1. Introduction
By nature, man seeks answers to the different questions that he encounters as he develops his knowledge, and once he gets these answers, he asks new questions, questions these answers.
We would dare to say that the reengineering process is an answer to a question ("are we doing things well or could we do them better?") That arose after having obtained an answer (the process or activity itself) to a question that was originally raised (How to do things).
The objective of this work is to take a journey through the theory of reengineering and how this can be an effective tool in the development of our businesses, in the development of our administrative career and the marketing branch.
2. Reengineering
We are entering the new century, with companies that operated in the 20th with 19th century administrative designs. We need something entirely different.
Faced with a new context, new management modalities arise, among them is reengineering, based on the premise that it is not the products, but the processes that create them, that lead companies to success in the long run. Good products do not make winners; winners make good products. What companies have to do is organize around the process.
Fragmented operations located in specialized departments mean that no one is in a position to notice a significant change, or if they do, they cannot do anything about it, because it goes beyond their radius of action, their jurisdiction or their responsibility. This is the consequence of a wrong concept of organizational management.
A business process is a set of activities that receive one or more inputs to create a product of value for the customer.
Reengineering means starting over by starting over; Reengineering is not doing more with less, it is giving more to the customer with less. The goal is to do what we are already doing, but to do better, to work smarter.
It is redesigning the processes so that they are not fragmented. Then the company can get by without bureaucracies and inefficiencies.
Properly speaking: "reengineering is the fundamental revision and radical redesign of processes to achieve dramatic improvements in critical and current performance measures, such as costs, quality, service and speed."
3. Common features in redesigned business processes
(Reconstruction Of The Processes).
It should be clear by now that a redesigned process is very different from a traditional process. But what exactly does a redesigned process look like?
We cannot give a single answer to this question because the redesigned processes take different forms. However, we can say a lot about the characteristics that typify them.
By observing and taking part in reengineering projects in a dozen corporations, we saw remarkable similarities between the various processes, similarities that go beyond the types of Industry and even the Identity of a particular process. Much of what applies to an automobile company that has redesigned its processes applies equally to an insurance company or a retailer.
That the same themes appear in various companies that have undertaken reengineering should not be surprising, since the form of these companies, like the traditional Industrial organization form, is derived from a few fundamental premises. The industrial model rests on the basic premise that workers have few skills and little time or capacity to train. This premise inevitably demands that the trades and tasks assigned to them be very simple. Also.
The processes must be simple. The need for simplicity has enormous consequences for how you design processes and shape organizations.
1) Several trades are combined into one.
The most common and basic characteristic of redesigned processes is that serial work disappears. In other words, many trades or tasks that were previously different are integrated into one. We found an analogous transformation at an electronics company that had redesigned its order fulfillment process.
In such cases, the company needs multiple people, each of whom handles a part of the process. In other cases, it may not be practical to teach one person all the skills they would need to run the entire process.
The benefits of Integrated processes, case workers, and case teams are enormous.
Integrated processes have also reduced indirect administration costs as process employees take responsibility for seeing that customer requirements are met on time and without defects.
2) Workers make decisions
Companies that undertake reengineering don't just compress processes horizontally. Entrusting multiple and sequential tasks to case workers or case teams, but also vertically. Vertical compression means that at those points in a process where workers had to go first to their hierarchical superior. today they can make their own decisions. Instead of separating decision making from actual work, decision making becomes part of the job. The workers themselves realize that part of the job that was previously performed by managers.
Benefits of compressing work both vertically and horizontally include: Fewer delays, lower overhead costs, better customer feedback, and more empowerment for workers.
3) The process steps are executed in natural order
In redesigned processes, work is sequenced based on what needs to be done before or after. For example, in a manufacturing company, five steps were required from receiving an order to installing the requested equipment. The first step was to determine the customer's requirements: the second, to translate them into internal product codes: the third, to send the encoded information to different plants and warehouses: the fourth, to receive and assemble the components: and the fifth, to deliver and install the equipment. A different organization executed each step.
