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Business process reengineering : A theoretical framework and an integrated

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Article in International Journal of Operations & Production Management · September 1998

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IJOPM
18,9/10 Business process
reengineering
A theoretical framework and an
964
integrated model
Jaideep Motwani, Ashok Kumar and James Jiang
Department of Management, Seidman School of Business, Grand Valley
State University, Fullerton, USA, and
Mohamed Youssef
Department of Decision Sciences, Norfolk State University, Norfolk,
Virginia, USA

Introduction
Business process reengineering (BPR), is hailed as one of the current major
drivers of change within organizations, helping them to survive in the more
competitive, customer-oriented commercial environment of today. BPR refers to
the radical redesign of a business process to gain dramatic improvements in
performance measures such as cost, quality, service, and speed (Alavi and Yoo,
1995). BPR by definition radically departs from other popular business
practices like total quality management, lean production, downsizing, or
continuous improvement.
Major BPR efforts represent an organization’s commitment of millions of
dollars for redesigning internal organizational processes, changing
fundamental product delivery and customer service procedures, and often
reexamining and repositioning corporate strategy (Clemons, 1995; Hammer,
1990; Senn, 1991; Venkatraman, 1989). Inspite of the high cost and change
involved in undertaking BPR efforts, a recent survey showed that some 88 per
cent of CIOs were satisfied with the end results of BPR efforts. On an average,
the respondents indicated that their companies launched 3.8 BPR projects in
1994 and most of them were anticipating a further increase.
The purpose of this paper is to examine and classify the current BPR
literature into four different streams and to suggest research areas that need to
be addressed, under each of these streams, in the future. The first of its four
sections presents the methodology used for selecting the relevant articles for
classification. In section two, the relevant articles are classified into the four
research streams. This section also provides a synopsis of BPR projects
undertaken by several organizations. The third section presents a
International Journal of Operations
comprehensive reengineering framework for achieving a true organization
& Production Management,
Vol. 18 No. 9/10, 1998, pp. 964-977,
transformation. In the final section, issues relating to BPR which need to be
© MCB University Press, 0144-3577 addressed in the future are suggested.
Methodology BPR: a
Only articles that appeared in scholarly journals (both academic and theoretical
practitioner) were considered for this grouping. The first and most important framework
step in the retrieval process was a search of the usual and customary library
databases such as ABI/Inform, Business Periodicals Index (BPI), Math Science
and World Cat. Both mainframe-based and CD-ROM versions of these
databases by UMI/data courier were searched for the period covering January 965
1986-August 1996. This step provided access to articles from over 900 different
journals worldwide. By using the descriptors “business process reengineering”,
“BPR” and “process reengineering”, we were able to retrieve more than 800
abstracts for review from the specified time period. As part of initial screening,
each abstract was then carefully reviewed before making a decision regarding
its inclusion in this survey. In several instances, when the abstract was not clear
the original article was obtained and read for the purpose of the initial
screening. This initial screening narrowed down the most significant articles to
201. Only those articles that made contribution to the literature were
considered. For example, articles that made a passing reference to the topic
were eliminated immediately. Copies of all the above 201 articles were then
obtained by the researchers. Each article was then carefully reviewed by at least
two authors to ensure relevance. This process helped reduce the number of
articles from 201 to 133. Again, those articles that did not focus on BPR were
eliminated. The authors then classified these 133 articles independently. The
notes were compared. Any differences of judgement were resolved via
discussion and compromise.

