Fundamental rethinking and radical redesign. Business process reengineering methods

Business process reengineering management includes a set of methods and techniques. They are used by the organization to successfully design its activities. This happens in accordance with the goals set.

Business process reengineering implies a complete rethinking and further redesign of all processes that are necessary to achieve set goals and objectives. Improvements can occur very sharply, in leaps and bounds. Despite this, the organization is able to achieve success and make the desired adjustments to the cost of goods and services, the quality of services provided, and improvement of maintenance services.

Components of the definition

The definition of business process reengineering includes four basic words: fundamental, radical, sharp, process.

Fundamentality enters the first stage, in which it is necessary to answer a number of questions related to the main ones:

1. Why does the organization engage in this particular activity and not something else?
2. Why does the organization carry out its work in these particular ways and not implement other options?
3. What kind of organization does it ultimately plan to become and where does it see itself in a few years?

Practitioners who answer a number of these questions must rethink the current rules for conducting business. Often they may be outdated, ineffective and not applicable to a specific production.

Radicality refers to the redesign of business activities. The changes are not just superficial. The entire existing system is subject to change. The business owner is offered options, the implementation of which can change the entire production.

Sharpness. Business process reengineering is not used in cases where it is necessary to improve and increase the income generated by a certain percentage, up to a maximum of 100%. The feasibility of use is determined only if the entrepreneur wants to increase performance by 500% or more. In such cases, there is a complete replacement of the methods used to conduct business and produce goods. They are being replaced by everything new.

Managing business process reengineering involves the use of new methods in a company step by step, thanks to which it is possible to create a completely new product that is currently relevant to the consumer. Well-designed processes allow an organization to achieve its goals and solve a number of problems.

For which organizations can reengineering be used?

At the moment, there are three types of organizations that need to adjust or completely change their work:

• Organizations that are at the stage of bankruptcy. This is often due to the fact that prices for goods and services are set significantly higher than those of competitors, or the quality does not correspond to the declared cost. If measures are not taken in time, the organization may be liquidated after some time.

• Organizations that currently do not have problems or difficulties with conducting their activities, but they may appear after some time and negatively affect the business. Such problems may be associated with an increase in the market for goods and services of competitors or changes in customer needs.
• Organizations that have no problems, but the business owner is looking to the future. He wants to prevent problems that may come the company's way. Such organizations are predominantly related to leaders. Their marketing policy is aggressive, they are not satisfied with a good market position, they constantly want improvements in their work processes.

Thus, the main tasks of business process reengineering include the introduction of innovations that will allow the organization to firmly consolidate its position in the market and not lose the ability to compete. All this allows the company to survive and continue to function fully regardless of how many competitors are present.

You can consider the development of a business process reengineering project using the example of the stages that are included in the work:

1. At the first stage, an image is developed that the organization will correspond to. To do this, a certain picture is built that will include the necessary directions for the development of activities. All this will contribute to achieving your goals.
2. Analyze the work of an existing organization. At this stage, specialists conduct a study of the enterprise, on the basis of which a scheme is built that corresponds to the work at a given point in time.
3. The process of developing a new activity. In this case, new processes are built or existing ones are changed. Thanks to information systems, these processes are beginning to be tested.
4. After passing through all stages, the developed process is implemented into the work of the enterprise.

It is at these stages that the essence of business process reengineering is fully built.

Main stages

Any process and its implementation consist of stages. The main stages of business process reengineering include:

1. Global thinking, on the basis of which perspectives in approaches are developed. Leading managers must have excellent orientation and understanding of all the features that are associated with the development of the enterprise. In the process of work, you need to take into account the needs of customers, the advantages of competitors and the latest developments in technology that can be introduced into the business.
2. Carry out work to prepare the organization. Communication is the main key to success. In advance, you need to make a list of tasks and goals that you plan to solve. In cases where the initiative comes from employees, they should be encouraged.
3. Constantly analyze the implementation of processes. If something needs improvement, then it’s worth returning to it; this approach will allow you to avoid a number of mistakes in your work. If necessary, you can contact in-house specialists who may encounter problems during the work process and describe them in detail. Any ideas you receive should be written down; they may be useful in the future.
4. Determine the level of effectiveness. Efficiency can only be monitored if a reference point has been provided in advance.
5. Approach the process creatively. The first step is to pay attention to the needs of potential clients. The collection of information must be carefully monitored, the sources that provided it must be tracked, and the dissemination process must be accelerated if necessary. If necessary, you need to delegate authority and control customer service.
6. Changes in activities in an organization must be planned in advance. Sure, operational improvements can happen in a short time, but implementation will take time. You need to draw up a plan in advance in which you can indicate all the desired indicators; they are the ones that should be converted.
7. All processes must be analyzed and evaluated. Feedback from employees must be present. It is necessary to monitor all stages of implementation and evaluate the effectiveness and achieved indicators.

