Business Process Re-engineering (BPR) is a strategic approach aimed at radically redesigning core business processes to achieve significant improvements in efficiency, quality, and customer satisfaction. However, despite its potential, many BPR initiatives fail due to poor planning, inadequate change management, resistance from employees, lack of leadership support, or misalignment with organizational strategy. Studying failures provides valuable insights for future projects, highlighting the importance of communication, stakeholder engagement, technological readiness, and employee training. By analyzing both global and Indian corporate examples, organizations can understand the pitfalls, learn best practices, and implement BPR initiatives more effectively to ensure sustainable business improvements.
Global BPR Failures
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TELECO (USA – 1990s)
TELECO undertook BPR to enhance competitiveness but failed due to poor planning and communication. Employees were unprepared for radical changes, and leadership did not adequately explain the objectives or provide proper training. Lack of coordination and insufficient use of process analysis tools caused confusion and operational inefficiencies. The initiative resulted in wasted time, increased costs, and low morale, demonstrating the consequences of neglecting change management and employee engagement in process redesign.
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Ford Motor Company (1990s)
Ford implemented BPR to streamline manufacturing and administrative processes. However, the initiative faced significant resistance because employees were not involved in planning or informed about changes. Insufficient training and unclear communication led to operational disruptions and slower adoption of new processes. The failure highlighted the importance of workforce involvement, clear messaging, and phased implementation to ensure successful BPR outcomes.
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Kodak (Early 2000s)
Kodak’s BPR efforts aimed at transitioning from film-based to digital processes were unsuccessful. The reengineering was misaligned with the company’s core competencies and market demands. Lack of understanding of the digital environment and insufficient planning caused strategic missteps. The failure underscores the need for aligning BPR with market trends, organizational strengths, and long-term strategy.
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Bank of America (1990s)
Bank of America attempted BPR to enhance operational efficiency but faced setbacks due to employee resistance and inadequate training. Poor change management disrupted services and decreased customer satisfaction. This case emphasizes the importance of preparing employees, providing clear guidance, and maintaining service quality during reengineering initiatives.
Indian BPR Failures:
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Mahindra & Mahindra (1990s)
Mahindra & Mahindra’s BPR efforts encountered resistance from labor unions and employees. Insufficient engagement and organizational inertia hindered implementation, causing delays and suboptimal outcomes. The case highlights the need for stakeholder involvement, communication, and alignment with organizational culture during process redesign.
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Bank of India (Early 2000s)
The Bank of India aimed to implement core banking solutions through BPR. Infrastructure limitations and staff resistance caused delays and cost overruns. The failure illustrates the importance of readiness assessment, resource planning, and employee training to achieve BPR objectives.
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ICICI Bank (Early 2000s)
ICICI Bank’s centralization of data management processes faced challenges due to poor integration and inadequate employee training. The initiative showed that technological upgrades alone cannot ensure success; comprehensive planning, support, and skill development are crucial.
- Satyam Computer Services (2000s)
Satyam attempted to streamline operations through BPR but lacked clear objectives and proper execution. Misalignment between process redesign and strategic goals limited improvements. The failure demonstrates the necessity of goal clarity, strategic alignment, and effective project management for successful BPR.