Principles of BP:

There are a number of principles that have been identified for BPR.

1) Processes should be designed to achieve desired outcomes rather than focus on tasks. Removal of job demarcation and emphasize multi-skilling.

2) People who use the output should perform the process themselves. For example a company could set up a database of approved suppliers. This would allow personnel who actually require supplies to order them themselves, using line technology and thereby eliminate the need for using a separate purchasing department

3) Incorporate information processing into the real work that produces the information- avoid separate data gathering processes or operations.

4) Geographically dispersed resources should be treated as if they were centralized for example economies of scale through central negotiation of supply contracts, without losing the benefits of decentralization eg. flexibility and responsiveness.

5) Link parallel activities rather than integrate the results. This would involve for example, co-ordination between teams working on different aspects of a single process.

6) Empowerment:- ‘Doers’ should be allowed to be self managing. Put the decision point where the work is performed.

7) Capture information only once. Ideally only at its source.

Advantages:

• BPR revolves around customer need and helps to give appropriate focus to the business.
• Provides cost advantages that assists the organization’s competitive position.
• Encourages a long-term strategic view of operational processes by asking radical questions about how things are done and how they could be improved.
• It focuses on the entire processes and therefore the exercise can streamline activities throughout the organization.
• It can help eliminate unnecessary activities therefore help reduce organizational complexities.

Disadvantages:

• It requires far-reaching and long term commitment by management and staff. Securing this is not an easy task.
• Sometimes it is incorrectly seen as a single once for all cost cutting exercise. Primarily the aim is not cost cutting and it should be an ongoing process. This view could create hostility as employees see it as a threat to security.
• Sometimes it is also seen as a tool to make small changes yet in the real sense it should be used to make radical changes.