Business Process Reengineering (BPR) –

Definition, Steps, and Examples

Your company is making great progress. You’re meeting goals easily, but the way you
meet goals is where the problem is. Business processes play an important role in
driving goals, but they are not as efficient as you’d like them to be.

Making changes to the process gets more and more difficult as your business grows
because of habits and investments in old methods. But in reality, you cannot improve
processes without making changes. Processes have to be reengineered carefully since
experiments and mistakes bring in a lot of confusion

What is business process re-engineering (BPR)?

Business process re-engineering is the radical redesign of business processes to
achieve dramatic improvements in critical aspects like quality, output, cost, service, and
speed. Business process reengineering (BPR) aims at cutting down enterprise costs
and process redundancies on a very huge scale.

Is business process reengineering (BPR) same as business process

improvement (BPI)?
On the surface, BPR sounds a lot like business process improvement (BPI). However,
there are fundamental differences that distinguish the two. BPI might be about
tweaking a few rules here and there. But reengineering is an unconstrained approach
to look beyond the defined boundaries and bring in seismic changes.

While BPI is an incremental setup that focuses on tinkering with the existing processes
to improve them, BPR looks at the broader picture. BPI doesn’t go against the grain. It
identifies the process bottlenecks and recommends changes in specific functionalities.
The process framework principally remains the same when BPI is in play. BPR, on the
other hand, rejects the existing rules and often takes an unconventional route to redo
processes from a high-level management perspective.

BPI is like upgrading the exhaust system on your project car. Business Process
Reengineering, BPR is about rethinking the entire way the exhaust is handled.

What are the Five steps of business process reengineering (BPR)

To keep business process reengineering fair, transparent, and efficient, stakeholders
need to get a better understanding of the key steps involved in it. Although the process
can differ from one organization to another, these steps listed below succinctly
summarize the process:

Below are the 5 Business Process Re-engineering Steps:

1. Map the current state of your business processes

Gather data from all resources–both software tools and stakeholders. Understand how
the process is performing currently.

2. Analyze them and find any process gaps or disconnects

Identify all the errors and delays that hold up a free flow of the process. Make sure if all
details are available in the respective steps for the stakeholders to make quick
decisions.

3. Look for improvement opportunities and validate them

Check if all the steps are absolutely necessary. If a step is there to solely inform the
person, remove the step, and add an automated email trigger.

4. Design a cutting-edge future-state process map

Create a new process that solves all the problems you have identified. Don’t be afraid
to design a totally new process that is sure to work well. Designate KPIs for every step
of the process.

5. Implement future state changes and be mindful of dependencies

Inform every stakeholder of the new process. Only proceed after everyone is on board
and educated about how the new process works. Constantly monitor the KPIs.

When Business Process Reengineering should be incorporated?

The problem with BPR is that the larger you are, the more expensive it is to implement.
A startup, five months after launch, might undergo a pivot including business process
reengineering that only has minimal costs to execute.

However, once an organization grows, it will have a harder and more expensive time to
completely reengineer its processes. But they are also the ones who are forced to
change due to competition and unexpected marketplace shifts.

But more than being industry-specific, the call for BPR is always based on what an
organization is aiming for. BPR is effective when companies need to break the mold
and turn the tables in order to accomplish ambitious goals. For such measures,
adopting any other process management options will only be rearranging the deck
chairs on the Titanic.

Before you decide to adopt BPR for functional reshuffling, ask yourself the following
questions:

 Who are our customers? What values are we offering them?

 Are the current processes delivering expected values?
 Do the processes need to be redefined or redesigned?
 Are the processes in sync with our long-term mission and goals?
  How would we handle the existing processes if we were a new company?

If a company concludes that it is, in fact, operating on complacent grounds, it has to

identify the right kind of solution to address the problem or consider BPR for a total
overhaul. Done well, BPR’s radical approach yields dramatic results for a company in
terms of improved cycle times, product quality, productivity, and so on.

