Hello! Today we will talk about business process reengineering. In a time when everything is developing rapidly, the needs and demands of people are changing, the main goal of enterprises is to stay in order to avoid. Business reengineering is considered one of the radical measures to achieve the set goals. We will talk about this in today's article.

The concept and essence of reengineering

This definition was introduced by one of the leading management theorists Michael Hammer in the early 1990s.

The essence of business process reengineering to achieve sharp, jump-like positive results in economic activity, radically changing the entire system of enterprise management.

The application of this method is global in nature, i.e. fundamental rethinking of business processes to improve key performance indicators. These indicators are product quality, cost, service level and pace.

The essence of reengineering is to start from scratch . You need to take a fresh, fresh look at the company and analyze the structure of your business processes in order to fundamentally improve the product or service provided, and, accordingly, please the client.

In the definition of business process reengineering keyword is the concept of "business process".

Process- this is, first of all, the course of action, movement, change of the system.

Buisness process are the actions of a company aimed at creating a product or service that satisfies the needs of the client . That is, the main thing is the result that the consumer expects to receive.

This concept is the most important thing that the management of the organization must learn. Since, without capturing the essence of business processes, it is impossible to understand the whole essence of reengineering, which subsequently leads to an unsuccessful experience in implementing this methodology.

The mistakes that companies make are that they focus not on processes, but on individual structures and tasks. Undoubtedly, individually each task and structure has its own value, but if the consumer is dissatisfied with the end result, then the entire business process becomes inefficient.

The feasibility of reengineering, the necessary conditions and the expected result

Company reengineering is necessary and appropriate if:

• The company is in an extremely difficult state on the verge of ruin.

The reason may be a lower quality provision of goods and services or inflated prices compared to competitors;

• A company that currently has no problems, but intractable problems are predicted to appear in the future;
• Leading companies that use this method to achieve even greater results.

Prerequisites for enterprise reengineering:

• Resources;
• Management involvement;
• Motivation;
• Employee participation;
• Communications;
• Technological support;
• Use of expertise.

The primary component for the introduction of the process of cardinal improvement of the state of the enterprise are, of course, resources. You cannot rely on the internal resources of the company; a budget must be allocated for this project.

An equally important component is the participation of management in the planned project. The manager must be competent in the issue of reengineering in order to avoid mistakes in restructuring and be able to properly motivate the employees of the enterprise.

Motivation must be precisely defined. The manager can have no doubts about this project, he must be firmly confident in the success of achieving the effectiveness and efficiency of the process.

Another necessary condition reengineering is the participation of employees of the company. It should be properly explained why this is being done, what the process is aimed at, and what new powers they are required to exercise in order to achieve the ultimate goal.

Communication, technology support and the use of expertise, when approached and used correctly, can be an indispensable aid in the reengineering process.

In order for the manager and employees to clearly understand the system of work, it is necessary to highlight the main methods of reengineering:

• Orientation to the business process, i.e. not focusing on some narrow ranges, but focusing on the process as a whole;
• Focus on a breakthrough in their field of activity;
• Rejection of old traditions and company rules;
• Use of information technology;

If you work competently and apply all reengineering methods wisely, you can achieve the following results:

• Improving the quality of a certain area of ​​the organization's activities;
• influx of customers;
• Formation of professionally competent employees who realize themselves in a particular area;
• Transition to information technologies;
• Organization business process monitoring

Stages of reengineering

Reengineering of business processes of an organization consists of several stages:

• Creation of the project and allocation of subprocesses;
• Reverse (retrospective) engineering;
• Direct engineering;
• Implementation of the developed project.

Stage 1: A vision for the new organization is created and sub-processes are identified. The company sets certain goals, objectives and the final result that it wants to achieve.

Stage 2: Apply reverse (retrospective) engineering.

reverse engineering - analysis of the current organization, study of its documentation in order to understand the principle of work and evaluate the effectiveness of this company.

Questions of the importance of processes are investigated. Processes that do not function properly are identified, the implementation of which occurs with the greatest difficulties. They analyze the processes and find those that can be redesigned and implemented as much as possible.

Stage 3: Includes direct engineering.

Direct engineering - Development of a project for a new organization.

At this stage, business processes are created that will be efficient in terms of productivity and ultimately lead to the desired result.

In addition, support is being developed for new business processes. Information system. Reengineering participants are selected. The optimal number of employees included in the future project is about 5-7 people plus a communicator. The role of the communicator is to provide communication between management and project participants. He conducts trainings for employees, embodying the ideas of the leader.

If the company is developing several different projects, then it is additionally required to hire a coordinator who will maintain communication between the participants in all reengineering projects. If there are few projects, the communicator can act as a coordinator.

As a rule, two variants of new business process models are developed:

• The ideal model is what you need to strive for in the future;
• The real model is what you can achieve with your budget.

Stage 4: Implementation of the developed project. At this stage, new business processes are put into action, the supporting information system is tested, efficiency results are obtained and compared with the specified target results, taking into account costs.

It should be noted that the listed steps can be performed not sequentially, but partially in parallel. In addition, it is possible to repeat some of the steps.

