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M.

SC Administrative Sciences Student ID


17PJG03007

Particulars of Student
Name: Tasaddaq Hussain S/O Muhammad Hussain Malik
Roll# CA554793- Student Id:17PJG03007
Semester Spring 2022. Class M.Sc Administrative Sciences

CC: 5016; Business Process Re-Engineering


Address:

AIOU, Regional Campus Jhang

Submitted To. Honorable.

MS.
NAHEED
AKHTAR
03215005545
HOUSE NO.
SN-534
DHOKE
KALA KHAN
SHAMSABA
CC:5016 Business Process Re-Engineering semester Spring 2022
D
M.SC Administrative Sciences Student ID
17PJG03007

Q. No. 01
Why is a business needs reengineering process for getting comparative
advantage? Discuss with examples.
What is Business Process Redesign?

The term business process redesign refers to a


complete overhaul of a company's key business process with the objective
of achieving a quantum jump in performance measures such as return on
investment (ROI), cost reduction, and quality of service. Business
processes that can be redesigned encompass the complete range of critical
processes, from manufacturing and production to sales and customer
service. Businesses may call in consultants to direct or assist with the
redesign.

6 Steps for effective business process redesign


CC:5016 Business Process Re-Engineering semester Spring 2022
M.SC Administrative Sciences Student ID
17PJG03007

1. Set clear goals. ...


2. Identify every business process and priorities them. ...
3. Make data capture and processing a routine part of the work day. ...
4. One workflow. ...
5. Empower the people who control processes. ...
6. Capture information once and at the source.

All of these results come together to bring more profit to your business:
 Lower operational costs as a result of streamlining and eliminating some processes.
 Better organization and goals creating more productive
 Better products driving more sales

Business process re-engineering (BPR) is a business management


strategy, originally pioneered in the early 1990s, focusing on the analysis and
design of workflows and business processes within an organization. BPR aimed
to help organizations fundamentally rethink how they do their work in order to
improve customer service, cut operational costs, and become world-
class competitors.[1]
BPR seeks to help companies radically restructure their organizations by
focusing on the ground-up design of their business processes. According to early
BPR proponent Thomas H. Davenport (1990), a business process is a set of
logically related tasks performed to achieve a defined business outcome. Re-
engineering emphasized a holistic focus on business objectives and how
processes related to them, encouraging full-scale recreation of processes rather
than iterative optimization of sub-processes.[1] BPR is influenced by technological
innovations as industry players replace old methods of business operations with
cost-saving innovative technologies such as automation that can radically
transform business operations.[2]
Business process reengineering is also known as business process
redesign, business transformation, or business process change management.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

The role of information technology


Information technology (IT) has historically played an important role in the
reengineering concept.[11] It is regarded by some as a major enabler for new
forms of working and collaborating within an organization and across
organizational borders
BPR literature identified several so called disruptive technologies that were
supposed to challenge traditional wisdom about how work should be performed.

 Shared databases, making information available at many places


 Expert systems, allowing generalists to perform specialist tasks
 Telecommunication networks, allowing organizations to be centralized and
decentralized at the same time
 Decision-support tools, allowing decision-making to be a part of everybody's
job
 Wireless data communication and portable computers, allowing field
personnel to work office independent
 Interactive videodisk, to get in immediate contact with potential buyers
 Automatic identification and tracking, allowing things to tell where they are,
instead of requiring to be found
 High performance computing, allowing on-the-fly planning and re-visioning
In the mid-1990s especially, workflow management systems were considered a
significant contributor to improved process efficiency. Also, ERP (enterprise
resource planning) vendors, such as SAP, JD Edwards, Oracle, and PeopleSoft,
positioned their solutions as vehicles for business process redesign and
improvement.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Business process reengineering vs. business process improvements

These two process improvement strategies both have the same end goal:
to make changes to business processes with the goal of improving performance.
The main difference here is the size and scale of the changes being made. 

Business process improvements are smaller scale changes intended to


improve a specific process within an organization. If your team uses a continuous
improvement model, you’re probably familiar with business process
improvements. 
Business process reengineering is the act of changing processes at a much
larger scale. Instead of looking at smaller individual steps, BPR assesses the
company as a whole and reconfigures how the entire business operates. 

Let’s imagine a car is representative of a business, and the car has a leaky gas
tank. If the team were to use process improvements to fix the leaky gas tank, they
would create a process to help switch out the old gas tank for a new one without a leak.
Business process reengineering would look at the gas tank and consider if there’s an
alternative fuel to use instead of gas. 

