The major activities are:
. Ensure the diversity of the reengineering team . Question current operating assumptions
. Brainstorm using change levers
. Brainstorm using BPR principles
. Evaluate the impact of new technologies
. Consider the perspectives of stakeholders
. Use customer value as the focal point
During this phase, the actual 'reengineering' begins. We've moved from strategy and analysis phases into the redesign phase. The reengineering team that was formed to take part in the reengineering sessions shoulG'consist of designers and implementers, including people well versed in technology. These team members should come from both inside and outside the existing p!ocess.
The 'inside' perspective may reveal information about rthe existing process that was not uncovered in Phase 4. People, who will be the'future process owners, or those responsible for the new process, are a critical component of the team.

Including the future owners will help to ensure that the reengineered process succeeds once it is implemented.

Equally important is the 'outside' perspective of someone who will look at the process with a 'fresh eye' and raise questions about operating assumptions that may not be obvious to the insider, as he might be too close to the process to be objective.

Lastly, a technologist will provide insight as to how technology can be applied in new an innovative ways. In other words, the technologist will help to visualize how the process can be performed outside the boundaries of the current implementation. Including both outsiders and technologists on the team will help spark 'out-of-box' thinking - thinking creatively above and beyond the current restrictions.

Having developed a good understanding of how the existing processes work in the previous phase, it is now necessary to question the operating assumptions underlying the processes.
. Is there a reason why a process has been performed in a certain way? . Are there customer requirements that dictate the steps in a process?

Many times the operating assumptions can be thrown out and new ones developed. However, it is important to evaluate the impact that these assumptions will have outside the process in question.

The reengineering team now has to conduct brainstorming sessions to create new process ideas. According to Dr. Hammer, brainstorming sessions are most successful when the follo'{lling BPR principles are considered.
. Several jobs are combi.ned into one
. Workers make decisions
. The steps in a process1 are performed in a natural order
. Processes have multiple versions
. Work is performed where it makes the most sense . Checks and controls are reduced
. Reconciliation is minimized

. A case manager provides a single point of contact
. Hybrid centralized/decentralized operations are prevalent.
For example, hybrid centralized/decentralized operations encourage the formation of cross-functional workgroups. Ideally, the team will identify those processes that should be centralized as well as the processes, which are of value to a specific group within the organization. An organization might maintain a customer database on a centralized system, but it would provide data for a variety of processes throughout the organization such as sales, purchasing or accounts receivables.

During the brainstorming sessions, the reengineering team must also consider new technologies. They will need to evaluate the impact of new technology on the process. Technologies that are often considered enablers of reengineering include:
. ERP systems
. Internet technologies
. Distributed computing platforms . Client/server architectures

. Workflow automation technologies . Groupware

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The reengineering team should also search for uses bf new information as well as new ways to use existing information. The reengineered process may enable the organization to collect data that was not gathered before, thereby bringing new knowledge into the process to help in decision making. Another benefit is the sharing of data across the organization to eliminate redundancies in data storage and to increase internal communication.

The act of reengineering a process may require evaluation of the organizational model and the management strategy. A newly formed cross-functional workgroup will not fall neatly into a traditional hierarchical management structure. In addition, this workgroup will most likely require new measurement systems and reward values and belief systems. It may be found at this stage that a new process will simply not fit into the current organization without a new process¬oriented organizational structure.
Lastly, the reengineering team must consider all process stakeholders in the redesign of a process. Stakeholders are those people whose actions impact the organization and those who are impacted by the organization's actions. Stakeholders include both those internal to the process and those external to the process. External stakeholders may not be concerned with how a process is preformed but they are certainly concerned with the output of the process, if they are the recipients.

Throughout this phase, the team must consider the impact on those external processes that interact with the reengineered process. Does the implementation of a client/server architecture have an effect on another process? Will that process need to be reengineered also? Reengineering cannot be performed in a vacuum. However, it cannot be performed on all processes simultaneously either.