Tag Archives: Agile Business Process Reengineering

Business Process Reengineering and Agile Transformation

I recently wrote an article on a “Business-centric Approach to Agile“. Have you ever thought about how similar Business Process Reengineering and Agile Transformation are? The similarities are amazing but I suspect that many people don’t think of any relationship between BPR and Agile.

Business Process Reengineering (BPR) was very hot in the 1990’s. One of the catalysts that precipitated the need for BPR was the advent of new Enterprise Resource Planning (ERP) systems. ERP systems enabled many companies to much more completely automate their business processes but it was a gut-wrenching change for many companies because implementing an ERP system in many cases required rethinking their business processes to take a much more cross-functional approach to their business. Another important catalyst was “lean manufacturing” which seeks to eliminate the use of any resource that does not create value for the end consumer. Does that sound like an Agile enterprise-level transformation?

Here’s how Bain and Company defines “Business Process Reengineering”:

“Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality. In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer. They typically adopt a new value system that places increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision making”

Source: Bain & Company: Insights – Management Tools, Business Process Reengineering

Let’s take this definition one step at a time:

  • The first statement is “Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality” – there’s no question in my mind that that statement could apply to an Agile transformation, but do companies really realize that and do it that way?
  • The next statement is “In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer.” There’s also a good fit with that statement. You may not start with a “blank sheet of paper” and throw out all your existing management processes, but it is definitely important to rethink many existing stereotypes and misconceptions that exist about both Agile and traditional management approaches before you launch into an Agile transformation.
  • The statement that “They typically adopt a new value system that places increased emphasis on customer needs” is very relevant to an Agile transformation but is probably not given the attention that it deserves. When a company implements an Agile transformation, it is often done from a limited development perspective focused on how it improves the development process but that needs to be done in a larger context of how it improves the customer value that the company delivers to its customers.
  • The last statement is absolutely very relevant to an Agile transformation: “Companies reduce organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision making”

I’m not defending BPR, there were definitely some problems in the way it was implemented, but there’s a lot we can learn from it (both good and bad). If more companies realized how similar to Business Process Reengineering is to an Agile transformation and treated it that way, the probability of success would probably be significantly higher. It expands your thinking to see an Agile transformation in an overall business context rather than a very limited development-centric perspective.

I’ve developed a new online training course called “Making Agile Work for Your Business” that is designed to help companies see this perspective and to take a business-centric approach to successfully integrate an Agile development approach into their business.