When to use business process reengineering

Business process reengineering is a large and all-encompassing process. It can be very


expensive—and the bigger your company, the more challenging the process becomes.
Consider the difference between a startup of about 25 employees versus a corporation
with 2,000 employees. The larger company will have much more established processes
and workflows, whereas the smaller company can make changes more quickly. If you’re
having trouble deciding if the effort is worth it, consider using a cost-benefit
analysis framework to determine if BPR is right for your company. 

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

If your team goes through the decision-making process and discovers that the
only solution is to go through the BPR process, do it early on in your team’s growth
process. One good reason to initiate the BPR process is to ensure scalability of your
core business operations. BPR implementation can help by creating a foundation for
your company to scale, instead of building on top of inefficient and complicated
processes. 

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Q No. 02
Explain business process redesign. Discuss the stages of business redesigning
process with examples.

Business Process Reengineering

The business process reengineering process follows approximately the


same steps as regular process improvements. The goal of both operations is the
same—to ensure that your business improves outputs. However, the scope of
BPR is bigger, and that may impact your timeline and approach. Here’s how you
can start the business process reengineering process in six steps.

6 Steps for effective business process redesign


7. Set clear goals. ...
8. Identify every business process and priorities them. ...
9. Make data capture and processing a routine part of the work day. ...
10. One workflow. ...
11. Empower the people who control processes. ...
12. Capture information once and at the source.

1. Identify the reason for change

Overhauling how your business process functions is a large, challenging,


and expensive task. It’s important to identify your reason why and examine if the
BPR process is worth the time and effort. What is the end goal? What would you
like your business to accomplish with this reengineering process? Establishing a
clear and definable goal is a good place to start. Use a framework like
the SMART goal methodology to ensure that your reason for change is concrete
and actionable. This will also make it easier to choose a success metric later in
the process. 
CC:5016 Business Process Re-Engineering semester Spring 2022
M.SC Administrative Sciences Student ID
17PJG03007

Your reason why should be extremely clear for your entire team. For
example, you may have to restructure part of your business to make way for a
new research and development team. Your team should understand that the
reason for the reorganization is to make way for the new team.

Before you start the reengineering process, it’s important to set a


benchmark with your already existing processes. This allows your BPR team to
get a baseline of current business operations before making any dramatic
improvements. Analyzing and measuring the baseline of your business
operations also gives the BPR team an opportunity to look at any bottlenecks in
the current state that can influence the business process redesign.

2. Establish your BPR team

Business process reengineering is a complex process that should be handled by


a competent and experienced team. Your BPR team should be composed of
people who are already familiar with how your business functions and
understand the ins and outs of key processes. Business process reengineering
teams commonly consist of:

 Senior management

 Operations managers of business critical teams

 A reengineering expert or leader

 Experienced project managers

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Your BPR team will be responsible for managing a lot of different expectations
from different stakeholders, so it’s important that both your team and
stakeholders can easily share and access key information. To make stakeholder
management easier, use a collaborative work management tool to compile and
share all of the information you need for the reengineering process. 

3. Set key performance indicators to analyze performance

This step ties closely with step one, when you determined the ultimate goal of
your business process reengineering endeavor. Identifying the goal of your
reprocessing helps you pick the right metrics for success. Choosing a KPI. Helps
you measure performance before and after your process change, so you can
determine the actual impact of BPR. 
For example, if your team is choosing to go through a business process redesign
with the goal of decreasing the amount of time it takes to produce a certain
product, the key metric your team would measure would be development time.
Remember, benchmarking your goals before making changes is how your team
can measure success.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

4. Design a future state

After taking the time to analyze core business processes and benchmark the
current state, it’s time to take that information and develop a future state of your
business operations. Think back to the goals you wanted to achieve—what are
some strategies you can implement to achieve those goals?

Take a look at your current processes and think about what can be changed to
achieve those goals. Use process mapping to visually display workflows and
processes in one place. A process map of the current state can also help you
during the decision-making process—with it, you can clearly identify where you
can alleviate any bottlenecks with automation or other forms of redesign.
It’s important to note that while business process reengineering does require a
complete overhaul of your business operations, that doesn’t necessarily mean
you have to get rid of every aspect of your current operations process. Some of
those core business processes could still be a viable part of your workflow, but
it’s up to your team to decide how and where to implement them in your new
future state.

