RESEARCH PROPOSAL February 1, 2013

Introduction
1.1 Background of the Study
The work environment of the present day has become so complex and challenging due to the
change of technology, customer expectations, social and political pressures. In order to be
adaptable and alert enough to respond the challenges and opportunities organizations has tried to
introduce new working tools like BPR (Business Process Reengineering). BPR is the
fundamental rethinking and radical redesign of business processes to achieve dramatic
improvements in critical, contemporary measures of performance such as cost, quality, and
service and speed (Hammer and Champy, 1993:36). The goal of business process re-engineering
is to redesign and change the existing business practices or process to achieve dramatic
improvement in organizational performance. On the other hand, due to BPR failure factors BPR
projects can fail to meet the inherently high expectations of reengineering. As Hammer and
Champy in Mashari and Zairi the percentage of BPR failures to be estimated as high as 70% due
to executives' failure to either implement success factors properly or the confusion surrounding
BPR, and how it should be performed (Mashari and Zairi, 1999:87). This reveals that the
implementation process of BPR requires greater attention, follows up and commitment on the
part of top management.

By taking into account the driving forces of the 3Cs: Customer, Competition and Change, over
the last few years, most government organizations in Ethiopia implement BPR to improve their
performances and customer satisfaction. Among these organizations, Ministry of National
Defense and its sub units has tried to restructure and implement BPR since 2009/2010. The focus
of this research paper is making an assessment on the implementation of BPR in Defense
Finance Management Sector.

Defense finance management sector has finance, budget programming and Procurement
directorates at the head quarter and there are 30 teams under each directorate. The number of
managers and employees within the directorates and teams vary depending on the work volume
and location of the budget holders. The number of managers and employees are 784, which is
118 and 666 within the directorates and budget holders respectively. By taking this in to account
the sector has involved in implementing BPR since 2009/2010. Even though the implementation
process has taken place, the real observations of the implementation process, comments of

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

customers, staff employees and written official reports don’t show the success of BPR
implementation. This is the reason why the research is relevant and timely initiated.

In relation to the sources of data, the primary sources are mainly focused on managers and
employees of the sector. In addition to primary sources; secondary sources the management’s
evaluation reports, comments on BPR implementation process, related valuable literatures and
documents can be taken as sources of data to make the research more reliable and dependable.

1.2 Statement of the Problem

It is obvious that BPR has great potential for increasing productivity and performance through
reduced process time and cost, improved quality, and greater customer satisfaction. However,
due to executives' failure to either implement success factors properly or acquire the benefits of
BPR, organizations may not achieve the dramatic results they need to seek. The implementation
process of BPR is so complex, and needs to be checked against several success/failure factors to
ensure successful implementation efforts, as well as to avoid implementation pitfalls.
As it is observed that the implementation process of BPR in defense finance management sector
seem to be given less attention and the results seem to be below expectation in relation to the
stated stretched objectives. In addition, there is no continuous monitoring and evaluation
programs, feedback and well established follow up systems. Performances cannot be measured
by quality and cost parameters. As a result, the implementation process seems to restrain to the
usual ways of doing. This is the main reason why the researcher is given attention in looking the
issue. The main purpose of the research is to improve the implementation of BPR in Defense
Finance Management Sector based on the findings of the paper.
In order to assess the research problem the following basic research questions are drawn.
1. What are the major factors to hinder BPR implementation within Defense finance
management sector?
2. How is the awareness of managers and employees on BPR concepts and implementation
success and failure factors?
3. Do top level managers give special attention and commitments to make successful the
implementation of BPR within the sector
4. What solution could be taken to improve the implementation process of BPR with in the
sector?

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

1.3 Objectives of The Study

1.3.1 General objective
To improve the implementation of BPR in Defense Finance Management Sector.
1.3.2 Specific Objectives
 To assess the implementation process of Business Process Reengineering (BPR) in
defense finance management sector.
 To identify the major success and failure factors that contributes or hinders the
implementation of BPR in defense finance management sector.
 To obtain useful findings that can be taken as inputs to recommend possible BPR
implementation success factors within the sector.
1.4 Delimitation/Scope/ of the Study
This paper has tried to discuss the concept of BPR, the success or failure contributing factors in
the implementation process of BPR such as; change management, management competency and
support, organizational structure, project planning and management and IT infrastructure. The
study area is delimited in defense finance management sector which includes three directorates
and thirty budget holders which are found in Addis and outside. This research paper
encompasses 103 managers (1 sector manager, 3 directorates and 98 team leaders) and 681
employees which have a total of 784 populations. This paper is the required partial fulfillment of
Masters of General Business Administration. As a result, it takes a year to write the research
paper which begins in February, 2013 and it will complete in June, 2014.
1.5 Significance of the Study
It is expected that the results of this research will have the following importance.
1. It enables to develop awareness for finance management sector mangers, employees and
other concerned individuals about the success and failure factors of BPR implementation
process in defense finance management sector.
2. It may give chance for others to make further Studies to those who are interested on the
issues or problems.
3. It suggests possible solutions that help to alleviate the problem that negatively influences the
proper implementation of BPR in defense finance management sector.

