Process reengineering: what is it, its purpose and how to do it?
When it comes to acquiring a competitive edge, organizations can only rely on change. As a result, firms frequently employ process reengineering as a strategy to adjust to changing demands both internally and outside.
This is because it is not just about doing things differently, but about optimizing the techniques used, implementing workflows and tools that will improve results.
The path to redesigning processes is complex and requires the team’s attention when evaluating what is not necessary and, therefore, can be eliminated or replaced.
Does your business need to save expenses and increase operational efficiency? As you read the essay, you will get an understanding of process reengineering, including its definition, benefits, and application.
Happy reading!
What is process reengineering?
Process reengineering is a management technique that evaluates and redefines work procedures in a given area of the business to improve operational efficiency and reduce costs.
Each sector of a company operates according to its own rules. Therefore, with redesigned processes, new ways of operating emerge, adapted to the current situation, increasing the organization’s performance.
This strategy keeps teams aware of market changes, identifying opportunities to optimize workflow, as well as eliminating bottlenecks and repetitive tasks.
What is the main objective of process reengineering?
The main objective of process reengineering is to make the company more efficient , operating through agile and simple procedures to deliver real value to customers, whether through the sale of products or the provision of services.
The consequence of operating using innovative techniques is to increase the quality of deliveries, which allows you to charge more for exclusive differentials and still gain a competitive advantage in the market.
At a time when technologies are advancing very quickly and product life cycles are increasingly shorter, the development of solutions follows an agile pace, requiring innovative differentiators.
Therefore, if teams are not aware of the possibilities for improvement, the company may fall behind, as competitors will catch up.
For example, if your order fulfillment team takes weeks to respond to queries or your inventory management department purchases more supplies than necessary, it is essential to reengineer processes in these areas.
The goal is to identify bottlenecks and activities that are not contributing to process efficiency and completely reorganize the workflow so that the new operation performs better.
What are the advantages of reengineering in operational efficiency?
The results of process reengineering are advantageous for companies because they put organizations in the best position to operate. Check out the main benefits of the strategy for operational efficiency:
Understand the purpose and operations of the business
Strategic planning defines a company’s growth goals, and to achieve them, teams need to understand the purpose and operations of the business . However, many organizations struggle to describe their operational processes.
With the process reengineering strategy it is possible to clearly evaluate and understand the current condition of the procedures, the results obtained and how to optimize the workflow to achieve strategic objectives.
Adopt simple business processes
Another advantage of process reengineering is that it refocuses on what is essential. The strategy helps to simplify and streamline operational processes , eliminating redundant procedures that impede business efficiency.
This way, efforts are aligned with the company’s objectives and employees have a clear direction to follow.
Improve operational efficiency
Having a clear set of processes and eliminating redundant operations improves operational efficiency . Reengineering also streamlines processes, eliminates bottlenecks and reduces waste, creating more efficient and productive work models.
This change significantly reduces delays and errors, which contributes to the company’s credibility in the market.
Reduce operating costs
Process reengineering helps reduce operational costs by redesigning and optimizing procedures, seeking more efficient tools, techniques and solutions to improve financial results.
For example, a company that wants to save electricity can plan to migrate to the Free Energy Market, a contracting environment in which it is possible to save up to 35% on costs for the input, which is essential for the operation.
How to implement process reengineering?
Process reengineering brings profound changes to the culture of companies. Therefore, the steps for implementing the strategy must be applied carefully, maintaining clear communication with the team. Check out the steps:
1. Select the process to be redesigned
The first step is to select the process that needs improvement and make a detailed assessment of what works and what creates bottlenecks in execution.
The team working directly in the sector is a valuable source of information for determining changes.
2. Redefine processes
The next step is to redefine the analyzed processes , creating an updated and optimized workflow , without unnecessary tasks. When putting together the new proposal, the team can evaluate the inclusion of software and other technologies to automate and simplify the execution of the task.
3. Create a schedule for implementing the changes
The next step is to set up a schedule for implementing the changes defined in the process reengineering. Since the process involves the inclusion of new methods and technologies, it is essential to carry out each step carefully to minimize errors.
This way, the team monitors and understands the objectives of each update, being able to better prepare for each change.
4. Monitor and evaluate the progress of new processes
Finally, after implementing the planned changes, it is essential to monitor and evaluate the progress of the new processes .
The complexity of reengineering requires close monitoring to verify whether the planned objectives have been achieved. Process performance indicators are excellent tools for monitoring continuous improvement, as well as for making accurate analyses and adjustments.