Questions about process reengineering

1. What is Business Process Reengineering –BPR?

There are as many definitions as there are consultants and authors, and the following may be mentioned:

New thinking and fundamental redesign of operational processes and organizational structure, oriented towards the essential competencies of the organization, to achieve dramatic improvements in organizational performance The process by which companies become world-class competitors by remaking their information and organization systems, ways of working as a team and the means by which they dialogue with each other and with customers.Reengineering in the company's processes is a philosophy of improvement by which it seeks to achieve gradual improvements in the performance, redesigning processes by which an organization operates, maximizing value-added content, and minimizing anything else. This method can be applied at the individual process level or at the entire organization.Reengineering is an organized effort, led from the top down in the organization, with the aim of reviewing, as much as possible and necessary, completely reformulating its main work processes, in such a way as to achieve high-level improvements in regard to to increased productivity, the quality of services and products and the efficiency in customer service.Reengineering is the fundamental revision and radical redesign of processes to achieve dramatic improvements in critical and contemporary performance measures, such as costs, quality, service and speed. Process reengineering combines a structure to get the job done with an orientation towards dramatic and tangible results. It involves withdrawing from the process to ask yourself about your overall objective in the business,then making a radical and creative change to achieve exponential improvements in the way of achieving that objective.Reengineering constitutes a recreation and reconfiguration of the activities and processes of the company, which implies re-creating and radically configuring it or the systems of the company in order to achieve significant increases, and in a short period of time, in terms of profitability, productivity, response time, and quality, which implies obtaining competitive advantages.Reengineering is the rapid and radical redesign of the strategic value-added processes - and the systems, policies and organizational structures that support them - to optimize workflows and productivity in an organization.

2. Are there other ways of dealing with the same reformulation processes?

We can mention the method of Renewal of Companies through the Critical Path. It is defined as the process of intensifying the training and contribution of managers, workers and the organization as a whole, so that they can cope with the demands of an increasingly competitive environment.

Similarly, there are other methodologies which, emphasizing different aspects of organizations, try to make them more efficient and competitive.

3. What are the differences between continuous improvement and reengineering?

In general and leaving aside special cases, we can mark the following differences:

In the case of continuous improvements, the existing processes are reasonably close to the levels of customer requirements. This does not occur in most cases in which reengineering is applied, in which deficient and obsolete processes are verified. We must clarify that companies that have processes that meet and still exceed the demands of customers and / or the market, reengineer their processes in order to achieve greater advantages over their competitors.In the case of continuous improvement, the processes are accepted existing, building on them for incremental improvements. While in reengineering the very foundations of the current processes are questioned, in the case of continuous improvement, technology is used with an incremental approach,while reengineering considers technology as the engine of transformation. It should also be noted here that this last statement does not occur in all cases, since the important thing in itself is the creativity applied more there is of the technology that is used Continuous improvement is less risky because the impact of each change is generally small, the more there is the impact of cumulative changes over time. In the case of reengineering, the risks are greater because the impact is large and affects the organization transversally, while the cost of changes becomes very high in reengineering, the costs attributable to continuous improvement are in most cases irrelevant cases.Well, the important thing in itself is the creativity applied, the more there is of the technology that is used. Continuous improvement is less risky because the impact of each change is generally small, the more there is the impact of cumulative changes over time. In the case of reengineering, the risks are greater because the impact is great and affects the organization transversally, while the cost of changes becomes very high in reengineering, the costs attributable to continuous improvement are in most cases irrelevant cases.Well, the important thing in itself is the creativity applied, the more there is of the technology that is used. Continuous improvement is less risky because the impact of each change is generally small, the more there is the impact of cumulative changes over time. In the case of reengineering, the risks are greater because the impact is great and affects the organization transversally, while the cost of changes becomes very high in reengineering, the costs attributable to continuous improvement are in most cases irrelevant cases.In the case of reengineering, the risks are greater because the impact is great and affects the organization transversally, while the cost of changes becomes very high in reengineering, the costs attributable to continuous improvement are in most cases irrelevant cases.In the case of reengineering, the risks are greater because the impact is great and affects the organization transversally, while the cost of changes becomes very high in reengineering, the costs attributable to continuous improvement are in most cases irrelevant cases.