Thus, by using effective methods in an organization, goals can be achieved easily and quickly.

What methods are used in your work?

To improve the activities of organizations and enterprises, it is necessary to use certain tools. The main methods of business process reengineering include:

1. In the process of business transformation, it may happen that unnecessary processes appear that need to be eliminated first so as not to waste time on this. Such processes include verification and approval.
2. During activities, gaps may occur between processes, which also need to be identified and eliminated in a timely manner.
3. All reorganization work should cost a minimum amount of resources spent. For example, if several tasks need to be solved, it is best to group them and assign one employee to complete them. This method allows you to reduce not only costs, but also the number of employees involved in the business process.
4. Some processes can be delegated to employees of third-party organizations and companies.
5. In the process of activity, you may encounter complex tasks. Each such process must include several options for solution. This will allow you to have a choice and choose the best option.
6. Cycle times can be reduced by performing multiple steps in one location and at the same time. This can reduce transportation costs.
7. Combine multiple tasks. If solving problems falls on the shoulders of employees, then they can be gathered into one department and given the opportunity to complete not a separate task, but an entire process.
8. Make your work as easy as possible. In most cases, employees in an organization have limited working hours, lack the proper skills, and have no time for training. At such moments, it is necessary to simplify the work as much as possible, which will be extremely clear and clear for anyone.

Over time, as employees personally accomplish their goals and solve problems, they will begin to gain experience so that they can be assigned more complex processes in the future.

What are the operating principles?

The basic principles of business process reengineering include:

1. Several types of work are combined into one. During the operation of an enterprise, employees spend most of their time not on solving problems, but on coordination and interaction. In this case, not only is unnecessary time wasted, but costs also increase. To reduce these indicators, it is advisable to carry out a merger.
2. The decision remains with the performer. A person who is trusted to perform a job can personally make decisions regarding the task that he or she is performing. This will avoid wasting time and slowing down all processes when contacting the manager.
3. All work must be carried out in strict compliance with order.
4. Work is performed where necessary. Functions are distributed based on work process, not responsibilities. For example, if it is easier and better for an employee to acquire what he needs for work on his own, then it is better to entrust this to him, and not to the person whose duties it should include.
5. Any process involves several options for execution. The implementation of the process depends on the situations.
6. Reduce inspection and control work, since all this entails not only additional time, but also unforeseen expenses.
7. Reducing the share of approvals does not incur costs, but it slows down all processes.
8. A manager can be appointed as the responsible person, who is assigned the responsibility to complete the assigned task.

If we look at the assessment of experts, we can understand that almost 50% of projects fail. To prevent this, it is necessary to take a responsible approach to work and perform it efficiently.

What goals are present in the work?

The main goals of business process reengineering include:

1. Not only increase the level of ability to compete with other companies providing the same range of goods and services, but also increase business profitability. Taking such a step is simply necessary if the organization is on the verge of bankruptcy and subsequent liquidation.
2. Prevent possible problems that may appear over time. For example, if the organization’s activities are quite successful, then with the emergence of new players in the market, competition may increase. This can lead to an increase in the quality of the goods produced and a reduction in cost. To achieve this, the necessary processes must be developed in a timely manner.
3. Help in preventing loss of position in the market of goods and services. This may apply to leading organizations that are trying to reach the next level and are not satisfied with doing a good job. As the work progresses, performance improves, and the business owner does not have to worry about losing his leading position.

What is the concept of reengineering?

The result of the work done is determined by the effectiveness of motivational systems and business process reengineering technology. The main feature of the solution and implementation of processes is that in their work, employees who perform delegated powers have the opportunity to independently make decisions within the framework of their duties. This helps to improve and increase the efficiency of both the enterprise itself and its employees.

Reengineering is based on the use of radical measures, the work is done once, but the scope is wide. The concept of business process reengineering falls between management and information technology, which contributes to the creation of additional support tools. To consolidate the implemented process, the use of new information systems and instructions is required, which will apply to full-time employees. In some cases, advanced training of workers and their further training will be required.