5. Test the new process at a small scale 

Once you figure out exactly how your business process redesign will look, the
next step is to test out the process on a small scale before rolling it out for the
entire company. This test is similar to quality control testing of a product. Just like
how you want a final product to satisfy your customer needs, look at your
business to see if this business process satisfies the goals you wanted to
achieve. 

Testing the process at a small scale is an opportunity for mistakes to happen in a


safe environment—and you want them to. A small pilot is low-risk and gives your
team an opportunity to easily make changes before implementing the process at
a larger scale. The pilot stage can help prevent unexpected issues from
becoming complete business operation failures.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

6. Use change management to roll out the new business process redesign

Rolling out the new business process redesign is a crucial step that can make or
break the success of your BPR project. Use a change management strategy to
help alleviate any friction you may have with your team about implementing new
business processes. Change management is the process of prepping your team
for organizational change. As humans, we are naturally averse to change, so it’s
important to help your team along the way. In the BPR process, you can start
early by clearly stating the business strategy behind your team’s reengineering
efforts. 
Once you implement the redesigned process, the next step is to monitor and
measure the same KPIs you established in step three. Maintain contact with core
members of your business operations team to keep a pulse on how the new
process is performing and if any team members have issues. From here, you can
implement a model of continuous improvement for your core business
operations. 

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Business Process Reengineering reduces costs and cycle times by


eliminating unproductive activities and the employees who perform them.
Reorganization by teams decreases the need for management layers,
accelerates information flows and eliminates the errors and rework caused by
multiple handoffs. Improve quality

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Q. 3

What are the various key process attributes used in reengineering the business
process? Discuss with examples.

What are attributes of business process?

All processes have attributes that are important in determining how successful
they are in getting a job done and getting it done well. Some process attributes,
or types of processes, include informal, formal, measurable, flexible,
extensible, and repeatable.

The Six Key Steps of Business Process Reengineering

 Define Business Processes. ...


 Analyze Business Processes. ...
 Identify and Analyze Improvement Opportunities. ...
 Design Future State Processes. ...
 Develop Future State Changes. ...

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

 Implement Future State Changes.

BPR includes three phases; analysis phase, design phase, and


implementation phase. It is also referred to as business process redesign,
business process change management, and business transformation.

Organize around outcomes, not tasks. Identify all the processes in an


organization and prioritize them in a redesign urgency order. Integrate
information processing work into the real work that produces the information.
Treat dispersed resources from various areas as though they were
centralized.

Phases of BPR:

 Begin organizational change.


 Build the re-engineering organization.
 Identify BPR opportunities.
 Understand the existing process.
 Reengineer the process.
 Blueprint the new business system.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

 Perform the transformation.

Six Easy Criteria for Targeting a Good Process

 A Good Process should be Simple. ...


 A Good Process should be Robust. ...
 A Good Process should be Documented. ...
 A Good Process should be Controlled. ...
 A Good Process should be Communicated. ...
 A Good Process is Error-Proofed.

Important Process Attributes

All processes have attributes that are important in determining how successful
they are in getting a job done and getting it done well. Some process attributes,
or types of processes, include informal, formal, measurable, flexible, extensible,
and repeatable. These can be defined as follows:

 Informal processes
 Informal processes are those that many times randomly happen and
become “the way that we do things around here,” often as an agreed way
of working with two or more colleagues. Informal processes can work well
when two or more co-workers work together cohesively, and when nobody
else is impacted by the process apart from the individuals involved.
Problems with informal processes can arise when members of the
cohesive group begin to leave the company or move on to other teams,
and there is no formally agreed process in place.
 Formal processes

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

 Formal processes are usually documented procedures. They are often


established by agreement between two or more key players, teams, or
departments in a business, or between different businesses. Formalized
processes should work well to help businesses become more efficient and
effective. If a formal process is well thought out, documented, and
understood, it is less likely that costly mistakes will occur since in theory,
everyone understands the processes and potential conflicts are easier to
identify.
 Measurable processes
 A measurable process is exactly that—one that can be quantified. If it is
not possible to measure processes, then it is nearly impossible to figure
out whether or not they are effective, and whether they might benefit from
improvements. Good processes should be measurable either overall or in
their component parts, because some bits of a process may work well,
while other bits might benefit from improvement.
 Flexible processes
 A process that is flexible is one that can be adapted to fit a number of
different situations, or most possibilities that may arise. Processes that are
not flexible can cause huge problems for organizations. Processes need to
be flexible and adaptable in order to deal with situations that fall outside of
the norm without causing problems for the business and without negatively
impacting revenues.
 Extensible processes
 Similar to flexibility, processes need to be extensible so that they can be
adapted for different and new situations that might arise, but also so that
they can be scaled up as businesses get larger. Extensible processes are
those that can handle the launch of new products or services and can be
easily broadened over time as the company grows. Processes need to be

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

extensible in order to be able to easily accommodate changing business


needs and priorities.

