Knowledge Zone - Operations



Business Process Reengineering: Key Success Factors

- by Prashant Vaidyanathan *

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Part - II

Consultants and reengineering managers give this topic a lot of attention because current models of re-designing business processes use staff functions and consultants as change agents, and often the targeted organizations are not inviting the change. Without top management sponsorship, implementation efforts can be strongly resisted and ineffective. Projects that result in major change in an organization rarely succeed without top management support in the line organization.

Strategic Alignment

Reengineering project goals should be tied back to key business objectives and the overall strategic direction for the organization. This linkage should show the thread from the top down, so each person can easily connect the overall business direction with the reengineering effort. This alignment should be clearly demonstrated from the perspective of financial performance, customer service, associate (employee) value, and the vision for the organization.

Reengineering projects not in alignment with the company's strategic direction can be counterproductive. An organization may make significant investments in an area that is not a core competency for the company and later outsource this capability. Such reengineering initiatives are wasteful and steal resources from other strategic projects.

Moreover, without strategic alignment the key stakeholders and sponsors may find themselves unable to provide the level of support that would be needed in terms of money and resources, especially if there are other projects more critical to the future of the business, and more aligned with the strategic direction.

Business Case for Change

The business case for change should be communicated as short as possible otherwise a lengthy communication could be interpreted as not being able to understand the problem or not being able to understand the customers.

  • The business case for change should cover the few critical points.

  • The current state, and what impact the condition has on customers, associates and business results.

  • The drivers that are causing the condition to occur.

  • What is going to be done about it (vision and plan).

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* Contributed by -
Prashant Vaidyanathan,
II Year, PGDBM,
IMT, Ghaziabad.