4. Why is there so much talk of reengineering?

Currently reengineering is a common theme in many companies. Like any new activity, it has received various names, including modernization, transformation and restructuring. However, regardless of the name, the goals are always the same: to increase the ability to compete in the market by reducing costs, increasing quality, and speeding up response. These objectives are constant and apply equally to the production of goods as to the provision of services.

5. What are processes?

A process is a set of related and sequential activities that converts initial factors (inputs) into desired goods or services (outputs), adding a value to them.

6. On what factors is reengineering based and why?

It is based on two interdependent factors, which are:

Absolute customer satisfaction, and Effective and efficient internal processes.

The success of a business depends on its ability to meet the needs of customers. In turn, this ability depends on the effectiveness of the organization's internal processes to meet this external demand. Therefore, the organization succeeds from the inside out: the commitment and dedication of employees to meet customer needs can become the self-sustaining flame that perpetuates success. Competing from within means managing employees, not only so that they feel comfortable within the company, but so that the firm can compete in the marketplace.

Reengineering has to be done quickly because top executives need results in a much shorter time frame than ever before: Reengineering programs inevitably fail if they take too long to produce results.

Reengineering programs have to be radical - that is, the results must be remarkable and even surprising - because the process is difficult, and you will never get the necessary executive endorsement or sanction without the promise of more than simply incremental results.

Reengineering requires a redesign of the process focused on identifying and enhancing value-added activities in it and trying to eliminate everything else.

Reengineering involves setting goals for large-scale changes, accompanied by applied knowledge and creative thinking. Large-scale goals alone are like a castle in the air. While knowledge would only be nothing other than the University and not a company. Finally, having only creative thinking would be nothing more than entertainment. The key then is to focus on these three elements together: discovering the large-scale and innovative goals; seek and develop specific knowledge (knowhow) that can contribute to progress, and use creative thinking to generate action steps to achieve those goals.

7. What factors influence or should be considered when redesigning processes?

Four key elements must be duly considered:

Customer requirements The trend of demand Constraints Efficiency goals

Let's briefly analyze each of them.

Requirements of the client.When designing any process, it is important to direct attention to the market and the clients that comprise it, since they are the ones who purchase the company's products and services. In this regard, it is worth asking yourself several questions: What do customers want today? What will they want tomorrow? What additional things could you do for them that they would really love, but have not expressed themselves as a need? Understanding how to satisfy customers is not always as easy as it sounds. However, before any process can be designed or redesigned, its purpose, that is, the desired result, must be clearly understood. Organizations must turn their orientation towards the needs of their customers and decide on what basis to compete. Then they must ensure that their processes,people and technologies are in line to deliver these results and carry them out at the lowest possible cost.

Demand trend. The trend in demand for a product or service will play a significant part in determining the design or resource provision of the delivery system. It will not only be the requirement of process flexibility that will determine the pattern of demand; the very nature of the process will depend on it. The demand for a product or service, with a very large volume, requires a different type of processes compared to those products or services that are offered based on low volumes.

Limiting. Any limitation in the operation must be included in the redesign of the processes, the main ones being: state laws and regulations, company policies and financial limitations.

Financial goals. All companies have efficiency goals. These goals will have an impact on the amount and type of resources that can be used in the process, including people, machines, computers, facilities, financial resources, etc. These goals will inevitably affect the design of the process. Many companies use these efficiency goals to achieve innovative answers to their problems.

8. How to think in terms of reengineering?

Reengineering is a particular way of using our minds (of thinking about the company). It constitutes a path of experiments, inventions and reinventions, constantly contrasted with the reality of the income statement. To think like a reengineer or in terms of reengineering you must have:

A mind continually ready to turn against its own conclusions A mind prepared for constant and flexible skepticism, not disbelief A mind open to all possibilities, including impossibilities A mind open to all points of view A mind that is deeply questioning A mind that is willing and able to judge processes and procedures A mindset that admits the conviction that the final verdict on any course of action is not delivered by science, reason, or technology, but rather by science, reason, or technology. concrete results.

9. What is reengineering thinking about?

It is fundamentally about the way of thinking and questioning the existing processes and the very structure of the company, in order to achieve new processes and systems designed to fully satisfy the current and future wishes of our customers and consumers, in such a way as to allow us achieve a powerful competitive advantage. There are four key questions to ask, these being the following:

What does this company exist for? What kind of culture do we want? How should we do our work? What kind of people do we want to work with?