Common mistakes companies make during reengineering

Most companies undertaking restructuring often fail.

Why this happens, and what mistakes organizations make when conducting reengineering, are presented below:

• Unwillingness to leave the comfort zone and small ambitions of the leadership.

There are situations when managers do not want to take risks and spend a lot, refuse to restructure the organization in order to get an efficiency result 10-20% more than the current one. This behavior leads to the fact that the existing business process becomes more complicated, and the first difficulties appear. Usually, at the first loss and the inability to solve problems, companies end the reengineering process with a bad experience. If success is nevertheless achieved, then there is simply not enough motivation for further advancement and employees again return to the old methods of work, that is, to their former comfort zone.

• Middle-level managers cannot evaluate the whole process.

They are well oriented and solve the narrowly focused tasks of their unit, and look and evaluate the strengths and weak sides business as a whole, managers of this level cannot.

• The organization refuses to radically restructure and only partially improves its activities.
• Insufficient investment in the reengineering project.

This project should be the main focus. Firstly, a separate budget should be allocated, and secondly, the most responsible employees should be allocated to it. It cannot be held in parallel with other events, against the background of other programs.

• Management mistakes in personnel management.

Leadership must anticipate that someone's rights may be infringed and prevent resistance to new restructuring of the system.

• Non-systematic approach to redesign.

Organizations focus only on redesigning processes, while they must take into account changes in the redesign of organizational structures, work, management and evaluation systems.

Differences between reengineering organizations and other business improvement methods

• Reengineering is not a restructuring or downsizing. In this case, reengineering is distinguished by the fact that with lower costs, you can get a much greater result, due to a sharp, abrupt breakthrough of an enterprise in its field. And by restructuring and downsizing, you can get more for less.
• Reengineering should not be confused with reorganization. In the reorganization change organizational structure, and in reengineering, it is the structure of processes that is changed.
• Reengineering does not mean quality improvement. Quality improvement involves improving the efficiency of existing programs simply by improving them. And reengineering companies does not improve existing processes, but replaces them with new business processes to achieve a breakthrough.

Advantages and disadvantages of business reengineering

The advantages of business process reengineering are obvious: there is not just an improvement in the organization's activities in some departments by 10-20%, but the state of the company as a whole improves.

We present the advantages and disadvantages of reengineering in the form of a table:

Advantages	disadvantages
Increasing the speed of the enterprise	Process duration
Increasing competitiveness	High project costs
Formed highly qualified staff	Due to the infringement of the rights of employees, a tense psychological situation
Transition to information technology, which simplifies the workflow	High percentage of unsuccessful experience when implementing this method
Reduced production costs
Increasing the motivation of employees and the quality of their work

Nevertheless, despite the high percentage of failures in the implementation of the reengineering process, there are examples of companies that have achieved a breakthrough with the right approach and rethinking their business. Examples are IBM Credit Corporation, Kodak, Ford Motor Company. Russian examples of successful experience in reengineering are the companies OOO EKSO, OOO International Printing Systems IPRIS.

Summing up, it should be said that for reengineering it does not matter what the company has at the moment. For this method, the final result is fundamental. Despite the significant disadvantages of the reengineering process, there are many more advantages. This method can radically change the entire business as a whole, destroy old structures, replacing them with new business processes that are more efficient and effective.

The perception of the business processes of an organization as an object of management is largely related to the fundamental principles by which one or another process of the business system can be identified. Here, the system of principles for the formation of business process reengineering is decisive.
The main goal of business reengineering is to instantly accelerate the response of an enterprise to changes in consumer requirements (or to the forecast of such changes) while reducing costs of all kinds many times over.