 Repeatable processes
 A repeatable process is one that time and time again yields a consistent
outcome. Repeatable processes are usually documented, making
them considerably easier to follow. Repeatable processes can be informal,
but they are more often formalized so that they can be carried out by
anyone, even if the person is new to the organization or partnership.

Takeaways

Whether processes are informal or formal, it is important that they include the
following attributes:

 Measurable
 Flexible
 Extensible
 Repeatable

Processes that h

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Above these attributes tend to be more successful because they can be


measured and improved; they are flexible enough to change as needed based on
changes in the environment; they can scale with the growth of the organization
due to their extensible nature; and more importantly, they are repeatable so that
successful outcomes can be replicated. 

Q. 4
What are the various targets of reengineering of business process in your
view?

It is a management strategy that allows businesses to rethink their business


processes and workflows in their organization. The goal of business process
reengineering is to improve the overall business by cutting costs, improving
the customer experiences and beating competition.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Key Target in Making a Business Process Reengineering Initiative Successful

 Agency/Leadership Commitment and Sponsorship. ...


 Inclusion of the Right People. ...
 Clear Understanding of the Business Needs. ...
 Crucial Change Management. ...
 Ongoing Continuous Improvement

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

It is a management strategy that allows businesses to rethink their business


processes and workflows in their organization. The goal of business process
reengineering is to improve the overall business by cutting costs, improving the
customer experiences and beating competition. Business process reengineering,
BPR, has been employed by many companies both big and small to improve
business processes from the ground up.

The core of business process reengineering is the use of information


technology to streamline business processes. IT has been employed in BPR to
avail information faster and conveniently, to centralize business processes using
telecommunication. The use of wireless data communication has made it
possible for people to work remotely and the automation of business processes

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

has made it possible for these processes to be accomplished at a shorter time


period and in an effective manner.

BPR differs in detail from organization to another depending on the goals that
they need to achieve. However, there is a conventional approach to BPR which
is a three step process.

 In the first step it involves restructuring the organization into functional units so
that the assimilation of the new process becomes easier.

 The second step is to introduce the new process to these smaller groups in a
gradual and systematic manner.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

 The third and final step is to restructure and streamline the activities that are
related to the new process.  Another thing that needs to be done in this final step
is to eliminate tasks that do not add value to the new process.
BPR is a very delicate process that requires the full cooperation of the entire
organization. When a company is undergoing BPR they need to first set up a
team that will spearhead the process. This team will do an analysis of the needs
of the company and come up with effective ways to meet them. The organization
undergoing the BPR needs to have the proper and adequate IT infrastructure in place
so that they can ensure the process is streamlined.  Effective change management and
continuous improvement are other important aspects of BPR that should not be
overlooked.

BPR has its downsides, it leads to massive restructuring and in most times


results in downsizing and for this reason BPR is not popular with employees.
However, BPR still remains an important part of the survival of most
companies today.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

044

Q. 5
How to speed up the response to customers’ complaints regarding the
improvement of products in the business organization?
CC:5016 Business Process Re-Engineering semester Spring 2022
M.SC Administrative Sciences Student ID
17PJG03007

Every Organization want to satisfied their customers by providing better


services to them through quality goods and complaints handing measurers.
Here's the process we recommend when responding to customer
complaints.

 Listen to or read the customer's complaint. ...


 Take a moment to process the criticism. ...
 Determine what action you'll take to address the problem. ...
 Thank the customer for their feedback. ...
 Apologize and reiterate your understanding of the issue.

Your procedure could include the following steps.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

1. Listen to the complaint. Thank the customer for bringing the matter to your
attention. ...
2. Record details of the complaint. ...
3. Get all the facts. ...
4. Discuss options for fixing the problem. ...
5. Act quickly. ...
6. Keep your promises. ...
7. Follow up.