What are the Benefits of BPR?

Good BPM reduces the need for BPR
The productivity of employees definitely takes a hit during process reengineering.
Changes are difficult to manage and it saves a lot of costs on analysis, reengineering,
and documentation. If processes are managed better during runtime, the need for
reengineering is greatly reduced.

There are BPM tools to manage business processes with full control. They are built as
an intuitive logic-based tool that anyone can learn and understand. You get a lot more
visibility into processes and their functions.

What is Devil’s Triangle?

 
This model is usually referred to as the well-known “Devil’s Triangle”. In his book,
however, Peter Markensteijn writes about the ‘ribs’ of project management and the
PM3 model. The devil’s triangle is part of one of these ribs. PM3 stands
for Peter Markensteijn’s Project Management PiraMid.
Related models: Time Management Matrix; Projectmanager Radius; Force Field
Analysis; Steering Parameters; Devils Triangle; SMART; BART; Stakeholder
Salience Model

The model

This model categorises the steering parameters based on 3 aspects:

-      Time
-      Money
-      Quality.
 
Time

In the early years project-based activities were tuned to making the timelines in the
first place. Activities carried out within a project must be divided into bite-size chunks,
set out in time and mapped in terms of dependencies. The result of one activity
 always leads to a product or partial product. Planning must meet the SMART
requirements. On implementing activities progress must be monitored at all times.
 
Money

All activities carried out must be assessed. The total costs of these activities must be
transparent, explicable and reliable. Checks must be carried out continuously to verify
whether budget is underspent or perhaps overrun. This relates to all costs incurred
within a certain project: direct costs such as man-hours, indirect costs including
environment management and out of pocket costs for tenders, expertise take-on or
product acquisition. The total costs lead to the overall project budget.
Parameter money may also include income for projects and programmes. Usually for
income specific assessments are made in the form of a business case or redemption
deed. Also, steering activities towards income are usually separated from the project
cost management. Especially in ICT cases, the income phase will only begin upon
product delivery. By then the project is usually already undone.
 
Quality

Prior to the project commencement the wishes and requirements must be known and
laid down. Depth thereof partly depends on the way in which the project is carried out.
In case of an iterative development process with several increments or an agile
approach, outlining the wishes and requirements suffices. In case of a classical
waterfall method, full clarity matters before stepping into the next stage.
 
Variant

The “Devil’s Square” is strongly related to this model. Here the scope parameter is

added as a steering parameter.
The “BOQIT” is another variant whereby Information and Organisation are also
defined as variables. We at Models2Use always add Risk to end up with “BOQIT+R”.
 

How to use Devils’s Triangle?

 
 Select your steering parameters
First of all it is very important to select your steering parameters. Take a decision and
stick to it. Previously we mentioned a few variants from which you may choose.
Discuss matters with your client.
 
 Prioritise your steering parameters
Decide together with the client on the adage under which your project or programme
is to be carried out. It is up to the client to decide on the most important parameters.
Do not let the client brush you off with “they are all equally important” or you must
 stick to timing and budget and provide what I asked you to...”  A good client will take
his responsibility and dare to make a choice. Obviously this choice does give you the
freedom not to meet one of the parameters. But it does steer the interventions
expected from you being the project manager. Discussions about timelines at the start
of the year 2000 or the launching of the EURO are out of the question. In
implementing a new traffic control system at Schiphol Airport quality is top priority:
timely implementation is inferior to impeccable implementation.
 
 Launch control sessions
No matter which steering parameters you choose, make sure you design a sound
control mechanism. The state of affairs must be transparent, unequivocal and
comprehensible to all. Make sure you receive reports and information at an optimal
frequency. Separate explicitly factual details and value judgements.
 
