Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality. In Business Process Reengineering, we start with a blank sheet of paper and rethink existing processes to deliver more value to our clients. Companies have to typically adopt a new value system that places increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities in two key areas. First, we redesign functional organizations into cross-functional teams. Second, we use technology to improve data dissemination and decision making.
Business Process Reengineering is a dramatic change initiative that contains five major steps. Managers should:
- Refocus company values on customer needs;
- Redesign core processes, often using information technology to enable improvements;
- Reorganize a business into cross-functional teams with end-to-end responsibility for a process;
- Rethink basic organizational and people issues;
- Improve business processes across the organization.