PROCESS REENGINEERING IN THE PUBLIC-SECTOR - LEARNING SOME PRIVATE-SECTOR LESSONS

The possible applicability of business process reengineering (BPR) to organisations in the public sector is explored through analysis of the central issues in BPR and the emerging experience of organisations wh ich have recently implemented it. In particular, the paper suggests th at success of reengineering may depend critically on the strategic cap ability of the organisation prior to undertaking the effort. For that reason well-performing organisations are more likely to improve perfor mance by means of BPR than are weak ones. Yet, in the public sector, i t tends to be badly performing agencies which are most encouraged to u ndertake BPR. Knowing and understanding the reasons for success or fai lure of BPR in private organisations can prepare public sector manager s for undertaking the effort, but each reengineering initiative must b e tailored to the specific needs and circumstances of the individual a gency. Public sector managers should use the widest possible definitio n of 'value' when analysing value-added in process reengineering and s hould be especially sensitive to the way in which 'value' in the publi c sector is differently interpreted by major stakeholders. During this learning process, public sector agencies would be well advised to be conservative in estimating gains from BPR. (C) 1997 Elsevier Science L td.