BPR ‒ A means for our targets
An effectively operating organization is a must, and not just in economically difficult times. In today’s challenging financial circumstances however, a badly functioning, wastefully operating organization is definitely a luxury no company can afford. BPR, ie. Business Process Reengineering is a method that may be applied in the case of all companies, but especially those that have goals more ambitious than mere survival. During a BPR project business processes and the organization are renewed and reconstructed, and therefore become more effective. However, in most cases re-structuring processes in itself, without adequate IT-support, is not sufficient for resounding success. BCA successfully blends the re-engineering of an organization and its processes with the implementation of IT solutions that serve the new processes and the new organization effectively.
BPR today
An organization typically spends a significant amount of its time (upto 80%) with performing totally useless tasks: colleagues waste time looking for data that are readily available elsewhere, they register the same process steps in different systems and in different forms, oblivios of each other or even prepare documentation that no one will ever need. In today’s difficult times the performance and efficiency of business processes must be maximized in order to achieve better results and maintain development. For a breakthrough in effectiveness, a well-focused BPR project must be executed, which will provide the following advantages:
- it will improve the cycle time of business processes (by up to 50%),
- it will reduce the number of redundant business processes (by up to 10%).
The increase of efficiency may induce measurable operating cost savings within just a few months, along with the enhancement of the quality of operation.
Why BPR?
If business processes include useless and senseless steps, the performance of the company will be weak, regardless of how motivated or hard-working the employees are. Minimal changes in processes may cause huge changes in the customer satisfaction index as well as in the quality of the services. Efficiency may be increased by 10% merely by the adequate documentation and training of processes.
BPR means that all processes need to be thought over, and the organization can rid itself of its long-fixed bad habits, while responsibilities and competencies will again be clear.
The lawn mower principle will not deliver good results in the case of cost cuts and cutbacks, since unsupported decisions that do not focus on problems will throw both processes and colleagues off balance. Making key-workers redundant causes serious problems in the successful operation of the processes, whereas the shearig of processes essential for continuous business operation (eg. sales) may even endanger the survival of the company. Development and efficiency improvement must not focus on one position only, it should extend to the entire business (eg. one whole business unit).
If the basis of the savings is an increase in the efficiency of the processes and the organization, and a decrease in administration time is due to new IT solutions, the performance of the company will be enhanced.
The changes will only reach their goals if short- and medium term strategies are re-defined, and cost-cuts and cutbacks are defined in compliance with this strategy. Therefore BPR activities should be managed in a top-down manner, in order to ensure that the defined goals and strategy are not neglected.
BPR as a project
BPR projects may be launched with different aims and in different ways, from the screening and re-structuring of the operation of an entire company to planning the processes of one selected organizational unit. The main focus is always on the increase of efficiency, which can already be felt after strengthening the weakest link.
BPR project may and indeed should be launched in the following main areas:
- review of management and operation structure
- increase of process efficiency (sales, customer service, marketing, etc.)
- review of management and administration IT solutions
- complex assessment and rationalization of fieldforce, workforce and retail network
BCA team designs the projects based on the following BPR methodology, always tailoring it according to the needs of the customer.
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- Plan & Kick-off: on launching the project it is essential to define management expectations and goals and to finalize the project plan and deliverables in order to ensure full understanding between the client and the consultant.
- Discover & Analyze: during the As-Is analysis we assess the present situation and define problem areas. It is important to gain the support of the organization, and to select and prepare so-called quick-win projects that bring quick results.
- Develop & Reengineer: during the To-Be planning we form future processes, along with the necessary IT solutions and the adequate measuring points.
- Implement & Measure: during transition we transform the organization and the processes, then we start measuring the results.
- Always Changing: it is essential to maintain continuous communication throughout the project, which may be a roadshow or a training. An important aim of communication is the development of company culture.
Successful implementations
The constellation of a number of factors is necessary for total success, most importantly the devotion of the management, but it is also essential that at least part of the organization be open to the changes. The BPR project should be carried out according to an integrated concept from the planning phase to the completion.
Many successfully completed BPR projects prove that new, effective solutions enhance the competitiveness of a company. The real success, however, is not the mere survival of the situation caused by economic circumstances, but the ability to recover quickly and be the first in the upswing.
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