Business process reengineering

from Wikipedia, the free encyclopedia

This article was the basis of content and / or formal deficiencies in the quality assurance side of the portal economy entered.
You can help by eliminating the shortcomings mentioned there or by participating in the discussion .

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

Basic statements

Business process reengineering is essentially based on four basic statements:

  1. BPR is based on the crucial business processes.
  2. The business processes must be aligned with the customers.
  3. The company must concentrate on its core competencies.
  4. The possibilities of current information technology for process support must be used intensively.

In practice, often only a few of these basic statements are perceived or implemented. But it is of little use to a company if it concentrates on its core competencies and neglects its customers. Just as nonsensical is the installation of complex software without first having analyzed, defined and optimized the critical business processes. The idea of ​​the BPR lives on in concepts such as “Professional Services Automation”. This becomes most obvious with the label “Business Process Automation”, but the other terms such as “Services Process Optimization” or “Service Workflow Optimization” also make the connection clearer. The increasing thinking in terms of processes is also reflected in standardization. ISO 9001: 2015 defines quality management with the help of processes. Embedded in total quality management , BPR can be used to quickly resolve any pent-up demand in the company and then to continue with the continuous improvement process ( CIP ). Finally, “Management by Projects” offers an action and management model for the process-oriented alignment of the company, which at the same time does justice to the megatrends of flat hierarchies with a high level of personal responsibility and globalization.

Term definition, example

The term business process reengineering means the reorganization of business processes in a company. BPR is an organizational measure that aims to completely redesign the organizational structure of the company by means of an in-depth analysis of the existing processes against the background of modern information and communication technologies.

Example of a process

The process-oriented approach assumes that organizationally related subtasks are combined into a process in order to achieve a certain event. The processing of a process, for example the installation of PC systems, takes place integratively and therefore across departments. In contrast to the function-oriented process organization, the process focuses on a holistic view of the processes. The employee or a process team is responsible for the successful implementation of the process, the result of which is measured against the customer requirements .

In its consistent application, BPR replaces the traditional, function-oriented approach to operational process organization . BPR is used to make the process and structure-related organizational structure of the company more economical and more flexible overall.

The elimination of unnecessary transport and idle time results in a shorter lead time for the entire run of this process. With a resulting cost reduction, the customer can not only be served faster but also more cheaply. The competitiveness of the company is strengthened.

The four Re's of reengineering

Renewing (renewal)

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

Revitalizing (revitalization)

  • Process redesign

Reframing (setting changes)

  • Shedding conventional thought patterns, breaking new ground
  • New visions and determination

Restructuring (restructuring)

  • Redesign / change of the portfolio of activities

Appreciation and criticism

The effects of this concept are judged very differently.

Proponents emphasize the need for a paradigm shift in business organization brought about by information technology and globalization . These positions are converging in the current discussion. Michael Hammer recently emphasized the importance of process analysis and weakened the demands for fundamental and radical interventions. The hope for "dramatic improvements" has increasingly been replaced by the goal of halting a downward trend in the American economy and restoring competitiveness. On the other hand, it has become commonplace that business processes need to be defined and optimized. Last but not least, the consistent use of the potential of information technology requires a radical rethinking of processes.

Critics criticize the insufficient consideration of the experience gained, which is mapped in the existing business processes, and the disregard for the necessary learning process of the company's employees. Shapiro refers to surveys in the USA and Europe, according to which only 33% of companies reported success after completion of reengineering projects, but 25% reported no results that corresponded to the effort. Another point of criticism that should not be underestimated is the disparaging view of middle management. This is seen as an obstacle to implementing BPR that should be dismantled as soon as possible. Middle management is resisting, as the reorganization should lead to considerable savings in personnel and the formation of flatter hierarchies will reduce personal opportunities for advancement. The one-time, radical process restructuring by BPR, which is supposed to lead to an "optimization" of business processes, is viewed critically by many. The constantly changing and increasingly complex framework conditions, which have both internal and inter-company dimensions, can only be achieved through a continuous comparison and adaptation process of the information and organizational structure. This concept of repetitive process redesign is also known as continuous system engineering.

Notes and individual references

  1. ^ Henry J. Johanson, Patrick McHugh, A. John Pendlebury, William A. Wheeler: Business process reengineering: breakpoint strategies for market dominance. Whiley, Chichester 1993, ISBN 0-471-93883-1 . This book and Hammer and Champy's came out that same year. Johansson et al. However use the term as if it were already everyday life and actually coined the term: BreakPoint Business Proces Reengineering (p. 14).
  2. ↑ Original wording: "Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed."
  3. ^ Markus H. Dahm, Christoph Haindl: Lean Management and Six Sigma: Quality and Profitability in Competitive Strategy. Erich Schmidt Verlag, Berlin 2009, p. 44.
  4. ↑ Eileen C. Shapiro: Trend surfing in the executive suite. Frankfurt am Main / New York 1996, p. 247ff.

literature