10. What led to the first reengineering?

The first great recreations of the processes took place a long time ago, and were as much a product of creativity as of need. Thus we have the reinvention of the processes devised by Henry Ford which allowed him a preponderant competitive advantage in his time, and the recreation of the processes generated by Toyoda and Ohno for the Toyota company, which took place in imperative needs for savings of both materials such as financial, time and space.

In its current conception, reengineering is the product of the imperative of American companies to regain lost ground in terms of competitiveness against Japan in the first instance, and against South Korea and Taiwan in a second place.

The fact that Japanese companies discovered and implemented process management long before the West helps explain their economic success around the world. The cultures of some Japanese corporations have been characterized for decades by the management and improvement of processes, and have allowed companies from diverse sectors to develop fast and efficient processes in areas as essential as product development, logistics and sales and the marketing. These highly refined processes are often introduced with little advanced technology assistance and without radical approaches to human resource management. They are simply logical, balanced and efficient.Japanese companies that have developed these processes are one of the main competitive drivers for their Western counterparts to adopt process reengineering.

A posteriori, and as a result of both the recession and the pressure of taxpayers, the state entities of the Anglo-Saxon countries and then other European nations applied reengineering in the processes of state agencies in order to make better use of of fiscal resources.

Technological advances in computing and communication –teleinformatics– together with robotics and flexible manufacturing concepts, accelerated reengineering and innovation processes.

11. Does business process reengineering work?

It works. Of course, process reengineering is not a magic bullet. Not every time you try you get good results. But the balance is clearly positive. A large-scale study carried out in 1994 shows that:

Sixty percent of a sample of 497 North American companies had participated in at least one reengineering exercise, as well as 75% of the 124 European companies interviewed. Most of the companies had obtained concrete results to offer from their actions. Some objectives appear more difficult to achieve than others. Less than half of the companies that sought to achieve an increase in market share achieved positive results in this regard. However, most of the companies that sought to reduce their costs achieved satisfactory results, and three-quarters of the companies that set out to reduce lead times and increase productivity achieved their objectives.

12. What and why does process reengineering take place?

In the face of intense competition and the many pressures that large organizations face in their businesses, initiatives on quality and continuous and gradual improvement of processes are no longer sufficient, although they remain essential. Annual 5 or 10 percent improvement targets across all processes should give way to efforts to achieve 50, 100 percent, or even higher levels of improvement in a few key processes. Today, companies should not seek percentage levels of improvement, but multiplicative levels: not 10 percent, but 10X. Levels of change this radical require powerful new tools to facilitate fundamental work redesign.

The revolutionary approach needed to improve business performance must encompass how a business looks and is structured, as well as how it is improved. Business should not be viewed in terms of functions, divisions or products, but in terms of key processes. Achieving magnitude levels of improvement in these processes involves redesigning them from start to finish, using innovative technologies and the organization's resources that are available.

The proposed approach combines the adoption of a vision of the business by processes with the application of innovations in key processes. What is new and different about this combination is its enormous potential to help any organization achieve significant reductions in costs or process time, or significant improvements in levels of quality, flexibility, services and other business objectives.

13. What are the motives for change?

Businesses are increasingly concerned about change. Change is increasingly present. Thus, phenomena that were exceptional in the past have become banal. No company escapes from this trend. They thrive and thrive in rapidly and constantly changing environments. A company can cause change or undergo it; but it needs a change.

The change is not to remain the same, it is the state of what evolves, what is modified. The change signifies very different phenomena in their amplitude and in their extension.

There is awareness that nothing is final, that everything is quickly overcome. A new technology will be replaced, a new organization will be modified. The duration of the life of a product or a system varies from a few months to several years, but from the beginning the provisional character is perceived and the idea of change is present.

Change, whatever its scope and nature, requires a destabilization of the existing situation. The more stable it is, the more difficult it will be to change.

There are various causes of change, and they can be divided between external causes and internal causes. External causes correspond to changes that are caused by elements external to the entity to be changed. These are generally elements that constitute the environment of the company, such as customers, technological innovations, the evolution of life forms. On the other hand, internal causes, as such, correspond to changes induced by the company: in essence, the will to develop and the vision of its leaders.

