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IMPLEMENTING BUSINESS PROCESS REDESIGN:EARLYLESSONSFROM THEAUSTRALIAN EXPERIENCE

Marianne Broadbent and Carey ButlerKey Centre for Technology Management, Melbourne Business School,Universityof Melbourne

ABSTRACTBusinessProcess Redesign (BPR) is achange management approach aimed atachieving quantumimprovem ents in business performance. Indu stry interest levels in BPR a re high as a direct resu ltof current difficulties in the global economic clim ate and tight business cond itions. Integral toBPR is the availability of new stable technologies w hich both stim ulate and enab le processchanges. This paper highlights the experiences of a num ber of Australian firms which haveimplemented BPR.A tenstep framework for BPR is presented together withaseriesof caveats. BPR is a difficult,messy and often non-linear activity which challenges m any of the ways organisations operate.Information Technology plays a pivotal role in BPR as both an enabler and disenabler for change.Lessons emerging from early Australianexperiences with BPR focus on the role of executivesponsorship, consultants, measurements, education an d training, technology an d people involvedin thechangeprocess.

INTRODUCTION The '80s were a time fo r financial re-en ginee ring ... the '90s are fortechnological re-engineering (Freedman,1993).

Business conditions in the early 1990shave placed ne w strains onorganisations as they striveto survive in fiercely com petitive marketplaces. These strains are intensified amongst I/Sgroups facing continuing pressure todemonstrate the valueo f information systems -often withreduced resources. Busine ss Process Red esign (BPR)1 is now being undertaken by asubstantial number of organisations to realign their operations in order to cope with thesecircumstances. Inform ation Technology (I/T) can be viewed as both an enabling force fo rleveraging these changes, and as adisenablerif I/Tinvestments havenot been circumspect.

Hammer (1990) defines BPR as the radical redesign of business processes in order toachieve dramatic improvements in their performance - in termsof qua l i ty ,flexibility andproductivity. BPR analyses the work flows of an organisation, discards non-essentialprocedures and may then use the power of I/T systems and applications to further streamlineorganisational operations. W hile the use of technology is not proscribed, th e majority ofredesign projects unde rtaken in Au stralia and elsewhere ha ve inva riably inclu de d asignificant I/T com pon ent. The bene fits passed on from redesigned processes can include:

Also co mm only referenced as Busin ess Process Re -enginee ring

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improved customer responsiveness, dramatic reductions in process time, cost savings, andstreamliningof theorganisation intermso fstructure,staff an dresources.

Thispaper draws on the literature of BPR to examine the reported experiences of Australianfirmswhich have undertaken BPR. We address a number of key questions, through applyingaframeworkfor theimplementationofBPR,andthen discussingitssalient features. Thesequestionsinclude: Whatare themotivationsforBPR? Whatis therelationship betweenTQM andBPR? What role does the I/Sfunctionplay in BPR projects? How is technology being used in redesign projects to achieve performance

breakthroughs? What are the key drivers within Australian organisations for implementing BPR? What lessons have these organisations learned through their experiences with BPR?

EVOLUTION OFBPRThe term BusinessProcess Redesign, first appeared in the management literature in mid-1990, followingthe the publication of seminal articles by Hammer(1990)and Davenport &Short (1990). These articles described a newchange management philosophy:one whichtransformed organisational processes beyond mere mechanisation of existing tasks, andofferedquantum performance improvements (Craven,1991).

Traditional functional management approaches were no longer seen as appropriate in a timewherequality, innovationandcustomer service wereofparamount importance (Butler Cox,1991). Therewas areal needtoimplement processes that would enable abusiness tomeetthe ongoing demands of its marketplace (Bevilaqua & Thornhill, 1992). The apparentplausibility of the approach suggested by Hammer (1990) and others for attainingthesegoals,has led to the rapid uptake of Business Process Redesign.