Reengineering principles

Basic principles underlying business process reengineering:
1. Several work procedures are combined into one. Most characteristic of the redesigned processes is the absence of assembly line technology, in which simple tasks or work procedures. Performed by different employees, they are now integrated into one - the result is a horizontal compression of the process. If it is not possible to bring all the steps of the process to one job, then a team is created that is responsible for this process.
2. Performers make independent decisions. In the course of reengineering, companies carry out not only horizontal, but also vertical compression of processes. This happens due to the independent decision-making by the contractor in those cases when, in the traditional organization of work, he had to refer to the management hierarchy. Traditional mass-production work organization assumed that performers had neither the time nor the knowledge to make decisions.
3. The process steps are performed in a natural order. Process reengineering frees you from the linear ordering of workflows inherent in the traditional approach, allowing you to parallelize processes where possible.
4. Processes have various options execution. The traditional process is focused on the production of mass products for the mass market, so it should be performed in a uniform way, regardless of the initial conditions for all possible process inputs. In our time, the high dynamism of the market leads to the fact that the process must have different versions of execution, depending on the specific situation, market conditions, etc.
5. Work is carried out in the place where it is expedient. In traditional companies, it is organized by functional divisions: the ordering department, the transport department, etc., and if, for example, the design department needs pencils, then it applies to the ordering department.
6. The number of checks and control actions is reduced. Checks and control actions do not directly produce material values, so the task of reengineering is to reduce them to an economically viable level. Traditional processes are replete with such steps, the sole purpose of which is to ensure that the performers follow the prescribed rules. Reengineering offers a more balanced approach.
7. The number of approvals is minimized. Another type of work that does not produce direct value for the customer is approval. The task of reengineering is to minimize coordination by reducing external points of contact.
8. Dedicated manager provides a single point of contact. His services are resorted to in cases where the steps of the process are either complex or distributed in such a way that they cannot be combined by a small team. The empowered manager plays the role of a buffer between a complex process and the customer. He behaves with the customer as if he were responsible for the entire process.
9. A mixed centralized-decentralized approach prevails. Modern technologies enable companies to operate fully autonomously at the departmental level, while retaining the ability to use centralized data. The importance of combining the virtues of centralization and decentralization can be illustrated by the example of banks. When working with large corporations, many banks carry out independent financial relations with the same client through various divisions. Such a decentralized approach can lead to chaos, as each division only tracks the part of the market that fits its profile. As a scientific and practical direction, business process reengineering appeared relatively recently and in this short period of time has become one of the leading and rapidly developing branches of management. The first Russian practice of applying business process reengineering showed that reengineering is not only necessary, but also possible. However, for its successful implementation, sound methodologies and modern tools should be used, various principles and stages of business processes should be observed.
Summary
For decades, people involved in the production process have thought in terms of production processes. Business process theory first appeared at the end of the 20th century. and at first it was met with mostly complete indifference, and those few who became interested in the idea expressed skepticism about its real merits. It was only in connection with the massive introduction of total quality in organizations that the idea of ​​business process management received its further development. Although the process has been slow and painful, companies have had to admit that they are spending huge amounts of money and time managing their functional hierarchy.
Business process reengineering is used in cases where it is necessary to make an informed decision on the reorganization of activities: radical transformations, business restructuring, replacement of existing management structures with new ones.
Reengineering is one of the important areas for improving enterprise management. It covers all the functions of the organization's management, is used by both individual enterprises and large integrated business groups.

A business process is a clearly defined set of operations performed with a specific algorithm and in order to achieve a specific result that is fundamentally important for the company.

A business process does not always coincide with the area of ​​responsibility of a particular department. Usually it involves employees from different departments of the company.

The founder of this science is M. Hammer. He emphasized: “A business process crosses functional boundaries, so business processes have the following structure:

1. - strategic planning(formation of goals and company policy);

2. - production (from the purchase of raw materials to the shipment of products);

3. - development of a new product (from developing a concept to creating a sample);

4. - sales (from identifying a potential client to receiving an order);

5. - fulfillment of the order (from placing the order to receiving payment)”.

"As is" and "As it should" are 2 standard basic approaches in process management.

As you move from one state to another, the business process is optimized.

1. Business Process Reengineering

Reengineering has existed for 15 years (since 1997). It implies a stepwise increase in business performance indicators. Reengineering does not mean a slow result, but the rapid implementation of deep and comprehensive fundamental changes in the management system, i.e. a breakthrough in increasing efficiency by tens and hundreds of times.

Thus, the method of revolutionary transformation of the activity of an enterprise, a radical restructuring of its business, was called reengineering.

The author of reengineering defined it as follows - it is "a fundamental rethinking and a radical redesign of business processes to achieve significant improvements in such key performance indicators for modern business as cost, quality, service level and efficiency."

2. Key concepts of reengineering

Fundamental reengineering is the answer to the question "Why should we do what we do?", "Why should we do it the way we do it?". In this case, reengineering first determines “what the enterprise should do” and only then “how to do”, i.e. focuses on WHAT SHOULD BE.

Radical reengineering- radicalism means changing things and situations at their very root. In business reengineering, radicalism means discarding all existing structures and procedures, and embodying new ways of doing things.

Coordinate reengineering- implementation of a program of gradual quality improvement, i.e. in this case, business reengineering is applied only when there is an urgent need for an "explosive" impact.

3. Ways to improve the business process

There are 2 ways to improve a business process:

A redesign is an evolutionary change;

Reengineering is revolutionary change.

Reengineering is a radical change in business processes in the most important directions. In any case, the process must be carefully documented. There are 3 ways to describe this:

1. text - in the form of formulations that are expected to be understandable to all participants in the process.

2. with the help of tables, job descriptions - standard forms of workflow impose restrictions on the wording in order to avoid discrepancies.

3. graphical form - processes are reflected in the form of diagrams and diagrams.

4. Basic principles of business process reengineering

1. Concentration of responsibility (several works are combined into one);

2. Delegation of authority combined with self-control (operational decisions are made by employees on the ground);

3. The natural order of the process, parallel or sequential;

4. Work is done where it can be done most effectively, right down to handing over the process to the client;

5. The volume of approvals, checks and control is reduced (control by managers is replaced, if possible, by control by consumers of the results of this process);

6. Any work that does not add value to use must be eliminated.

Business processes - the most important element in the definition of reengineering and is most difficult for managers to understand.

Business processes are horizontal hierarchies of internal and interdependent functional actions, the ultimate goal of which is the release of products or their individual components.

There are the following categories of business processes:

Processes that directly ensure the release of products;

Planning and management processes;

Resource processes;

Transformation processes.