Among the external causes we have: the market, the actions of the competition, technological innovation, the evolution of legislation and regulations, the modification of shareholders and the evolution of society, ways of life and ways of life. think.

As the most important internal causes, we must mention both the development of the company and the vision of the managers. The manager's vision is such an important cause of change that it is often the source of critical and far-reaching changes.

14. What are the main types of Reengineering?

There are three types of process reengineering that a company can undertake:

Type 1 Improve costs Type 2 Achieve parity, or be best in class Type 3 Make a radical innovation point.

Actually, as can be seen, these different types of reengineering are defined by their motivation. Thus, for the first type we have that the improvement of a process can lead through its redesign to significant cost reductions, beyond those that can be achieved with traditional cost reduction efforts.

The Type 2 clearly seeks to be the best in its class, while achieving competitive parity with those who in the past set the standards and set the rules. In this type of reengineering, the application of benchmarking is of fundamental importance.

Finally the third type of reengineering tries to find and realize radical innovation points, changing the rules and creating the new definition of the best in class for all who are trying to become it.

15. What is a radical innovation point?

It is the achievement of excellence in one or more value metrics where the market clearly recognizes the advantage, and where the result that ensues is a disproportionate and sustained increase in the supplier's market share.

16. What are the characteristics of the radical innovation points?

The main business processes in which there may be a point of radical innovation have several key characteristics:

They require the most radical type of process redesign, due to the large difference between the theoretical and actual capabilities of the process. The advantage for both customer and supplier clearly exists and results in a better relationship. They respond to external pressures of the process. competition or regulations.They can become the source of competitiveness and the key method of sustaining advantage, and the key to dominating the market.

17. Is it feasible to achieve significant cost reductions?

Perhaps the Ford Motors case is enough to understand the effects that a well carried out Reengineering Project can bring. Ford purchases approximately two-thirds of its automotive components from outside suppliers. Before reengineering, Ford employed approximately 500 people in the accounts payable department in North America. Management thought that by streamlining procedures and installing new computer systems, it could reduce the number of staff to 400. Ford then discovered that Mazda carried out the same task with only 5 people. Even after accounting for differences in scale between the two firms, the difference was enormous. After the reengineering, Ford managed to reduce 75% of the accounts payable staff,not just the 20% they would have achieved if they had followed the original plan.

The author participated in the reengineering of a company dedicated to the production of dairy foods, managing to reduce the number of employees assigned to the administrative-accounting area by more than 70%, with which it was possible to recover the investment within 5 months carried out in computer science, while the personnel who left the administrative-accounting tasks went on to work in sales tasks, with which, by generating greater added value, the recovery of the investment took only four months.

18. And what about the reduction of times?

In this regard, I can mention my own reengineering experience in an important health entity in which the accounting had an average delay of between six and five months, the financial controls were carried out more than one month old, and the settlement of fees medical professionals were made up to a week late. What currently happens after reengineering: accounting is completely up to date after having eliminated existing bottlenecks thanks to the redesign of processes, financial controls are practically in real time or the day after the movements, and settlements take a maximum of one day.

19. What are the advantages in applying reengineering?

Allow a rapid repositioning of the company in the market, thanks to significant cost reductions, rapid improvements in the quality of services, reaction times, waste reduction and improvements in satisfaction levels and cycle times. For those companies threatened by financial or liquidity problems, it allows you to quickly and effectively reduce costs and improve your cash flow. For others, it will allow important advances in technology –both at the product / service level, as well as at the process level- that allow it to equalize or improve its position in relation to competing organizations.

20. What would be the main phases to carry out a reengineering?

Phase 1 Preparing the change Phase 2 Planning the change Phase 3 Designing the change Phase 4 Assessing the change

Phase 1 implies, on the one hand, educating the management on the reengineering process and the imperative need to change, creating a posteriori a steering committee to take charge of the reengineering project. On the other hand, in this same phase, the workforce must be prepared for commitment and change.

Phase 2 comprises:

Create a vision, mission, and guiding principles Develop a three- to five-year strategic plan Develop annual operations plans

In Phase 3 the current processes of the company are identified, establishing the scope of the process and the respective diagramming project. Then we proceed to the description of the reengineering process or processes. The ideal process is created, developing pilot tests, and once the approval and consensus of those responsible have been achieved, carry out a pilot test of the new process, evaluating the results with the obtained, to finally develop an action plan for its implementation and implementation. in service.

