Process Re-engineering – Workshop 2 (Processes Overview)
The Appleton Greene Corporate Training Program (CTP) for Process Re-engineering is provided by Mr. Lam Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 12 months; Program orders subject to ongoing availability.
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Learning Provider Profile
Mr. Lam has been in the management consulting industry for over 15 years. He began his career at an investment bank, and then moved into consulting to address a wider variety of sectors and types of projects. He has delivered consulting projects in Europe, North America, and Asia-Pacific.
He has experience with many different industry sectors – including healthcare, energy, consumer goods, retail, banking and financial services, insurance, transportation and logistics, IT, cosmetics and beauty, and hospitality and tourism.
Mr. Lam has delivered numerous types of consulting projects – including business strategy, mergers and acquisitions, process optimization, cost optimization, digital innovation, robotic process automation, data management, operational excellence, due diligence, new product launch, new market entry, and market analysis.
MOST Analysis
Mission Statement
Processes can be streamlined, automated, outsourced, eliminated, or kept as-is. This module will give an overview of each scenario, along with detailed examples and materials on how and when each of them can be put into practice.
Objectives
01. Processes Overview: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Optimization & Improvement: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Streamlining: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Streamlining Examples: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Automation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Automation Examples: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Outsourcing: departmental SWOT analysis; strategy research & development. 1 Month
08. Outsourcing Examples: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Elimination: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Kept As-Is: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Right Choice: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
Strategies
01. Processes Overview: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Optimization & Improvement: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Streamlining: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Streamlining Examples: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Automation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Automation Examples: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Outsourcing: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Outsourcing Examples: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Elimination: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Kept As-Is: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Right Choice: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
Tasks
01. Create a task on your calendar, to be completed within the next month, to analyze Processes Overview.
02. Create a task on your calendar, to be completed within the next month, to analyze Optimization & Improvement.
03. Create a task on your calendar, to be completed within the next month, to analyze Streamlining.
04. Create a task on your calendar, to be completed within the next month, to analyze Streamlining Examples.
05. Create a task on your calendar, to be completed within the next month, to analyze Automation.
06. Create a task on your calendar, to be completed within the next month, to analyze Automation Examples.
07. Create a task on your calendar, to be completed within the next month, to analyze Outsourcing.
08. Create a task on your calendar, to be completed within the next month, to analyze Outsourcing Examples.
09. Create a task on your calendar, to be completed within the next month, to analyze Elimination.
10. Create a task on your calendar, to be completed within the next month, to analyze Kept As-Is.
11. Create a task on your calendar, to be completed within the next month, to analyze Right Choice.
Introduction
The 4 Essential Processes
We view the first four procedures as being a business’s core procedures. The four business procedures listed below will help your company make money:
1. Concept-to-product
2. Market-to-customer
3. Order-to-cash, and
4. Demand-to-supply
For a firm to be successful, all four processes must be in place. As a result, it is crucial for a company to have a comprehensive understanding of how these activities are carried out on a daily basis. If your company decides not to record all nine business processes, we firmly advise that you do so at the very least for these four essential ones in order to promote clarity inside the company. You will undoubtedly find inefficiencies along the road that you may attempt to fix.
The Background Cast
We refer to the following five procedures as the Enabling Procedures. These five procedures don’t produce money on their own. The four fundamental processes do, however, receive crucial support from the five supporting processes. These are the five enabling processes:
1. Procure-to-pay
2. Invest-to-divest
3. Maintain-to-improve
4. Hire-to-retire, and
5. Finance-to-manage
There is no implication that these five processes are any less significant just because they are listed after the four basic processes. Instead, because they are fundamental, these processes fall under the four basic processes. It nearly always happens that important resources are freed up to pursue the four core processes more vigorously if the enabling processes are effective, strong, and clear. Or, to put it another way, companies that take the effort to document and streamline their enabling processes are able to scale more quickly and become more competitive in their markets.
Bubble Wrap For Your Business
The model has one more component to take into account. What we refer to as Integral Processes are represented by a string of orange boxes. The fundamental and enabling processes are sequential, whereas these five processes are not. Instead, the integral processes act as the “glue” connecting the two types of processes by integrating the core activities with the enabling processes and vice versa. All fundamental and supporting processes involve implementing quality systems, adhering to regulations, managing stakeholder relationships, information resources, and process enhancements. They intersect the model vertically. Integral procedures benefit and safeguard the entire company; they aid in risk management and make operations easier. Consider essential procedures like the bubble-wrapping of a significant package before it is transported across the nation.
