Reengineering of business processes: concept, goals, principles

Business Process Reengineering Managementincludes a set of methods and techniques. They are used by the organization to successfully design their activities. This happens according to the goals.

Business process reengineering impliescomplete rethinking and further re-planning of all organizational processes. It is necessary to achieve the goals and objectives. Improvements can occur very sharply, 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 improved service services.

Constituent definitions

The definition of business process reengineering includes four basic words: fundamental, radical, abrupt, process.

Fundamentality enters the first stage, which requires answering a series of questions relating to the main ones:

1. Why is the organization doing exactly this activity, and not something else?
2. Why does the organization perform its work in these ways and does not implement other options?
3. What organization plans to become in the end and how does it see itself in a few years?

Specialists who respond to a number of thesequestions, should rethink the current rules on the conduct of activities. Often they may be outdated, inefficient and not applicable to a specific production.

Radical refers to the redevelopment ofactivities. Changes are not just superficial. The whole system is subject to change. Business owners are offered options that can change the entire production.

Sharpness. Reengineering of business processes is not used in cases when it is necessary to improve and increase the indicators of income received by a certain percentage, up to a maximum of 100%. The expediency of use is due only to the fact that the entrepreneur wants to increase rates by 500% and more. In such cases, there is a complete replacement of the methods used for business and the production of goods. They are replaced by everything new.

Business Process Reengineering Managementimplies the use of new methods in the company in steps, through which you can create a completely new product, which is currently relevant to the consumer. Well-designed processes allow the organization to achieve its goals and solve a number of tasks.

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 at the stage ofbankruptcy. Often this is due to the fact that prices for goods and services are set significantly higher than those of competitors, or the quality does not match the declared value. If time does not take action, the organization can be liquidated after some time.

• For organizations that currently havethere are no problems and difficulties with doing business, but they may appear after a while and have a negative impact on the business. Such problems may be associated with an increase in the market for goods and services of competitors or a change in customer needs.
• Organizations that have no problems, butbusiness owner looks to the future. He wants to prevent problems that may arise in the way of the company. Such organizations mainly belong to the leaders. Their marketing policy is aggressive, they are not satisfied with a good position in the market, they constantly want improvements in their work processes.

Thus, to the main tasks of reengineeringbusiness processes can include the introduction of innovations that will allow the organization to firmly consolidate its position in the market and not lose the ability to compete. All this allows the company to survive and continue full operation regardless of how many competitors are present.

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

1. At the first stage, an image is developed thatwill match the organization. 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. Analyze the work of the existing organization. At this stage, experts conduct a study of the enterprise, on the basis of which a scheme is constructed that corresponds to the work at a given point in time.
3. The process of developing a new activity. In this case, new processes are built or existing ones are subject to change. 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 work of the enterprise.

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

Main stages

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

1. Global thinking based on whichdeveloping perspectives in approaches. Lead managers should be perfectly oriented and understand all the features that are associated with the development of the enterprise. In the process of work, you need to take into account the needs of customers, the advantages of competitors and the latest developments in technology that can be introduced into the business.
2. To carry out work on the preparation of 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 is worth returning to, this approach will allow you to avoid a number of errors in the work. If necessary, you can contact the staff specialists who may encounter problems in the course of work and describe them in detail. Any ideas received should be recorded, in the future they can be useful.
4. Determine the level of effectiveness. You can monitor performance only if a reference point was provided in advance.
5. Approach the process creatively. The first thing you should pay attention to the needs of potential customers. The collection of information should be carefully monitored, the sources that provided it should be monitored and, if necessary, expedited the process of dissemination. If necessary, you need to delegate authority and control customer service.
6. The change of activity in the organization should bescheduled in advance. Undoubtedly, improvements in work can occur in a short time, but it will take time to implement. In advance you need to make a plan in which you can specify all the desired indicators, they must be transformed.
7. All processes must be analyzed and evaluated. Be sure to have feedback from employees. It is necessary to monitor all stages of implementation and evaluate the effectiveness and performance achieved.

Thus, when using effective methods in an 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 business can happenso that there will be unnecessary processes from which you must first get rid of, so as not to waste time on it. These processes include verification and approval.
2. In the process of activity between processes, gaps may occur, which also need to be identified and fixed in a timely manner.
3. All reorganization work should be done inThe minimum amount of resources spent. For example, if you need to solve several tasks, then it is best to group them and assign the execution to one employee. 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 to the performance of employees of third-party organizations and companies.
5. In the process of activity you may encounter difficult tasks. Each such process should include several options for a solution. This will allow you to have a choice and choose the best option.
6. The cycle time can be reduced by performing several steps in one place and at the same time. This may reduce shipping 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. Make work as easy as possible. In most cases, employees in the organization have limited working time, lack of proper skills, and there is no time for training. At such times it is necessary to simplify work as much as possible, which will be extremely clear and clear to anyone.

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

What are the principles of work?