What changes may occur at work?

The modern world in which entrepreneurs operate has changed significantly over the past few years. Undoubtedly reengineering changes business processes were also affected by:

1. At the moment, consumers have begun to independently exercise control in the market and have taken this matter into their own hands. Nowadays, any person has enough knowledge and ideas about how a product should look and what functions it should perform, and, accordingly, determines the cost of this product, the amount that he can spend and not be disappointed. And most importantly, the buyer has the opportunity to choose.
2. Consumers form expectations that relate to a specific product. Regardless of whether it has just entered the market or is an old product that has undergone some changes. Products will be in demand only if they are able to satisfy expectations and needs.
3. At the moment, productive technologies have undergone significant changes, and in particular information technologies, which have the ability to use a method to transmit the necessary information to consumers.

Despite the changes that have occurred, there are still organizations and enterprises that still use old methods to develop and implement business management ideas.

Project implementation

The implementation of projects can be seen clearly using the example of business process reengineering of a company that is the largest cellular operator in Russia, namely Rostelecom.

The management team entered into a contract for the provision of services with one of the companies back in 2003, and the optimization of management processes continues to this day. As an example, we can consider a specific stage that ended back in 2005 and is still functioning. Among the main developments is the constructed model, which allows the process of calculating services for the use of communications.

From the words of Vadim Izotov, who is Deputy General Director, it can be understood that the developed model made it possible to approach the implementation of a new billing system.

What can influence

The reengineering of an organization's business processes can be influenced by a number of factors:

1. Motivating employees. For effective implementation of the project, it is necessary to introduce motivation that will be clear to everyone and also documented. The head of the organization must clearly understand that the measures used will lead to success and that all constructed activities will be radically changed. To ensure success, the business owner must realize that reengineering the organization's business process is a necessary measure, and provide all the necessary conditions for its further implementation.

2. Management team. The implementation of any projects must be carried out under the supervision of management. In turn, he is an authority among his subordinates and bears full responsibility for the work performed. To achieve the desired results, business process reengineering must be managed competently, clearly, firmly, and skillfully. A businessman must clearly understand that some problems may arise in the process, since the organization will be completely reorganized. He must resist and not resort to using old methods. The manager is obliged to take all measures to ensure that the planned project reaches completion and is subsequently implemented.

3. Staff. The team for reengineering business management processes should include full-time employees who will first be vested with appropriate authority. They must have a clear understanding of why change is needed and what is preventing the work from being done effectively within the company. The employee must comply with the authority given to him and competently perform his duties.

As practice shows, it is much easier to explain to lower-level employees why they need to use innovations and restructure the work of the entire enterprise. It is much more difficult to convey this idea to employees who are part of the managers, since they do not understand what the new production will give them. Researchers in America have identified three groups that managers may belong to:

• Tiger is a young employee who has just begun to build his career. He has a desire to participate in the project, has enthusiasm, clearly fulfills the tasks assigned to him, and does not cause harm.
• Donkey is a specialist who has been working in the company for a long time and has reached the peak of the career ladder. He wants stability at work, peace of mind. Absolutely does not understand why reengineering of enterprise business processes is necessary. Such employees must be treated carefully, as they can harm the implementation of the project.
• Shark - specialists who develop management procedures and instructions, which allows them to manage a number of operations within the organization. Such employees often have influence in the organization. They should be treated with caution, as they can cause great difficulties and problems if they begin to sabotage changes in the life of the enterprise.

4. Communication skills. If a new task needs to be set for employees, it must be formulated very clearly in advance. It needs to be conveyed in a language that everyone can understand. Success in the effectiveness of business process reengineering of enterprises will depend entirely on how clearly employees understand their leader. This is what will allow you to achieve your desired goals and results.

5. Budget size. Carrying out business process reengineering implies that a certain amount of money will need to be invested in implementation and implementation. Particular attention should be paid to this point if you plan to involve information technology in your work. Often, organizational leaders tend to assume that reengineering is carried out through self-financing, which is not the case at all. You need to take care of the size of the budget that can be spent on all the work in advance.

6. Technological support. To effectively carry out work on the implementation and implementation of a business process reengineering project, support is required that is fully consistent with the selected methods and tools. In most cases, this involves building an information system that can support the new business.

Preparatory work should begin in advance. Since in most cases it is impossible to form a style in a short period of time in relations with full-time employees and in the team as a whole.