Business Process Reengineering: How to Boost Efficiency in Your Organization
Most traditional and manual methods are now obsolete. Many businesses are automating operations in this era of quickly changing technologies in response to the digital transformation.
Business process reengineering can help with it.
Although starting a new process from scratch is a difficult task, when done well, it may greatly increase revenue and promote growth.
Although it might be a novel idea to some, business process reengineering gained popularity in the 1990s thanks to a Michael Hammer essay that appeared in the Harvard Business Review.
It’s becoming more crucial for organizations to understand how to use it as its relevance grows.
What, Why, And How Does Business Process Reengineering Work?
Business reengineering, according to Michael Hammer, is the basic rethinking and radical rebuilding of business processes to produce significant gains in crucial, modern performance metrics like cost, quality, service, and speed.
It is, in simple terms, a technique for removing pointless workflows and enhancing those that already exist.
This frequently calls for a complete reworking of the existing setup. It can reduce the number of steps required to finish a specific task.
Business reengineering can be done to enhance the communication and effectiveness between two processes. It can help the business by raising the caliber of its goods or lowering expenses.
The procedure’ primary goal is to make it possible for new software to be adopted and lead to advancements.
It also comes down to setting up cross-functional teams so that every step of the process is accountable. This also entails allowing for little to no conflict among employees in any way.
To get the best results, it must, overall, be consistent with the organizational goals already in place.
Benefits Of A Business Process Reengineering Program’s Successful Implementation
You should take into account if the current workflow is inefficient or faulty when re-engineering any process. The management may view it as a way to enhance the company.
Whatever the cause, putting in place a business process re-engineering program does show to be beneficial in a number of ways.
Clarity Of Intent
Most businesses are unaware of the details of their business process. There are instances where these processes are not properly documented. When conducting a re-engineering program, you can get a general overview of the processes already in place and assess whether any adjustments, if any, are required. As a result, it can aid in averting any potential accidents.
Lower Operating Expenses
You can save time and resources by eliminating superfluous chores, which you can then put to better use.
Overall, this lowers excessive spending, which may lead to a rise in your revenue in the future. Despite the fact that implementing new techniques or technology may seem pricey, the expense is warranted. Over time, the organization runs considerably more efficiently. Nothing in writing.
Higher Standard Of Goods Or Services
Employees can concentrate more on their individual job thanks to the reengineering of the company’s process.
There aren’t any additional steps necessary to finish either. It is also simpler to stay one step ahead of the competition by streamlining procedures overall.
Fosters An Innovative Culture
Teams typically spend a lot of time brainstorming while examining processes. This forces them to constantly be at their best. Companies and employees might discover innovative approaches to completing a task that may soon boost their capability.
Higher ROI
It goes without saying that rearranging your procedures makes your business more effective over time. Even cost-cutting has an impact on this. Since there is no longer any duplication, work is finished more quickly, increasing overall revenues.
Enhanced Client Services
Customer wait times can be decreased by speeding up the procedure. When staff have clear objectives, they are better able to serve their clients.
Additionally, allowing for cross-functional collaboration avoids misunderstandings, ensuring that customers receive the appropriate information.
Business process re-engineering is still very relevant in the workplace today, despite how old it is. It’s time to decide whether you want to lead the pack or fall behind now that the advantages are clear.
What To Remember When Following The Steps For Reengineering Business Processes
Process reorganization in an organization is not always easy. Since any firm has many moving pieces, there are numerous considerations you must make.
So what constitutes a proper business re-engineering program setup?
Step 1: Clearly Specify Business Processes
Only 4% of businesses, according to a BPTrends poll, document their procedures. This implies that the majority of businesses lack a proper understanding of routine jobs.
Therefore, let’s begin from the beginning. Think about the organizational mission, if you are doing it, and how you are doing it with your team.
Even think about the new procedure’s appearance and whether it will be advantageous to you. Create a flowchart for each task in each workflow and see whether any steps can be eliminated.
By introducing process standardization, you can make sure that every work is correctly carried out inside your firm. To do this, draft problem descriptions, investigate dependencies, and talk to your teammates.
