Business process reengineering: concept, goals, principles

Management of business process reengineering includes a set of methods and techniques. They are used by the organization to successfully design their activities. This happens according to the set goals.

Business process reengineering involves a complete rethinking and further redesign of all organizational processes. This is necessary to achieve the goals and objectives. Improvements can occur very abruptly, irregularly. Despite this, the organization is able to achieve success and make the desired adjustment to the cost of goods and services, the quality of the services provided, and the improvement of the service.

Component Definitions

The definition of business process reengineering includes four main words: fundamental, radical, sharp, process.

Fundamentality enters the first stage, in which it is required to answer a number of questions related to the main ones:

1. Why is the organization engaged in precisely this activity, and not something else?
2. Why does the organization carry out its work in precisely these ways and does not implement other options?
3. Which organization plans to ultimately become and what kind of organization does it see itself in a few years?

Professionals who answer a number of these questions should rethink the current rules for conducting business. Often, they may be outdated, ineffective and not applicable to a particular production.

Radicality refers to the redevelopment of operations. Change is not just superficial. The entire existing system is subject to change. Business owners are offered options, the implementation of which can change the entire production.

Sharpness. Business process reengineering is not used in those cases when it is required to improve and increase the income indicators by a certain percentage, up to a maximum of 100%. The feasibility of use is determined only if the entrepreneur wants to increase performance by 500% or more. In such cases, there is a complete replacement of the methods used for doing business and producing goods. They are replaced by everything new.

Management of business process reengineering implies the use of new methods in the company step by step, thanks to which you can create a completely new product, which is currently relevant for the consumer. Well-designed processes allow the organization to achieve its goals and solve a number of problems.

For which organizations can reengineering be used?

At the moment, there are three types of organizations that need to adjust or completely change their work:

• Organizations that are in bankruptcy. This is often due to the fact that prices for goods and services are set much higher than competitors, or the quality does not match the declared value. If measures are not taken in time, the organization may be liquidated after some time.

• Organizations that currently have no problems and difficulties in conducting business, but they may appear after some time and negatively affect their business. Such problems may be associated with an increase in the market of goods and services of competitors or a change in the needs of customers.
• Organizations that have no problems, but the business owner is looking to the future. He wants to prevent problems that may arise in the way of the company. Such organizations are primarily leaders. Their marketing policy is aggressive, they are not satisfied with a good market position, they constantly want improvements in their work processes.

Thus, the main tasks of reengineering business processes include the introduction of innovations that will allow the organization to firmly establish its position in the market and not lose its ability to compete. All this allows the company to survive and continue to operate fully, regardless of how many competitors there are.

You can consider the development of a business process reengineering project by the example of the stages that are included in the work:

1. At the first stage, an image is developed that the organization will correspond to. For this, a certain picture is being built, which will include the necessary directions for the development of activities. All this will contribute to the achievement of goals.
2. To analyze the work of an existing organization. At this stage, specialists conduct a study of the enterprise, on the basis of which a scheme is built that corresponds to the work at a given time.
3. The process of developing a new activity. In this case, new processes are being built or existing ones are being changed. Thanks to information systems, these processes are beginning to be tested.
4. After passing through all the stages, the developed process is introduced into the enterprise.

It is at these stages that the essence of business process reengineering is completely built.

Main stages

Any process and its implementation consist of stages. The main stages of business process reengineering include:

