Want to improve your business performance? Know how business process re-engineering will help you.
Business process re-engineering is a relatively new concept which helps in improving the performance of your business in areas such as cost, service, quality and speed. Unlike Business Process Management (BPM) and Business Process Improvement (BPI) which require minimal revisions on current operations, BPR demands commitment to implementing radical changes over a period of time, but the benefits are far greater. Through BPR, you can:
- cut costs of production by removing unproductive activities,
- shorten cycle times through the introduction of simpler and more streamlined operations, and consequently,
- Improve product quality and employee satisfaction by creating systems that allow each person to take ownership of their work.
When companies are going in loss are generally turning to BPR in order to overcome that loss by redesigning and transforming the business. BPR recommends organizing around the outcome, not the specific task by one person owning a whole process. People who produce the information process it as well and integrate corresponding activities, not just their results.
The purpose of business process reengineering is to redesign the workflows in order to dramatically improve the customer service, achieve higher levels of efficiency, cut operational costs and become a world-class competitor.
Why your company needs BPR?
- The processes the company is using might have become outdated or holds no relevance in the current market scenario.
- Often, the sub-divisions in the organization aim at improving their respective division performance and overlook the resultant effects on the other departments. This might lead to the underperformance of the firm as a whole.
- Due to the departmentalization, each employee focuses on the performance of his respective department and may overlook the critical issues emerging in other areas of the firm, and therefore, the need for re-engineering arises so that the role of the employees could be broadened and shall be made more responsible towards the firm.
- The existing business process could be lengthy, time-consuming, costly, obsolete, therefore, is required to be redesigned to match it with the current business requirements.
- The technology keeps on updating and in order to catch up with it, reengineering is a must.
There is no specific formula for this, since each company going through reengineering is faced with its own unique set of situations and challenges and should be adapted not only to the company but to its customers and stakeholders as well. There are some strategies that can make BPR more manageable and effortless.
One of the main strategies is to identify where you are vs. where you want to be which will help you go through the transformation process more easily as you would know where you want to see your company in the long run.
You should have a good re engineering team which will include the leadership quality to motivate everyone in the transformation process.
Plan out the process step by step instead of doing everything in one go.
With the use of information technology reform the process so that the company’s performance can be improved remarkably.
After implementing the above steps you would see the results and benefits like reduced overall cost, meaningful work for staff, increased effectiveness and the most important business growth.
But the factors that cause BPR failure should be kept in mind while implementing the transformation process like trying to fix a process instead of changing it, not focusing on business processes, settling for minor results, Quitting too early, not putting enough effort, not having the right team for the process. All these factors will lead to BPR failure.
BPR studies the organization process from the start and removes the processes which are barriers to the organizational growth. When the processes become very slow and is not able to fetch the desired result BPR comes in the scene.