 Use the right tooling
Your plan should state which tooling you intend to use to support control sessions for
the selected parameters. For timelines tools and methods exist such as the MS
Project/Gantt charts, critical path analyses, MoSCoW and QSMSLiM. Also, you may
use the ‘cigar box’. As long as you make clear which tooling you are using, why, when
and for whom.
Usually the organisational pressure feeds the ‘rosy’ picture of the situation. Stay far
away from it. Remarks like “you must save 10% and still deliver the same product” will
eventually involve unhappy clients, users and project managers. Of course you must
continue to make the implementation process more efficient but this is not the primary
objective of your project: stick to your plan! If budget savings are required you should
hold your client responsible. For it is he who must decide on the wishes and
requirements that need no further detailing. Using the MoSCoW method might help
out. Bringing back timelines will affect the efficiency of your team. Having short
timelines usually means more resources at the same time within a short period of
time. Streamlining, managing, informing and being informed will be much more
complicated. To assess these effects you might for instance use QSMSLiM.

The essence of Process Redesign

Why Redesign the process?
 Business process redesign is about improving the quality of
products/services by rethinking and re-organizing business processes.
 o If someone wants to improve the quality of a product/service from the
perspective of a customer, the best way to go is to improve the
related business process.
o A customer-oriented organization becomes a process-centered
organization.
 Why would anyone like to redesign business processes?

1. All business processes evolve over time. (organic nature)

 People who do the day-to-day operations are usually not
inclined or equipped to start rethinking the overall processes.
 People who do the day-to-day operations usually only know
the activity they do, and before and after them.
 Even managers are more concerned with the day-to-day
execution than structural improvement.
2. The world evolves.
 New competitors
 Different preferences of customers.
 So when there is still a strategic incentive to keep offering a
product or service, the best way to keep competitive is to do a
process redesign.

What is redesign?
 Redesign = Any change to an existing progress.
 Framework of items to think about with process redesign
1. The Customers of the business process (internal or external)
2. The Business Process Operation view:
 How a business process is implemented.
 The number of activities that are identified in the process.
 The nature of the activities.
3. The business process behavior view:
 How a business process is executed.
 In which order activities are executed .
 How the activities are scheduled and assigned for execution.
4. The organization and the participants in the business process:
 Organization structure (elements: roles, users, groups,
departments, etc.)
 Organization population (individuals who can execute
activities)
5. The information that the business process uses or creates.
6. The technology the business process uses.
7. The external environment the process is situated in.
 Process redesign extends to:

o Processes
o Organizations
o External environment
o Information
 o Technology
o Products delivered to the customers
 Process redesign excludes activities such as training people for their
new/edited activities.
 Not each business domain is equally suitable for (application/business)
process redesign
o Manufacturing domain: transforming raw materials to products using
robots an sophisticated machinery.
o Services domain: Mostly knowledge is involved in the processing of
information to deliver a particular service.
o Properties of service organizations:
 Making a copy is easy and cheap (on paper or electronically).
 No limitations on the in-process inventory (stored in a
database, require not much space).
 Less requirement with respect to the order in which activities
are executed
 Quality is difficult to measure.
 Quality of end products may vary.
 Transportation of electronic data is timeless.
o More freedom in redesigning a business process in the services
domain than the manufacturing domain.

The Devil`s Quadrangle

  Available directions for improvement
o Time (lower is better)
o Cost (lower is better)
o Quality (higher is better)
o Flexibility (higher is better) (How a process can deal with variation)
 Improving one property can decrease another.
o Ex. Doing something what increases quality, adds more time to the
production.
 Redesign Heuristics = Common approaches to improve business
processes.