The business process is characterized by:

Existing technology for the implementation of the business process;

The existing structure of the business system;

Means of equipment automation; mechanisms that ensure the implementation of the business process.

5. Key indicators for evaluating the effectiveness of business processes

1. Quantity of products of a given quality, paid for a certain period of time.

2. The number of consumers of products.

3. The number of typical operations that must be performed in the production of products for a certain period of time.

4. Cost of production costs.

5. Duration of typical operations.

6. Investment in production.

6. Business changes that are not reengineering

1. Reengineering cannot be directly identified with business process automation, i.e. business process automation using information technology.

2. Software, the task of which is to rewrite outdated information systems based on modern technologies.

3. Reengineering is not restructuring, nor dimension reduction- these terms denote a decrease in the company's capabilities.

4. Organizational change is restructuring, and reengineering deals with business processes.

5. Reengineering is not quality improvement and not global quality management, although reengineering and quality management assign a central role to business processes, but there is a fundamental difference:

a) quality management accepts existing processes and tries to improve them;

b) reengineering replaces existing processes with completely new ones.

10. Main properties of reengineering

Reengineering is the redesign of business processes to achieve a radical improvement in the performance of a firm. Business reengineering requires you to start from scratch. Within the framework of reengineering, the old formulations lose their meaning, because what is important is how the company wants to organize work today, taking into account today's market demand.

The main properties of reengineering are:

1. rejection of outdated rules and approaches to the business process and start it from scratch;

2. neglect of the existing systems, structures and procedures of the company. A radical change in the ways of economic activity;

3. leading to significant changes in performance indicators.

11. Major business situations requiring reengineering intervention

Reengineering is necessary in cases where very significant improvements are needed. There are 3 main situations that require reengineering intervention:

1. - In conditions when the firm is in a state of deep crisis. This crisis can be expressed in a non-competitive level of costs, in a mass refusal of consumers from the company's product.

2. - In conditions where the current position of the company can be considered satisfactory, but the forecasts of its activities are unfavorable. The firm is faced with undesirable situations for itself - in competitiveness, profitability and the level of demand.

3. - Non-professionals are engaged in the implementation of reengineering opportunities, although their task is to accelerate the gap from the closest competitors and create unique competitive advantage.

12. Participants in reengineering activities and their functions

To implement reengineering processes, it is necessary to form an organizational structure headed by its main participants.

Reengineering project leader- one of the top - managers of the company, heading the reengineering activities. Leader functions:

Organizational Responsibilities

Ideological substantiation of the reengineering project

Creating a common spirit of innovation, enthusiasm and responsibility in the team

The leader must have high internal energy.

Steering Committee consists of:

Members of the top management of the firm

Reengineering Leader

Business process managers.

Process monitoring function

Reengineering Goal Alignment and Strategy Function

Coordination of interests of various working teams

Decision conflict situations between work teams.

In the absence of a committee, these functions are performed by the project leader.

Manager in charge of operations.

Fulfills the formal role of assistant to the leader

Develops methods and tools for reengineering

Training and coordination of actions of responsible business process managers

Assistance in organizing work teams.

13. Types of reengineering

Schools of reengineering:

1. American school - we destroy everything and then we collect it again, “to-be”, the goal is to create a new IP or refine an existing one

2. Russian school - "soft reengineering".

1. goal of optimization

2. choose the criteria that are most important for the company

A) the amount of profit

B) Company market share

B) the quality of the company's service

3. company BP classification

4. choosing those that make a profit

5. we build a power supply model based on them

We finalize (optimize) first those processes that make a profit (main), then auxiliary ones.

In reengineering, there are 2 types of activities:

1) crisis reengineering, where we are talking about solving extremely complex problems of the organization.

2) development reengineering, which is applicable when the organization is generally doing well, but the development dynamics have worsened and competitors have begun to outperform.

Development reengineering can lead to a noticeable improvement, but only an incremental improvement over the current level of business. It does this by eliminating low-value additional activities; movement of boundaries between departments and delegation of authority in order to increase productivity, save the required resources.

Crisis reengineering of both business processes and the entire organization as a whole requires redesigning, first of all, the relationship between suppliers and consumers. Any kind of reengineering activity should be carried out after a deep and thorough examination, revealing both shortcomings and hidden opportunities in personnel, processes, information and technology.

As a result of careful analysis, areas are found that require improvement of business processes through management and simplification.

14. Activities of the organization through business processes

To ensure the effective operation of the organization, only 3 to 10 basic business processes are enough.

There are 3 types of typical business processes:

1. Development of a strategy.

2. Development of a new product.

3. Fulfillment of orders.

The scale of the reengineering program depends on how many key business processes it will cover. For most Russian companies, crisis reengineering is the most relevant, since it faces the problem of bankruptcy, therefore, the tasks of reengineering are:

Consolidation of information resources structural divisions companies and the creation of an integrated corporate information management system.

Providing overall cost reduction and having the ability to respond flexibly to changing market conditions in the management system.

15. Reengineering objects

A business model is a representation of the company's main business processes taken in their interaction with the company's business environment.