Find out what business process reengineering is, what the basic principles and design goals are. What business process reengineering technology will help take the company to a new level.

From the article you will learn:

What are the objectives of business process reengineering?

Business process reengineering represents a rethinking and redesign that allows you to achieve maximum efficiency from the processes of production, economic and economic activity of the company. The term “reengineering” was first coined by the American scientist M. Hamler. Fundamental rethinking all processes helps to achieve a dramatic improvement in all performance indicators: quality, service and speed.

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The concept of business process reengineering includes key elements such as:

• fundamental;
• radical;
• sharp or spasmodic;
• process.

It must be taken into account that in this context the main word is process. This is quite difficult to explain to those managers who are accustomed to dealing with work, tasks, relevant structures, personnel, but not with changing processes.

Most modern enterprises are based in their activities on the principles that were formulated by Adam Smith in his fundamental work, published in 1776 under the title “The Welfare of Nations. It is proposed to break down the entire production process into simple and elementary tasks in order to entrust their implementation to one employee. A high level of qualification was not required.

Such principles still remain relevant when producing standard products. The work is performed by low-skilled employees using standard, simple equipment. Currently, such principles of work are fading into the background. Consumers have a wide range of choices. In addition, appropriate expectations have been formed in relation to the goods and services offered. The means of production and modern technologies have also undergone significant changes. And this means that the old management techniques will not bring the expected success.

Business process reengineering methods are considered the most important direction for those who strive to implement the latest technologies and obtain highly qualified human resources. The reorganization of all activities is based on radical transformation. The entire business is being restructured. Old management methods are subject to review and complete change.

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These processes help to survive in changing conditions, to improve all applied technologies, production methods and organization of business processes. Which in turn helps to improve service, quality of products and the pace of production activities. Without such radical changes, it is impossible to continue successful production, economic and financial economic activities. This becomes impossible.

Principles of business process reengineering

Business process reengineering begins with consulting based on past experience. They listen to the opinions of specialists who are ready to offer proven and proven solutions. Compare management opinions.

An alternative option is engineering. This method is considered optimal if the assigned tasks of business process reengineering are solved using methods and rules, monitoring the completeness of execution, based on the concepts and methods of business process reengineering and changes.

What is included in the concept of business process reengineering

Reengineering of a company's business processes is based on a set of methods and techniques used in business design, taking into account current and strategic goals. With a fundamental rethinking and radical redesign of all ongoing processes, it is rational to answer a number of questions that will allow us to rethink current rules and regulations.

The fundamental technology of business process reengineering involves obtaining answers to the following questions:

1. why the company is currently doing what it is doing;
2. why is it done this way and not another;
3. what the company wants to become in the future.

When answering such questions, specialists rethink established regulations and rules, which are not always formulated in writing. Often like this business rules turn out to be erroneous, inappropriate or outdated.

Radical business process reengineering involves a complete redesign and change of all processes of the existing system. Superficial transformations are inappropriate with this method. During the creation of such a project, new methods for conducting all work are being developed.

Reengineering of business processes of an enterprise, sharp or spasmodic, is used when it is necessary to increase or improve all indicators of core activities by 10-100 percent.

The main goal of business process reengineering is to:

in increasing the competitiveness and profitability of the company. If an organization is on the verge of collapse, decisive steps are inevitable. Otherwise, continuing to conduct business using old methods will lead to inevitable collapse. The company will go bankrupt;

in preventing the occurrence of intractable problems in the future. If the organization is working successfully at the moment, but new competitors are emerging, requirements for the quality of services or products are increasing, the economic environment is changing, it is necessary to review all business processes in order to prevent negative situations in the future;

in preventing the loss of gained positions in the market. For example, a company pursues an aggressive marketing policy. But, being a leader, management is not satisfied with the current state of affairs. Just reengineering business management processes will allow you to achieve better results and not worry about losing your leading position.

What are the design principles based on when carrying out business process reengineering?

