Business Process Reengineering
Part 5 of 6 

In the figure depicted in Figure 1, the four quadrants have meaning: the upper right indicates strategic strength; the upper left, strategic opportunity; the lower right, a chance to develop an advantage by educating our customers (or by changing customers); and, the lower left is "Who cares."

Having done this for the external customer, we repeat the process for the internal customer. We then compare the two graphs. The results are important for several reasons. First, they indicate the extent to which there is agreement

between internal and external customers. Second, these comparisons show where the agreements are strongest and weakest. Finally, the analyses help to identify if we are faced by a real problem. Both surveys should be accompa­nied by in-depth discussions with selected customers.

When we finish this analysis, the size of the gaps and the positioning of our firm relative to the best-in-class is useful in determining the extent to a radical redesign is needed or a simple fine-tuning. In general, the larger the gap and the more disadvantageous our position, the greater the need for BPR. However, fine-tuning is enough when there is a large gap between ourselves and our nearest competitor and we are considered to be the best-in-class.

Before leaving this section, there are several warnings. When talking with customers, there are five possible threats: (1) the customer demands everything (our expe­rience indicates that this is not that major a concern); (2) the customer may not want to talk with the company anymore; (3) the customer may not be able to identify all of the factors they want; (4) what the customer tells you is not what you hear; and, (5) you are talking with the wrong customer or you are asking the wrong question. The execution of the surveys and the in-depth interviews is often best carried out by outside groups (e.g., consultants, faculty from universities or students from business schools). There are several reasons for this last recommendation. In many cases, the customers have told the firm numerous times in the past what is "wrong" with the current products or processes. In many cases, managers do not hear these complaints. If they do, they tend to rationalize them away (our customers are just too unreasonable) or they restate them in terms which are consistent with the current processes (we are really doing this for our customers).

Finally, it is important to recognize that success with BPR requires that this first step be carried out well. It is here that we identify the critical questions and we flag the traits of interest. It is here that we begin to set direction for BPR. It is also here that management formulates its vision and impact statements.

2. Pick the Project: This step, like the first, is the responsibility of top management. Having identified the need for change, we must next identify the specific process/ project on which to work. This identification is critical for several reasons. First, it acts as a catalyst for break­through. People achieve breakthroughs by working on something concrete—something that can show benefits and results. Second, the projects, when done over time, denote a path of success. Finally, the projects are the sources of the experiences that drive BPR forward.

3. Organizing for Improvement: The next step is to organize for the successful completion of the project (or projects). Organization takes place at two levels: at the top management level and at the level of the various task forces assigned to the specific projects. For both levels, detailed work policies and procedures must be instituted. These policies should identify milestones and ending conditions for each project.

To be Continued