Step 2: Determine What Areas Require Improvement
Consider what needs to change once you’ve made the decision that change is necessary.
You should look at the current procedures and then determine the bottlenecks in each workflow.
Understanding the goals of the process is necessary to select the best reengineering strategy.
You should also do an analysis of what consumes the majority of your resources or the time of your employees.
Determine which specific situations call for workflow elimination or process modification. In that situation, rigorous analysis is required.
Even better, you can test the technique’ effectiveness by repeating it several times.
Step 3: Form A Team Internally To Help With The Process
The employees who work in a company are the best people to know how well it operates. They must be involved in the reengineering process from beginning to end.
You can designate a senior manager to keep an eye on staff workload and high-level communication. An operations manager typically has more depth of understanding regarding each process overall.
Re-engineering initiatives, such as educating staff about new technology, can be carried out more effectively than in the past with the help of a team.
With so many internal teams collaborating, there ought to be an overseeing committee whose job it is to make sure that nothing goes wrong.
You might even hire a process specialist to offer more guidance on how things ought to be managed.
Step 4: Determine The KPIs For The New Processes
Utilize quantitative metrics for assessing the performance of business operations before launching your new procedure.
Setting up KPIs is crucial since they serve as the foundation for assessing and improving business operations.
A successful reengineering process will be ensured by taking the time to build a thorough list of KPIs.
What KPIs are appropriate depends on the business strategy you create. Make sure the KPIs match your need for improved ROI and more effective workflows.
Step 5: Come Up With Ideas And Draft Reengineered Procedures
It’s time to start working once you have everything organized.
Meetings of your internal committee can be used to examine the viability of various strategies.
This can also be done on a trial-and-error basis to evaluate the efficacy of your approach. Don’t only concentrate on one process; you should be able to expand this into other business areas soon.
But you need to assess whether these new implementations are effective enough and how each process interacts with the others.
Step 6: Consider Feedback
You shouldn’t just stop making changes once your newly re-engineered process is implemented.
For future reengineering needs, make sure you gather and record employee and department head feedback. You should keep continuing until you reach a stage where you’re accomplishing your goals after each round of feedback.
Otherwise, it’s possible that you’re contributing to the system’s inefficiencies and issues. If there is nothing to show after such a meticulous effort, then what would be the point?
Due to your employees’ lack of excitement, you may have to deal with numerous other issues related to the digital transformation. There are still a lot more problems that might occur.
How To Overcome The Difficulties Of Business Process Reengineering
It has frequently been claimed that putting into practice a process reengineering plan is challenging. What problems might you encounter when commencing the process, then?
• Lack of information. Information is dispersed throughout many departments in any large or medium-sized company. It frequently goes wrong to combine all of this information into a single, documented process and distribute it around the staff. Most of the time, a gap can be closed if everyone is on the same page regarding what needs to be done and how it should be done.
• Inadequate training and resource use: Implementation is undoubtedly delayed when there are insufficient resources for business process reengineering. For this reorganization to be properly implemented, qualified personnel, an appropriate budget, appropriate BPR tools, and documentation are all required. Cutting corners won’t get the job done.
• Accepting organizational change is difficult: You should anticipate some resistance or hesitation if you adjust personnel processes. Because employees are used to a certain style of working, learning a new process all of a sudden can be difficult. Having a SOP in that situation can be quite beneficial.
• having no fixed future objectives: It’s crucial to understand how the company should function in the long run while reengineering a process. You’ll miss out on significant changes that could take place in the future if you simply focus on what is happening right now. It will take more time and resources to get back on track at that point.
The company must prioritize time and approaches while remaining dedicated to the process.
You should not only consider the challenges you may encounter, but also the effectiveness of your new procedure.
How To Evaluate Whether Business Process Reengineering Was Successful
Your business process redesign is just the beginning. They’ll need to be monitored for performance. Otherwise, your entire effort will be in vain.
You may position your project for long-term success by taking the time to review your present procedures and adapt them to be as effective and customer-centric as possible.
What kinds of data points should an organization concentrate on in that situation?
• Process Effectiveness: How well the new process satisfies employee needs (i.e., how quickly or easily it enables them to execute their jobs).
• Improved Cycle Times: This refers to how quickly an organization can produce its goods or services. Usually, when a business process is re-engineered, the time is reduced.
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