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

2. Review of Related Literature

2.1 An Overview on Business Process Reengineering
2.1.1 Definitions of BPR
Different authors have provided their own definition of the changes being applied to
organizations. For example Davenport and Short in O’Neill and Sohal has defined BPR is a set
of logically related tasks performed to achieve defined business actions. A process is a structured
measure set of activities designed to produce a specified output for a particular customer or
market. Examples of processes include developing a new product, ordering goods from a
supplier, creating marketing plan, etc. (O’Neill and Sahol, 1999:573). Hammer and Champy
(1993:32) have promoted the fundamental rethinking and radical redesign of business processes
to achieve dramatic improvements in critical, contemporary measures of performance, such as
cost, quality, service, and speed.
The definition given by Davenport and Short is much narrower and focuses on business work
flow and process improvements other than radical redesign and dramatic improvements.
On the other hand, the definition given by Hammer and Champy is much broader and mainly
focuses on fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements. BPR advocates that enterprises go back to the basics and reexamine
their very roots. It doesn’t believe in small improvements, on tasks, on jobs, on people, on
structures rather it aims at total reinvention and processes.. This enables the definition of BPR
versatile and sounder. According to Hammer and Champy (1993:32-35), the definition contains
four key terms: Fundamental, Radical, Dramatic and processes are discussed here under.
a) Fundamental Rethinking
In doing reengineering, organizations must ask basic questions about their companies and how
they operate: why do we do what we do? And why do we do it the way we do? Asking these
questions forces people to look at the tacit rules and assumptions that under lie the way they
conduct their businesses. Often, these rules turn out to be obsolete, erroneous, or inappropriate.
This leads reengineering begins with no assumptions and no givens. It ignores what is and
concentrates on what should be.
b) Radical Redesign
The word radical is derived from the Latin word “radix,” meaning root. Radical redesign focuses
on getting to the root of things by removing superficial changes. Or disregarding all existing

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

structures and procedures and inventing completely new ways of accomplishing work from clean
sheet. Reengineering is about business reinvention-not business improvement, enhancement or
modification.
c) Dramatic Improvement
Reengineering is not marginal improvements rather it is achieving quantum leaps in
performance. Dramatic improvement demands blowing up the old and replacing it with
something new. Hammer and Champy identified three kinds of companies that undertake
reengineering: companies that find themselves in deep trouble, companies that are not in trouble
but whose management can see trouble coming and companies that are in peak condition and see
an opportunity to develop a lead over their competitors (Hammer and Champy, 1993:34).
d) Business Processes
The last but the most important of the four key words is the word-‘process. It is a collection of
activities that takes one or more kinds of input and creates an output that is of value to the
customer. In other words, the delivery of the ordered goods to the customer’s hands is the value
that the process creates.
2.1.2 What is Not Business Process Reengineering?
People assume that reengineering is much the same as other business improvement programs like
information technology (automation), restructuring or downsizing. However, has little or nothing
in common with any of these programs and differs in significant ways (Hammer and Champy,
1993:48). After the reengineering process has been done and the process calls these
improvement programs, these can be taken as tools to make the reengineering process
implementation more simple, efficient and effective.
2.2 BPR Implementation Success and Failure Factors
As it is discussed earlier BPR has great potential for increasing productivity through reduced
process time and cost, improved quality, and greater customer satisfaction, but it requires a
fundamental organizational change. As a result, the implementation process is complex, and
needs to be checked against several success/failure factors to ensure successful implementation,
as well as to avoid implementation problems. According to Mashari and Zairi, 1999:87, the
implementation success and failure factors are mainly related to change management,
management competency and support, organizational structure, project planning and
management and IT infrastructure. And these are discussed as follows