The future image of the company is a simplified image of the original, reflecting its main features and not taking into account minor details.

The reengineering process is based on these 2 concepts:

Future image of the company

Business model

The objects of reengineering are not organizations, but processes. Companies are reengineering not sales departments, but the work performed by the personnel of these departments.

Each firm has the following reengineering objects:

a) product development - from the development of a product concept to its creation;

b) sales - from identifying a potential client to receiving an order;

c) order fulfillment - from placing an order to receiving payment;

d) maintenance of the business process as an object - from receiving a request for claims to resolving the problem that has arisen.

16. Main stages of reengineering

1. The desired image of the company is formed - this happens within the framework of the company's strategy and its guidelines;

2. A model of the real or existing business of the company is created - the system of actions and works is reconstructed, with the help of which the company realizes its goals;

3. A new business model is being developed (direct reengineering):

a) selected business processes are redesigned

b) new staff functions are being formed

c) information systems necessary for the implementation of reengineering are created

d) a new business model is being tested (preliminary application on a limited scale);

4. Introduction of the new business model into the economic reality of the company.

17. Basic methods and forms of work underlying reengineering

1. Several work procedures are combined into one - there is a horizontal compression of the process. If it is not possible to bring all the steps of the process to one job, then a team is created that is responsible for this process.

2. Performers make their own decisions - in the course of reengineering, not only horizontal, but also vertical compression of processes is carried out - this happens due to the independent decision-making by the performer, i.e. empowering employees and increasing the role of each of them in the work of the company leads to a significant increase in people's productivity.

3. The process steps are performed in a natural order.

4. Processes have different versions.

5. Work is done where it makes sense

6. The number of checks and control actions is reduced

7. The number of approvals is minimized

8. The empowered manager provides a single point of contact, i.e. plays the role of a buffer between a complex process and the customer.

9. A mixed centralized - decentralized approach to management prevails.

18. Methodologies for modeling business processes

In practice, the implementation of reengineering must begin with the choice of the most appropriate methodology for describing (modeling) a business process.

The most effective is:

1. - Block diagram of a business process, consisting of rectangles (denoting actions), diamonds (denoting decisions) and arrows connecting these elements to each other and to each other.

2. - A verbal description of the business process, answering the questions WHAT? WHO? WHERE? AS? WHY? and why? and also what is the time Money on decision making, expectation and implementation of actions in the business process.

These models are simple and obvious, but the complexity of the issues that arise in the business process require more efficient models and methodologies. There are computer programs for this.

19. Reengineering Tools

The reengineering system combines the capabilities of key modern information technologies that are applicable using the following tools:

Graphical, objectively oriented language for describing models and projects;

Animation and simulation tools for reconstructed processes;

Artificial intelligence methods for a complete and adequate representation of expert knowledge about processes.

All this opens up access to direct modeling and reconstruction of business processes to a new group of users - managers.

20. Reengineering in Russia

Reengineering is important for Russian entrepreneurship, because it needs significant changes. In domestic conditions, business processes, business procedures, accounting practice regulations are not formed - without which reengineering is not possible.

The main components of the change management process are:

Assessment of readiness for changes of the company itself;

Develop a plan to implement these changes.

Russian managers are offered the following methodology for using the potential of reengineering:

1. determining the direction of business development

2. definition of the scope and final goals of the project

3. process planning carried out by specialists

4. determination of the structure of the organization and personnel policy

5. technology support

6. definition of physical infrastructure (buildings, equipment)

7. implementation of the company's internal policy and assessment of the impact of current legislation

8. Mobilization of resources for project implementation

The cycle of a modern company begins with reengineering - a radical and revolutionary restructuring of the company's business processes, accompanied by a transition to new principles for building an organization. This type of activity requires the implementation of a special project and the creation of a reengineering team, including both company employees and invited consultants. After achieving the intended goals, the project is completed and the company moves on to an evolutionary period of its development, called business improvement: constant small upgrades are carried out in the course of ongoing work. As the possibilities of evolutionary development are exhausted, the company again conducts reengineering - as a rule, the project no longer covers the entire company as a whole, but several functional divisions. Thus, changes in the organization of work in the company become part of it. Everyday life- as a reaction to constant changes in the external environment: the market, the level of technology, customer needs, competition.

Reengineering is a fundamental rethinking and radical redesign of business processes of companies to achieve fundamental improvements in the main current indicators of their activities: cost, quality, services and pace (M. Hammer, J. Champy). At the same time, reengineering is considered as a way for modern companies to survive in the face of fierce competition in the global market.

The need for reengineering is associated with the high dynamism of the modern business world. Continuous and rather significant changes in technology, markets and customer needs have become commonplace, and companies, in an effort to remain competitive, are forced to constantly rethink corporate strategy and tactics.

Reengineering is applied in three main situations:

1. In conditions when the company is in a deep crisis, which can be expressed in a clearly non-competitive (very high) level of costs, mass refusal of consumers from the company's product, and the like.

2. When the current position of the firm can be considered satisfactory, but the forecasts of its activities are unfavorable. The firm is faced with undesirable trends in terms of competitiveness, profitability, and the level of demand.