1. Listen with an open mind.


Hear what the person has to say without prejudging the situation. Let the person
speak his mind fully, without interruption and without questioning the validity of
the problem. Before you say anything, you should fully understand what has
happened and precisely why the person is upset.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

2. Repeat the problem back.


Once you see where the complaint is coming from, repeat it back in your own
words so the person knows you've grasped her position. She might correct you
on a few points, but keep parroting her position back to her until she
acknowledges that you've gotten it right.

3. Empathize and assure that something will be done.


Without admitting any fault on the part of the company or placing blame on
anyone, say this:
The way you've described this, I'd be unhappy, too, if I were in your shoes.
Let me see what I can do. I'll check this out and get right back to you as soon as
possible.
Showing your sincere empathy will help neutralize any anger the person feels. In
the vast majority of cases, you'll be amazed by how quickly this assurance calms
the person.

4. Follow up promptly.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

As soon as possible, follow up with a report on what went wrong and the steps
you plan to take to rectify the situation and prevent it from happening again. In
some cases, you may even wish to send a small gift as a token of thanks for the
person's help in improving your business.
The goal of this process is to show the customer that you truly care about his
patronage or the employee about her work on behalf of the company. Make sure
all your employees know to use this process with their customers and that all
managers know to use it with employees.
When you approach complaints and criticism with openness, empathy, and a
sincere desire to help, you'll significantly strengthen your business.

How to respond to customer complaints

5 tips on responding to customer complaints:

1. listen to the customer’s experience in its entirety


2. apologize
3. focus on the solution
4. don't rush the customer
5. find complaints before they find you

Customer complaints are timeless. No matter the size, nature, or success of your
business, you’ll always have at least a small percentage of people who aren’t

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

happy with what you do. The idea that you can’t please everyone is as true today
as it was a century ago.

But never before in history has it been easier for customers to complain. To
criticize a business, customers don’t have to take the time to talk with you. They
can simply pick up their phone, type a few angry sentences, and hit send—via
email, review sites like Yelp and Google, social media sites like Facebook and
Twitter, or any number of online forums and discussion boards.

Free customer avatar template

And, unlike the old days, customers don’t have to be loyal to any one business:
They’ll just Google your competitors. According to a customer service survey by
American Express, more than a third of customers said they immediately
consider switching companies after a single negative experience.

Since a customer service makes the backbone of any successful business, you
can’t afford to turn off a customer. To prevent this from happening, it’s important
to first understand what might be causing your customers to say, “I’m not buying
anything from you again.”

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

6 common customer services mistakes to avoid

1. Over-automation

It might be tempting to automate all of your marketing and sales tasks to cut
costs and time if you’ve adopted automation technology, but you shouldn’t
automate just because you can. Technology can’t provide perfect replacement of
that “one-on-one” experience. Plus, different customers prefer different modes of
communication.

Dana Brownlee, founder of the communications consulting firm, Professionalism


Matters, you need to give options so your customers aren’t treated to “the
frustrating phone trees.” Where possible, provide phone numbers, live chats, and
emails through which your customers can reach you.

If you do choose to rely on automation (and it certainly has its benefits), be sure
your automated emails sound natural and personal. Read the free e-book, "This
Time, It’s Personal" to get more tips on using automation the right way.

2. Trying to handle customers too quickly

Most representatives assume they know what the customer wants. When they
answer their customer’s call, they rush to give them a solution to their problem.
This can disgruntle your customer and could lead them to resent your company.
To avoid losing customers, teach your customer service representatives effective
listening skills. Make sure they’re taking the time to listen to the customer,
understand their specific problem, and offer a solution. Encourage them to get rid
of their scripts and work with the customer.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

3. System outages

The truth is, no system has a perfect uptime. Even the most established, cloud-
based systems have their fair share of trouble when the outage monster strikes.
The tragedy is, if your customers can’t reach you, all the midnight oil you burned
grooming your business will have been in vain.

To be on the safe side, look for a reputable web service provider that offers fast
page loading time and a reliable, round-the-clock uptime. For those who provide
support via email and telephone, ensure that your customer can reach you during
the hours you promise support. If you are not reachable after hours, build a
system that allows them to put in a request or a ticket. Then call back when you
are available.