The "delinearization" of processes accelerates them in two ways. First: Many tasks are done simultaneously. Second: Reducing the time that elapses between the first steps and the last steps of a process reduces the window of major changes that could make the previous work obsolete or make the subsequent work incompatible with the previous one. Organizations thereby achieve less rework, which is another source of delay.
4) Processes have multiple versions
The fourth common characteristic of process reengineering is called the end of standardization. Traditional processes were intended to supply mass production for a mass market. All Inputs were handled in the same way. so that companies could produce exactly uniform goods or services. In a world of diverse and changing markets, that logic is outdated. To meet the demands of the contemporary environment, we need multiple versions of the same process. each one tuned to the requirements of various markets, situations or inputs. What's more, these new processes have to offer the same economies of scale that come from mass production.
The traditional single processes for all situations are generally very complex, as they have to incorporate special procedures and exceptions to take into account a great variety of situations. In contrast, a multi-version process is clear and straightforward because each version only needs to be applied to the cases for which it is appropriate. There are no special cases or exceptions.
5) Work is done at reasonable site
A recurring theme in redesigned processes is the displacement of work across organizational boundaries. In traditional organizations, work is organized around specialists - and not just in workshops. Accountants know how to keep accounts, and purchasing clerks know how to order, so when the accounting department needs pencils, the purchasing department buys them. This department searches for vendors, negotiates prices, places orders, inspects items, and pays invoices - and finally the accounting department receives its pencils.
As a result of this system, those who order products receive them faster and with fewer problems, and the company spends much less on processing costs.
6) Checks and controls are reduced
The kind of non-value-added work that is minimized in reengineered processes is verification and control: or to put it more precisely, reengineered processes make use of controls only as far as they are economically justified.
The redesigned processes show a balanced approach. Rather than strictly checking work as it is done, these processes often have global or deferred controls. These systems are designed to tolerate moderate or limited abuse, delaying the point where abuse is detected or examining collective patterns rather than individual cases.
7) Reconciliation is minimized
Another form of work that does not add value and that the redesigned processes minimize is reconciliation. They do this by reducing the number of external contact points a process has, thereby reducing the likelihood that inconsistent information that requires reconciliation will be received.
8.) A case manager offers a single point of contact
The employment of a person we might call a "case manager" is another recurring characteristic that we find in redesigned processes. This mechanism is useful when the steps of the process are so complex or so dispersed that it is impossible to integrate them in a single person or even in a small group. Acting as a buffer between the complex problem and the client, the case manager behaves towards the client as if he is responsible for the execution of the entire process, even when in fact he is not.
To play this role - that is. to be able to answer customer questions and solve problems - this manager needs access to all the information systems used by the people actually doing the work, and the ability to contact them, ask questions and ask for additional help when be necessary.
4. Types of changes that occur when a company redesigns its processes
Work units change: from functional departments to process teams.
In a way what is done is to reunite a group of workers who had been artificially separated by the organization. When they are put back together they are called process teams. In short, a process team is a unit that comes together naturally to complete a whole process job.
Trades change: from simple tasks to multidimensional work:
Workers on process teams who are collectively responsible for the results of the process, rather than individually responsible for a task, have a different job. They share joint responsibility with their teammates for the performance of the total process, not just a small part of it.
Although not all team members do exactly the same job, the dividing line between them is blurred. All team members have at least some basic knowledge of all the steps in the process, and probably perform several of them. Furthermore, everything that the individual does bears the stamp of an appreciation of the process in a global way.
When work becomes multidimensional, it also becomes more substantive. Reengineering not only eliminates waste but also work that does not add value. Most of the verification, waiting, reconciliation, control and follow-up - unproductive work that exists because of the borders that exist in a company and to compensate for the fragmentation of a process - are eliminated with reengineering, which it means that people will spend more time doing their actual work.
After reengineering, there is no "mastering a trade" thing; the trade grows as the skill and experience of the worker grow.