3. Prosperous, fast-growing and aggressive organizations are engaged in realizing the possibilities of reengineering. Their task is to accelerate the growth of the gap from the nearest competitors and create unique competitive advantages. The application of reengineering in this situation is the best option business. Many companies believe they have found best model a business that does not need to change significantly. Over time, this approach leads to the fact that competitors catch up and overtake such firms, and the companies themselves are less and less adaptable to demand and market conditions in general.

To understand how business process reengineering improves the efficiency of a company, let's look at how reengineering changes business processes that are being reconstructed.

1. Several work procedures are combined into one. Most characteristic of the redesigned processes is the absence of "assembly line" technology, in which simple tasks, or work procedures, are carried out at each workplace. Performed by different employees, they are now integrated into one - there is a horizontal compression of the process. If it is not possible to bring all the steps of the process to one job, then a team is created that is responsible for this process.

Having multiple people on a team inevitably leads to some delays and errors when handing off work between team members. However, the losses here are much less than in the traditional organization of work, when the performers report to different divisions of the company, possibly located in different territories. In addition, in a traditional organization it is difficult, and sometimes impossible, to determine who is responsible for the quick and high-quality performance of work. According to available estimates, horizontal compression speeds up the process by about 10 times.

2. Performers make independent decisions. In the course of reengineering, companies carry out not only horizontal, but also vertical compression of processes. This happens due to the independent decision-making by the contractor, in those cases when, in the traditional organization of work, he had to refer to the management hierarchy.

Traditional mass-production work organization assumed that performers had neither the time nor the knowledge to make decisions. Reengineering rejects these assumptions, which is quite natural given the rejection of mass production and the current level of education. Giving employees greater powers and increasing the role of each of them in the work of the company leads to a significant increase in their impact.

3. The process steps are performed in a natural order. Process reengineering frees you from the linear ordering of workflows inherent in the traditional approach, allowing you to parallelize processes where possible.

4. Processes have different versions. The traditional process is focused on the production of mass products for the mass market, so it must be executed in the same way, regardless of the initial conditions for all possible process inputs. In our time, the high dynamism of the market leads to the fact that the process must have different versions of execution, depending on the specific situation, the state of the market. Traditional processes usually turn out to be quite complex - they take into account various exceptions and special cases. New processes, unlike traditional ones, are clear and simple - each option is focused on only one corresponding situation.

5. Work is carried out in the place where it is expedient. In traditional companies, it is organized by functional units, which is quite wasteful and slow.

6. The number of checks and control actions is reduced. Checks and control actions do not directly produce material values, so the task of reengineering is to reduce them to an economically viable level. Traditional processes are replete with such steps, the sole purpose of which is to ensure that the performers comply with the prescribed rules. Unfortunately, in practice it often turns out that the cost of checks and control actions exceeds the cost of ordering the required product. Reengineering offers a more balanced approach. Instead of checking each job in progress, the redesigned process often aggregates those jobs and performs checks and controls in a lazy mode, which significantly reduces the time and cost of processes.

7. The number of approvals is minimized. Another type of work that does not produce direct value for the customer is approval. The task of reengineering is to minimize coordination by reducing external points of contact.

8. The "authorized" manager provides a single point of contact. The “authorized” manager mechanism is used when the steps in the process are either complex or distributed in such a way that they cannot be brought together by a small team. The "authorized" manager plays the role of a buffer between a complex process and the customer. He behaves with the customer as if he were responsible for the entire process. To fulfill this role, the manager must be able to answer customer questions and solve customer problems, having access to all information systems used and to all performers.

9. A mixed centralized/decentralized approach prevails. Modern technologies allow companies to operate completely autonomously at the departmental level, while maintaining the ability to use centralized data.

Due to the great popularity of business process reengineering, reengineering is often confused with other well-known approaches:

1. Despite the important role that information technology plays in business process reengineering, reengineering cannot be directly equated with business process automation.

2. Some users confuse business reengineering with software reengineering, the task of which is to rewrite - on the basis of modern technologies - obsolete information systems without changing the automated processes themselves.

3. Reengineering is neither restructuring nor downsizing. These terms refer to a reduction in a company's capacity, such as a reduction in production capacity, to meet current lower requirements.

4. Reengineering is not reorganizing or flattening, although flattening may well be the result of reengineering. Unlike reorganization and alignment, which deal with organizational structures, reengineering deals with processes.

5. Reengineering is by no means quality improvement or global quality management. Although both reengineering and quality management place a central role on business processes, there is a fundamental difference: quality management takes existing processes and tries to improve them, while reengineering replaces existing processes with new ones.

The reengineering process can be divided into main stages.

1. The desired (necessary from the point of view of future survival and development) image of the company is formed. The formation of the future image takes place as part of the development of the company's strategy, its main guidelines and ways to achieve them. Of particular importance in a number of strategic goals is consumer orientation. Right choice reengineering goals means that areas have been found that can really be significantly improved and are vital for this business.