JustasBPR'seffecton anorganisationisoftencross-functionalinnature,theapproach itselfdrawson tools and techniques froma variety of well established disciplines such as industrialengineering, quality management and systems analysis. Rigby (1993) remarks that many ofBPR's attributes can be traced back to work done by early researchers of organisationalsystemsanddesign,andthat established incremental change techniques likeActivity ValueAnalysisor Core Process Redesign, are in many respects, earlier incarnations of BPR.

Therearehoweveranumberoffeatures which distinguish it from theseearlier mechanisms.These include BPR's radical, largely non-incremental nature, claims of rapid paybacks formoneyand time invested, heavy involvement by management consultancies, and its stronglinks with enabling technologies. BPR is a change mechanism which if successfullyimplemented,canassistorganisations tocompetemore effectivelyin achosenmarket,and torealisepayoffson investment inI/T(Fried, 1991;King,1991;Olson, 1992).

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BPRANDTOTAL QUALITY MANAGEM ENTBPR also differs from th eTotal Quality Man agem ent (TQM ) approach. W hile both are basedon the premise that superiority in business process performance is critical to competitiveness,they differ in mo tivation, technique, objective, resultand the business circumstances in whichtheyareapplied (Guld en& Reck, 1992). TQMfavours steady incremental gain, and may oftentake a number of years before real gains are attained. For firms in highly competitiveindustries, this lagtime can allow competitors to forge ahead. TQM can however, lay thegroundworkfor BPR andprovidea foundationfor afocusonprocesses:

In 1991, Digital Australia discovered that its TQM programme would not give thecompany th e quantum leap in improvement needed to give it a competitive advantagein the desktop computer market (Alex ande r, 1993). Digital is currently unde rtaking aBPR project which invo lves exten sive redesignof itssupp ly chain process.Caltex A ustra lia embarked on its Pacesetter program in 1989 to dev elop best practiceapproaches w ithin the firm. Three years later this led to the formation of a Bu sinessProcess Re-engineering function to streamline business processes and manage theinformation resources ofCaltexin themostefficient andeffective manner.The N R M A has a strong commitment to TQM and made continuou s small improvementsin theirprocesses. Themotoringorganisationis nowproceedingwitha BPRinitiativetochallenge these processes while retaining their commitment to quality managementtechniques (Driva&Hunt , 1994).

MOTIVATIONS FOR BPRAcom binationofbusiness imperativesand technology availability underpin th e motivations tocommence BPR. Motivations whichare notm utually exclusive include:(1 ) agrow ing realisation that sub stantial change neededto bemade to many current businessoperations if organisations were to maintain profitability and improve customer

responsiveness. These concerns stemmed directly from: intensified indu stry comp etition w ithin dom estic marketsandfromoverseas aworldw ide economic dow nturn, which forced m anyfirms toseek seek way sof achieving economiesofscopeandcost (Econo mist, 1990; Ham mer, 1990;Butler Cox, 1991).Australian examples: Qantas Airlines,BPAustralia, M obilAustralia, andCaltex.

(2) the merger and acqu isitions binge (Kin g, 1991) of the 1980s had left manyorganisations with : heavy debt burdens causedbyrapid exp ansion;and/or incom patible or totally different organisational cultures, work practices andInformation Systems

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Australian examples: Brash Holdings, th e Commonwealth Bank, and Queensland sDepartmentofEmployment, Vocational Education, TrainingandIndustrial Relations

(3 ) rapid advancements over the last decade, had produced a wide diversity of newtechnologies which were now both flexible an d affordable. These included enablingtechnologiessuchasimaging,EDI andmobile computing (Butler,1993).Australian examples: Myer Grace Bros, MLC,andNorwich Financial Services.

