Advanced Performance Management · Performance improvement models and techniques

Business Process Re-engineering and Process Improvement in APM

Updated 11 October 2026 · Fact-checked

Business process re-engineering (BPR) is the radical redesign of core processes to achieve dramatic gains in cost, quality, service and speed. Hammer and Champy said to start with a clean sheet. Kaizen and lean are incremental alternatives. In APM, you judge which approach fits the scenario and explain the risks.

Understand Business Process Re-engineering and Process Improvement

A business process is a set of linked activities that turns inputs into an output a customer values. Examples are order-to-cash, handling a claim, or onboarding a client. Many firms run processes split across departments. Each department optimises its own step. The customer sees delays, hand-offs and errors.

Business process re-engineering (BPR) attacks this. Hammer and Champy defined it as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in measures such as cost, quality, service and speed. The four key words are fundamental, radical, dramatic and processes. You ask why the process exists at all, then redesign it as if starting with a blank sheet. You do not patch the old one.

Typical BPR principles from Hammer and Champy's thinking: organise around outcomes, not tasks; let those who use the output perform the process; put information processing into the work that produces the information; treat dispersed resources as if centralised; link parallel activities rather than integrating them later; put the decision point where the work is done and build control into the process; capture information once at source. Technology, especially IT, is often the enabler that makes the redesign possible.

The alternative is incremental improvement. Kaizen means continuous, small improvements made by all staff, often through teams. Lean removes waste (anything the customer will not pay for) and improves flow. Total quality management and Six Sigma also improve existing processes step by step. These keep the current process and make it better.

So the choice is about size and risk. BPR gives large gains but is costly, disruptive and has a high failure rate if people resist or the redesign is poorly planned. Incremental methods are lower risk and build engagement, but gains may be too small if the process is fundamentally flawed. Many firms use BPR to reset a process, then kaizen to keep improving it.

Key rules to remember

Definition of BPR: BPR = fundamental rethinking + radical redesign of processes → dramatic improvement in cost, quality, service and speed; Use the four key words fundamental, radical, dramatic and processes when defining it.
BPR versus kaizen: BPR: radical, top-down, one-off, high risk, big gain. Kaizen: incremental, bottom-up, continuous, low risk, small gains; A comparison format works best in answers. Compare on scale, who drives it, timing, risk and cost.
Lean waste test: Value-adding activity = one the customer would pay for. Everything else = waste to remove or reduce; Used to identify non-value-adding steps before redesign or improvement.

How to solve Business Process Re-engineering and Process Improvement questions

Use this method for any APM question on BPR or process improvement. It keeps your answer tied to the scenario and earns professional skills marks.

1Read the requirement and note the verb: explain, evaluate, discuss, recommend or advise. It tells you the depth needed.
2Identify the process or processes in the scenario and the problem symptoms, such as delays, rework, high cost, complaints or silos.
3Decide whether the problem is fundamental (the process design is wrong) or marginal (the process works but could be tighter).
4Apply the relevant model: Hammer and Champy principles for BPR, or kaizen, lean and TQM for incremental change. Link each point to a fact in the scenario.
5Weigh advantages against disadvantages for this organisation: cost, disruption, staff morale, IT needs, timing and risk.
6Consider implementation: leadership support, change management, communication, training, pilots and how you will measure success.
7Give a clear recommendation with a reason, and say what conditions would change your advice.

Quickest way: Problem – Choice – Risk – Recommend

When to use it: Use when time is short and the question asks you to evaluate or recommend an approach for a process problem.

Problem: name the process and what is wrong, with one scenario fact.
Choice: state BPR or incremental, and why it fits the scale of the problem.
Risk: give two benefits and two risks, each tied to the scenario.
Recommend: give your decision and one condition for success, such as change management.

Common mistakes in Business Process Re-engineering and Process Improvement

Treating BPR as simply cost cutting or redundancies.
Many BPR projects in practice did end in downsizing, so students link the two.
Fix: Say BPR redesigns processes for dramatic gains in cost, quality, service and speed. Job losses may follow but are not the definition.
Describing BPR and kaizen as the same thing.
Both aim at process improvement, so the key difference in scale gets blurred.
Fix: Always contrast them: radical and one-off versus incremental and continuous. Mention who drives each.
Listing Hammer and Champy principles without applying them.
Students memorise the list and write it out for knowledge marks.
Fix: Pick the principles that fit the scenario and show how each would change the named process.
Ignoring people and change management.
Students focus on the technical redesign and IT.
Fix: Discuss resistance, skills, communication, leadership sponsorship and morale. These are common reasons BPR fails.
Recommending BPR for every problem.
BPR sounds more impressive than small improvements.
Fix: Match the method to the problem. If the process basically works, kaizen or lean may be the better and safer choice.
Giving generic advantages and disadvantages.
Students rely on memorised lists and skip the scenario.
Fix: Tie each point to scenario facts such as customer waiting times, legacy systems or staff attitudes.

