In business process redesign, vital business processes are overhauled to achieve specific goals such as increased return on investment, service improvements, or cost reduction. Any business process, be it production, sales, or financial management workflows can be reworked to achieve the desired goal or goals. Often, re-engineering one process will have a knock-on effect on other processes within the business.
There is nothing so useless as doing efficiently that which should not be done at all. Peter Drucker
Where Does the Term Come From?
BPR was pioneered in the 1990s following the publication of a book titled “Reengineering work: Don’t Automate, Obliterate.” Author Michael Hammer was a former professor of computer science at MIT, and in his controversial work, he implied that managers had been focussing on the wrong issues, automating processes that should be obliterated since it failed to add value.
Hammer felt that instead of adapting technology to existing work processes, business leaders should be adapting work processes to match technology, shedding obsolete tasks along the way. The deciding factor, he said, was that work performed in an organization should add value, and if it didn’t add value, then it should be eliminated entirely.
The concept implies a fundamental review of processes and workflows. Logical as it may sound, the concept had its critics, but it became extremely popular, with up to 60 percent of Fortune 500 companies adopting business process redesign by the mid-1990s.
The big idea behind BPR is that interlinked work processes contribute to specific outcomes and that each process should contribute not only to those outcomes but serve the overall objectives of the business itself.
You might have heard of business process redesign under several other names, such as business process reengineering, business process change management, or business process transformation.
How is Business Process Redesign Achieved?
Business process redesign or reengineering is more than just a matter of improving what is already there. It implies some form of radical change. Oftentimes, companies will gather a project team and redesign the organization, its mission, strategic goals, assumptions, and processes from scratch, often with the help of specialized external process consultants. They may be seeking ways to:
- Increase productivity
- Reduce cycle times
- Improve product quality
- Achieve more efficient client service
- Implement new technologies
- Restructure and streamline teams
Thus, business process redesign is distinguished from other forms of change by being a radical intervention.
In its purest form, the process begins with the basics: what is the organization there for, what does it hope to achieve, and who will it help. Although this may sound almost superfluous, many businesses find that they have been laboring under mistaken assumptions. Once the “What should we be doing?” question is answered, it’s time to look at the methods to be implemented to achieve that.
Business processes are put under the microscope. What steps are performed to complete each process that is needed to create a final product or service offering? Even the finest details are recorded and analyzed. Each activity is measured, modeled, and then improved. Entire business processes may be redesigned from the ground up or even discarded altogether as not adding value to either the company or its clients.
Not Just “Set up and Go”
One thing is certain, significant change is never easy for organizations. It’s not the type of situation where a few people get together, make the necessary changes and then run with them forever afterward. After all, new processes may be flawed. Thus, business process redesign follows a cycle that is repeated until the desired result is achieved.
The phases of this cycle are:
- Identification of processes
- Review, update, and analysis
- Business Process Design
- Testing and implementation
Business process redesign hasn’t always been successful. After the failure of several attempts drew attention to this, the factors required for BPR success were identified as:
- The correct composition of BPR teams
- Accurate business needs analysis
- Strong IT infrastructure
- Active change management initiatives
- Efforts towards ongoing improvement
- Organization-wide commitment to the process
Common reasons for BPR failure were identified as:
- Optimizing a department to the detriment of another department
- Lack of time to maintain the business process improvement focus
- Failure to recognize the extent of problems
- Insufficient skill
- Poor implementation of information technology tools
- Lack of the necessary infrastructure to implement change
- Resistance to change on the part of managers and employees
- Low motivation to implement change
Information Technology Plays a Leading Role in BPR
Considering that a computer science professor was the originator of business process redesign, it’s hardly surprising that information technology plays a leading role in its implementation. Back in the nineties, business thought leaders began to refer to disruptive technologies that alter the way we do work. These include:
- Databases with shared access
- Systems that allow ordinary people to perform specialized work
- The rise of the mobile phone, allowing businesses to be centralized in terms of authority without having a centralized team to get work done.
- Support tools that facilitate decision-making across organizations.
- Compact laptops that act as “offices” for workers no matter where they are.
- Automated identification and tracking of information that allows records to show where to find information instead of having to hunt for it.
Of course, there has been considerable progress since then. Today, the mobile phone can do anything a 1990s laptop would have done, and cloud computing has made information available – worldwide if need be.
Business Process Redesign Critiques
With businesses happily divesting large chunks of work that failed to add value, the process became synonymous with downsizing and a business culture that doesn’t put its people first. Certain businesses thought leaders criticized BPR because:
- Ineffective processes are not always the cause of poor organizational performance.