In the last of the phases, the achievements made are evaluated and the results are submitted to the Management Committee in order to make the corresponding adjustments.

This structure corresponds to organizations that engage in Reengineering as a large-scope project or as a continuous reengineering process on various company processes.

However, a more common application model would comprise a total of five stages, these being the following:

1st Strategy and processes of the company:

Identify and / or validate current competitive advantages and define a corporate strategy to reach the desired position Understand the different levels of current management processes Select the process to redesign and set the scope of Reengineering Schedule the project.

2nd Objectives of the future redesigned process:

Identify and analyze customer expectations. Prepare the mission (what do we want to satisfy?) And set the objectives (what do we want to achieve?) That the process should have.

3º Understand the current process:

Prepare the process flow diagram Identify the paradigms that govern the behavior of the process users (why do we do the work this way?) Measure the performance of the current process and the proximity of its results to the intended purpose Analyze the causes of the distance between results and ends.

4th process redesign:

Creation of work groups led by members with great knowledge of the organization and processes Redesign the process based on customer needs (in the opposite direction to its operation) Anticipate all possible alternatives and study them taking into account the factors cost, risk, implementation time, viability, etc. Provide the necessary infrastructure: new staff, computer equipment, space, machinery, etc.

5th Implementation of the new process:

Manage the change from the current process to the new one and check the paradigm shift. It is advisable to foresee contingency plans. Measure the results to determine the degree of fulfillment of the objectives. Analyze the causes of possible deviations.

When what is intended is a total and radical break with the previous processes, then the following scheme should be kept in mind:

1. Set a very ambitious goal that allows us to develop ideas to break with the previous schemes.

2. Orient the current process to add value to the customer, dispensing with existing products or departments.

3. Conceive the ideal process (the best practice) starting from a clean slate or a benchmarking methodology.

4. Compare the ideal process with the current one.

5. Implement the ideal process and manage everything necessary for change.

As can be seen, the conducting lines are essentially the same, which is why we can simplify the basic structure of the methodology to be used in the following scheme:

Identification of the processes to be innovated Identification of change enablers Development of the process vision Understanding of current processes Design and prototype of the new process

21. What are the main changes that occur in companies between before and after the reengineering of their processes?

With regard to the processes, they go from being complex to being simple; and the jobs that were simple become complex (due to the greater enrichment of the tasks); in terms of management style, it goes from being controlled to having empowerment.

As for the processes, they are no longer oriented to satisfy the boss, to satisfy customers, be they internal or external.

The rewards are no longer a function of the position to depend on the added value.

While the role of the manager goes from being focused on supervision to fulfilling a role of coach, facilitator and inspirer.

Finally and in terms of priorities, these are no longer focused on finances to move to operations.

22. When should a process reengineering be undertaken?

If any of the following statements describes your company's situation, it is requiring a radical, revolutionary change in its business processes.

1. New product development is critical to your success. Your competitors, meanwhile, are getting their products to market months and even years before your company.

2. You are hiring more people to do certain jobs than your competitors are.

3. Your company is in dire need of reducing costs significantly and quickly, because your competitors are offering the same products at a much lower price than yours.

4. You are wanting to improve your business productivity by more than 50% within two years.

5. Customers are demanding faster processing and delivery times, and you don't know how to shorten those times.

6. Your company fails to satisfy the fundamental needs of its customers in terms of the quality of its products, as well as its services at an allowable cost.

7. Your company's market share is substantially less than it was in previous periods, or what it would like to own.

8. Your company wants to operate in the international market at a competitive level.

9. Regulations and concerns for the environment create the urgent need to find a new way of doing things.

10. Your company is applying other ways to improve its situation through productivity, TQM and automation initiatives, failing to produce the competitive leap that you expected and needed.

11. Deep and rapid market changes are threatening the survival of the company.

12. You are planning to introduce a new information system or redesign process of an existing system, from which you hope to achieve competitive advantages.

