There are a lot of challenges to face when you try to grow a business. You need to stay in demand and keep up with the market. Managing it is not as easy as it seems to be; at the end of the day, you will ask yourself, “How did it go today?” Growth is a significant factor that you need to consider when running a business. There are only two directions where we expect our business to go; it can go up or down. Of course, our primary goal is to continue going upwards and make progress step by step. That is why we have this so-called business process management that will help you improve and standardize processes in your organization and will help to automate existing ones. If things are not going well or there are too many demands needed already, you might consider making changes in your organization.
How significant changes affect your organization
Business process reengineering (BPR) is not an easy concept to understand. But it totally reevaluates the way businesses operate, especially that customer experience is being considered.
Take this example:
David owns a restaurant business. His revenues and his profits have been continuously dropping, and can’t fill the place with enough customers.
He looked for major solutions to reduce costs and think it would sadly be a better move to lay-off workers. He invested more in promoting the business on any platforms where he thinks can reach more people.
Even after a significant move, David’s restaurant is still in bad shape. He has the thought of giving up, but he still wants to try one more time for the restaurant is so close to his heart and is very sentimental to their family’s history.
At a business conference, he learned about business process reengineering. Now he is thinking that instead of focusing on advertising the business more, he can redesign his restaurant’s organizational structure, services, and management to cater more and meet his customer’s needs. The organization will need to re-architect business processes before automating them; we call it business process automation. It is the automation of business processes through technology and will allow businesses to cut costs and increase productivity.
What is Business Process Reengineering (BPR)?
“Business Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed” – Michael Hammer and James Champy
Business process reengineering is a desperate attempt of many large and small companies in many industries to see their organization from a fresh perspective. Improving organizational performance is a target to bring positive reform to the organization. They consider the factors that brought changes to the organization and understand how to reform them to improve work and find a new chance of success.
The American multinational automobile company, Ford, is one of the companies that successfully implemented the business procedure. Many more companies as well chose to gamble the faith of their business for a new start.
How is it done?
These are the critical steps in business process reengineering:
- Define business process and outcomes.Identify the current state of your business and how it is doing. Know the possible result of this significant business reform.
- Analyze the process of the business. Find the possible root causes of the problem and identify significant organizational gaps. You need to select the process/es that you will be redesigning. It is also important that you consider the competence of the members of your team.
- Identify and Analyze Improvement Opportunities. After identifying the problems and their causes, now is the time to find ways to address the organizational issues that are pulling the organization backward.
- Develop and Test hypotheses. Start developing the identified solutions to the problems that will impact the organizational workflow and meet the desired objectives. The changes and opportunities for the organizational restructure are operationalized before the implementation.
- Implement the changes. These new processes are expected to bring considerable changes to the state of the organization.
- Evaluate. Implemented changes and performances are evaluated if it meets the desired outcome of the reengineering process.
Benefits of Business Process Reengineering (BPR)
Here are some of the reasons why business process reengineering is a great move
- Through this action, an organization can be able to achieve sweeping changes in the management and structure and the whole performance.
- It develops the competency of the organization’s operations. It makes the organization’s processes and every part of the team productive.
- Business process reengineering invites organizations to abandon conventional approaches to problem-solving and to think for more effective solutions or ideas.
- Reengineering helps organizations make noticeable changes in the pace and quality of their response to customer needs to compete in today’s rapidly changing marketplace.
Business process reengineering (BPR) is a management procedure that has been helping big as well as small businesses increase their efficiency and productivity of the business processes. These are restructured to improve the state of the organization. It is imperative to plan your business properly. It would be best if you were strategically ready for any unprecedented circumstances to occur. Like what happened to many small companies these days closing due to the adverse effect brought by the Covid-19 pandemic, even large companies suffered significant losses. There’s always a rainbow after a rain, and BRP will never be an old move to consider. It will always be a superhero, ready to rescue those business owners. Strategic improvement opportunities enable an organization to do new things in new ways. Strategic opportunities enable and support an organization’s strategic objectives.