4. Slow turnaround

We live in the time of on-demand. Thanks to the power of modern technology,


we’ve become completely impatient. We want to have a quick turnaround time.
Your customers expect the same. Having a speedy response not only draws
them to your business but can win their long-term loyalty, too. Respond promptly
to your customers’ questions and feedback, especially if it’s over social media
where things move faster than the speed of light. Otherwise, your competition will
be laughing all the way to the bank.

5. Undervaluing your customer service team

Your customer reps are the first personal interaction your customers receive.
They make up the face of your business. Unfortunately, they also tend to the be
lowest paid and regarded employees. Sinking their morale will sink your

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

business to rock bottom. Find ways to motivate them to go the extra mile to
satisfy your customers. Hire top talent, pay them well, and reward them
whenever they achieve great results. You will also attract top talent to your
service desk if you build a reputation treating your employees well.

6. No complaints ≠ good customer service

You work hard to get to your customers. You train your staff on great customer
service examples and how to handle questions that run the gamut. And you’re
not getting any complaints, so you should be happy, right?

One of the most common customer service mistakes is mistakenly thinking that
just because you aren’t getting complaints means your customer service is top
notch. Studies have shown that only 1 out of 26 disgruntled customers will
complain. That means that for every complaint you receive, there are another 25
dissatisfied customers who don’t bother to complain. However, if you’re receiving
an avalanche of compliments and only a few complaints, you have a reason to
smile. You’re doing something right.

Now that you understand what could be bringing in those customer service
complaints, it’s time to establish a plan for your customer complaint response.
Here are the basics that will help create positive experiences for your customers
and make them feel appreciated and loyal.

Preparing for complaints

Talk as a team

When is the best time to figure out how to respond to complaints? Before the
complaints ever occur. Talk with your staff about handling scenarios like angry
emails, policy disputes, and discount requests to ensure your company’s

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

responses are delivered consistently and confidently. No customer is reassured


by a response like, “Um, I don’t know; I’ll have to ask my boss.” Include your
whole team in the discussion: All employees represent the company, regardless
of whether their roles directly involve customer service.

Find complaints before they find you

Customers tend to take their complaints online as a last resort as if your


company would only respond to them in the event of public shaming. On every
platform, make it easy for customers to find email addresses and phone numbers
on every platform so that customers know they have outlets for feedback.

Better yet: Be the first to start the complaint conversation by sending post-
purchase emails and surveys to customers. If you’re using automation software
like Keap, you can send these emails automatically after every purchase. The
software can also alert you to negative feedback so that responding rises to the
top of your to-do list. By taking a proactive approach, you’ll discover more
feedback that helps you improve your business: Most companies hear from only
4 percent of dissatisfied customers, according to the book "Understanding
Customers."

Responding to complaints

Don’t leave them hanging

One hour is the new one business day. More than 85 percent of customers think
businesses should respond to emails within an hour, according to a survey by
Toister Performance Solutions, a firm that focuses on customer service training.
Similarly, 42 percent of customers expect one-hour response time on social
media, according to a survey from the social media research project, The Social
Habit.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

Many customer complaints can’t be resolved in 60 minutes or less, but they can
at least be addressed. If you need a few days to investigate the customer’s
complaint, tell her so now, not after those few days. Your failure to respond might
lead the customer to believe you’re not on top of customer service—or worse,
that you don’t care, which only worsens the situation.

If you won’t be able to respond quickly, consider setting up an automatic


response. With Keap, the completion of a “contact us” web form can trigger an
email that tells the customer you’ll get back to her as soon as possible. While that
email can’t resolve the complaint, it can reassure the customer that her message
didn’t disappear into an online black hole.

Listen and apologize

No matter the business or the complaint, the first two steps to resolving a
customer complaint are the same. Step one: listen to the customer’s experience
in its entirety. Step two: apologize.

Ideally, these conversations would take place in person or on the phone, but that
doesn’t mean Yelp reviews and Facebook comments should be ignored. Digital
marketing strategist Jay Baer says businesses should address every complaint,
on every channel, every time. “I’m not suggesting that the customer is always
right,” Baer said in a webinar, Hug Your Haters: Customer Service in a Digital
and Social World, “I’m suggesting that the customer is always heard.”

