When To Use Business Process Reengineering

When to use Business Process Reengineering

Business Process Reengineering is best used in certain circumstance. Over time, as companies will grow and will establish themselves, they will slowly but surely develop their set of processes which are specific and unique to their core business. These processes are what defines the company and will also determine how their operations will run.  They may very well be suited to perform activities of every day, and even contain the flexibility to cope with changing markets. Never the less in due time the markets and the competitors will be able to outrun them. Unless they are able to adapt swiftly and accordingly to the never ending changes. All of a sudden they start to notice that efficiency is deteriorating when compared to the time the organization was founded.

For any organization that want to stay in the lead and competitive in their markets, it is key that the foundation on which the company was built is thoroughly analyzed, whether the competitive landscape is still something they can operate and compete in. The procedures and processes that were once developed and tweaked over time to small changes, are in need to be assessed, analyzed and reviewed, and eventually even built up from scratch, in order to regain the lost efficiency.

That is a perfect time for Business Process Reengineering to step in. BPR is a type of analytic thinking that aims to view and understand just how exactly the processes can and need to be optimized. What is meant by that is that the processes need to optimized according to current market conditions, and if possible, take the conditions of the future also into consideration. Even though at times companies seem to view this approach as an improvement of their business processes, this is not the most effective method. What reengineering tries to achieve is a complete redesign, not just some improvements to existing processes. It does this by determining and analyzing the core processes, defining the goals the program is trying to achieve, as well as identifying the customers, the stakeholders, the products and the services. This is clearly an extensive exercise which should not be underestimated. Once all this is done, BPR will subsequently re-align the processes and have them match their specific areas of focus.

In general the analysis will be done on all processes – which is the ideal situation – or otherwise a wide and broad range. It is not that difficult to understand why this is done, as the exercise intends to make radical improvements and that can only be done by addressing the entire set of processes of the company. Inefficiencies will be stripped completely, and this has to lead to major results with huge effects. Would every process by analyzed, addressed and optimized in isolation, the results are not going to be of the same magnitude.  By applying a holistic and broad view, and optimizing the entire set of processes as one set, better results can be achieved. This is the major and real benefit Business Process Reengineering has.

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