An extensive review and classification of BPR literature

The research done in the area of BPR can be conveniently grouped into four
research streams.
Research stream No. 1 deals with the definition and overview articles on
BPR. Several research studies provide comprehensive definitions and the need
for implementing BPR (Arend, 1993; Classe, 1993; Fried, 1991; Grey and Mitev,
1995; Grover et al., 1995; Hammer, 1990; Oliver, 1993; Ovans, 1995; Parker, 1993;
Vasilash, 1993; Vitiello, 1993). The overview articles, on the other hand, include
a diverse range of topics such as important elements in BPR (Barrett, 1994;
Belmonte and Murray, 1993; Blackburn, 1996; Dawe, 1996; Fitzgerald and
Murphy, 1996; Halachmi, 1996a; 1996b; Hosseini, 1993; Jackson, 1995; Lancourt,
1994; Love and Capon, 1996; Rasmus, 1992; Senn, 1991; Venkatraman, 1989;
White, 1993), measurement issues and tools in BPR (Foster and Franz, 1995;
Klein, 1994a; Richman and Koontz, 1993), different types or applications of BPR
(Hill, 1993; Min et al., 1996; Miron et al., 1993; Peltz, 1993; Robbins and Drory,
1995), roadblocks and pitfalls to implementing BPR (Cresto et al., 1995; Khoong,
1996; Klein, 1994b), comparison of BPR with total quality management
(Allender, 1994; Davenport, 1993; Denning and Medina-Mora, 1995; Hyde, 1995;
Krieter, 1996; Revenaugh, 1994; Schonberger, 1994; Zairi and Sinclair, 1995) and
IJOPM comparisons of BPR practices among different businesses and industries
18,9/10 (Armistead et al., 1995; Boyd, 1994).
Research stream No. 2 covers the entire gamut of normative studies done
mainly by practitioners. These deal with the importance of BPR, both to the
overall organization, as well as functional areas of the organization. It also
provides normative suggestions for institutionalizing BPR strategies.
966 Normative suggestions for BPR include: the need for a proactive rather than a
reactive approach to implementing BPR (Canton, 1994; Carey, 1993; Donlon,
1996; Gotlieb, 1993; Gross, 1996; Hales and Savoie, 1994; Hammer and Champy,
1993), steps for implementing BPR (Barta, 1995; Kim, 1994; Manganelli and
Klein, 1994a; Miller, 1995; Parker, 1993; Towers, 1993; Weber and Kelly, 1993);
factors that must be considered in implementing BPR (Ash, 1993; Bruss and
Roos, 1993; Francis and Capon, 1996; Johnson, 1993; Lakin et al., 1996;
Manganelli and Klein, 1994b; Mullin, 1993; Patching, 1995; Schaadt, 1993; The,
1995; Willmott, 1994), examples of how companies have successfully
institutionalized BPR (Allio and Allio, 1995; Bambarger, 1993; Barton, 1993;
Comeau, 1994; Cosco, 1993; Gooch and Wilmer, 1994; Johnson, 1995; King, 1993;
Sykes, 1993; Teresko, 1995; Whyte, 1995) and the benefits of implementing BPR
(Towers, 1993). This stream covers a medley of studies whose main thrust is to
emphasize the importance of BPR. Written largely by practitioners, these
studies are all conceptual in approach and without any kind of methodological
rigour. However, one cannot dismiss their contributions to the field because the
authors, for the most part, speak from field experience.
Research stream No. 3 is concerned with developing conceptual models for
assessing and implementing BPR. Several researchers suggest specific models
and/or methodology for implementing the principles of BPR (Childe et al., 1994;
Davenport and Short, 1991; Duck, 1993; Earl et al., 1995; Galliers and Baker,
1995; Grover et al., 1994; 1995; Guha et al., 1993; Hall et al., 1993; Keeble, 1995;
Lin, 1993; Mische and Bennis, 1996; Pollalis, 1996; Talwar, 1993; Teng et al.,
1994a; 1994b, van Ackere et al., 1993; van der Aalst, 1996; Warren et al., 1995) or
for selecting an effective set of measures for institutions practising BPR (Alavi
and Yoo, 1995; Belmonte et al., 1993). Even though the models/steps suggested
by the above authors are detailed, the main criticism against this stream is that
there has been little effort to use existing theory to develop a comprehensive
integrated model on BPR.
Research stream No. 4, which can be the culmination of all research done in
BPR, deals with the assessment and successful implementation of current
practices of BPR by manufacturing (Ascari et al., 1995; Bambarger, 1993;
Barbalho and Ulibarri, 1996; Bashein et al., 1994; Bradley et al., 1995; Clemons
et al., 1995; Earl et al., 1995; Elzinga et al., 1995; Fiedler et al., 1995; Gilberto,
1993; Grover et al., 1994; Hale and Cragg, 1996; Layne, 1993; Lemons and Crom,
1995/1996; McCloud, 1993; 1994; Maull et al., 1995; Timmins, 1995; Tinnilla,
1995; Xia, 1995; Zairi and Sinclair, 1995) and service organizations (Asaithanbi,
1995; Ballou, 1995; Candler et al., 1996; Cole et al., 1993; DeMarie and Keats,
1995; Foster and Franz, 1995; Housel et al., 1993; Moad, 1994; Riddle, 1995/1996;
Stoddard et al., 1996; Taylor, 1994). Most of the research under this stream, done BPR: a
through field studies, questionnaire surveys or case studies, illustrates how theoretical
BPR can create a competitive advantage. framework
Figure 1 depicts the interrelationships among the four streams of research.
Below is a suumary of the different approaches to implementing BPR by service
and manufacturing organizations (Asaithambi, 1995; Ascari et al., 1995; Ballou,
1995; Comeau, 1994; DeMarie and Keats, 1995; King, 1993; Layne, 1993; Riddle, 967
1995/1996; Teresko, 1995; Timmins, 1995):
• R.J. Reynolds Tobacoo Co. Reengineered its payment process by using
EDI, electronic receipts settlement and imaging technology to eliminate
paper-based payment systems. This has resulted in a reduction of
processing per invoice by 37 per cent and a reduction in the overall
departmental budget by $600,000.
• Reuters. By using a five-step process for clearly defining process and by
redesigning the customer order life cycles the company was able to
perform 95 per cent of installations on time and bill 98 per cent
accurately.
• Rockwell International. The reengineering efforts of its El Paso plant has
focused on continuous reinvention. The plant has successfully adopted
quick set-up methods, versatile tooling and has created the capability to
handle very small lot sizes.
• Ryder System Inc. The reengineering efforts began with a rethink of its
view of the market and a readjustment of the company‘s strategic focus.