(4) thepressingneedforrenewalormigrationoflegacy systemsandapplications: information systems developed 10yearsago arealmost suretofall shortoftoday'sorganisational requirements (Emery, 1991). It isalso increasingly recognised that

systems maintenance is now a major cost componentof anycompany investmentin I/T. It is therefore vitalfororganisations tohaveefficient information systemsinordertojustify this investment (Hammer, 1990) the rapid growthofend-user computinghas led to increases inuser demandsforenterprise-wide interoperability. This providesanadded incentivefo rupgradeo fthefirm's ITinfrastructure (Butler, 1993)

Australian examples: NRMAand TNT

(5) deregulation, re-regulationorprivatisation particularlyas itaffected governmentagencies.Australian examples: Telecom Australia, Melbourne Wateran dVictoria s StateElectricity Commission.

INDUSTRYINTEREST N PR

Industry interest in BPR has astrongan ddirect link withany one ormoreof themotivationsnoted above. Industry interest levels ca n also be gauged by the results of recent surveyscarriedout by two of themajor management consulting firmsonFortune500corporationsinNorth America. CSC Index s annual surveyon ISManagement issues in 1992 found that over70% of407 respondent organisations were already involvedin BPRprograms, whilea further

14%were discussing thepossibilityofdoingso(Index Group,1993). respondents to a recent survey conductedby Dun and Bradstreet Software Servicesoverwhelmingly nominated BPR as the top priority issue fo r their organisations.

Almost 60 percent...said their companies would reengineer atleast part of thebusiness in1993, resultingin significant benefits overth enext three years (Currid1992).

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These find ings are consistent with the Australian scene. Broadb ent & Others (1993) bienn ialsurvey on Information Systems issues amongst Australasian Share/Guide2 members, found thatrespondents regarded Business Process Redesign as an I/S ma nage me nt issue of rapidlyemerging importance. Dun & Bradstreet Software Services annual customer poll of 107Australasian companies reported that 50% of respondents were either already undertaking orplanning to undertake BPR initiatives (MIS, 1993). A major international research project ontherole an d valueof I/Tinfrastructure currently underwayat the Melbourne Business School,found that over half of the 11 Australian firms included in the study were involved in BPRactivities. Additional evidence of a growing interest in BPR by Australian firms w as wellsupported in1993, with around 14 BPRseminarsor conferences held roundthenation.

W e now review the experiences of Australian firms who hav e reported imp lem entatio ns ofBPR. These reports are taken from a variety of sources wh ich include : the authors detailed case analysis of two business groups (Broadbent & Butler, 1993;Butler&Broad bent, 1993) the case vignettes of eleven firms who are participating in the Melbourne BusinessSchool's I/Tinfrastructure studyfundedby IBMConsulting Group literature reporting Au stralianBPRimplem entations conference andpersonal reports lodged withthe KeyCentreforTechnology Managementwhich acts as an information source for managers who h ave been inv olve d in seminars

and educational programsat theM elbourne Business School

FRAMEWORK FOR THEIMPLEMENTATION OF BPRThe framework presented in Figure1has been derived from the literatureand the experiencesof Australian firms. The framew ork includ es 10 steps which appear to provide a sound basisfo r th eimplementation ofBPR. In thediscu ssion that follow s, examples from Australianfirmsare used to illustrate these steps. Caveats on this framew ork are presented in later sections ofthispaper.

1) Articulate Vision andObjectives: Evaluation of current business and prioritising ofobjectives. The operative word in BPR is redesign - to change a busin ess process to the exte ntthatit will deliverthe strongest possible competitive advantage (Carr &others, 1992). Th isismost likelytosucceedin firmswhich exhibitaconsistency ofm issionor strategic intent.

In 1991, BPA ustraliaand BP NewZealand linked the ir operations to form th eBPOAZ region.Asignificant part of Phase 1 of BPOAZ's BPRproject involve d determiningabu siness visionthat would integrate tw o quite different businesses. The vision moved BPOAZ from beingvolume driven to being profit driven, from being transaction processors to being knowledgeworkers,from being functionally managed to being process managed (Broadbent & Butler,1993). Digital A ustralia 'sQantum project focusedon a major redesign of its supply process.Digital regarded th e settingo f a vision with th e ability to motivate th e organisation towards

Amem bershipo forganisat ionsusing IBM mainframes.

