Business Process Reengineering

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The English term Business Process Reengineering ( short: BPR; German about: business process redesign ) was coined by Henry Johansson 1993. Michael Hammer and James Champy defined it as: " Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in important metrics such as cost, quality, service and turnaround time ." In contrast to business process optimization, in which only individual business processes more efficient, a fundamental rethinking of the company and its business processes takes place here.

Basic statements

Business Process Reengineering is essentially based on four basic statements:

In practice, only some of these basic statements are often perceived or implemented. But it profit a company little when it focuses on its core competencies and helps its customers to ignore. Equally absurd is the installation of a sophisticated software without advance critical business processes analyzed to have defined and optimized. The idea of ​​BPR lives in concepts such as " Professional Services Automation " section. This is most obvious in label "Business Process Automation", but the other terms such as " Process Optimization Services " or "Service Workflow Optimization " make the connection even more clear. The growing thinking in processes is also reflected in standardization. Thus defines the DIN ISO 9001:2005 quality management by processes. Nestled in Total Quality Management BPR can be used to resolve the existing backlog of the company quickly to then again with the continuous improvement process (CIP ) continue. "Management by Projects" finally provides for the process-oriented alignment of the company action and leadership model that is at the same time the mega trends of flat hierarchies with high ownership and globalization.

Definition, example

The term Business Process Reengineering the reorganization of business processes is meant in a company. BPR represents an organizational measure, which aims to make the organizational structure of the operation on a profound analysis of existing processes in the context of modern information and communication technologies entirely new.

The process-oriented approach assumes that organizational interrelated sub- tasks are combined into a process in order to achieve a specific event. The execution of a process, such as the installation of PC systems takes place, inclusive and thus across departments. The process provides a holistic view of the processes in the foreground as opposed to function-oriented process organization. For the successful implementation of the process, the result of which is based on customer requirements, the employee used or a process team is responsible.

In the consistent application of BPR replaces the traditional function-oriented approach to the operational process organization. CPD is used to make the running and construction -related organizational structure of the company overall economic and flexible.

By eliminating unnecessary transportation and idle time results in a shorter cycle time for the entire duration of this process. In a resulting cost reduction, the customer can be served not only faster, but also cheaper. The competitiveness of the operation will be strengthened.

The four Re 's of the reengineering

Renewing (renewal)

• Enhanced training and organizational involvement of employees in the company ( acquisition of skills and abilities, motivation)

Revitalizing ( revitalization )

• Process redesign

Reframing ( attitude changes )

• Storing conventional thought patterns, hammering new ways
• New visions and determination

Restructuring (Restructuring )

• Redesign / modification of the activities portfolio

Appreciation and criticism

The implications of this concept are judged very differently.

Proponents emphasize the need for the paradigm shift in corporate organization caused by the information technology and globalization. These positions are approaching in the current discussion at each other. So Michael Hammer stressed recently the importance of process analysis and weakened the demand for fundamental and radical surgery. The hope of "dramatic improvements " was increasingly replaced by the goal to stop a downward trend in the American economy and restore competitiveness. On the other hand, it is now common thought that business processes must be defined and optimized. Last but not least makes the consistent use of the potential of information technology, a radical rethinking of processes required.

Critics point to the low view of experience gained values ​​, which are displayed in existing business processes, and the disregard of the necessary learning process of the company's employees. Shapiro refers to surveys in the U.S. and Europe, but that only 33% of the company after completion of reengineering projects successes, 25 % reported no expense to the corresponding results. Another not to be underestimated criticism is the contemptuous view of middle management. This is seen as an obstacle in the implementation of BPR, which should be removed as quickly as possible. The middle management resists, since the restructuring of the organization is to lead to significant staff reductions and fall personal career growth through training flatter hierarchies.

Notes and References