The main activities in this step are:
. Assess the current state of the organization
. Explain the need for change
. Illustrate the desired state
. Create a communications campaign for change

The first step is to take a long, hard look at how the organization operates. The focus of this analysis is on the operating procedures and the bottom-line results that are generated by them. The purpose of performing the analysis described below is to determine whether dramatic changes are possible by doing the BPR. It may be that only marginal change (the result of Continuous Process Improvements - Kaizen, Total Quality Management (TQM) and other similar programs) is needed - which would trigger the change initiative in the organization and that too at a much lesser risk.

Aspects of the business that need to be evaluated are:
. How are things currently done?
. What changes may be occurring?
. What new circumstances exist in the business environment?

The next step is to look for harmful operating procedures, if any, within the organization that have caused or will cause irreparable damage to the company's business goal and iunctioning. What're the sources of concern for the organization? Maybe the demands of the market place are dwindling. Perhaps competitors have made significant advancements in products and services. Regardless of the reasons, it should be clear whether or not the organization, in its current state, is able to meet the needs of the markets it serves. The consequences of inaction should be identified and well understood. In most cases, these consequences are the loss of jobs by shutting down portions of the business, or perhaps the entire business. Finally, the proper future direction of the organization should be decided. The future "vision" of how the business must operate will serve as a clear and concise guide with measurable goals for employees to focus on..
If an organization wishes to change the way it operates, it must turn to its people to make it happen. People are the agents of change and it is these same people who can create the maximum amount of trouble. Creating business plans and strategies are important, but they are only tools to guide the actions of people.

Because BPR can potentially require significant changes throughout an organization, it must begin with a communications campaign to educate all those who will be impacted by this change. Communication to all levels of personnel must remain active from start to finish to keep everyone involved and working towards a common goal. Without a common understanding about what is happening, confusion and uncertainty about the future can result in resistance, strong enough to stop any reengineering effort. BPR is most effective when everyone understands the need for change and works together to tear down, old the business systems and to build new ones.
In order for change to be embraced, everyone understand where the organization is today, why the organization needs to change and where the organization should be in order to survive, thrive and beat the competition.