How to redesign?
 Levels of abstraction for methods for process redesign
o Methodologies
 collection of problem-solving methods with principles and a
common philosophy.
 Field of consulting firms which developed these.
 o Techniques
 Precisely described procedures for achieving a standard task.
 Ex. Fishbone diagram, pareto analysis etc.
 Redisigning/ creativity techniques
 Ex. Brainstorming, flowcharting, data modeling, role-playing,
simulation etc.
o Tools
 A computer software package to support one or more
techniques.
 Intensity of a methodology = Pace that one aims with changing the process.
 Starting point of the redesign effort:
o OPTION A: Start from scratch
 Easyer to get rid off the inefficiencies in the current process.
 Better chance to create a new truly innovative process
alternative.
o OPTION B: From traits of the existing process that is to be
redesigned
 Most popular approach
 No need to cover all exceptions, or to forget steps.
 Level of detail is already inplemented.
o OPTION C: Use a good general design (Reference Model)
 Use of a blueprint or reference model.
 Developed by consultancy and IT companies
 Gives an up to date and standardized view on how to carry out
a business process.

As Harvard Business Review points out, the field of project

management has seen plenty of improvement initiatives over the past 20
years. These include the introduction of project management
methodologies such as Agile, Lean, and Six Sigma. Agile project
management is an excellent example of how a process can be adjusted to
suit a more flexible working style. This willingness to adapt and take
advantage of alternative approaches is key to effective optimization.

So what exactly is optimization, how is it done, and why is it essential

for business process management? Here is your ultimate guide to process
optimization.

What is the definition of optimization?

Optimization means making the best out of a situation or the resources
available to you. When you optimize something, you aim to maximize its
potential and make it as useful as possible. 

An everyday example of optimization could be a sales

representative planning an overseas trip to meet with an important client.
Before leaving, they could arrange to meet with other clients on the same
trip, or even research new sales leads in the area. This means they are
making the most of their own time. It also reduces the company’s
expenses, which can include airfare, accommodation, and meal costs.

So how do you define optimization in terms of business process

management? This practice is known as process optimization. Process
optimization is an exercise that aims to streamline operations within a
project process, maximizing resource use and improving overall output. It
is a significant element of business decision-making and is used in many
different project management areas.

Why optimize processes?

When managing multiple processes, optimization is vital. It can be hard to
keep track of every business process, which is precisely why optimization
is so important. It guarantees that each one is working to its full potential. 

Process optimization is also an integral part of Agile project management.

The software development process requires an iterative approach,
whereby steps are repeated and consistent tweaks are made. One
example could be a video game development team that regularly
deploys bug fixes. This ensures that the software product is fully ready
before it is launched. 
When you optimize project management processes, you're increasing the
likelihood of a host of benefits. These include:

 Streamlined operations: A successful optimization plan can

overhaul outdated, repetitive practices and automate them to
create a smarter system. It also provides a clearer view of
business processes by uniting all operations under a single
solution.

 Better resource management: By seeking ways to cut waste and

maximize resources, project teams will become far more
efficient, saving time and money.

 Reduced error: With constant optimization at every stage, teams

can spot risk factors and issues early on and rectify them before
they escalate. Automation can also help reduce human error
and improve accountability.

 Improved quality assurance: When teams consistently assess

the performance of their project deliverables and make regular
changes to improve output, they will increase their quality
standards.

 Customer satisfaction: A high-quality product or service is

guaranteed to please customers and encourage return
business. This, in turn, will boost business profitability.

What are the challenges of process

optimizations?
There are plenty of obstacles to process optimization.

One major challenge is that it can be resource-intensive. The main process

optimization techniques have numerous steps that need to be
implemented, requiring data analysis, time, and effort. However, as
mentioned above, one of the overall goals of process optimization is to
make the most of project resources. Therefore, it could be argued that if
team members devote some effort to optimizing processes now, they will
save a lot more time in the long run.

Another challenge with process optimization is that some team members

may be reluctant to change. It can be difficult to convince people to alter
their daily practices, especially if there are no apparent disadvantages to
them. In addition to employee pushback, there will also be a teething
period where people adapt to the new way of doing things. The key here is
for project managers to share their vision with the team early, highlighting
the myriad advantages of process optimization to get everyone on board.