Research Stream No. 1

Definition/Measurement

Research Stream No. 2 Research Stream No. 4

Analysis of Current practices

Normative Issues
BPR in BPR

Research Stream No. 3

Figure 1.
Strong Linkage Theoretical model of
Conceptual Models
research streams
IJOPM Based on this rethinking, the company developed its own five-plank
18,9/10 platform.
• Singapore Airl ines. By focusing on core activities (aviation and
supporting services), long-term strategy, training and monitoring of
customer satisfaction, the reengineered efforts are expected to help
Singapore grow 8-10 per cent per year until the end of the decade.
968
• Taco Bell. By rethinking who the customer really is and by focusing on
enhancing activities that bring value to the customer, the company was
able to grow by 22 per cent in a stagnant market, and was able to
increase customer satisfaction significantly (when tracked on a
continuous basis).
• Trustees Savings Bank. By identifying the core processes and
improvement opportunities, and by implementing changes in modular
and incremental fashion, the bank was able to achieve significant
productivity gains.
• Zenega Ag Products. As part of reengineering process, the business has
been grouped into 19 teams and changed the reward system to provide
consistency, equity and opportunity for employees.

A practical framework for a successful BPR project

Several models or steps have been proposed in the literature for undertaking
BPR. However, no standard integrated methodology for BPR exists yet. As the
number of organizations launching reengineering efforts is growing rapidly, the
authors felt that there is a need for a more practical framework to guide leaders
through the process of innovation and change. Figure 2 depicts a six-phase
comprehensive reengineering plan that organizations should consider when
implementing BPR, from start to implementation. The inputs for this model
were generated from the review of literature. The six phases of the model
include understanding, initiating, planning, programming, transforming,
implementing, and evaluating.
In the first phase of the model, the top management must recognize the need
for change, develop a complete understanding of what is BPR, and how they
plan to achieve it.
Once the understanding and commitment is made, in the second phase of the
model, a vision should be created. Based on the clear vision, the management
should select business process(es) that need to be redesigned, define clear and
measurable objectives for redesigning the reinvented process(es), and form the
reengineering project teams for these reengineering efforts. The literature
suggests executives and key staff members from the primary organizational
units involved in the process(es), as well as from the information systems
department, should be included in the team(s).
In the third phase, the project team evaluates and documents current
processes, uncovers bottlenecks, and establishes baselines and benchmarks for
 CULTURE BPR: a
theoretical
– Define BPR framework
Phase 1 – How to achieve it?
Understanding
– Commitment of top management

B
– Create a vision
969
U
Phase 2 – Select processes for BPR
S Initiating – Define clear and measurable objectives
I – Form reengineering project team
N
E
– Evaluate & document current
S processes
Phase 3
S Programming – Uncover bottlenecks
– Establish baselines & benchmarking
P
R – Conduct pilot study
O Phase 4 – Estimate the scope of organizational
C Transforming change
– Estimate resource requirement needs
E
S
S – Employee education
E Phase 5 – Leadership
Implementing – Structured alignment
S – Redeployment of IT
– Modified reward system