The stages of business process reengineering consist of:

Integration	All processes are being redesigned. Eliminate assembly lines as a way to coordinate the work of low-skilled personnel. The implementation of complex functions requires a different organization of work. They create teams that are responsible for the entire labor process. At the initial stage, failures or errors are possible, but the losses will be less than with traditional forms of organizing work.
Horizontal compression	Comparative assessments carried out by companies conducting reengineering show that the transition from traditional forms of work organization to the execution of processes by one employee makes it possible to painlessly reduce the number of personnel, but at the same time speed up the execution of processes by about 10 times. The number of errors will also decrease, and there will be no need to additionally hire specialists to eliminate these errors. Manageability will improve due to a reduction in the number of employees and a clear distribution of responsibilities.
Decentralization of responsibility	This is a vertical compression of all business processes. Appointed executors have the right to make independent decisions. Previously, this required contacting management.
Implementation logic	The traditional linear execution of basic work is replaced by a logical order. All work is carried out in parallel. In turn, this helps save working time, which was initially spent on interconnecting all the work at different production sites.
Diversification	Traditional processes focused on the production of standard mass products must be carried out for all inputs, this leads to a consistent output process.
Development of different versions	New processes that have different versions start with a verification step. At this stage, it is determined which version of the process is suitable for the current situation. The new processes introduced become simpler and clearer, with options focused on one relevant situation.
Rationalization of horizontal connections

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

Business planning involves the initial design of a business or, in other words, the initial design of the development of a business unit. Subsequently, the enterprise also requires continuous design. The overall management of business activities (business processes) is called business engineering, implying continuous improvement of processes.

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

When reengineering a business, consistency, interdependence and complementarity of actions become of fundamental importance. Another feature of reengineering is that in its system, each employee aims not so much at the good and timely completion of the work assigned to him, but at ensuring the highest possible final result of the entire business, i.e. You should always lend a shoulder to an employee who needs such help. Of course, the intensity of labor usually increases. But this is work that generates profit, and increasing 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 public recognition, a high image of the employee and greater moral satisfaction, since looseness in work enhances its creative nature, providing 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 leading companies in the world. American companies spend especially a lot of effort and financial resources on this.

The founder of the theory of reengineering is considered to be M. Hammer, who, co-authored with J. Ciampi, published the book “Reengineering 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, level of service, speed of operation, finance, marketing, and the construction of information systems in order to achieve a radical, stepwise improvement in the company's activities. Let us reveal the key concepts in this definition.

Fundamental- answers must be received 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- radicalism means changing things at their very roots. In business reengineering, radical means throwing out 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, such as an incremental quality improvement program, are applicable. 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 work into simple tasks and their division between individual specialists, modern companies and managers often focus on individual tasks. For example, when agreeing on the terms of a contract, when receiving an order, when checking out goods from a warehouse, etc. At the same time, the main goal often falls out of sight - the client must receive the product he ordered. The individual tasks are important, but none of them have any meaning for the client unless the product is in his hands.

Main goals and methods of business reengineering - the main goal is to sharply accelerate the enterprise's response to changes in consumer requirements (or to predict such changes) while reducing costs of all types. Required:

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

Reengineering has the following properties:

• abandoning outdated rules and approaches and starting the business process as if from scratch. This allows us to overcome the negative impact of existing economic dogmas;
• neglect of existing company systems, structures and procedures and radical changes in business practices; if it is impossible to remake your business environment, then you can remake your business;
• leading to significant changes in performance indicators that are an order of magnitude different from the previous ones. Small changes require the company to adjust, skillfully adapt existing business tools; accordingly, if the company’s affairs have 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 company can be considered satisfactory, but the forecasts for its activities are unfavorable. The company is faced with undesirable trends in terms of competitiveness, profitability, and level of demand.
3. Prosperous, fast-growing and aggressive organizations are engaged in the implementation of reengineering opportunities. Their task is to quickly increase their lead over their closest competitors and create unique competitive advantages. Applying reengineering in this situation is the best business option. Many companies believe that they have found the best business model, in which there is no need to change anything significantly. Over time, this approach leads to the fact that competitors catch up and surpass such companies, and the companies themselves adapt less and less to demand and market conditions as a whole.

The reengineering process is based on two basic concepts - “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, it is a simplified image of the original, reflecting its main features and not taking into account minor details. Business model- this is an image (representation) of the main economic processes of a company, taken in their interaction with its business environment. It is recommended to take as components of a business model such business processes that are directly related to the generation and receipt of income. Information technology has recently gained widespread development in business modeling, when models are compiled and calculated using special computer programs. Business models make it possible to determine the characteristics of the main processes of a 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 occurs as part of the development of the company's strategy, its main guidelines and ways to achieve them. Customer orientation is of particular importance among strategic goals. The correct choice of reengineering goals means that areas are found that can actually be significantly improved and are vital for a given business.
2. A model of the company's real or existing business 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 existing goals. A detailed description and documentation of the company's main operations is carried out, and their effectiveness is assessed. To create a model of an existing business, the results of an 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. The current business is being redesigned - direct reengineering.
   To create a renewed business model, the following actions are carried out:
   1. selected business processes are redesigned, more efficient work procedures are created, technologies (including information) and methods of their application are determined;
   2. new personnel functions are formed, job descriptions are revised, the optimal motivation system is determined, work teams are organized, training and retraining programs for specialists are developed;
   3. information systems necessary for reengineering are created: equipment and software are determined, a specialized business information system is formed;
   4. The new model is being tested on a limited scale.
4. Introduction of a new business model into the economic reality of the company. All elements of the new model are being put into practice. What is important here is skillful integration and transition from old processes to new ones.