Worked examples

Example 1

A bank takes 21 days to approve a business loan. The application passes through five departments in sequence. Each department re-enters customer data and checks the work of the previous one. Customers complain and some go to rivals. The board is considering BPR. Explain how BPR could be applied and the main risks.

Show the solution

Define the problem: the process is slow because of sequential hand-offs, repeated data entry and duplicated checks. This points to a design flaw, not poor effort.
Apply Hammer and Champy: capture data once at source, so one entry replaces five.
Organise around the outcome: appoint a case handler or small team responsible for the loan from application to decision, instead of five task-based departments.
Link parallel activities: credit checks and legal checks can run at the same time rather than in sequence.
Move decisions to where the work is done: allow the case handler to approve standard loans within set limits, with controls built into the system.
Risks: high cost of new IT, disruption during the change, staff resistance and fear of job loss, and the risk that service falls during the transition.
Mitigation: pilot in one region, communicate early, retrain staff and set targets such as approval time and customer satisfaction.

Answer: BPR suits this bank because the delay comes from the process design. Redesign around a case handler, capture data once, run checks in parallel and delegate decisions. Manage the risks of cost, disruption and resistance through a pilot, communication and training, and measure approval time and customer satisfaction.

Example 2

A manufacturer's assembly process works reasonably well but has frequent small delays, excess stock and minor defects. Management is unsure whether to use BPR or kaizen. Advise them.

Show the solution

Diagnose: the process basically works. Problems are small, frequent and spread across the line. This is not a fundamental design failure.
Kaizen fits: continuous small improvements from the staff who do the work can fix many minor delays and defects. It builds engagement and has low cost and risk.
Lean fits: removing waste such as excess stock and waiting time improves flow without redesigning the whole process.
BPR is likely too disruptive: it is costly, risky and unnecessary if the existing design is sound. Gains could be dramatic, but the failure risk is high.
Condition: if after kaizen the process still cannot meet cost or quality targets, or technology offers a very different way to produce, then BPR could be reconsidered.
Recommend: start with kaizen and lean, measure results such as defect rate, stock days and delay time, and review after a set period.

Answer: Advise kaizen and lean. The process is sound, so incremental, low-risk, staff-led improvement is more suitable than the cost and disruption of BPR. Reconsider BPR only if the process proves fundamentally unable to meet targets.

Exam tips

Always compare BPR with an incremental alternative. Examiners often reward a reasoned choice, not a description of one method.
Use scenario facts in every paragraph. Generic lists of advantages and disadvantages earn few marks.
Include change management. Resistance, communication and leadership are standard points for evaluation questions.
Write in the requested format, such as a report or briefing note, and keep a clear recommendation to earn professional skills marks.
Link BPR to performance measurement: say how you would check success, for example using cycle time, cost per transaction and customer satisfaction.

Practice questions from Performance improvement models and techniques

Business Process Re-engineering and Process Improvement: frequently asked questions

What is the difference between BPR and kaizen?

BPR is a radical, one-off redesign of a process, usually top-down and often enabled by IT. Kaizen is continuous, small improvement driven by staff at all levels. BPR offers bigger gains with higher risk, while kaizen is safer but slower.

What are the advantages and disadvantages of BPR?

Advantages include dramatic gains in cost, speed, quality and service, a customer focus and removal of silos. Disadvantages include high cost, disruption, staff resistance, dependence on IT and a high risk of failure if change is poorly managed.

Who are Hammer and Champy?

They are the authors who popularised BPR in the early 1990s. They defined it as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. Their ideas stress starting with a clean sheet and organising around outcomes.

Is BPR the same as downsizing?

No. BPR redesigns how work is done to improve performance. Downsizing cuts headcount. A BPR project may reduce staff numbers, but that is a possible result, not its purpose.