in this site is copyright protected © and should not be reproduced without the
permission of Hutex™ Management Consulting
There’s no Better Time to Do Business Process
Improvement than the Bad Time
What is Business Process Reengineering (BPR)
Business Process Reengineering is the
FUNDAMENTAL rethinking and RADICAL redesign of business PROCESSES (Such as the
process of receiving a sales order to billing the customer and receiving and
payment) to bring about DRAMATIC improvements in critical, contemporary measures
of performance, such as cost, quality, service and speed.
How to Know that you need BPR?
Does your company face
the following problems?
- Most staffs are
working very hard and long hour, but the profitability and output does not
seem to match the effort.
- Need to perform
overtimes and rush works that increase the cost of sale.
occur frequently and important information were not passed to the relevant
parties to follow up.
- Works were not
followed up and sometimes, manufacturing materials were not purchased on time
and collection of payment not done promptly.
- Take a long time to
know the progress of the work when the customers ask.
- Do not know for sure
the cost and profitability of works done.
- Not very sure of who
is responsible for what task.
These are some of the
symptoms of inefficient process that can be improved by BPR.
- One of the most
important business actions during the bad time is to keep the overhead costs
down. Business Process Improvement helps company to streamline their business
process, improve response to customers and reduce labor costs. It has the
direct effect of reducing the overhead cost and improves competitiveness.
- Many companies cut
cost by retrenchment. However, if the business process is not improved, the
remaining employees will find it very difficult to carry out the increased
workload. Most companies that went through retrenchment had to recruit back
the some quantity of employee, a few months later.
- Business Process
Improvement is a time consuming process, during the better time, company will
be busy carrying out business operations. With the reduced workload during
bad time, the cost of the disruption is minimized and staffs have more time to
involve in Business Process Improvement.
- During this hard
time, government is more generous in approving consulting grant.
It’s the best time to make use of the government assistance grant of up to 70%
of the consulting cost.
- Business Process
Improvement usually leads to employees who are less productive or less willing
to change to leave the company. At this bad time, the cost of losing
employees is low and the replacement cost to employ new employee is also
What is the Benefits of BPR
BPR brings about
numerous benefits to companies and organization. Some of the more obvious and
common benefits are:
- Improve Efficiency
e.g reduce time to market, provide quicker response to customers
Effectiveness e.g deliver higher quality
- Achieve Cost Saving
in the longer run
- Provide more
Meaningful work for employees
- Increase Flexibility
and Adaptability to change
- Enable new business
Some of the more famous
success stories of BPR are IBM and Singapore National Library Board.
IBM was at the verge of failure about 10 years ago. A major BPR project helped
to turn the company around. If you compare the Singapore National Library Board
now with what it was 6 years ago, you can clearly see the drastic improvement in
What to be Aware of
The fruit of the BPR is
significant. However, if you decided to go ahead with this project, you should
be fully aware of the following:
- Although it is a
very effective tool to reduce operation costs, BPR can be a painful process.
Unless the company is willing to go through the pain, it should not start BPR.
- Top Management
support is very important. The top management must be personally involve and
lead the project. There will be resistance from some employees to carry out
this project, without the clear and up front support of the top management; it
will not be possible to make the project successful.
- Be prepared for
attrition of staff. If you are not ready to allow some less productive or
less versatile staffs to leave, you cannot get the full benefits of the
- Be patience. Once
you start, you should not turn back. The tangible and intangible cost of
abandoning the project is very high. BPR is a long term solution and not a
short term fix.
- Start now and do not
procrastinate. Carry out the improvement process while you still can. It
takes time to obtain approval of government grant and carry out the project.
When your situation gets worse, it will be too late to do anything.
With determination and strong focus, Business Process Improvement can
bring about very significant improvement over the company’s bottom-line.
Link to BPR Slides
Link to Business Process Reengineering Service Provided
Back to the top
Send us your feedback :