Thursday, May 28, 2020

Business Process Reengineering

Whether the goal is to improve service, strengthen the bottom line, or reach new levels of maturity, identifying and optimizing critical processes is key.

Business Process Reengineering (BPR) redesigns the way work is done to better support the organization's mission and reduce costs.

Reengineering starts with a high-level assessment of the organization's mission, strategic goals, and customer needs. Basic questions are asked, such as:

  • Does our mission need to be redefined?
  • Are our strategic goals aligned with our mission?
  • Who are our customers?

Within this basic assessment of mission and goals, BPR focuses on the organization's business processes--the steps and procedures that govern how resources are used to create products and services that meet the needs of particular customers or markets. A business process can be decomposed into specific activities, measured, modeled, and improved. It can also be completely redesigned or eliminated altogether. Reengineering identifies, analyzes, and redesigns an organization's core business processes with the aim of achieving dramatic improvements in critical performance measures, such as cost, quality, service, and speed.

Reengineering recognizes that an organization's business processes are usually fragmented into subprocesses and tasks that are carried out by several specialized functional areas within the organization. Often, no one is responsible for the overall performance of the entire process.

Reengineering maintains that optimizing the performance of subprocesses can result in some benefits, but cannot yield dramatic improvements if the process itself is fundamentally inefficient and outmoded. For that reason, reengineering focuses on redesigning the process as a whole in order to achieve the greatest possible benefits to the organization and their customers. This drive for realizing dramatic improvements by fundamentally rethinking how the organization's work should be done distinguishes BPR from process improvement efforts that focus on functional or incremental improvement.

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