A method of revolutionary transformation of an enterprise’s activities, a radical restructuring of its business, which is called business process reengineering, appeared in the West in the late 80s of the last century. The founders of the theory of reengineering are Michael Hammer and James Champy. They defined reengineering as " fundamentally rethinking and radically redesigning business processes to achieve significant improvements in key performance indicators for modern business such as cost, quality, service level and responsiveness».

In other words, business process reengineering (BPR) in contrast to the numerous methods known in recent decades for gradually improving the work of companies, this means, in essence, a decisive, rapid and deep “breakthrough” restructuring of the foundations of organization and management within the enterprise.

The specificity of reengineering is that the narrow specialization of Adam Smith, which has existed for more than 250 years, and the resulting multiple transfer of responsibility in production and, especially, in management, does not meet modern requirements. Production and management are currently being transformed into end-to-end business processes, Responsibility for which from start to finish is assumed by groups of like-minded people, united by a team spirit, capable of performing a wide range of work.

The basic concepts of RBP include the concepts “fundamental”, “radical”, “essential” and “processes”:

1. Fundamental. BPO begins with a “blank slate” - no ready-made proposals, nothing predetermined. A company embarking on reengineering should avoid traditional approaches. The BPO is primarily intended to determine what the company should really do, and only then how it should do it. In BBP, nothing is taken for granted. RBP ignores what he is aimed to what should be.

2. Radical. Radical redesign means going to the very roots of the phenomena: not making cosmetic changes or shuffling existing systems, but a decisive rejection of everything that has become obsolete. Radical redesign in BPO throws out all existing structures and practices and involves inventing entirely new ways of working. Carrying out business reengineering is the same as creating a business anew, and not improving an existing business, not modernizing it, or making changes.

3. Essential. BPR has nothing to do with small incremental or partial improvements, but is designed to provide overall powerful growth in results. BPO is only needed when there is a sense of need to make a major breakthrough. Partial improvements require a subtle, delicate approach; significant improvements are achieved only by decisively cutting off everything old and outdated and replacing it with something new and viable.

4. Processes. Business processes can be defined as a set of various activities that use one or more types of resources as input, and as a result of these activities, the output is a product or service that is valuable to the consumer. Task-oriented thinking—fragmenting work into its simplest components and distributing them among appropriate specialists—has been at the core of company organizational structure for the past two centuries. The fragmented processes that characterize traditional companies lead to highly specialized work assignments and department-based organizations. BPO involves the creation of integrated processes that generate multifaceted work tasks, the implementation of which can best be organized through process teams.

Thus, BPR does not imply the implementation of constant but insignificant changes leading to a small “incremental” (by units or even tens of percent) improvement in the company’s performance indicators. As a result of a successful RBP, i.e. rapid implementation of deep and comprehensive fundamental changes in the management system - the company achieves a significant, “breakthrough” increase in efficiency (tens and hundreds of times).

To the main properties RBPs include:

· Abandonment of outdated rules and approaches and starting the business process from scratch, which allows one to overcome the negative impact of existing economic dogmas;

· Neglecting the company's existing systems, structures and procedures and radically changing the way it operates - if it is impossible to remake your business environment, then you can remake your business;

· Leading to significant changes in performance indicators (an order of magnitude different from previous ones).

Reengineering is necessary when very significant improvements are needed, such as these 3 main situations requiring intervention:

1. In conditions where the enterprise is in a state of deep crisis. This crisis can be expressed in a clearly uncompetitive level of costs, mass refusal of consumers from the enterprise’s product, etc.

2. In conditions when the current situation of the enterprise can be considered satisfactory, but the forecasts for its activities are unfavorable. The enterprise is faced with undesirable trends in terms of competitiveness, profitability, level of demand, etc.