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stretch goals and high ambitions as being vital to the success of their project (Alexander,1993).Figure 1: A 10Step Framework for BPR

Articulatevisionandobjectives

implementongoingimprovementstrategy

Make newprocessoperational

Ensureexecutivecommittee sponsorship

Develop highlevelprocessmap

nsurechangemanagement andsupportcapabilities

BusinessrocessRedesign

Identify processforredesign

Understand measureexisting process

Redesign the process,identifyingI/Tlevers

PrototypethenewprocessFaced with increasing accountabilityand theneedtodeliver qualityservices,Melbourne Water

has undertaken an extensive redesign project aimed at effecting a quantum improvement inperformance (Lynch, 1994). Part of its methodology for establishing a new business designhas involved translating the existing company vision into high level business objectives.

2) Ensure Executive Committee Sponsorship: Because of its high risk, oftenradicalnature, BPRrequires th efull support andcommitment from to pmanagement if it istosucceed. Hammer considers it essential for any re-engineering effort to have an high levelchampion to sponsor the project and see it through (Alexander, 1993).

BPOAZ's BPR project started to have an impact when executive level sponsorship wasevident (Broadbent&Butler, 1993). Digital Australia considers strong, visible support andvisionary sponsorship fromsenior management vital for success in BPR (Alexander, 1993).

3) Develop High LevelProcessMap: Developahigh level view ofexisting businessprocesses. Part of Melbourne Water's business design studyhas involved defining high levelbusinessprocessescritical formeeting business objectives. The 10processesidentified andthe interactions between them, constitute Melbourne Water's business process model (Lynch,1994). CaltexAustralia developed a business process mapwhich acted as a guide for itsBPR implementation.

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BPOAZ condu cted a nu mb er of Process Definition workshops in order to documen t how theregion currently conducted its business in terms of the Order Management Cycle (OM C)3 .The workshops produced a series of flowcharts which mapped the stages an d individualelements of the OMC, and charted the interactions and levels of involvement between variousbusiness units (Broadbent & Bu tler, 1993). Once the process approach was accepted,charting of all majo r processes was un dertaken.

4) IdentifyProcess(es) for Redesign: Identify critical or bottleneck proces ses . In1991, Australian transport giant TNT suffered its first loss for 30 years and faced strongcompetition in itstraditional markets. TNT 'snewchangeprogram has involved the companyin identifyingand reassessing its core processes, and has realised a need to substantiallyupgrade the existing technology base to support these processes (Kelly, 1993). DigitalAustraliahad identifiedits OM C process as a problemarea. After mapping the process andmeasuring itsperformance, Digital discovered that theprocessw ascostly and inefficient,andthatthe technology supportingit wascumbersomeand outdated (Alexander, 1993).

Queensland's Department of Employment, Vocational Education, Training and IndustrialRelations (DEVETIR) is the result of a recent amalgamation of six previous statedepartments, each having different processes, areas of focus and computer environments.DEVETIR has recently undertakenanextensive redesign project aimed at derivingacommonset ofprocesses and developing a new I/T architecture that would support implementation ofthen ewprocesses.In late 1992, BP Head Office in London introduced a new company-wide CustomerRespo nsivene ss program. In line wi th this, BPOAZ selected Billing as its first major processfor redesign. Bill ing had strong external interactions and would focus the group on acustomer perspective (Broadbent & Bu tler, 1993). No rwich Financial Services undertookdetailed analysisof its membership application and claimsprocesses in order toidentify howtheseprocessescouldbe streamlined (Head, 1993).

5 ) Understand and Measure ExistingProcess: Use IT tools or other modellingtechniques to document and/or understand existing processes. After using the SimViewcom puter-aided process m ode lling package to evaluate current freighting procedures andprototype new alternatives, Queensland Railfound ways to cut A$10millionfrom the processand substantially streamline operations (Mitchell, 1993). Australian car ma nufacture rsMitsubishi and GMH have also used SimView for simulating their production processes(Mitchell, 1993).