The main principles of business process reengineering include:

1. Several types of work combined into one. During the operation of the company, employees spend most of their time not on solving problems, but on coordination and interaction. In this case, not only wasted extra time, but also increased costs. To reduce these indicators it is advisable to carry out the union.
2. The decision remains for the performer. The person who is trusted to do the work can personally make decisions regarding the task that he performs. This will avoid wasting time and inhibition of all processes when referring to the head.
3. All work must be done with strict observance of order.
4. Work is done where it is.necessary. Functions are distributed depending on the workflow, and not on duties. For example, if it is easier and better for an employee to acquire what is necessary for work independently, then it is better to entrust it to him, and not to the person whose duties this should include.
5. Any process involves several options for execution. The implementation process is carried out depending on the situation.
6. Reduce work on the inspection and control, since all this entails not only extra time, but also unforeseen expenses.
7. Reduce the proportion of approvals - it does not incur costs, but slows down all processes.
8. As the person in charge, you can designate a manager who is assigned the responsibility for 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 with high quality.

What goals are present in the work?

The main objectives of the reengineering of business processes include:

1. Not only increase your ability levelcompete 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 mayappear over time. For example, if the organization’s activity is successful enough, then with the advent of new players in the market, competition may increase. This may lead to an increase in the quality of the goods produced, a decrease in the cost. For this, the necessary processes must be developed in a timely manner.
3. Help prevent market lossgoods 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 course of the work being done, the indicators are improving, and the business owner may not worry that he will lose the leading position.

What is the concept of reengineering?

The result of the work done is determinedefficiency of motivational systems and business process reengineering technology. The main feature of the decision and implementation processes is that in the work of employees who perform delegated authority, have the opportunity to make decisions independently within their duties. This contributes to the improvement and efficiency of work of both the enterprise and its employees.

Reengineering is based on useradical 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 tools for support. To consolidate the implemented process, the use of new information systems and instructions will be required, which will be extended to full-time employees. In some cases, it will be necessary to improve the skills of workers and their further training.

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 reengineering changes business processes also touched:

1. At the moment, consumers have become independentlyto exercise control in the market, took this matter in their hands. Now, every person has enough knowledge and ideas about how the product should look and what functions to perform, and, accordingly, determines the cost of this product, the amount it can spend and remain not disappointed. And most importantly - the buyer has a choice.
2. Consumers form expectations that relateto a specific product. Regardless of whether it has 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 the expectations and needs.
3. At the moment, significant changesproductive technologies have been subjected, in particular information technologies, which have the ability to use the method to transfer necessary information to consumers.

Despite the changes that have occurred, there are organizations and enterprises that still use the old methods to develop and implement the ideas of business management.

Project implementation

The implementation of projects can be seen visually on the example of the reengineering of the business process of a company that is the largest cellular operator in Russia, namely Rostelecom.

The management team signed a contract for the provision ofservices from one of the companies back in 2003, and optimization of management processes continues to this day. As an example, we can consider a specific stage, which ended in 2005 and is still functioning. The number of major developments includes the constructed model, which allows the process of calculating services for the use of communication.

From the words of Vadim Izotov, who is the Deputy General Director, it can be understood that the developed model allowed 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. Motivating employees. For the effective implementation of the project, it is necessary to introduce a motivation that will be understandable to all, as well as documented. The head of the organization must clearly understand that the measures used will lead to success and that all constructed activities will be radically changed. To ensure success, a business owner must be aware that the reengineering of an organization’s business process is a necessary measure and provide all the necessary conditions for its further implementation.

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

3. Staff. The team for the reengineering of business management processes should include full-time employees who will be given the appropriate authority. They must have a clear idea of ​​what changes are needed and what hinders the effective performance of work within the company. The employee must comply with the powers given to him and competently perform their duties.

As practice shows, employees of the lowestthe link is much easier to explain why you need to use innovations and restructure the work of the entire enterprise. Employees who are part of the managers, to convey this idea is much more difficult because they do not understand what the new production will give them. Researchers in America identified three groups that may include managers:

• Tiger is a young employee who just started building his career. He has a desire to participate in the project, has enthusiasm, clearly performs the tasks assigned to him, does not bring harm.
• Donkey - a specialist who works in the companyquite a long time and reached a peak on the career ladder. He wants stability in work, calm. He absolutely does not understand why reengineering of the enterprise’s business processes is necessary. These employees need to be treated carefully, as they can harm the project.
• Shark - experts who are engaged indevelopment of management procedures and instructions that allows you to manage a number of operations within the organization. Such employees often have influence in the organization. They should be treated with concern, as they can cause great difficulties and problems if they begin to sabotage changes in the life of the enterprise.

4. Communication skills. In the event that employees need to set a new task, then it must be clearly formulated in advance. To convey it is required in an understandable language for everyone. Success in the efficiency of reengineering of business processes of enterprises will depend entirely on how well employees understand their manager. That is what will achieve the desired goals and results.

5. The size of the budget. Conducting business process reengineering implies that a certain amount of funds will be required to invest in the implementation and implementation. Particular attention should be paid to this point if it is planned to attract information technology to work. Often, managers of organizations are inclined to assume that reengineering is implemented through self-financing, which in fact is completely wrong. You need to take care of the amount of budget that can be spent on carrying out all the work in advance.

6. Technological support. Effective implementation of the implementation and implementation of a business process reengineering project requires support that is fully consistent with the selected methods and tools. In most cases, the construction of an information system that can support a new business is included.

Begin preparatory work in advance. Since in most cases it is impossible to form a style in a short time with respect to staff members and the team as a whole.