The role of the worker changes: from controlled to empowered:
When management entrusts the teams with the responsibility of completing a total process, it necessarily has to give them the authority to take the necessary action as well. Single and multi-person teams doing process-oriented work have to manage themselves. Within the limits of their obligations - agreed deadlines, productivity goals, quality standards, etc. - they decide how and when the work is to be done. If they have to wait for the direction of a supervisor for their tasks, then they are not process teams.
Reengineering and the consequent authority impact the kinds of people companies must hire.
Preparation for the trade changes: from training to education:
In an environment of change and flexibility, it is clearly impossible to hire people who already know absolutely everything you will need to know, so that continuing education throughout the life of the trade becomes the norm of a redesigned company.
The focus on performance averages and compensation shifts: from activity to results:
Workers' compensation in traditional companies is relatively straightforward: people are paid for their time. In a traditional operation - be it an assembly line with manufacturing machines or an office where paper is processed - the work of an individual employee has no measurable value. What is, for example, the monetary value of a weld? Or from verified employment data on an insurance application? None of these have value on their own. Only the finished car or the insurance policy issued is of value to the company.
When work is broken down into simple tasks, companies have no choice but to measure workers by how efficiently they perform narrowly defined work. The downside is that increased efficiency of narrowly defined tasks doesn't necessarily translate into better process performance.
When employees do process work, companies can measure their performance and pay them based on the value they create. In companies that have been redesigned, contribution and performance are the main bases of compensation.
Promotion criteria change: from performance to skill:
A bonus is the appropriate reward for a job well done. Promotion to a new job is not. When redesigning, the distinction between promotion and performance is firmly drawn. Promotion to a new position within a company is a function of skill, not performance. It is a change, not a reward.
Values change: from protectionist to productive:
Reengineering involves an important change in the culture of the organization, it requires that employees make the commitment to work for their clients, not for their bosses. Changing values is as important a part of reengineering as changing processes.
Managers change: from supervisors to coaches:
When a company redesigns itself, processes that were complex become simple, but jobs that were simple become complex. By transforming processes, reengineering frees up managers' time to help employees perform more valuable and demanding work.
Managers in a redesigned company need strong interpersonal skills and they have to take pride in the accomplishments of others. Such a manager is an advisor who is where he is to provide resources, answer questions, and see to the long-term professional development of the individual. This is a different role from what most managers have traditionally played.
Organizational structures change: from hierarchy to flat:
When an entire process becomes the work of a team, managing the process becomes part of the team's craft. Cross-departmental decisions and issues that previously required managers 'and managers' meetings are now made and resolved by teams in the course of their normal work. Companies no longer need as much managerial "glue" as they once did to hold work together.
After reengineering, you don't need as many people to put fragmented processes back together. With fewer managers there are fewer administrative levels and consequently, flat structures predominate.
Executives change: from highscore scorer to leaders:
Flatter organizations bring executives closer to customers and the people who do the value-adding work. In a redesigned environment, successful job performance depends far more on the attitudes and efforts of empowered workers than on the actions of task-oriented functional managers. Therefore, executives have to be leaders who can influence and reinforce the values and beliefs of employees with their words and actions.
5. The Empowering Role of Informatics
Computer science plays a crucial role in business reengineering, but it is also very easy to misuse. A trainer allows companies to redesign their processes. In reality, the misuse of technology can block reengineering because it reinforces old ways of thinking and old patterns of behavior.
Learn To Think By Induction
Recognizing the inherent power of modern computing and visualizing its application requires companies to use a way of thinking that business people often don't learn and may not know how to handle. Most executives and managers know how to think deductively. That is, they know how to define a problem very well and then seek and evaluate its various solutions. But to apply computer science to business reengineering it is necessary to think of ways to first recognize a powerful solution and then look for problems that it could solve to see, problems that the company probably does not even know exist.
The true power of technology is in offering solutions to problems that even you don't know you have: For example, how to totally eliminate air travel.