1. Global thinking, on the basis of which perspectives in approaches develop. Leading managers must be well-versed and versed in all the features that are associated with the development of the enterprise. In the process of work, it is necessary to take into account the needs of customers, the advantages of competitors and the latest developments in technology that can be implemented in a business.
2. To carry out work on preparing the organization. Communication is the key to success. In advance, you need to make a list of tasks and goals, the solution of which is planned. In cases where the initiative comes from employees, they should be encouraged.
3. Constantly analyze the implementation of processes. If something needs to be improved, then it’s worth returning to this, this approach will allow you to avoid a number of errors in the work. If necessary, you can contact the full-time specialists who in the process of work may encounter problems and describe them in detail. Any incoming ideas should be recorded, in the future they may come in handy.
4. Determine the level of effectiveness. Efficiency can only be monitored if a reference point has been provided in advance.
5. Get creative in the process. The first step is to pay attention to the needs of potential customers. Information collection should be carefully monitored, the sources that provided it should be monitored, and if necessary, accelerate the dissemination process. If necessary, delegate authority and control customer service.
6. Change of activity in the organization should be planned in advance. Undoubtedly, improvements in performance can occur in a short time, but implementation will take time. In advance, you need to draw up a plan in which you can specify all the desired indicators, they should be transformed.
7. All processes must be analyzed and evaluated. Be sure to present feedback from employees. It is necessary to control all stages of implementation and evaluate the effectiveness and achieved indicators.

Thus, when using effective methods in the organization, you can easily and quickly achieve your goals.

What methods are used in the work?

To improve the activities of organizations and enterprises, it is necessary to use certain tools. The main methods of business process reengineering include:

1. In the process of transforming a business, it may happen that unnecessary processes appear that need to be disposed of beforehand so as not to waste time on this. These processes include verification and approval.
2. In the process of activity, there may be gaps between the processes, which also need to be identified and eliminated in a timely manner.
3. All work on the reorganization should cost a minimum amount of resources spent. For example, if it is necessary to solve several problems, it is best to group them and entrust one employee to complete them. This method allows you to reduce not only costs, but also the number of employees who are involved in the business process.
4. Some processes can be transferred for execution to employees of third-party organizations and companies.
5. In the process of activity, one may encounter complex tasks. Each such process should include several options for solution. This will allow you to have a choice and choose the best option.
6. Cycle times can be reduced by performing several steps in one place and at the same time. This may reduce transportation costs.
7. Combine multiple tasks. If the solution of tasks falls on the shoulders of employees, then they can be assembled into one unit and provide the opportunity to perform not a separate task, but the whole process.
8. Simplify the work as much as possible. In most cases, employees in the organization have working time restrictions, lack of proper skills, and there is no time for training. At such moments, it is necessary to simplify the work as much as possible, which will be extremely clear and clear for anyone.

Over time, when employees will personally fulfill the goals set for them and solve problems, they will begin to gain experience, so that in the future they will be able to entrust the processes more difficult.

What are the principles of work?

The basic principles of business process reengineering include:

1. Several types of work are combined into one. During the operation of the enterprise, most of the time employees spend not on solving problems, but on coordination and interaction. In this case, not only extra time is wasted, but also costs are increased. To reduce these indicators, it is advisable to combine.
2. The decision is up to the contractor. A person who is authorized to perform the work may personally make decisions regarding the task that he performs. This will avoid wasting time and slowing down all processes when contacting the head.
3. All work must be carried out in strict order.
4. Work is carried out where necessary. Functions are allocated based on workflow, not responsibilities. For example, if it is easier and better for an employee to acquire what they need to work independently, then it is better to entrust it to him, and not to the person whose responsibilities it should be.
5. Any process involves several options for execution. The implementation of the process is carried out depending on the situations.
6. Reduce the work of verification and control, as all this entails not only additional time, but also unforeseen expenses.
7. Reduce the share of approvals - this does not incur costs, but slows down all processes.
8. As a responsible person, you can appoint a manager who is assigned an obligation to complete the task.

If we turn to the assessment of experts, we can understand that almost 50% of projects fail. To prevent this, it is necessary to take a responsible approach to work and perform it efficiently.

What goals are present in the work?

The main goals of business process reengineering include:

1. Not only increase the ability to compete with other companies providing the same range of goods and services, but also increase the profitability of the business. To take such a step is simply necessary if the organization is on the verge of bankruptcy and subsequent liquidation.
2. Prevent possible problems that may appear over time. For example, if the organization’s activities are quite successful, then with the advent of new players in the market competition may increase. This can lead to an increase in the quality of the manufactured goods, lower cost. For this, the necessary processes must be developed in a timely manner.
3. Help in preventing loss of position in the market of goods and services. This may apply to leading organizations that are trying to reach a new level and are not satisfied with good work. In the process of ongoing work, performance is improving, and the business owner may not worry that he will lose a leading position.