2. A model of a real or existing business of the company is created. This stage is called retrospective, or reverse, reengineering. Here, a system of actions and works is recreated, with the help of which the company realizes its existing goals. A detailed description and documentation of the main operations of the company is produced, and their effectiveness is evaluated. To create a model of an existing business, the results of the analysis of the organizational environment and controlling data are used. Processes that need radical restructuring are identified.

3. A new business model is being developed. There is a redesign of the current business - direct reengineering.

To create an updated business model, the following steps are performed:

a) selected business processes are redesigned, more efficient working procedures are created, technologies (including information) and methods of their application are determined;

b) new functions of the personnel are formed, processed job descriptions, the optimal system of motivations is determined, work teams are organized, programs for training and retraining of specialists are developed;

c) information systems necessary for the implementation of reengineering are created: equipment is determined and software, a specialized business information system is being formed;

d) the new model is being tested on a limited scale.

4. Introduction of the new business model into the economic reality of the company. All elements of the new model are put into practice. Skillful docking and the transition from old processes to new ones are important here.

Two types of specialists are involved in reengineering - professionals in the field of the reconstructed business and developers of information systems. The experience of reengineering shows that a truly successful and innovative implementation of information technology is a unique creative process: company managers and technologists, getting acquainted with IT methods, themselves make discoveries about the possibilities of using them in their particular business.

Thus, reengineering is aimed at ensuring that not only each link in the business operates productively, but also that the entire system of their interaction is aimed at obtaining the maximum multiplier effect, that is, the effect that cannot be obtained by everyone individually, but can actually be achieved. through joint efforts, organized in an optimal way.

In business reengineering, consistency, interdependence and complementarity of actions are of fundamental importance. Another feature of reengineering is that in its system, each employee is aimed not so much at the good and timely performance of the work assigned to him, but at ensuring the highest possible final result of the entire business, that is, you should always “turn a shoulder” to an employee who is in such help needs. Of course, this usually increases the intensity of labor. But this is work that brings profit, and an increase in the financial results of a business can significantly expand material incentives. The results of more intense and productive work bring not only high earnings, but also social recognition, a high image of the employee and greater moral satisfaction, since looseness in work enhances its creative nature, it provides an opportunity for everyone to reveal their full potential in the name of the success of the common cause.

Reengineering projects are costly and risky. According to some estimates, the share of successful reengineering projects in the world is only 30%. The following typical reengineering mistakes can be distinguished:

a) excessive detail, loss of purpose during the examination. Deep detailing and decomposition into ever smaller processes and sub-processes often comes down to division into functional units. This is how, for example, “business processes of the financial department” appear. This approach completely replaces the original concept of the business process, replacing it with a functional management organization.

b) Gap in time during design. When analyzing a business process diagram, you need to carefully weigh everything, plan and, finally, implement a new business process. Excessively long analysis may be useless - the results will be outdated.

C) Project implementation problems. After receiving the results of a reengineering project, the enterprise, as a rule, is left alone with the problem: how to put these recommendations into practice.

The business process management system is designed to solve the listed problems of reengineering.

Reengineering is a rethinking and radical restructuring of business processes in order to improve such important indicators as cost, quality, speed of operation, finance and marketing for

Reengineering is a rethinking and radical restructuring of business processes in order to improve such important indicators as cost, quality, speed of operation, finance and marketing in order to achieve stepwise improvement in the company's performance.

Business planning involves the initial design of the business or, in other words, the initial design of the development of the business unit. Subsequently, the enterprise also needs continuous design. General management business activities (business processes) are called business engineering, implying continuous improvement of processes.

Reengineering is aimed at ensuring that not only each link in the business operates productively, but also that the entire system of their interaction is aimed at obtaining the maximum multiplier effect, i.e. the effect that cannot be obtained by everyone individually, but can be achieved through joint efforts, organized in an optimal way.

In business reengineering, consistency, interdependence and complementarity of actions are of fundamental importance. Another feature of reengineering is that in its system each employee is aimed not so much at the good and timely performance of the work assigned to him, but at ensuring the highest possible final result of the entire business, i.e. you should always “turn your shoulder” to an employee who needs such help. Of course, this usually increases the intensity of labor. But this is work that brings profit, and an increase in the financial results of a business can significantly expand material incentives. The results of more intense and productive work bring not only high earnings, but also social recognition, a high image of the employee and greater moral satisfaction, since looseness in work enhances its creative nature, it provides an opportunity for everyone to reveal their full potential in the name of the success of the common cause.

The reengineering method has been adopted by the world's leading companies. Especially American companies spend a lot of effort and financial resources on this.

The founder of the theory of reengineering is considered to be M. Hammer, who, in collaboration with J. Champi, published the book “Reengineering of the Corporation: A Manifesto for a Revolution in Business”.

Reengineering is usually presented as a fundamental rethinking and radical restructuring of business processes in order to improve such important indicators as cost, quality, service level, speed of operation, finance, marketing, building information systems to achieve a radical, stepwise improvement in the company's activities. Let us reveal the key concepts in this definition.

Fundamental- answers should be obtained to the most significant questions about the activities of the enterprise: “Why should we do what we do?”, “Why should we do it the way we do it?”.

Reengineering first determines WHAT the enterprise should do, and only then - HOW to do it. Reengineering ignores what is and focuses on what should be.