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

2.2.1 BPR Implementation Success Factors

A) Factors Relating to Change Management Systems and Culture
According to Carr in Mashari and Zairi Change management, which involves all human- and
social-related changes and cultural adjustment techniques needed by management to facilitate the
insertion of newly-designed processes and structures into working practice and to deal
effectively with resistance is a crucial component of any BPR efforts (Mashari and
Zairi,1999:88). This reveals that organizations should establish change management systems and
culture with integrative the reengineering processes. Revision of reward systems,
communication, empowerment, training and education and creating a culture for change are the
most important success factors related to change management and culture (Hammer and
Champy, 1993:70-74, and Mashari and Zairi, 1999:88-91).
Revising Pay and Motivation Systems
Staff motivation through a reward program has a crucial role in facilitating re-engineering efforts
and smoothing the insertion of new processes in the workplace (Mashari and Zairi, 1993:88). In
addition to this, As Hammer and Champy, when employees are performing process work,
companies can measure their performance and motivate them on the basis of the value they
create (Hammer and Champy, 1993:72). From this idea people can learn that establishing and
revising the pay and motivation systems enables the organization to sustain the implementation
process.
Effective Communication
When Communication effective, it is received and under stood by the receiver. Regarding to this
issue, Davenport in Mashari and Zairi Communication is considered a major key to successful
BPR-related change efforts and needed throughout the change process at all levels and for all
audiences(Mashari and Zairi, 1999:88). Effective communication between stakeholders inside
and outside the organization is necessary to ensure patience and understanding of the structural
and cultural changes.
Empowerment
Empowerment of both individuals and teams becomes a critical factor for successful BPR
efforts. People working in a reengineered process are, of necessity, empowered. As process team
workers they are permitted and required to think, interact, use judgment, and make decisions

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

(Hammer and Champy, 1993:70). To be successful in BPR implementation, empowering

employees should be mandatory.
Training and Education
Scholars consider training and education to be an important component of successful BPR
implementation. As Towers in Mashari and Zairi described Organizations that undertake re-
engineering projects may have to increase their training budget by 30-50 percent (Mashari and
Zairi, 1999:89). Employees require training and education to increase their skills, competence,
insight and understanding about the “how” and the “why” of the job and to implement BPR
successfully (Hammer and Champy, 1993:72).
Creating an Effective Culture for Organizational Change
Organizational culture is the shared values, principles, traditions, and ways of doing things that
influence the way organizational members act. Therefore, the organization must understand and
conform to the new values, management processes, and the communication styles that are
created by the newly Business Process Re-engineering. Andrews and Stalick in Mashari and
Zairi indicate that in a newly re-engineered organization, people usually share common goals and
thus become more capable of working co-operatively without competing against each other
(Mashari and Zairi, 1999:90).
B) Factors Relating to Management Competence
Sound management processes ensure that BPR efforts will be implemented in the most effective
manner and to provide a clear vision of the future (Bashein et al., 1994:10). The most noticeable
managerial practices that directly influence the success of BPR implementation are top
management support and commitment, championship and sponsorship, and effective
management of risks (Mashari and Zairi, 1999:90).
C) Factors Relating to Organizational Structure
BPR creates new processes that define jobs and responsibilities and new organizational structure
which requires effective BPR teams. Having appropriate human resources design, establishing
Cross-functional BPR teams and having formal and clear descriptions of all jobs and
responsibilities that the new designed processes are critical components of successful BPR
implementation (Mashari and Zairi, 1999:92). As a result, revisiting organizational related
factors are important to ensure the successful implementation of BPR.

