Business process reengineering (BPR) is a key component of digital transformation. However, redesigned processes do not always result in measurable business benefits.
Are you considering BPR? Today, we’re sharing some of the top reasons for BPR failure and how you can avoid them.
Common Pitfalls of BPR Projects
BPR initiatives do fail. According to some reports, as many as 70% of all BPR projects collapse. Why do BPR projects fail? Let’s break down what is behind these pitfalls and how to avoid them.
1. Failure to Secure Executive Buy-In
In order for a BPR project to be effective, you need executive support. If even one business leader rejects the proposed plan, you could be left without the financial and operational support needed to reengineer your processes before ERP selection.
Selection & Process Improvement Case Study
In helping the client get its project back on track, one of our primary focus areas was decreasing their customization needs by improving their processes to align with the system's best practices.
2. Lack of Employee Involvement
Is your ERP project team operating in a silo? If you’re forging ahead without requesting the involvement and input of your employees, you’re missing out on their insights into operational inefficiencies.
Your employees are the ones most qualified to speak to which business processes are working and which are not. That’s why it’s important to involve employees from across departments in process mapping. They have a working knowledge of the pain points that currently exist and can offer valuable insights into how to these pain points should be addressed.
3. Determining Actual Root Causes
You might think you know why a current business process is failing. However, have you stopped to think how much of that is heresy?
To avoid making false assumptions, focus on building a team that can get to the real root of pain points. This team should consist of business process owners and other employees close to the processes in question.
4. Lack of Change Management
Of course, any time you change a business process, you will inevitably experience change resistance. This is especially the case if you alter or completely do away with “tried-and-true” business processes.
This is where effective organizational change management is a must. Simply throwing the new processes at the wall and hoping they stick is bound to amplify any brewing frustrations.
Instead, communication should come from the top, and should begin as early as possible. Leaders should be equipped to clearly communicate anticipated changes to employees, sharing key details including:
• Why the company is changing
• Why the change is happening now
• Exactly what processes will be changing
• What will stay the same
• The risks incurred if the company does not embrace the change
When this information is freely shared, it can help ease employees’ concerns and set the stage for a high rate of user adoption once the ERP solution goes live.
Overcoming BPR Failure and Achieving Success
Why do BPR projects fail? The four reasons above are the most common, but there are many others.
Business process reengineering requires an investment of time, money, and resources. However, it is typically a necessary component of digital transformation that directly influences your project ROI.
By taking the time to assess your current processes and redesign them to be as efficient and customer-centric as possible, you can set your project up for long-term success.
Our ERP consulting team can help you navigate the challenges of implementing business process reengineering so you can ensure your efforts are fruitful. Contact us below for a free consultation.