- The “clean slate” approach has been widely criticized as discarding elements that work well without due consideration.
- Some argue that the business should focus on constraints rather than be engineered in its entirety.
Yet others simply say that BPR is nothing new and is simply a buzzword for something that has been done for decades. For instance, when Henry Ford first automated production lines, this was essentially business process redesign.
BPR specialists say that the biggest error that businesses applying BPR processes make is to overlook the human element. It is the human element, they say, that makes a business really work, and employers should keep this in mind when implementing BPR.
Tallyfy as a Valuable Tool in BPR
Since Tallyfy provides a platform for setting up, implementing and monitoring business processes, it is a useful tool for businesses engaged in business process redesign. Apart from being able to lay out new business process flows, Tallyfy provides real-time monitoring, making testing and implementation responsive and effective.
If you’re considering BPR or simply want to improve existing processes, Tallyfy provides the analytics you need to determine where problem areas still exist, allowing for targeted rectification of any bottlenecks, problems or inefficiencies that still exists in process flows.
Related Questions
What is redesign of the business processes?
Business process redesign is like giving your company’s inner workings a fresh makeover. It’s about rethinking and reshaping how things get done in your organization. Imagine your business as a busy kitchen – process redesign is like rearranging the layout, updating the recipes, and introducing new cooking techniques to make everything run smoother and tastier.
What business process redesign involves?
Business process redesign involves a deep dive into your company’s operations. It’s like being a detective, examining every step of how work flows through your organization. This includes mapping out current processes, identifying bottlenecks, and brainstorming creative solutions. It’s not just about tweaking things; it’s about reimagining how work could be done in entirely new ways, often leveraging technology to make big leaps in efficiency and effectiveness.
What are the types of business process redesign?
There are several flavors of business process redesign, each with its own special sauce. You’ve got incremental redesign, which is like fine-tuning an engine – small, continuous improvements. Then there’s radical redesign, which is more like swapping out the entire engine for a new model. Process innovation is another type, where you’re inventing entirely new ways of doing things. Lastly, there’s benchmarking redesign, where you look at the best practices in your industry and adapt them to your own needs.
What is the main objective of business process redesign?
The main goal of business process redesign is to supercharge your organization’s performance. It’s like training for a marathon – you’re aiming to run faster, longer, and with less effort. This means cutting costs, boosting quality, speeding up delivery times, and making customers happier. Ultimately, it’s about creating a lean, mean, business machine that can outpace the competition and adapt quickly to changes in the market.
What are the principles of business process redesign?
The principles of business process redesign are like the secret ingredients in a master chef’s recipe. They include focusing on outcomes rather than tasks, challenging assumptions, thinking outside the box, and putting the customer at the center of everything. It’s about simplifying complex processes, eliminating unnecessary steps, and leveraging technology to automate and streamline operations. Another key principle is empowering employees to make decisions and take ownership of their work.
What is the difference between process redesign and process improvement?
Think of process improvement as giving your car a tune-up, while process redesign is more like trading in your old car for a sleek, new model. Process improvement focuses on making existing processes work better through small, incremental changes. Process redesign, on the other hand, involves a more fundamental rethinking of how work is done. It’s about questioning whether the current process is even necessary and exploring radically different approaches to achieve better results.
What is the difference between business process redesign and reengineering?
Business process redesign and reengineering are like cousins – related, but not identical. Redesign is typically less drastic and can involve significant changes to existing processes. Reengineering, however, is the nuclear option – it involves starting from scratch and completely reinventing how work is done. Reengineering is more radical, more risky, and often more disruptive to the organization. Think of redesign as remodeling your house, while reengineering is tearing it down and building a new one.
How does business process redesign work?
Business process redesign works like a home renovation project. First, you assess the current state – mapping out existing processes and identifying pain points. Next, you dream big – envisioning ideal future states without constraints. Then comes the creative part – brainstorming new approaches and leveraging technology to bridge the gap between current and ideal states. Finally, you implement the new design, carefully managing change and measuring results. It’s an iterative process, often requiring tweaks and adjustments along the way.
When should you consider process redesign?
You should consider process redesign when your business feels like it’s running on a treadmill – lots of effort but not getting anywhere. Signs it’s time for a redesign include declining performance, unhappy customers, frustrated employees, or falling behind competitors. It’s also worth considering when new technologies emerge that could dramatically change how you operate. Remember, process redesign isn’t just for struggling businesses – even successful companies can benefit from reimagining their processes to stay ahead of the curve.