Finally, there's another pitfall to be wary of: optimizing processes for

optimization’s sake. While it is important to identify areas for
improvement and strive for new achievements, the potential disruption
caused by an ill-conceived process optimization plan can be highly
detrimental to a business. Project managers should conduct extensive
research before implementing any kind of process optimization and be
confident that there is strong potential for an improved outcome.
Otherwise, it might be better to follow the old rule of: “If it isn’t broke,
don’t fix it.”

Process optimization methods and

techniques
There are many process optimization techniques you can use to get you
started. Here are three examples:

Process mining: This is a group of techniques with a data science

approach. Data is taken from event logs to analyze what team members
are doing in a company and what steps they take to complete a task. This
data can then be turned into insights, helping project managers to spot
any roadblocks and optimize their processes.
DMAIC: DMAIC is a data-focused method used in Six Sigma to improve
processes. It stands for Define, Measure, Analyze, Improve, and Control.
These five stages combine to form a cycle. First, customers are defined.
Then, performance is measured, and the data is analyzed. Finally,
improvements are implemented and controlled to ensure the process
remains in optimal condition.

PDSA: PDSA is an acronym for Plan, Do, Study, Act. It uses a four-stage
cyclical model to improve quality and optimize business processes. Project
managers will start by mapping what achievements they want to
accomplish. Next, they will test proposed changes on a small scale. After
this, they will study the results and determine if these changes were
effective. If so, they will implement the changes across the entire business
process.

It's good practice for a project manager to take some time to research
various process optimization methods before deciding which one is most
suited to their business.

Who should take charge of process

optimization?
A project manager is responsible for initiating process optimization. It is
their job to define project processes before making a roadmap of what
needs to be optimized. They will then put their plan in action and monitor
it to ensure it achieves its goals.

However, to ensure the best plan for process optimization, a project

manager needs to consult critical stakeholders to help them in their
decision-making. These stakeholders could include the chief operations
officer, line manager, or other senior executives. This is to ensure that the
process optimization plan will be suitable for the relevant department. For
example, there is no sense in trying to optimize HR processes without
valuable input from the person who understands them best: the HR
manager.

How to use Wrike as process

optimization software
Looking for easy-to-use business process management tools? Wrike is the
ideal option for project managers who want a versatile platform that
enables teams to do their best work. Wrike’s work management
software has plenty of features that can help you optimize your processes
effectively. 

Here’s how to use them:

 Customize your workspace: Make Wrike work for you with easy-

to-configure features. Create custom statuses, dashboards, and
request forms that match your team processes.

 Automate your workflows: Build automated workflows that

eliminate time spent on repetitive tasks and boost process
efficiency. 

 Communicate in real time: Start with a communication plan

template. Use @mentions to notify team members of updates,
collaborate with live editing features, add comments in custom
fields, and integrate your favorite messaging apps for optimal
communication.

 Create detailed reports: Data analysis is an essential part of

process optimization. Design your own reports with charts and
graphs. Get project portfolio visibility at a glance and gain
insights for future planning.
Heuristic Process Redesign
 Stages of heuristic process redesign:
1. Initiate
 GOAL: Create understanding of current situation (as-is model)
 Usage of BPMN to create a model
 GOAL: Set performance goals for the redesign project
 Get a clear picture with the Devil`s quadrangle.
2. Design
 GOAL: Identify and execute potential improvement actions
using redesign heuristics.
 For each heuristic it needs to be determined if it is
applicable.
 For some heuristics it makes sense to go together, for
some it does not.
 GOAL: Generate a set of scenarios which each describe which
heuristics are applied in a scenario, and how this is done.
3. Evaluate
 GOAL: Evaluate the different redesign scenarios created in the
previous step.
 Use a combination of qualitative and quantitative
techniques.
 GOAL: Decide to:

i. Implement the scenario OR

ii. Adjust the performance goals OR
iii. Step back to the design stage OR
iv. Drop the redesign project altogether.