23. Who should take part in the project?

There are no set recipes, and there shouldn't be. Each organization must adapt to its own needs and limitations. It is generally recommended that large organizations have a “Czar” (usually the CEO) who is in charge of the total and inflexible support of the project. A leader who is in charge of carrying out the reengineering, an owner of the process that is going to be recreated, and personnel from various sectors and categories that participate in the process. The greater the participation of the staff, the less will be the resistance to change and commitment (“There is no commitment without participation”). It may take longer to design, but implementation will be faster and more efficient. The participation of an External Consultant is also recommended.

24. What special knowledge should external consultants have?

They must have wide and deep knowledge in a series of subjects among which are: operations and sales management, organizational behavior, organizational development, operations research, industrial engineering, organization and methods, information systems, business strategy, negotiation, teamwork, quality, productivity, creativity methods (NLP, Lateral Thinking, among many others), systemic thinking, diagnostic methodology, among other subjects. To all this must be added both extensive professional experience and reengineering.

25. Does reengineering necessarily mean layoffs?

The answer is no. Reengineering does not necessarily mean layoffs. However, it is a question that must be addressed, because most people will expect that there is some link between the two elements. So far we have focused mainly on technical issues related to the operation of processes. However, without a thorough understanding of what a process is and how it works, managers are unlikely to achieve any significant success in their reengineering actions. However, do not underestimate the human dimension. In most reengineering programs, staff share the suspicion that the action is nothing more than a cover for a mass layoff program. In many respects these suspicions are understandable, because:

Redesign necessarily means fundamental changes in the organization of work, and some positions are doomed to disappear or undergo major modifications. Some companies have used reengineering as a cover to lay off staff. On an individual level, any change is stressful and creates anxiety regarding the instead of one in the new configuration.

All of this is even more true when we consider that the purpose of reengineering is to simplify processes to increase productivity. Increased productivity can easily be understood as doing the same job with fewer people. This is, of course, a typical manifestation of the inflexible mindset that redesign seminars try to change. Increasing productivity means freeing up more people to do value-added work.

Reengineering, however, does mean change. When moving from local projects to global projects, more than one process is redesigned, the delivery time is reduced and a new dynamic motivation appears in the company. And with it, the question arises of what to do with those new impetus. Obviously, if we redesign all the processes to reduce the delivery time by 50%, in theory, at least 25% of the staff becomes unnecessary. Well, what do we do with that excess? The short-term view often recommends getting rid of it. But it is both wrong and dangerous. Considering the speed of change in markets, a company that is simply more efficient doing what it has always done is no less vulnerable.The key question is how you use the excess staff to develop new product or service lines in order to stay "one step ahead" of the market.

26. What are the main mistakes that are made in reengineering processes?

The top ten ways to fail reengineering are:

1. Don't reengineer, but say you are doing it.

2. Don't focus on processes.

3. Spend a great deal of time analyzing the current situation.

4. Not having strong leadership that supports the recreation of the processes.

5. Not being bold enough when redesigning and reconfiguring processes.

6. Go directly from conceptual design to implementation.

7. Slowly implement reengineering.

8. Ignore the concerns of the staff, not taking due account of psychological aspects, including resistance to change.

9. Adopt a conventional implantation style.

10. Focus only on the technical aspects of change, leaving aside changes in participation, supervision, leadership, teamwork, and training.

27. What are the fundamental conditions that must be part of the reengineering process for it to come to fruition?

Ability to guide the reengineering process according to a systematic and comprehensive methodology Coordinated change management for all business functions affected Ability to assess, plan and implement change on an ongoing basis Ability to visualize and simulate the proposed changes. Ability to use these models on an ongoing basis. Ability to associate all the administrative parameters of the company with each other. And of course, avoiding the errors listed in the previous question.

28. What is Computer Aided Process Reengineering -CAPRE?

We can define it as the methodology that considers processes as systems and applies the techniques of systems analysis to manage and improve the performance of those processes.

The concept of computer-based systems analysis application is mostly limited to manufacturing processes and is not applied effectively in broader business processes.

29. What are the characteristics of the tools used in CAPRE?

They employ a graphical representation strategy to define the flow of a process. They offer analytical capabilities through the use of an underlying basis. They offer projection capabilities through simulations.

30. What's the latest in reengineering?

Currently the latest in terms of redesign consists of what is called Sales Reengineering, consisting of an "outside in" or "customer-based" reengineering, as opposed to the first generation reengineering which registered a combined trajectory.