The real power of technology is not that old processes can work better. but in that it allows organizations to break down the realities and create new ways of working: that is. Redesign.
Certainly rule breaking is what we recommend for people to learn to think inductively about technology during the reengineering process: Look for the old rule or rules that technology allows breaking, and then see what business opportunities are created by breaking them. The teleconference. For example, it breaks the rule that people at great distances from each other can meet only infrequently and at great cost. Today it is possible for these people to meet frequently and inexpensively in an environment where the constraints of geographic separation no longer count.
Information can only appear in one place at a time, it can appear simultaneously in as many places as necessary
Old rule: Businesses have to choose between centralization and decentralization.
Destructive technology. Telecommunications networks.
New rule Businesses can simultaneously reap the benefits of centralization and decentralization.
Old rule: Managers make all the decisions.
Destructive technology: Decision support instruments (access to databases, modeling software).
New rule: Decision-making is everyone's job.
Ancient rule. Staff who normally work outside the company need offices where they receive, store. Retrieve and transmit information.
Destructive technology Radiocommunication and portable computers.
New Rule: Staff who work outside the company can send and receive information wherever they are.
Ancient rule: The best contact with a potential buyer is personal contact.
Destructive technology: Interactive video disc. New rule The best contact with a potential buyer is effective contact.
Old rule: One has to find out where things are.
Destructive technology: Automatic identification and tracking technology.
New rule: Things tell you where they are.
Old rule: Plans are periodically reviewed.
Destructive technology: High performance computers.
New rule: Plans are reviewed Instantly.
Who is going to redesign
To carry out the reengineering of processes, the following have been identified:
Leader.
Owner or responsible for the process.
Reengineering team.
Directive Commitee.
"Czar" of reengineering.
Leader
He is a senior executive who supports, authorizes, and motivates the total reengineering effort. It must have sufficient authority to persuade people to accept the radical changes that reengineering implies. Without this leader, the reengineering process remains in good standing without being completed as expected.
You must maintain the final objective of the process, you need the vision to reinvent the company under new competitive schemes, keep employees and managers informed of the purposes to be achieved, as well as the progress achieved.
Designate who will own the processes and assign responsibility for performance progress.
Process owner
Area manager responsible for a specific process and the corresponding engineering effort.
Traditional companies do not think in terms of processes, functions are departmentalized, thereby putting organizational boundaries to processes.
The processes should be identified as soon as possible, assign a leader and this to the owners of the processes.
It is important that the process owners have acceptance from the colleagues with whom they are going to work, accept the change processes that reengineering brings, and their main function is to monitor and motivate the reengineering.
The office of the owners does not end when the reengineering project is completed, when the commitment is made to be process-oriented, each process continues to occupy an owner who is responsible for its execution.
Reengineering team.
Formed by a group of individuals dedicated to redesigning a specific process, with the ability to diagnose the current process, supervise its reengineering and its execution.
He is in charge of doing the heavy lifting of producing ideas, plans and turning them into reality.
It should be mentioned that a team can only work with one process at a time, in such a way that a team must be formed for each process that is being worked on.
The team must have between 5 and 10 members, maximum, of which one part must know the process thoroughly, but for a short time so that they do not accept it as something normal, and another part must be formed with personnel outside the process, being able to be people from outside the company, who can question it and propose alternatives.
Directive Commitee.
Policy-making body, composed of senior managers who develop the organization's overall strategy and monitor its progress, usually including process owners.
They may or may not be present in the process, give order of priority, comment on issues that go beyond processes and projects in particular.
"Czar" of reengineering.
He is responsible for developing reengineering techniques and instruments and for achieving synergy between the different projects in the company.
He is in charge of direct administration, coordinating all reengineering activities that are underway; supports and trains process owners and reengineering teams.
6. Bibliography
Hammer Michael & Champy James.
Reengineering.
Publisher: Carvajal SA, Edition: 1994, New York USA.
www.google.com
www.monografias.com
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