Customer Heuristics
Time Cost Quality Flexibility

Control relocation . -- + .

Contact reduction + -- + .

Integration + + . --

This are effects on the characteristics.

  Control relocation (“Move controls towards the customer”.)
o Let the customer do more.
o Less work for the employees.
o DISADVANTAGE: Higher probability of fraud, less yield.
 Contact reduction (“Reduce the number of contacts with customers and
third parties”)
o Reducing time spend on waiting for contact.
o DISADVANTAGE: Increased possible error injection.
o DISADVANTAGE: Possible loss of essential information.
 Integration (“Consider the integration with a business process of the
customer or a supplier”)
o More efficent execution.
o DISADVANTAGE: Growth of mutual dependence, decrease of
flexibility.

Business Process Operation Heuristics

Time Cost Quality Flexibility

Case types + + -- --

Activity elimination + + -- .

Case-based work + - . .

Triage . -- + --

Activity composition + + . --

This are effects on the characteristics.

 Case types (“Determine whether activities are related to the same type of

case and, if necessary, distinguish new business processes”)
 Activity elimination (“Eliminate unnecessary activities from a business
process”)
 Case-based work (“Consider removing batch-processing and periodic
activities from a business process”)
 Triage (“Consider the division of a general activity into two or more
alternative activities”)
 Activity composition (“Combine small activities into composite activities and
divide large activities into workable smaller activities”)
Business Process Behaviour Heuristics
Time Cost Quality Flexibility

Re-sequencing + + . .

Parallelism + -- . --

Knock-out -- + . .

Exception + -- + --

This are effects on the characteristics.

 Re-sequencing (“Move activities to more appropriate places”)

 Parallelism (“Consider whether activities may be executed in parallel”)
 Knock-out (“Order knock-outs in an increasing order of effort and in a
decreasing order of termination probability”)
 Exception (“Design business processes for typical cases and isolate
exceptional cases from the normal flow”)

Organization Heuristics
Time Cost Quality Flexibility

Case assignment . . + --

Flexible assignment + -- . +

Centralization + -- . +

Split responsibilities . . + --

Customer teams . . + --

Numerical involvement + -- . --

Case manager . -- + .

Extra resources + -- . +
 Time Cost Quality Flexibility

Specialist-generalist + . + --

Empower + . -- +

This are effects on the characteristics.

 Case assignment (“Let workers perform as many steps as possible for

single cases”)
 Flexible assignment (“Assign work in such a way that maximal flexibility is
preserved for the near future”)
 Centralization (“Treat geographically dispersed resources as if they are
centralized”)
 Split responsibilities (“Avoid shared responsibilities for tasks by people from
different functional units”)
 Customer teams (“Consider to compose work teams of people from different
departments that will take care of the complete handling of specific sorts of
cases”)
 Numerical involvement ( “Minimize the number of departments, groups and
persons involved in a business process”)
 Case manager (“Appoint one person to be responsible for the handling of
each type of case, the case manager”)
 Extra resources (“If capacity is insufficient, consider increasing the available
number of resources”)
 Specialist-generalist (“Consider to deepen or broaden the skills of
resources”)
 Empower (“Give workers most of the decision-making authority instead of
relying on middle management”)

Information Heuristics
Time Cost Quality Flexibility

Control addition -- -- + .

Buffering + -- . .

This are effects on the characteristics.

 Control addition (“Check the completeness and correctness of incoming

materials and check the output before it is sent to customers”)
  Buffering (“Instead of requesting information from an external source, buffer
it and subscribe to updates”)

Technology Heuristics
Time Cost Quality Flexibility

Activity automation + -- + --

Integral technology + -- . .

This are effects on the characteristics.

 Activity automation (“Consider automating activities”)

 Integral technology (“Try to elevate physical constraints in a business
process by applying new technology”)