20 Dec, 2020 | Blogs
Business processes are integral for driving and achieving organizational goals. However, in most cases, they are not as efficient as they appear to be. Add to it, making changes to processes gets more and more difficult as the business grows due to the mindset of senior management and use of legacy systems. So how do you pivot processes towards efficiency and save cost? That is where business process reengineering comes into the picture. The reality is that you cannot improve the process without carefully re-engineering it and questioning the fundamentals that drives the process.
Business process reengineering (BPR) is a management strategy that aims at redesigning processes for achieving radical improvements in terms of quality, customer service, output, cost, and speed. It is designed to reduce enterprise costs and eliminate process redundancies on a large scale.
Difference Between BPR and BPI?
BPR and Business Process Improvement (BPI) may appear very similar, but there are basic underlying differences between the two. For instance, BPI involves changing a few rules to achieve efficiency instantly. On the other hand, BPR is an unconstrained approach that brings seismic changes by looking at the broader picture. BPI identifies the bottlenecks in the processes and recommends changes while keeping the framework the same. BPR, in contrast, discards the existing rules and re-does the entire process.
Five Key Steps of Business Process Reengineering
Certain steps are involved in re-engineering processes. While these can differ from organization to organization, some common steps remain constant. These steps provide a transparent and fair view to help relevant stakeholders understand the results of re-engineered processes.
Step 1. Map the existing state of the process
The first step is to gather all the relevant data of the process and get insights into how it is performing in its current state. The data should be gathered from every source, including software solutions and stakeholders.
Step 2. Analyze data to discover gaps or disconnects
Using the data, identify all the gaps and errors that are potential bottlenecks in the processes. Ensure all the information related to each step of the process is ready for the stakeholders to make a swift decision.
Step 3. Identify improvement opportunities and validate them
After potential gaps are identified, look for steps in the workflow that are necessary or redundant. Remove the redundant steps and automate the ones you feel provide little-to-no value but involves human intervention, For instance, if there is a step that is there only to inform a person, then automate the step by using a notification or email trigger. Validate the opportunities by doing a pilot.
4. Design a futuristic process map
Build a new process that solves the existing problems while reducing time and investment. Don’t be afraid to think out-of-the-box while designing the process and set KPIs for each step to measure its success.
5. Get everyone’s buy-in
Before you implement the new process, consider all the dependencies, and inform all stakeholders associated with the process. Only implement the new process once everyone agrees and knows how it will impact their work. Proceed after everyone is on board and educated about how the new process works.
When To Consider BPR
Smaller organizations or startups can easily undergo process re-engineering with minimal costs. However, as companies grow, processes become complex, and pivoting can be a costly affair. But business process reengineering is a necessity for large organizations to remain relevant, competitive, and be prepared for unexpected marketplace shifts.
For most companies, regardless of their industry, the need for BPR usually depends on their end-goal. BPR is effective when organizations need to revamp their processes to achieve ambitious targets by increasing efficiency and productivity while reducing costs. Some of the questions you need to ask before implement BPR are:
- Who are your clients, and what is the value your company is offering them?
- Are the existing processes delivering the desired results?
- Do you need to redesign the process?
- Are the processes in line with your business’s long-term vision and strategy?
If the answers to these questions hint at any type of process complacency, then it is the right time to consider BPR for a total overhaul. With the right BPR approach, you can see dramatic results in terms of enhanced cycle times, quality, productivity, etc.
Get in touch with us if you’d like us to help you re-engineer your processes.