Radical- radical means changing things at their very root. In business reengineering, being radical means discarding all existing structures and procedures and implementing new ways of doing things.

Cardinal- if the company's profit decreases by only 10%, if its costs are only a few percent higher than planned, if the quality indicator needs to be improved only slightly, if customer service requires only a certain acceleration. In this case, the enterprise does not need reengineering at all. Then the usual methods are applicable, for example, such as a program of gradual quality improvement. Business reengineering is used only when there is an urgent need for an "explosive" impact.

Processes- this is the most important concept in the definition of business reengineering, but it is the most difficult for managers to understand. Most business people are not "process oriented", they are focused on tasks, on jobs, on people, on structures, but not on processes. Since the time and under the influence of A. Smith, who described the division of works into simple tasks and dividing them among individual specialists, modern companies and managers often focus on particular tasks. For example, on agreeing on the terms of a contract, on receiving an order, on ordering goods from a warehouse, etc. At the same time, the main goal often falls out of sight - the client must receive the goods that he ordered. Particular tasks are important, but none of them is of any importance to the client if the goods are not in his hands.

The main goals and methods of business reengineering - the main goal is to dramatically accelerate the response of the enterprise to changes in consumer requirements (or to the forecast of such changes) while reducing all types of costs many times over. Required:

• a sharp decrease in the time used, the number of employees and other costs for the performance of production functions;
• business globalization: work with clients and partners anywhere in the world, work with clients in 24x365 mode (24 hours a day, 365 days a year);
• increasing the opportunities and rights of the employee, relying on the growth of staff mobility;
• work not only for the present, but even more - for the future needs of the client, the accelerated promotion of new technologies;
• implementation of the above based on the creative application of information technology.

Reengineering has the following properties:

• rejection of outdated rules and approaches and the beginning of the business process, as it were, "with clean slate". This makes it possible to overcome the negative impact of existing economic dogmas;
• disregard for the existing systems, structures and procedures of the company and a radical change in the way of doing business; if you can't remake your business environment, you can remake your business;
• leading to significant changes in performance indicators, an order of magnitude different from the previous ones. Small changes require the firm to adjust, skillfully adapt existing business tools, respectively, if the company's business has deteriorated slightly, it does not need reengineering.

Reengineering is applied in three main situations.

1. In conditions when the company is in a deep crisis, which can be expressed in a clearly non-competitive (very high) level of costs, mass refusal of consumers from the company's product, etc.

2. When the current position of the firm can be considered satisfactory, but the forecasts of its activities are unfavorable. The firm is faced with undesirable trends in terms of competitiveness, profitability, and the level of demand.

3. Prosperous, fast-growing and aggressive organizations are engaged in realizing the possibilities of reengineering. Their task is to accelerate the growth of the gap from the nearest competitors and create unique competitive advantages. Applying reengineering in this situation is the best way to do business. Many companies believe that they have found the best business model in which nothing needs to be changed significantly. Over time, this approach leads to the fact that competitors catch up and overtake such firms, and the companies themselves are less and less adaptable to demand and market conditions in general.

The reengineering process is based on two basic concepts - "the future image of the company" and "model of the company".

Model is an image of an object used as its substitute or representative. The model can take the form of an image, description, diagram, drawing, graph, plan - in any case, this is a simplified image of the original, reflecting its main features and not taking into account secondary details. A business model is an image (representation) of the main business processes of a company taken in their interaction with its business environment. As components of the business model, it is recommended to take such business processes that are directly related to the generation and receipt of income. Information technologies have recently received wide development in business modeling, when models are compiled and calculated using special computer programs. Business models allow you to determine the characteristics of the main processes of the business unit and the need for their restructuring - reengineering.

The reengineering process can be divided into main stages.

1. The desired (necessary from the point of view of future survival and development) image of the company is formed. The formation of the future image takes place as part of the development of the company's strategy, its main guidelines and ways to achieve them. Of particular importance in a number of strategic goals is consumer orientation. The right choice of reengineering goals means that areas are found that can really be significantly improved and are vital for this business.

2. A model of a real or existing business of the company is created. This stage is called retrospective, or reverse, reengineering. Here, a system of actions and works is recreated, with the help of which the company realizes its existing goals. A detailed description and documentation of the main operations of the company is produced, and their effectiveness is evaluated. To create a model of an existing business, the results of the analysis of the organizational environment and controlling data are used. Processes that need radical restructuring are identified.

3. A new business model is being developed. There is a redesign of the current business - direct reengineering.

To create an updated business model, the following steps are performed:

a) selected business processes are redesigned, more efficient working procedures are created, technologies (including information) and methods of their application are determined;

b) new functions of the personnel are formed, job descriptions are revised, the optimal motivation system is determined, work teams are organized, programs for training and retraining of specialists are developed;

c) information systems necessary for the implementation of reengineering are created: equipment and software are determined, a specialized business information system is formed;

d) the new model is being tested on a limited scale.

4. Introduction of the new business model into the economic reality of the company. All elements of the new model are put into practice. Skillful docking and the transition from old processes to new ones are important here.