Reengineering Business Processes


The Concept:


Business process engineering forces change in key management and business processes, jobs and organization structure, management systems and corporate policies and procedures.


It eliminates "non-value added" tasks and steps by reviewing all the major activities a person does in the daily routine of their job for the purpose of streamlining day-to-day operations and improving work flow.


An organization interested in successful reengineering needs to consider the following elements:


a. Management must communicate frequently with all employees as to why the change is happening, the reasons for the change, the impact it will have on the employees individually


b. Management must solicite employee support and get them involved and committed to the concept. In adition management should explain that those being affected by the change will probably experience denial, anger, bargaining, depression and passive acceptance.


c. Reengineering activities challenge the status quo and need to operate outside the traditional practices and processes of the organization. Reengineering requires  change in "mindset" to be successful.


d. Managers and supervisors at all levels must provide the quality leadership to make it happen.


In general the process of reengineering is:

a. A major organization transformation effort requiring the development of a long-term strategy and dealing effectively with employee resistance.


b. Involved with managing the change throughout the entire business flow processes, job responsibilities, organization structure incentive programs, other management systems, and corporate values to mention a few.


c. A process that will require the rewriting of policies and procedures requiring inovative and oped-minded managers who can let go of the past by dismantling what they have taken years to build.


d. Reconstructing an organization and management processes to empower employees to higher performance.



Kensington recommends the following objectives for the first phase of the consulting assignment:


1. Helping management to identify the critical work flow processes and areas that need to be streamlined.


2. Identifying productivity improvement and cost reduction opportunities throughout the company with particular emphasis on..... organization structure, human resources utilization, management and technical processes, information systems utilization, elimination of non-value added meetings / tasks and activities.


3. Develop a company-wide implementation plan for launching the reengineering recommendations in a timely manner.


4. During this effort Kensington will focus on identifying with senior management areas that provide the greatest potential to improve overall levels of efficiency and effectiveness, reduce costs, eliminate non-critical activities throughout the organization. Accordingly we and senior management will review and utilize the following types of information..... general and administrative expense data, organization charts and current staffing plans, position descriptions and salary data,

employee performance records, systems generated reports and outputs, operational / HR policies and procedures.


The Process:


1 Senior management with Kensington identifies process reengineering as a priority and establishes functional teams of resources to address the issue.


2. Functional reengineering teams facilitated by Kensington identify reengineering priorities for investigation, develops action plans, implementes strategies to streamline work flow processes and eliminate non-value added work, tasks and activities.


3. Reengineering teams with support of Kensington prepares report of findings for senior management estimating benefits and financial impacts.


4. Reengineering teams continue to meet to implement other productivity improvement processes.



a. Eliminates G&A and overhead costs


b. Improves operational efficiency and effectiveness levels


c. Eliminates non-essential work, meetings, and tasks


d. Enhances competitive advantage


e. Drives down the costs of service and products


f.  Improves employee morale´╗┐