In today’s business world - no matter which market we are in - several key words keep reoccurring, which managers and Chief Executive Officers like to use to explain the reorganization of structures and processes of their companies. “Total Quality Management”, “Business Reengineering”, “Six Sigma”, “Quality Function Development” and “ISO Standards” are just a few that could be mentioned. All their concepts have one thing in common which is the strive to remain profitable in a business world of faster changing, hard to forecast markets and growing customer expectations.
This co-op report will discuss the meaning and implementation of “Business Process Reengineering” with the example of Lufthansa Cargo AG along with the importance of “Change Management” as an enabler.
Table of Contents
Introduction
Section 1: Definition of Business Process Reengineering
Section 2: Implementation of Business Process Reengineering
2.1 Step 1: Development of Process Objectives
2.2 Step 2: Identification of Processes to be reengineered
2.3 Step 3: Measurement of existing Processes
2.4 Step 4: Utilization of Information Technology
2.5 Step 5: Design and Evaluation of Process Prototypes
Section 3: The Reengineering Structure
3.1 The Business Process Reengineering Leader
3.2 The Process Owner
3.3 The Reengineering Teams
3.4 Other Employees involved
Section 4: Change Management as an Enabler of Business Process Reengineering
4.1 Why Change Management?
4.2 Nature of Change
4.2 Process of Change
4.3 Roles of Change
4.4 Resistance to Change
4.5 Commitment to Change
4.6 Culture and Change
4.7 Resilience and Change
Section 5: Common Mistakes in Business Process Reengineering
5.1 Reengineering too many Processes
5.2 Inadequate Training of Process Owners and Team Members
5.3 Improper Monitoring
5.4 Wastage of Time
5.5 Delay in Showing Results
5.6 Discontinuance after Achievement
Section 6: Example of Business Process Reengineering at Lufthansa Cargo AG
6.1 Lufthansa Cargo AG’s Issues
6.2 The Program: “Growth and Results by Improving Processes and Services”
6.3 The Goal: “Continuous Process Management”
6.4 The Barrier: Lufthansa Cargo’s Culture
Conclusion
Objectives and Themes
This report investigates the fundamental principles of Business Process Reengineering (BPR) and evaluates the critical necessity of Change Management as an enabler for organizational restructuring. The central research question explores how companies can successfully navigate radical process redesigns while managing employee resistance and cultural shifts, specifically analyzed through the case study of Lufthansa Cargo AG.
- Fundamental definitions and implementation strategies for BPR.
- The essential organizational structure and leadership roles required for successful reengineering.
- The psychological and cultural dimensions of managing change within a workforce.
- Identification of common pitfalls and mistakes during the reengineering process.
- Real-world application and challenges of process management at Lufthansa Cargo AG.
Excerpt from the Book
Section 1: Definition of Business Process Reengineering (BPR)
Since the end of World War Two the U.S.A. as well as the European markets have been observing Japan’s fast recovery and gradually increasing market shares in Western markets, e.g. in the automobile and the electronic industry.1
The Japanese business strategy, is not as concerned with results and profits as in the West, but with the quality processes and performance, which is based on topmost priority to customer needs and empowerment of employees at all levels, which in turn seems to enable Japanese companies to maintain profitably during hard times. Their domination of Western markets lies in the practice of “Kaizen”2 in combination with “Quality Circles”3. “Kaizen” is defined with continuous improvement, standardization of each improvement and unending raise of these standards by steadily striving for improvements. “Quality Circles” empower each employee, no matter what status or level he has, and thus motivates each employee through a sense of belonging and an improved quality of work life, resulting in giving his or her best to the organization. The main idea behind this is, that each person doing his job knows it best and therefore can easily identify problems and find solutions for improvement. That is why he or she has also to be given the power to develop such improvements.4
While Kaizen and Quality Circles can be considered a soft strategy, “Business Process Reengineering” is one of the most radical ways to form a result oriented and hierarchical structured company to process and customer orientation. According to Hammer and Stanton1 BPR is defined as “the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance”.
Summary of Chapters
Introduction: Provides an overview of contemporary management buzzwords and outlines the report's focus on Business Process Reengineering and the role of Change Management.
Section 1: Definition of Business Process Reengineering: Discusses the evolution of business strategies from Japanese Kaizen practices to the more radical approach of BPR.
Section 2: Implementation of Business Process Reengineering: Outlines a five-step implementation plan for BPR, emphasizing process objectives, measurement, and the role of IT.
Section 3: The Reengineering Structure: Details the necessary hierarchy for BPR, including the roles of the Leader, Process Owners, and Reengineering Teams.
Section 4: Change Management as an Enabler of Business Process Reengineering: Examines the human dimension of change, focusing on employee resistance, cultural alignment, and resilience.
Section 5: Common Mistakes in Business Process Reengineering: Identifies critical failure points such as over-initiating processes, lack of training, and improper monitoring.
Section 6: Example of Business Process Reengineering at Lufthansa Cargo AG: A case study analyzing the implementation of the GRIPS program and the specific cultural challenges faced by the company.
Conclusion: Summarizes that organizational success hinges on the synergy between process redesign and active, empathetic Change Management.
Keywords
Business Process Reengineering, BPR, Change Management, Lufthansa Cargo AG, Continuous Process Management, Kaizen, Organizational Culture, Process Owner, Human Resources, Implementation Strategy, KPI, Strategic Management, Performance Improvement, Employee Empowerment, Resistance to Change.
Frequently Asked Questions
What is the primary focus of this report?
This report focuses on the concept of Business Process Reengineering (BPR) and argues that its success is inseparable from effective Change Management.
What are the central thematic fields covered?
The main themes include BPR methodologies, leadership structures, the psychological impact of change on employees, and common obstacles during process transformation.
What is the core research goal?
The goal is to analyze how radical process redesign can be successfully implemented while minimizing employee resistance and ensuring sustainable corporate growth.
Which scientific approach is utilized?
The work utilizes a combination of theoretical analysis of management literature and a practical, descriptive case study of Lufthansa Cargo AG.
What is discussed in the main body?
The main body covers the definition of BPR, a five-step implementation plan, the required structural roles, the importance of change management, common pitfalls, and a detailed examination of Lufthansa Cargo's "GRIPS" program.
How is this work characterized by its keywords?
It is defined by terms like BPR, Change Management, Organizational Culture, and Continuous Process Management, reflecting a blend of technical process improvement and human resource management.
Why did Lufthansa Cargo AG struggle with the implementation of Continuous Process Management?
The company faced significant cultural barriers, employee insecurity due to previous reorganizations, and perceived threats from downsizing efforts.
What role does the "Process Owner" play within the reengineering structure?
The Process Owner is responsible for the quality and outcome of a specific process, acting as a team leader to resolve problems and bridge the gap between management goals and execution.
- Quote paper
- Jennifer Joksch (Author), 2005, Business Process Reengineering and the important Role of Change Management, Munich, GRIN Verlag, https://www.grin.com/document/64205
