Thursday, January 11, 2007

The typical recipe for BPR is a recipe for disaster!

In the very words of Allen Messerli, Head, IT Unit, 3M, “The typical recipe for BPR is a recipe for disaster! You can easily throw tens of millions of dollars at these (BPR) projects and still fail…” The most critical disclosure about the concept was publicized by the world-famous Centre for Reengineering Business Processes (REBUS), which proved that there are “...illogically high risks associated with radical changes of business processes… The failure rate of BPR projects is as high as 70%!” Dr. Samuel Ryan of University of New York famously postulated, “One of the hazards of BPR is that the company becomes so wrapped up in fighting its own demons that it fails to keep up with its competitors in offering new products or services.” Even Harvard didn’t mince any words. According to a cutting BPR 2005 study by Harvard Business School, “The most important reason why it (BPR) fails is due to the failure to understand the process requirements!” Gary Steinel, Partner, Arthur Anderson, championed in another benchmark paper, “Unfortunately, BPR became equivalent to cost reduction and there was too much focus on reducing fat rather than radically redesigning (processes).”

For complete IIPM article click here

Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

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