3 The OM C is a transactionally-basedprocesswhichdescribestheworkflows fromlodgement of anorder by a customer to delivery of that order to the customer. Most company operations involve an OMCelement.

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BPOAZ usedMetaSoftware'sIDEF computer-aidedprocessmodelling tool and DEC's symbol-based TOP mapping technique fo r tracking informational flows in a number of processestargeted for redesign (Butler, 1993). Digital Australia used a variety of prototyping andmodelling tools extensively throughout its Quantum redesign project (Alexander, 1993).

6) Redesign Process(es) Identifying I/T Levers: Develop new process approachesincludingITsolutions. I/Sholds a unique position in the organisation through its exposure toallareasof thebusiness. Technology canintegrate theorganisationalmodelbysupportingtherelationships between its components. While the application of technology is a key ingredientin BPR,it is nothoweveran end initself.

Digital Australia quickly realised that technology alone wouldnotsolveitsbusiness problems,butthat BPR, supportedbytechnology, could haveadramatic impactonbusiness performance(Alexander, 1993). Myer/Grace Bros regarded the implementation ofEDI/QR

4 technologies asvitalformaintaining acompetitiveedgeintheir marketplace. They quicklyrealisedaneedfor

overhauloftheir current systems environmentandtransactional processes inordertocopewithrapidincreasesininformation capture (Butler&Broadbent, 1993).

Asharp drop in international airline travel after the 1990 GulfWar, prompted Qantas Airlinesto explore avenues fo rprofit improvement. After developing radical newplans fo r changethroughout the business which included a number of technology improvements and newsolutions, the companywasable to saveUS$200million in operating costs (Carr &others,1992). Financial services firms such as Norwich and MLC Life have both used documentimaging technology to support re-engineered claims processes. MLC claims that productivitygains have exceeded their expectations (Roach,1994),while Norwich claims 50-70% of theirbenefitshave come through the use of imaging (Head,1993).

7) Prototype and TestNewProcess(es): Test new process for robustness.Prototyping can be applied to both process and enabling technologies to test out theeffectiveness of design with users before implementation (Alexander, 1993). Afterconducting a systems audit todetermine a suitable I/T architecture design, Queensland'sDEVETIRprototypedandverifiedits newprocesses running underthe newarchitectureat asingle site before moving to full implementation in departmental offices throughoutQueensland.

Myer/Grace Bros opted for a phased introduction of its EDI/QR project. This entailedcarefullytrialing each newelectronic document witha fewselected supplier trading partnersbefore proceeding to commercial activation. This approach also allowed the retailer and itssuppliers time to reorganise systems and work practices in order to accommodate morecomplex EDI documents involving Quick Response (Butler & Broadbent,1993).

Electronic Data Interchange/Quick Response.

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8) Ensure ChangeManagement and Support Capabilities Prepare people for, andinvolve people in the changes that th e redesigned process(es) will involve. As aprocessundergoes redesign and prototyping, jobs are being reshaped. Process redesign inevitablyinvolves changes in thenature ofwork. Some tasksare nolonger done, whileinotherareas,the scope of work is expanded. Case management approaches, which can occur wheninsurance claims processes are redesigned, require a more holistic approach to customers,withoneemployee often completinga set of tasks previously spread over several workersoreven several departments.

Until 1992, Brash Holdings ran itsbusiness almost entirely through manual processes. Storemanagers were required tocomplete up to 32 forms each day for recordingof events. Withthe implementation ofintegrated point-of-sale, merchandisingand management informationsystems in 1992-3, th e nature of work in both stores and head office changed radically.Brash Holdings seconded keyretailstaff toheadoffice, andparticularly intothe I/T function,to work on the most appropriate implementation of newprocesses and to lead thetrainingprogram fo rover3000 staff.