What is the concept of reengineering?

The result of the work done is determined by the effectiveness of motivational systems and technology of business process reengineering. The main feature of the decision and implementation of processes is that in the work of employees who perform delegated powers have the ability to independently make decisions within their responsibilities. This helps to improve and increase the efficiency of both the enterprise and employees.

Reengineering is based on the use of radical measures, the work is done once, but the coverage is wide. The concept of business process reengineering lies between management and information technology, which contributes to the creation of additional support tools. To consolidate the implemented process, the use of new information systems and instructions is required, which will apply to regular employees. In some cases, further training of employees and their further training will be required.

What changes may occur in the work?

The modern world in which entrepreneurs carry out their work has changed significantly over the past few years. Undoubtedly, changes in business process reengineering also affected:

1. At the moment, consumers began to independently control the market, took this matter into their own hands. Now every person has enough knowledge and ideas about how a product should look and what functions to perform, and accordingly, it determines the cost of this product, the amount that it can spend and remain not disappointed. And most importantly, the buyer has a choice.
2. Consumers form expectations that relate to a particular product. Regardless of whether he just entered the market or is it an old product that has undergone some changes. Goods will be in demand only if they are able to meet expectations and needs.
3. At the moment, productive technologies, and especially information technologies, have undergone significant changes, which have the ability to use the method to transfer the necessary information to consumers.

Despite the changes that have occurred, there remain organizations and enterprises that still still use the old methods to develop and implement ideas for managing activities.

Project Implementation

Implementation of projects can be considered visually on the example of business process reengineering of the company, which is the largest mobile operator in Russia, namely Rostelecom.

The management team concluded a service agreement with one of the companies back in 2003, and the optimization of management processes continues to this day. As an example, we can consider a specific stage, which was completed back in 2005 and is still functioning. Among the main developments is the constructed model, which allows the process of calculating services for the use of communication.

According to Vadim Izotov, who is the deputy general director, it can be understood that the developed model made it possible to approach the introduction of a new billing system.

What can influence

A number of factors can influence the reengineering of an organization’s business processes:

1. Motivation of employees. For the effective implementation of the project, it is necessary to introduce motivation, which will be understandable to everyone, as well as documented. The head of the organization must clearly understand that the measures used will lead to success and that all activities built will be radically changed. To ensure success, the business owner must be aware that reengineering the organization’s business process is a necessary measure and provide all the necessary conditions for its further implementation.

2. The management team. The implementation of any projects should be carried out under the supervision of senior management. In turn, he is an authority among subordinates and bears full responsibility for the work carried out.To achieve the desired results, reengineering of the business process must be managed competently, clearly, firmly, skillfully. A businessman should clearly understand that some problems may arise in the process, as the organization will be completely reorganized. He must resist and not resort to the use of old methods. The manager must take all measures to ensure that the planned project is completed and subsequently implemented.

3. . - , . , . .

, , . , , , , . , :

• – , . , , , .
• – , . , . , - . , .
• – , , . . , , .

4. . , , . . - , . .

5. The size of the budget. The reengineering of a business process implies that a certain amount of funds will need to be invested in the implementation and implementation. Particular attention should be paid to this point if it is planned to attract information technology to work. Often, organizational leaders tend to assume that reengineering is implemented through self-financing, which is actually not the case. It is necessary to take care of the size of the budget, which can be spent on all work, in advance.

6. Technological support. For effective implementation of works on the implementation and implementation of the business process reengineering project, support is required that fully complies with the selected methods and tools. In most cases, the construction of an information system that is capable of supporting a new business is included.

Preparatory work should begin in advance. Since in most cases it is impossible to form a style in a short time in relations with full-time employees and in the team as a whole.