Since every product/service offered to the customer is the output of a business process, it is necessary to examine the process itself to create a product/service that satisfies both customer expectations and relevant regulations at a low cost for the company. This re-examination is called business process reengineering (BPR). What are the steps in business process re engineering?
The importance of ensuring customer satisfaction and attracting loyal customers is well-known in our globalized world, where competition is intense in all areas. Advancement of technology, a rapidly changing regulatory environment, and ultimately differences in the expectations of customers—which have more options now than in the past—have required companies to re-examine their goals, methods, and basic operating rules.
Business process reengineering (BPR) is an effort to review the existing structure of the organization and the business process from the very beginning to improve the most important performance measures of our time, such as cost, quality, innovation, and compliance. In today’s competitive environment, BPR is a critical effort to optimize all effective business processes in companies.
It is difficult to establish strict rules and principles regarding BPR. Each company has its processes, and each industry has its regulations. However, the basic principles that are generally accepted are as follows:
In BPR project management, the project team is a main focus. Selecting and organizing the people who will implement BPR is as important as applying it. The members of the team are going to rely on each other in moments of stress and confusion. Roles in the organization include the leader, process owner, BPR team, steering committee, and consultants.
A study of BPR projects involving more than 100 companies has shown how difficult it is to plan and implement redesign. According to the results of this study, five basic items can lead to success:
As mentioned earlier, there is always a risk of failure, and there are three main barriers to a successful BPR:
Determining the methodology to be applied is as significant as the implementation of the BPR project. There is no guarantee that the use of the existing methods will lead to the desired outcome. Thus, companies can develop a special method for their problems by adhering to the basic principles and steps in BPR.
Such a methodology should do the following:
When it comes to achieving better results, BPR should always be something to keep in mind. However, BPR projects may negatively affect the productivity of employees. Shifting from one way of working to another is tough, and it is expensive. Implementation of company policies, procedures, and processes is very important throughout the lifecycle of a company. Moreover, keeping them up to date and performing regular reviews may reduce the need for re-engineering.