3. Prosperous, fast-growing and “aggressive” organizations are engaged in the implementation of BPR opportunities. Their task is to quickly increase their lead over their closest competitors and create unique competitive advantages.

RBP participants include:

- leader of the BPR project;

- Steering Committee;

- manager providing operational management;

- process managers;

- reengineering work team.

First place takes BPR project leader- one of the top managers of the enterprise who heads reengineering activities. In addition to organizational responsibilities, he is responsible for the ideological justification of the reengineering project, creating a general spirit of innovation, enthusiasm and responsibility. A leader must have high internal energy.

Second participant - Steering Committee, consisting of members of the enterprise's top management, the BPO leader, and process managers. Carries out the functions of monitoring, coordinating the goals and strategy of the RBP, coordinating the interests of various working teams and resolving conflict situations between them. If there is no committee, its functions are performed by the leader of the RBP.

Occupies a special place manager providing operational management RBP in general. He often serves in a formal role as assistant to the leader of the BPO. The functions he performs are the development of methods and tools for RBP, training and coordination of process owners, assistance in organizing work teams.

Process Managers- these are managers, each of whom is responsible for updating a separate business process. If the organization does not define processes as such, functional managers act in this capacity. The manager forms a team to restructure this process and provides conditions for its work. He also carries out surveillance and control functions. Thus, the process manager is a kind of customer for the reengineering of this process.

Work team— a group of enterprise employees (methodologists, administrators, employees for product quality assurance, documentation, coordination), as well as external participants (consultants, developers). All of them carry out direct work on reengineering a specific process.

The main techniques for conducting RBP are as follows:

· Several works are combined into one. A specific person is identified who is responsible for all steps of the process from start to finish. Thanks to this, there is someone who can answer any questions the client has. This person is often called a client manager. In cases where one person cannot cope with all the work in the process, a group with similar functions and responsibilities is organized.

· Employees make their own decisions. Unlike periodic independent decision-making, which is natural in any real work, in this case decision-making is introduced into the employee’s functional responsibilities. This approach applies to both workers and managers.

· The steps in the process are performed in their natural order. This procedure is not fixed by directive. It is determined by workers as work progresses and in accordance with the actual situation. Many steps can be performed in parallel.

· Processes have multiple versions. This is very important for conditions other than mass industrial production.

· Work is performed where it makes the most sense and benefit. Work does not have to concentrate on the appropriate steps around the relevant specialists, who can be located in a variety of places (rooms, buildings).

· Control checks and management volumes are reduced. Since management does not create direct added value, it is introduced only in those areas of work where it makes economic sense.

· For a similar reason, approvals are minimized.

· Both centralized and decentralized operations are used predominantly. The goal is to take advantage of the advantages of both approaches.

Although both reengineering and quality management (TQM) place a central role on business processes, there is a fundamental difference: quality management accepts existing processes and tries to improve them, while reengineering replaces existing processes with new ones.

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Introduction
1 Theoretical foundations of business process reengineering
1.1 The essence and features of business process reengineering
1.2 Main stages and principles of reengineering
2 Reengineering theory in practice
2.1 Conditions for successful reengineering
2.2 Technology for reengineering business processes of foreign companies
2.3 Reengineering in Russia
3 Does Russia need reengineering?
Conclusion

Introduction

The socio-historical essence of business process reengineering lies in the replacement of outdated capitalist forms of enterprise management and is aimed at displacing old social relationships based on hired labor in favor of various forms of co-ownership of the enterprise.

