Business Process Reengineering: A Look at Processes
Business Process Reengineering Methodology
- Identify Client Based Objectives: Seek to understand client expectations and where current processes succeed and fall short.
- Create and Build a Strategic Plan: Use customer driven objectives to formulate vision or mission statement of what is to be achieved at completion of business process reengineering.
- Build Activity and Process Models: Understanding of current processes can help to avoid changes that will not be viable solutions.
- Identify Inefficient Processes: Ask questions to find who and what prevents certain processes from achieving their desired results.
- Identify Value Increasing Processes: Activity Based Costing (ABC) can offer the groundwork to show which processes have value and those that should be reengineered.
- Label Benchmarks: Compare performance of processes with that of peers to gain ideas for improvement. This doesn’t have to be direct competitors; benchmarks can come from organizations outside of the industry.
- Design and Validate Incoming Processes: To-Be process development and simulation are needed to analyze cost and time factors. Comparison with the current model will express ABC gains.
- Reexamine Analysis Findings: Narrow To-Be Models to offer best possible scenarios, and select methods of implementation.
- Begin Training and Initiate Prototype: Develop plan for transition to the reengineered process. Create a list of initial change requirements necessary to implement any new process.
- Enable Engagement of Stakeholders: Prepare the company culture for change. Enact efforts to gain full support of all those involved in the business process reengineering effort.
- Rapid and Full Implementation: Critical to the success of the BPR is a smooth and seamless transfer between current and To-Be processes.
- Constantly Measure Change: Progress of action and results should be monitored through examining customer perception, employee attitude and supplier response.
- Review Results: Review performance versus clearly defined goals and targets. Setup a feedback loop to enable tracking system of new processes.
- Enhance New Processes: Seek continuous improvement in performance of processes by using Total Quality Management (TQM) as a measurement tool.