– Evaluate success
Phase 6 – Make modifications
Evaluating Figure 2.
– Monitor progress Practical framework on
BPR
STRUCTURE

gauging future improvements. During this phase, the efforts of the project team
are focused on identifying breakthrough opportunities and designing new
work steps or processes that will create quantum gains and competitive
advantage.
The fourth phase, referred to as “transforming” involves actual
transformation to the reinvented process or organization. This transformation
should take place in a small scale pilot environment. Conducting a pilot study
helps in:
• fine-tuning of the new process design;
• enhancing management and employee understanding of the new
process(es); and
• providing realistic estimates of the scope of the organizational change
and resource requirements needed.
IJOPM After the pilot study is successfully undertaken, the new reengineered
18,9/10 process(es) is/are fully implemented and successfully integrated into the
organization. This constitutes phase five. Successful integration involves:
• employee education;
• leadership;
970 • structural alignment and redeployment of technical and human
resources; and
• modified reward system.
Changes made during this change may cause resistance or resentment that
must be addressed through continual communication among management, the
project team, and employees.
The final phase of the model involves evaluating the success of the
reengineering efforts against the performance objectives established in phase
two. For example, if the reengineering efforts have not achieved all its goals, it
should be redesigned and modified accordingly. This phase is important as it is
one of continuous commitment to the process of reengineering.
In addition to these phases, business leaders should also keep in mind the
following:
• beware of the reengineering label;
• BPR should be a deliberately planned endeavour;
• start small;
• customer should always be the focus;
• agree on a redesign before setting cost-saving targets;
• include key functions and personnel as early as possible;
• study and highlight linkages between projects;
• use a systematic approach to managing change; and
• the key critical factors are executive commitment and leadership, an
effective reengineering team, and reengineering technology and
methodology.

Future directions for BPR research

There are issues relating to BPR which need to be addressed in the future.
Identifying issues for future research can be of immense value to both
managers and academic researchers. Managers can use this information to
identify those areas where improvements should be made and resources be
allocated. For example, managers need to know the status of the organizational
controllables (in this case, the levers of BPR) that they can manipulate to make
organization-wide improvements. Also, comparisons of different organizations
or divisions can be made to help prioritize BPR efforts. Researchers, on the other
hand, can use this information to build theories and models that relate these
issues to the organization’s performance and environment. These future BPR: a
research concerns can be categorized according to the four research streams theoretical
discussed earlier. framework
As far as recommendations for research stream No. 1 is concerned, more
research needs to be done to determine who is responsible for the
implementation of BPR. Should it be viewed as the responsibility of the board of
directors, administrators (CEO or CIO), consultants, or change managers. 971
Second, more research on the regulations, attitudes, policies, and practices
which may be an impediment to BPR efforts should be identified and
eliminated. There has been very little research, specifically relating to BPR,
done in these areas. Third, while the need for organizations to focus on their
core processes has been recognized in the literature, the definition of core
processes and an appropriate business process architecture needs to be
addressed further, as most organizations are not as thorough or systematic with
their business process architectures.
Research stream No. 2 pertains to normative studies conducted by experts in
the field. Several issues relating to this area deserve consideration in the future.
First, studies needed to be undertaken to examine if a dramatic time lag
between the directive, training, and implementation will impede the
effectiveness of BPR. Future research should seek to determine the effect of time
lag between the onset of the program and the final results, and senior personnel
turnover. Another critical issue practitioners should address is the variance
among BPR implementation within and among different functional areas within
an organization and between similar organizations. Attempts to standardize
BPR performance have been less than fully successful in the past. This would
result in the determination of benchmarking procedures.
There is also potential for future study regarding research stream No. 3; for,
to this date, very few comprehensive models have been developed. More models
should be developed to determine where the breakdowns occurs in BPR
implementation, why they occur, and how they can be prevented. Second, the
issue of measurements should be addressed. Very few specific objective
measures for measuring BPR success and failure have been proposed. Third, in
many organizations, information technology enabled the changed efforts.
However, it was also noticed that in several instances the information systems
supporting the existing work processes were fragmented. Although a few
empirical studies have been reported in the POM and MIS literature on the
impact of process redefinitions and automation on users and organizations,
there exists little in form of a framework for providing an integrated view of the
information systems impact on decision making, departmental performance,
and organization-wide performance. The above information can be of
tremendous value to organizations planning to implement BPR.
Finally, there is ample opportunity and necessity for future studies in
research stream No. 4. More comprehensive and comparative case studies of
successful implementation would be helpful to those who are still struggling
with this stage. Future studies need to examine how organizations not only
IJOPM carry out BPR, but how they actually deal with failures. With radical changes
18,9/10 and shifts associated with BPR, there is a likelihood that BPR may not succeed.
Therefore, studies need to examine how to survive a failed BPR project. Also,
elaborate studies into good practices in BPR, that detail the steps undertaken
towards BPR efforts, that outline specific performance measures applied
during the program, that study the link between BPR and strategy, and that
972 study the impact of human factors as a result of BPR are necessary. Data for
such studies should be obtained from on-site observation, questioning, and
performance of data analysis which will lead to hypotheses to be measured by
questionnaires sent to corporate leaders who have been successful in
implementing BPR.

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