that take too long | Combine jobs and activities, use technology, or outsource non-core work |
The BPR approach
Classic example: Ford
In the 1980s Ford had about 500 people in North American accounts payable. Mazda, part-owned by Ford, managed with a handful. Rather than speed up the old matching of orders, delivery notes and invoices, Ford redesigned it: pay on goods received, using a shared database. Headcount fell by about 75%. Hammer used this case in his 1990 article.
BPR vs other improvement approaches
| BPR | Lean / kaizen | Six Sigma | |
|---|---|---|---|
| Change | Radical, from a blank sheet | Small and continuous | Data-led, project by project |
| Led by | Senior management | Staff at all levels | Trained specialists |
| Aim | Dramatic gains in cost, speed and quality | Remove waste | Cut defects and variation |
| Risk | High | Low | Medium |
BPR in ACCA SBL
Process redesign sits in innovation, performance excellence and change (syllabus area H), with technology (area E) as the enabler. A typical case describes a slow, paper-based process. Score marks by naming the specific problems from the exhibit, recommending a redesigned process step by step, explaining the role of IT, and flagging the people risks. Link to Kotter or Lewin to manage resistance.
Advantages
- Can deliver big gains in cost and speed
- Focuses on customers and end-to-end processes
- Breaks down departmental silos
Limitations
- High failure rate
- Disruptive and often linked to job cuts
- Needs strong leadership and IT investment
- Can damage morale and lose knowledge
FAQs
What is business process reengineering?
BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed. The definition comes from Michael Hammer and James Champy.
Who invented BPR?
Michael Hammer, in his 1990 Harvard Business Review article "Reengineering Work: Don't Automate, Obliterate". He and James Champy then wrote Reengineering the Corporation (1993).
What is the difference between BPR and continuous improvement?
BPR is radical, one-off and top-down: start from a blank sheet. Continuous improvement (kaizen, Lean, Six Sigma) makes small, steady changes to existing processes, often led by staff.
Why does BPR fail?
Hammer and Champy estimated that 50% to 70% of reengineering efforts did not achieve the dramatic results intended. Common causes are poor leadership, staff resistance, treating it as cost-cutting or job cuts, and automating old processes instead of redesigning them.
What is business process redesign?
Often used as another name for BPR. Some writers use redesign for less radical change to existing processes, and reengineering for starting again from scratch.