You don’t have to plead guilty to an offense every time a customer complains,
but you do need to consider his point of view—to listen without interruptions.
Make it clear that you understand why the customer is upset, even if you don’t
agree with him. You may not be sorry that he simply didn’t like your product, but
you can still be sorry that he had a disappointing experience.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

The simple act of listening and apologizing can be therapeutic enough to resolve
the problem. Researchers at the University of Nottingham in the United Kingdom
conducted a study with two groups of eBay customers who had given negative
feedback. In a request to withdraw the comments, one group was offered an
apology that cited a manufacturer delay, while the other was offered a small
amount of money. Ultimately, a simple “sorry” proved more valuable than the
cash: 45 percent of participants withdrew their comments after receiving the
apology, compared with only 23 percent of those offered compensation.

Focus on the solution

After you’ve listened to the customer’s complaint and apologized, you can offer
your side of the story—not an excuse, but an explanation. A customer’s
misunderstanding or lack of information could have contributed to his complaint,
and learn more about your company’s intentions might help settle his emotions.

But keep it short: The more you say, the more you might create opportunities to
start another argument. Instead, shift the conversation away from the problem
and toward the solution.

Don’t make promises you don’t intend to keep: You’re not going to drastically
change your company’s offerings or operations based on the opinion of one
person. But maybe you’re going to talk with an employee or adjust a process that
caused the problem in order to prevent it from happening again. By explaining
the actions you’re going to take, you show the customer that you valued his
feedback and gave it serious consideration.

If you can afford it, give the customer a financial incentive for a future purchase.
If a restaurant settles a complaint by reducing the bill, the customer still might
leave with a negative impression of the service. Offering a gift card compels the

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

customer to come back for an additional—and hopefully, more positive—


experience with your company. According to "Understanding Customers," it takes
12 positive experiences to overcome one unresolved negative experience with a
business.

Making the most of complaints

Customer complaints can be stressful, uncomfortable, time-consuming and just


plain annoying. Still, you should be thankful for them. Unlike 96 percent of
dissatisfied customers, complainers took the time and energy to tell you how you
could improve your business. Sure, by speaking up, they might hope something’s
in it for them. But there should be. Always thank customers for their feedback,
even negative: Without it, you wouldn’t truly know how to provide the good
service that keeps them coming back.

1. Remember that it's not personal. ...


2. Listen to what the customer says. ...
3. Acknowledge what the customer says and feels. ...
4. Understand what the customer wants. ...
5. Offer a solution. ...
6. Apologize to the customer. ...
7. Send a follow-up letter.
Q. 4
How does the business organization deal customer friendly for getting
competitive edge in the market in your view? Discuss with examples.
Ans.

The ability to effectively handle customer complaints and problems is


vital for your customer service associates. Though providing outstanding service
throughout the selling process is beneficial, customers who do complain and get
their problem effectively solved often develop a strong emotional loyalty to a
business.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

It improves your reputation and makes your company look


trustworthy and caring. The more you tend to go the extra mile to address the
reported issues, the more satisfied your clients will be.

As an entrepreneur, it may be frustrating to receive criticism and unfavorable


comments about a product you have put your heart and soul into. But you
should not take it personally. As a matter of fact, if you look at them from
another angle, you will see that customer complaint are quite valuable. In fact,
they can be a game-changer for your business.

And here are the main reasons why:

1. Customer satisfaction enhancement

Many people, when unsatisfied with a product, will keep it to themselves and
simply stop using your services.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

However, those who do share, usually express not only their own feelings but
those of other customers too. So when you address their feedback and provide
a quick resolution, you are likely to make more than one customer happy.

A report by Harvard Business Review showed that when complaints are


handled in a timely manner, clients who filed them usually become more
satisfied with the service and more loyal to the company.

2. Product/service upgrade

When clients report encountering some problems with your product or service,
or simply features or aspects they do not like, this is the gold. You no longer
need to look for ways how to make your service more appealing to customers to
ensure that they keep choosing you over your competitors.

Customer complaints serve as a source of insights on what areas should be


worked on and upgraded. Additionally, by studying bad reviews you can find
new good ideas for improving your product that you haven’t thought of before.

3. Improvement of policies and procedures

Most companies have a number of policies and procedures designed to make


the business run more smoothly.

However, you don’t always know if they are working as intended and suit your
company's needs best. Luckily, negative feedback often highlights flaws in your

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

internal processes and contains hints on what is not working or is unclear to


customers exactly.

By analyzing this information, you will be able to judge which procedures need
improving and which you should simply give up as they are inconvenient or not
needed. At the same time, you also receive feedback about your staff and
whether they manage their responsibilities.

