Business process reengineering is the radical redesign of business processes to achieve dramatic improvements in critical performance indicators such as cost, quality, speed, and service.
business process reengineering helps improve performance by increasing the efficiency and effectiveness of processes present across the entire organisation. For organisations looking to shake up their processes here are the five key steps to take:
1) Define your business processes
The first step of business process reengineering calls for mapping your company’s present state. This process should cover all areas, including your current business regulations, workflows, supporting technology, work activities and reporting relationships. Try not to make assumptions about what needs to change before you’ve fully understood your processes.
2) Analyse your processes
Your existing processes provide a base for new processes. Studying their pros and cons will help you make more informed decisions moving forward.
Identify any gaps, bottlenecks and general inefficiencies that hold up a free flow of the process to help improve operational efficiency and organisational effectiveness. To properly analyse your business processes, focus on these five essential business analysis questions:
1. What are you currently doing? 2. What are you doing that is not needed? 3. What are you doing that can be improved? 4. What are you not doing that you know you should be doing? 5. What are you not doing that you don’t know you should be doing?
3) Identify and analyse business process reengineering opportunities
Keeping your goals in mind, identify and analyse opportunities that can efficiently overcome the inefficiencies identified during analysis.
While at it, try to remember to also identify and validate forward-facing opportunities that are not tied to current processes. For example, what other elements of data capture could benefit your company if built into your new processes?
4) Design future processes
From your list of improvement opportunities, select the ones with the most impact on your organisational effectiveness and efficiency that will achieve most of your company’s strategic objectives. Ensure that your company has the time, budget, and talent to implement these opportunities. And ensure you have the technology in place to support it. Lastly, create a forward-facing future-state map that can take in all the selected opportunities.
5) Develop future state changes
New workflows must be designed and communicated to the relevant stakeholders, new processes tried and tested before being put into use, and new technology embedded into culture as part of deployment. Failure to do any of these steps can cause business process reengineering initiatives to fail, so ensure that all changes and opportunities are operationalised before being implemented.
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