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

D) Factors Related to BPR Project Management

Successful BPR implementation is dependent on an effective BPR program management .In
relation to this, many researchers indicated in Mashari and Zairi, 1999:94-95 adequate strategic
alignment, effective planning and project management techniques, identification of performance
measures, adequate resources, external orientation and learning, effective use of consultants and
effective process redesign have high roles for BPR success (Mashari and Zairi, 1999:93).
E) Setting Performance Goals and Measures
Setting high goals for performance and establishing performance measures are important success
factors and they are also necessary to indicate levels of achievement. According to Mashari and
Zairi, 1999:94-95, adequate resources and sufficient budget, external orientation based on
customer research, competitive analysis, benchmarking and appropriate selection of core
processes enables the organization to establish high goals and appropriate performance measures.
F) Factors Related to IT Infrastructure
According to Hammer and Champy, information technology plays a crucial role in business
reengineering and it is the part of any reengineering effort, an essential enabler (Hammer and
Champy, 1993:83). In addition, Effective alignment of IT infrastructure and BPR strategy,
adequate IT infrastructure investment decision, increasing IT function competency, and effective
use of software tools are the most important factors that contribute to the success of BPR projects
(Mashari and Zairi, 1999:96).
2.2.2 BPR Implementation Failure Factors
Inability to implement the success factors effectively and efficiently, business process
reengineering has not always achieved better performance.
As Mashari and Zairi, 1999:100-105 the reasons for BPR implementation failures are:
 Problems in communication,
 Organizational resistance,
 lack of organizational readiness for change,
 Problems related to creating a culture for change,
 lack of training and education,
 Problems related to commitment, support, and leadership,
 Ineffective BPR teams,
 Problems related to planning and project management,

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

 Ineffective process redesign,

 Unrealistic expectations,
 lack of BPR resources,
 Problems related to IT investment and sourcing decisions.
In addition to this, as Bashein et al (1994:10-11) showed that only 30% of BPR projects achieved
performance breakthrough. Reasons for large failure were lack of sustained management
commitment and leadership, unrealistic scope and expectation, Resistance to change, lack of
awareness to the concept of business process and non-detailing of rewards and recognition with
new business processes.
Conclusion
A customer focus, superior process design and a strong and motivated leadership are vital for the
success of BPR. In addition BPR requires strong commitment, hard work and instigates the
people involved to change what they do and targets at altering their basic way of thinking. As it
is discussed in the review only 30% of BPR projects achieved performance breakthrough due to
the influence of BPR failure factors. Understanding the success and failure factors; and taking
these as a checklist by which an organizations planning to undertake, BPR efforts can ensure that
BPR-related change efforts are comprehensive and well implemented, and have the minimum
chance of failure.

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

3. Research Design and Methodology

3.1 Research Methods
The purpose of the research is making an assessment on the implementation of business process
reengineering in defense finance management sector by using numerical and non numerical data.
As a result, employing descriptive survey, quantitative and qualitative research methods are
dependable to such type of research.
3.2 Sample and Sampling Techniques
The population of the study includes 103 sector manager, directorate heads and team leaders; all
these assumed as managers and 681employees. Among this population, 20% of managers and
employees will be taken as samples. For this research the researcher has tried to employ
purposive sampling technique for managers. The samples of employees will be taken from
finance, budget programming and procurement directorates and teams. As a result, to make the
sample representative and reliable cluster and simple random sampling techniques will be
utilized.
3.3 Types and Sources of Data
The sources of data include both primary and secondary. Primary sources will be gathered from
managers and employees. The secondary sources will be collected from reports, mint and
customer from suggestion boxes.
3.4 Data Gathering Methods
The researcher has tried to employ two sets of questionnaires. On will be filled by managers and
the other also filled by employees. The questionnaires filled by both managers and employees
have both close and open ended questions. In addition to questionnaires, the researcher will
employ structured interview for senior experts and managers.
3.5 Methods of Data Analysis
The data collected from samples will be tallied, systematically organized in items and it is
tabulated and analyzed. Percentages and mean will be used to summarize the data gathered from
respondents.

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4

 RESEARCH PROPOSAL February 1, 2013

4. References
1. Bashein B. J., Markus, M.L and Riley, P. (1994). Preconditions for BPR success: and
How to prevent Failure, Information System Management, 11(2):7– 13.
2. Hammer, M. and Champy, J. (1993), ``reengineering the corporation: a manifesto for
business revolution'', Harper Business, New York, NY.
3. Hammer, M. and Stanton, S. (1995), ``the reengineering revolution'', HarperCollins, New
York, NY.
4. Rusell M. Linden (1994), Seamless Government: Practical Guide to Re-engineering in
the Public Sector, Jossey-Bass Publishers, San Francisco.
5. Majed Al-Mashari and Mohamed Zairi (1999), Business Process Management Journal,
Vol. 5 No. 1, 1999, pp. 87-112. # MCB University Press, 1463-7154
6. Peter O’Neill and Amrik S. Sohal (1999) Business Process Reengineering: A review of
recent literature. Technovation 19 (1999) 571–581 www.elsevier.com

S t . M a r y ’s U n i ve rs i t y C o l l e ge S c h o o l o f G rad u ate S t u d i e s Page 4