4. Boost in customer communication

Besides, customer feedback also serves as a channel of communication


between your company and the clients. The statistic shows that the biggest
percentage of clients leave companies because they feel like the latter does not
care about them.

For many of them, it is important to know that their opinions are taken into
account. Furthermore, when clients know that there is an open line of
communication and their input matters, they are more likely to stay loyal to your
company and spread the good word.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

5. Positive impact on brand image

Having an open channel of communication where customers can report


problems with your service or bad experiences also positively affects your
brand image. It improves your reputation and makes your company look
trustworthy and caring.

The more you tend to go the extra mile to address the reported issues, the
more satisfied your clients will be. And happy customers are more likely to
share their good experience with their colleagues, friends, and family, which
only helps to spread the word and build your reputation.

Q. 5 What are various strategies to be formulated in the business organization to


concentrate on output rather than inputs? Discuss with examples.

What are good strategies?

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

A business strategy is an outline of the actions and decisions a company plans to


take to reach its goals and objectives. A business strategy defines what the
company needs to do to reach its goals, which can help guide the decision-
making process for hiring as well as resource allocation. A business strategy
helps different departments work together, ensuring departmental decisions
support the overall direction of the company.

A good strategy provides a clear roadmap, consisting of a set of guiding


principles or rules, that defines the actions people in the business should take
(and not take) and the things they should prioritize (and not prioritize) to achieve
desired goals.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
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Within concentration strategies, there are three sub-strategies: 


(1) market penetration
(2) market development
(3) product development 
Interestingly, a firm can use one, two, or aspects of all three strategies in its
efforts to excel within an organization.

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

IMPORTANCE OF STRATEGY
There are several reasons why a business strategy is important for
organizations, including

Planning
A business strategy helps you identify the key steps to take to reach your
business goals.

Strengths and weaknesses:


The process of creating a business strategy allows you to identify and evaluate
your company's strengths and weaknesses so you can create a strategy that
optimizes your strengths and compensates for or eliminates your weaknesses
Efficiency
A business strategy allows you to effectively allocate resources for your business
activities, which automatically makes you more efficient. It also helps you plan
ahead for deadlines, allocate job roles and stay on track for your project goals.
Control
Creating a business strategy gives you more control over choosing the kinds of
activities that will directly help you reach your goals, as well as allows you to
easily assess whether your activities are getting you closer to your goal.
Competitive advantage
By identifying a clear plan for how you will reach your goals, you can focus on
capitalizing on your strengths, using them as a competitive advantage that
makes your company unique in the marketplace.
Components of a Business Strategy

CC:5016 Business Process Re-Engineering semester Spring 2022


M.SC Administrative Sciences Student ID
17PJG03007

1-Vision and business objectives


Some organizations focus on selling additional products to the same customer.
Cross-selling works well for office supply companies and banks, as well as online
retailers. By increasing the amount of product sold per customer, you can
increase the average cart size. Even a small increase in cart size can have a
significant impact on profitability, without having to spend money to acquire more
new customers.
2-Most innovative (Product and Services)
Many companies, particularly in the technology or automotive space, are
distinguishing themselves by creating the most cutting-edge products. In order to
use this as your business strategy, you will need to define what "innovative" will
mean for your organization or how you're innovative.

3-Grow sales from new Products


Companies like to invest in research and development in order to constantly
innovate, even with their most successful products. This type of strategy involves
introducing new products into the market and updated products that are able to
keep up with trends.
4- Customer Service Improving
This can be a good business strategy if your business has had a problem
delivering quality customer service. Some companies have even built a strong
reputation for having exceptional customer service. Usually, companies have a
problem in one specific area, so a business strategy that's focused on improving
customer service will usually have objectives that center around things like online
support or a more effective call center
5-Cornering young Marketing

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M.SC Administrative Sciences Student ID
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Some large companies are buying out or merging competitors to corner a young
market. This is a common strategy used by Fortune 500 companies to gain an
advantage in a new or rapidly growing market. Acquiring a new company allows
a larger company to compete in a market where it didn't previously have a strong
presence while retaining the users of the product or service.
6-Propduct Differentiation
Product differentiation is a common business strategy, especially for business-to-
consumer (B2C) businesses. They can differentiate their products by highlighting
the fact that they have superior technology, features, pricing or styling.

CC:5016 Business Process Re-Engineering semester Spring 2022

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