As part oftheir change management approach fo r redesign of the Billing process, BPOAZheld 'stakeholderbriefings . During these meetings, BPOAZ managers were introducedto theconcepts of process management. Focus group sessions were then held which explored th erelationship between the firm's Customer Responsiveness program and the redesign andprocessmanagement activities. Onceanumberofprocesses hadbeen redesigned, many staffhad been involved in redesign workshops. This had acumulativeeffect onBPOAZ s abilitytospeedupredesign ofsubsequent processes (Broadbent &Butler,1993).

The implementation of EDI/QR at Myer/Grace Brothers meant radical change fo r bothsuppliers an dbuyers. Two approaches were put in place to support these changes. Aretailmanager who had worked on a major I/T project was given the responsibility of liaisingbetween I/T staff and retail, buying and merchandising staff. Secondly, education an dtrainingsessionswere held. This had the effect ofbringing together both internal buyersandexternal suppliers towork throughthemost appropriate way toshape andimplement changesin specific retailareas(Butler&Broadbent, 1993).

9) Make New Process Operational: Implement the changes, putting inplace aprocess management approach. The implementation of a redesigned process usuallyrequires concurrent changes inmanagement approaches, howwork isperformed within th efirm, and how technology is used. At BPOAZ, managementofactivities through businessprocesses has introduced the concept of Process Owners, Process Managers and processteams. The Process Owner fo r billing is a divisonal manager who has responsibility fo rmonitoring th e performance of the process across th e various functions involved. Whenfurthercross-functional enhancementsareneeded, th eProcess Owner sponsors these changes.Daily responsibility for the billingprocess restswith th eProcess Manager. This i s a full t imeresponsibility. Members of the billing process team come from al l parts of the businesswhichareinvolvedinthat process (Broadbent&Butler,1993).

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AsMyer/Grace Brothers has proceeded withEDI/QR introduction, changes have been madeto the way the new processes are managed. A more holistic management approach is now inplace with one manager having overall responsibility for overseeing the phasedimplementation (Butler & Broadbent, 1993).

10) Implement Ongoing Improvement Strategies: Put in place procedures to monitorandmeasure continuing improvements in theredesignedprocess(es). BPOAZ hasevolvedafirm-specific process management approach whose final step involves continuousimprovement re-assessment. A redesigned process must include a set of measures whichenablethe firm tomonitorandimprovetheperformanceofthat process (Broadbent&Butler,1993). Jus t as the application of TQM techniques have provided an impetus forreengineering,those same techniques are being applied in an ongoing assessment ofprocessperformance.

N R M A considers that the quality management approach - with its focus on constantmeasurementsaimed at improvements -combines well with BPR: The amalgamation ofthesetwotechniques givesus aquality system thathelps usexaminetheprocessesandthisiswhatweneedto do toremain competitive (Riches, quoted byDriva& Hunt,1994).

Retrace from Step3while ensuring thatthevision, objectives andexecutive committeesponsorship are refreshed and in place. At this point, the high level process map isrevisited and selection of the next process for redesign is initiated.

DISCUSSIONTheframework presented abovewasusedtohighlightthestepswhichanumberofAustralianfirms undertakingBPRactivities have experienced. However, some caveats arerequired asBPR is not necessarily an activity which can be universally undertaken in a step-wise,prescriptivemanner. Someof thesalientcharacteristicsof BPR are nowdiscussed.

Non-linearandPoliticalBPR is a verydifficult, messyan d often non-linear activity. BPR challenges theempires ofexisting organisational stakeholders who might at first give their consent and pledgecommitment. However, when the extent of possible changes become evident, that supportcan be quickly eroded. Leading a BPR team can be a risky career move as large scaleredesign is usually undertaken in an intensely political environment. This underlies theimportance of the highest level of executive sponsorship for changes which are cross-functional inscope.

PhasesofCommitment duringBPRThe organisational environment goes through several phases: initial commitment,excitement, fear ofchange, scepticism, tentative involvement and, if successful, large scale

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commitment . Redesign activities can and do falter du ring any one of thesephases. Duringimplementation, those involved in drivingthe changes can expect to observe these phasesoccurring concurrently indifferent pockets of the organisation. Restarting BPR isoften moredifficult than gaining the initial commitment.

