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Business Process Reengineering

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0% found this document useful (0 votes)
59 views5 pages

Business Process Reengineering

Uploaded by

pravesh koirala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Process Reengineering

(BPR) – Definition, Steps, and


Examples
Your company is making great progress. You’re meeting goals easily, but the
way you meet goals is where the problem is. Business processes play an
important role in driving goals, but they are not as efficient as you’d like them to
be.

Making changes to the process gets more and more difficult as your business
grows because of habits and investments in old methods. But in reality, you
cannot improve processes without making changes. Processes have to be
reengineered carefully since experiments and mistakes bring in a lot of
confusion

What is business process re-engineering (BPR)?


Business process re-engineering(BPR) is the radical redesign of business
processes to achieve dramatic improvements in critical aspects like quality,
output, cost, service, and speed. Business process reengineering (BPR) aims at
cutting down enterprise costs and process redundancies on a very huge scale.
Is business process reengineering (BPR) same
as business process improvement (BPI)?
On the surface, BPR sounds a lot like business process improvement (BPI).
However, there are fundamental differences that distinguish the two. BPI might
be about tweaking a few rules here and there. But reengineering is an
unconstrained approach to look beyond the defined boundaries and bring in
seismic changes.

While BPI is an incremental setup that focuses on tinkering with the existing
processes to improve them, BPR looks at the broader picture. BPI doesn’t go
against the grain. It identifies the process bottlenecks and recommends
changes in specific functionalities. The process framework principally remains
the same when BPI is in play. BPR, on the other hand, rejects the existing rules
and often takes an unconventional route to redo processes from a high-level
management perspective.

BPI is like upgrading the exhaust system on your project car. Business Process
Reengineering, BPR is about rethinking the entire way the exhaust is handled.

Five steps of business process reengineering


(BPR)
To keep business process reengineering fair, transparent, and efficient,

stakeholders need to get a better understanding of the key steps involved in it.
Although the process can differ from one organization to another, these steps
listed below succinctly summarize the process:

Below are the 5 Business Process Re-engineering Steps:

1. Map the current state of your business processes

Gather data from all resources–both software tools and stakeholders.


Understand how the process is performing currently.

2. Analyze them and find any process gaps or disconnects

Identify all the errors and delays that hold up a free flow of the process. Make
sure if all details are available in the respective steps for the stakeholders to
make quick decisions.

3. Look for improvement opportunities and validate them

Check if all the steps are absolutely necessary. If a step is there to solely inform
the person, remove the step, and add an automated email trigger.

4. Design a cutting-edge future-state process map

Create a new process that solves all the problems you have identified. Don’t be
afraid to design a totally new process that is sure to work well. Designate KPIs
for every step of the process.

5. Implement future state changes and be mindful of


dependencies
Inform every stakeholder of the new process. Only proceed after everyone is on
board and educated about how the new process works. Constantly monitor the
KPIs.

A real-life example of BPR


Many companies like Ford Motors, GTE, and Bell Atlantic tried out BPR during
the 1990s to reshuffle their operations. The reengineering process they adopted
made a substantial difference to them, dramatically cutting down their expenses
and making them more effective against increasing competition.

The story

An American telecom company that had several departments to address


customer support regarding technical snags, billing, new connection requests,
service termination, etc. Every time a customer had an issue, they were
required to call the respective department to get their complaints resolved. The
company was doling out millions of dollars to ensure customer satisfaction, but
smaller companies with minimal resources were threatening their business.

The telecom giant reviewed the situation and concluded that it needed drastic
measures to simplify things–a one-stop solution for all customer queries. It
decided to merge the various departments into one, let go of employees to
minimize multiple handoffs and form a nerve center of customer support to
handle all issues.
A few months later, they set up a customer care center in Atlanta and started
training their repair clerks as ‘frontend technical experts’ to do the new,
comprehensive job. The company equipped the team with new software that
allowed the support team to instantly access the customer database and handle
almost all kinds of requests.

Now, if a customer called for billing query, they could also have that erratic dial
tone fixed or have a new service request confirmed without having to call
another number. While they were still on the phone, they could also make use of
the push-button phone menu to connect directly with another department to
make a query or input feedback about the call quality.

The redefined customer-contact process enabled the company to achieve new


goals.

 Reorganized the teams and saved cost and cycle time


 Accelerated the information flow, minimized errors, and prevented reworks
 Improved the quality of service calls and enhanced customer satisfaction
 Defined clear ownership of processes within the now-restructured team
 Allowed the team to evaluate their performance based on instant feedback

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