31. What is it that has given rise to this new type of reengineering?

For some years now, buyers (we refer to industrial companies or wholesale / retail marketing companies) have known much more about sales than before. Their information systems tell them much more than the monthly reports used by salespeople contain. Now they can measure the cost of owning the supplier's products with low inventory turnover and have a square meter of warehouse space available again. Buyer evaluation standards are quite refined, and coordination with your internal customers is so well developed that buyers have multi-dimensional statistics to quantify supplier performance. Gone are the days when sellers knew more than buyers.

Buyers have changed the rules of the game. Day by day they reduce their sources of supplies; They enter into agreements with a single supplier. They even run global partnerships and deliver supplies to their suppliers. Gone are the days when salespeople could explain the company's schedule for the next year and, on the same day, make a commitment for the year immediately following.

Buyers are empowered to set the rules and make suppliers adhere to them. Gone are the days when purchasing procedures could be violated by securing orders directly with internal buyer customers.

Buyers are demanding a new approach to marketing. They do their own advertising, but make the vendors pay for it. They demand a daily determination of promotional prices and do not settle for an occasional good offer. Currently, they dictate the distribution channels they will use and the specific representatives of the companies they want to work with. They want each marketing program to fit their specific situation. They even demand that special products be created just for them.

Gone are the days when it was the customer who came to the company, now the company must go to the customer.

One answer to these and myriad other sales and marketing problems is to lower costs according to lower sales or profit margins. For some firms, these initiatives may generate short-term improvements. However, competitors are quick to match, if not improve, cost cuts, thus nullifying initial competitive benefits.

The new competitive requirements that companies are currently facing are part of much broader changes in the global economy. Times of significant change require leaders to rethink how they use their time and how they continually reinvent their organizations.

32. How to maximize creative potential?

Conduct creative strategy sessions using the “brainstorming” technique. Do not limit “break point” options based on current performances or other technological constraints. Ideas generated in the recreation phase can dramatically improve current operations or lead to radical changes that render current performance irrelevant. Spark imagination and creativity, thereby leading to groundbreaking innovations. Be radical in your goals., not settling under any point of view with small or mediocre increases or improvements Establish short deadlines. By definition, achieving the “breaking point” should not be a time-consuming process. Always keep in mind the sustainability of the competitive advantage to be obtained.

33. What are the characteristics of innovative organizations?

In the first place, they must have a clear obsession with winning. “Not having been invented here” is considered a positive, and not a disadvantage. Do not accept any delay in the pursuit of excellence. Visualize Business Process Reengineering (BPR) as a growth strategy Worrying about the generation of value for customers, shareholders, officials, employees, suppliers and other members that make up the company's environment Possessing or generating an organizational structure oriented towards Change: Have a clear awareness of your potential for change.

34. What does the radical redesign of processes lead to?

First, it affects the integrity of the organization and focuses on its strategy, leading to high returns and considerable improvements in terms of results.

To achieve this radical change, the organization uses the brightest energy and the most creative ideas, all driven by trained and motivated employees.

These radical changes are geared towards meeting the specific needs of customers. Successful companies continually respond to the changing needs of customers and the competitive environment.

35. Is it possible to apply reengineering in the processes of state and civil non-profit entities?

It is not only possible, but also very necessary. The pressure from taxpayers for better services and lower public spending makes it necessary to redesign the processes. The end of inflationary economies requires a constant adjustment of public budgets, but the needs of the population continue to increase. Meeting higher requirements with fewer resources can only be done in one way: redesigning processes to make them more effective and efficient. The same terms can be applied to non-profit civil entities, they are under greater pressure every day but this pressure can only be faced by significantly improving their limited resources, and the best way to do this is by recreating their structures, processes and systems..

36. What is the future of reengineering?

Reengineering, as explained in the answer to the tenth question, is something that has been used for a long time. Under the current way of dealing with the processes and activities of the company, it will continue to be useful and necessary as a way both to discount competitive advantages, and to generate and expand them. Systems and tools may be improved, new definitions and new methodologies may be given, but the recreation and reconfiguration of processes will continue to have a future in the life of organizations.

On the other hand, in a world concerned about environmental pollution, the need to reconvert production processes as quickly as possible and with the greatest efficiency in terms of results, is essential to generate the highest possible production with the lowest levels of contamination.

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