Use of ConsultantsMost of the BPR implementations we have observed have involved the use of consultants.Taking a new look at an organisation's processesisdifficult for those inside the firm withoutsome external inputs. However consultants need to be part of a team headed by a seniormanager in the firm. Once the first redesignedprocesses are in place, subsequent redesigncan be undertaken with a lower level of consu ltant involv em ent. Firms imp lemen ting BPRneed tocarefully manage consu ltants to ensure the transfer of skills from consultant membersto internal mem bers of the team.

RoleofTechnologyW ehave identified four different ways where information technology can playa pivotal rolein the redesign ofprocesses.1) Systems development or renewal as stimulant and technology as enabler:In some instances, the redesign was stimulated as part of a systems development orrenewal activity and technology is very much a driving force in enabling new

processes. Examples include Brash Holdings,MLC andNo rwich FinancialServices.2) Te chnology supporting redesign:In other organisations, such as BPOAZ, the emphasis is on technology supporting aredesigned process. Greater valu eisextracted from the I/T in place. Major changes tothe organisation's I/Twerenotrequiredfor the levelof change implemented.3) Te chnology as both enabler anddisenablesMyer/Grace Brothers found thatwidescale implementation ofEDI/QR in the businesscould not proceed until renewal of their technologybasewas undertaken. The currentsystems couldnothandle thedata captureand processing load generated byintegratedpoint-of-sale systems using 13 digitcodes for all merchandise. In this third instance,EDI technology is enabling the extensive change of processes in a defined area ofactivity. However, this cannot be extended until changes are made to theorganisation's the information technology infrastructure. Thus technology can be bothan enabler and a disenabler for BPR.4) Te chnology discovery as stimulant and enabler:Organisations which have not previously used I/T as major component in the deliveryof their business migh tidentify a technology w hich radically changes the w ay in whichth e firm worksand even thevery natureof thebusiness. Flower and Samios, a small

Sydney-based architectural firm, provides an example of process change which wasnot unde rtaken as such. How ever the potential of the application of CA D/CA M5technology was seen by the firm's leaders an d implemented in a way which changedComputer Aided Design/ComputerAidedM anufacturing.

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virtually all processes and created a redefined business (Yetton, Johnston & Craig,1993).

Therole oftechnology mightalsodiffer in different processes in the same firm. Theaboveroles are not mutually exclusive and could exist concurrently in large firms.

The Role of theI/SGroupI/S groups are accustomed to workingwithmany parts of organisations and are essentiallycross-functional in perspective. I/S groupscan often seewhatthebusiness needs to do tobettermanageprocesses. However, this doesnotmake I/Smanagers natural leadersof BPRimplementations. The leaders of BPR teams need to be, and be perceived to be, seniormanagerswhohaveavery stronganddetailedgraspof thebusiness. Sometimes such leaderscan come from I/Sgroups, but this is often not the case initially. BPR teams need somemembers with strong I/Sbackgrounds; but ifthey dominate, or areperceived todominate,support from keybusiness stakeholdersm ay bewithheldif theactivityisseen asjust anotherattempt to spend more money onI/T.

LESSONS LEARNEDOrganisations facing difficultbusiness conditions mightsee BPR as a way ofbringing aboutradical improvements in performance. We have presented reported examples of BPR inAustralian organisations andmapped theseon a tenstep frameworkforimplementing BPR.While the firms quoted have reported considerable improvements in their processes,extensive examples ofwidespread, well documented, substantial and sustainable change intheperformance ofAustralianfirmsbrought aboutby BPR are not yetapparent. Therearehowever, some key lessons which emerge from the early experiences ofAustralian firms.These include:

