ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques
Kestrel Components is considering a BPR project. Which of the following is the most likely cause of the project failing to deliver its expected benefits, according to commonly cited BPR criticisms?
The most likely cause of failure is treating BPR mainly as cost-cutting and redundancy. This provokes staff resistance, loses process knowledge and weakens commitment, whereas customer-focused redesign, process mapping and senior sponsorship are recognised good practice that supports successful re-engineering.
- ARedesigning the process around customer outcomes rather than functional departments
- BUsing process mapping to identify non-value-adding activities
- CTreating BPR mainly as a cost-cutting and headcount reduction exercise, causing staff resistance and loss of knowledgeCorrect
- DAppointing a senior sponsor to champion the change
Explanation
A frequent reason for BPR failure is that it is used as a disguise for downsizing, which undermines staff commitment, loses tacit knowledge and creates resistance. The other options are recognised good practice: customer-focused design, process mapping and senior sponsorship.
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