1) theneed forstrong, visible executive management support2) theimportance ofconstant communicationof themotivationandprogressofprocess

changes3) the use of consultants to aid lateral thinking4) theneedtomanage consultantsandensure skills transfer5) theimportanceofmeasurementsforboth currentandredesigned processes6) theneedfor anexternal customerorsupplierfocusin theredesignofprocesses7) educationandsupportof allstakeholdersin theprocess change8) determininganappropriate rolefortechnology9) recognition of, andpreparation for,thedifferentphases ofcommitmentto BPRwhich

mightbeevidentatdifferent times10) the importance of focusing on the nature of work and the role of people, not theorganisationor itstechnology

The changes implemented by some organisations vary from simplifying to reinventingprocesses. Theextentofprocesschange appearsto berelatedto acombination of factors:the desperation of the organisation and current state of its processes, the availability ofsuitable technology to enable and support sustained change, cultural factors related toorganisational readiness, andpolitical considerations concerning theacceptability ofradical

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change. W eexpect that some organisations whichhav e alreadyhad theexperience of processsimplification,mightnowtakeamore radical approachtosomeof these issues.CONCLUSIONConceptual and consulting frameworks emphasise the inter-linkage of strategy, technology,jobs, structure, values and beliefs and management systems (Scott Morton, 1992; Hammeran dChampy, 1993). Each of these need to be aligned to bring abo ut and sustain successfulprocess change.Theexperience of Australianfirmsoutlinedin this paper demonstrates th ecomplex natureofBPR. For many of these firms, BPR has been a change approach w hich was politically,managerially, an d often technically difficult to implement. However, those which haveimplemented process change successfully, and put in place an ong oing process changestrategy, find that they are w ell placed to handle comp etitive business pressures.REFERENCES:Alexander, Maggie (1993). Digital Sou th Pacific's qu an tu mleap", Business change and

re-engineering. 1(3),pp.26-33.Baldwin, Steven R. (1993). Solving the reengine ering paradox , Frameworks fo rorganizational change.DeloitteTouche T ohmatsu International.Bevilacqua, Richard J. & Thornhill, Daniel E. (1992). "Process modeling , AmericanProgrammer. 5(5), May. pp. 2-9.

Broadbent, Marianne and Butler, Carey(1993). Initiating bus ine ss process redesign at BPOilAustralia& NewZealand",Businesschangeandre-engineering. 1(2),pp.6-13.Broadbent, Marianne, Butler, Carey; Hansell, Allan & Dampney, C.N.G. Kit (1993).Business value, quality partnerships: Australasian information systemsmanagement issues in 1992. Melbourne: Graduate School of Management,UniversityofMelbourne. July . [Working PaperNo.5].Butler, Carey (1993).The role of information technology inbusiness process redesign:some observations from th e literature. Melbourne: Melbourne Business School,U niversity of M elbourne . December. [W orking Paper No. 18].Butler, Carey & Broadbent, Marianne (1993). Trading on (the) line. My er/Grace BrosDepartment Stores. Electronic Data Interchange and Quick Response. M elbourne :MelbourneCaseStudy Services, M elbourne Busine ss School, U nive rsityofMelbourne.Butler Cox Foundation (1991). The role of Information Technology in transforming thebusiness. London: BCF, January. [Research Report No.79].

Carr,David K .;Dougherty, Ke vinS.;Johansson, Henry J.; K ing, RobertA . &M oran, DavidE .(1992).Breakpoint: businessprocessredesign.Arlington,VA:Coopers &Lybrand.Crave n, John (1991). How to imp lem ent IT through a strategic plan: creating processchange". Paper presented at : Keeping Your Professional Edge. Au stralian SocietyofCPA'sVictorian Congress 1991,M elbourne.Currid, Cheryl (1992). Re-eng ineering? You need some outs idehelp", Computerworld(Australia). 23 October, p. 24.Davenport, ThomasH. &Short, JamesE.(1990). The newindustrial engineering: In formationTechnology and Business Process Redesign , Sloan Management Review.31(4), pp.11-27.

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