It must be said that the attempt to comprehend it is significantly complicated by the already indicated intuitive approach to creating the terminology of business process reengineering; “reengineering” is the brainchild of information technology. The engineering methodology allows us to consider the activities of any enterprise in a software-algorithmic essence, separating individual business processes into command “procedures” and “functions”. Those. the activities of any organization are presented in the form of a “program” with its input and output information. Changes in the strategy, production processes, structure and culture of the enterprise can be carried out gradually, in the form of small steps, or radically, in the form of large leaps. In this regard, they respectively speak of evolutionary and revolutionary models of change. Revolutionary changes can be imagined within the framework of business reengineering.
It is necessary to rethink the way business is organized and take a fundamentally different approach that will fully realize the benefits of new technologies and human resources. This approach is the basis of business (business process) engineering, the most important area of ​​which is reengineering, or the restructuring of existing companies.
The problems of increasing business efficiency and strengthening its competitiveness are acute for Russian enterprises experiencing a transition period. These problems can be effectively solved using approaches based on business process reengineering. Therefore, it is necessary to understand the essence of reengineering as one of the areas for preventing crisis phenomena in an enterprise.
Reengineering of business processes of enterprises 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, etc. An enterprise seeking to survive or improve its position in the market must constantly improve production technologies and ways of organizing business processes. To do this, they resort to consulting, which is based on past experience, expert judgment, ready-made proven solutions, analogies, heuristic assessments, and comparison of opinions. But you can also use an alternative path, which is engineering. This approach guarantees obtaining results, subject to compliance with the rules and methods of using reengineering tools; it allows you to control the completeness of the implementation of the proposed solutions and evaluate their quality. This approach is based on the concept and methods of business process reengineering.
The purpose of the course work is to study the reengineering process.
To achieve this goal, it is necessary to solve the following tasks:
- consider the concept of reengineering;
- study the principles of reengineering;
- consider the reengineering algorithm;
- give examples of reengineering business processes of foreign companies and consider reengineering in Russia
The subject of the study is business process reengineering.
The course work is written on the basis of educational literature in the field of management, as well as periodicals.

1 Theoretical foundations of business process reengineering

1.1 The essence and features of business process reengineering

Reengineering as a technique of innovation management affects the innovation process aimed both at the production of new products and operations, and at their implementation, promotion, and diffusion. Since the ultimate goal of reengineering is innovation (i.e. innovation), reengineering in a narrower sense is the reengineering of innovations.
Reengineering is engineering and consulting services for restructuring business activities based on the production and implementation of innovations. The American scientist M. Hamler, who introduced the term “reengineering” into scientific circulation, gave it this definition.
Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic, incremental improvements in modern company performance indicators such as cost, quality, service and pace.
This definition contains four key concepts: fundamental, radical, abrupt, and process. Although the concept of “process” (“business process”) is the most important in this context, it is difficult to explain to managers, since most of them are accustomed to dealing with tasks, jobs, structures, people, but not with processes.
Fundamental. At the initial stage of reengineering, it is necessary to answer the following basic questions:
- why does the company do what it does?
- why does the company do it this way?
- what does the company want to become?
Answering these questions requires professionals to rethink the current (often unwritten) rules and regulations of business that are often outdated, erroneous, or inappropriate.
Radical. Radical redesign is a change in the entire existing system, and not just superficial changes, i.e. Radical redesign introduces entirely new ways of doing work.
Sharp (jumpy). Reengineering is not used in cases where it is necessary to improve or increase the company's performance by 10-100%, but rather more traditional methods (from giving rousing speeches to employees to conducting quality improvement programs) are used, the use of which does not involve significant risk. Reengineering is advisable only in cases where it is necessary to achieve a sharp (leap-like) improvement in the company's performance indicators (500-1000% or more) by replacing old management methods with new ones.
The fundamental goal of business process reengineering is a flexible and prompt adaptation to expected changes in consumer demands: a corresponding change in strategy, technology, production organization and management based on effective computerization.
The result of reengineering is the improvement of the most important quantitatively measured indicators.
Reengineering is successful only if it is closely related to the organizational development of the organization.
Based on the degree of impact on the organizational structure, a distinction is made between evolutionary and revolutionary business process reengineering.
Evolutionary reengineering optimizes the internal integration of various business processes, but does not make significant changes to the functioning of the organization.
With revolutionary reengineering, all business processes are redesigned and the organization is reoriented towards a new type of business.
Reengineering involves either redesigning or improving business processes.
The essence of reengineering is shown in Table 1.

Table 1 - The essence of reengineering

Type of reengineering
Application situation
Crisis reengineering (redesign of business processes) A ​​state of deep crisis (loss of competitiveness, consumer refusal of goods, etc.)
Development reengineering (improving business processes) Satisfactory current situation with undesirable trends and unfavorable forecasts. A favorable situation if you want to speed up and increase the gap over your competitors.

There are three types of companies for which reengineering is necessary and advisable:

1. Companies that are on the verge of collapse due to the fact that prices for goods are noticeably higher and (or) their quality (service) is noticeably lower than that of competitors. If these companies do not take decisive steps, they will inevitably go bankrupt.
2. Companies that do not currently have difficulties, but foresee the inevitability of intractable problems arising, for example, with the emergence of new competitors, changing customer requirements, changes in the economic environment, etc.
3. Companies that do not have problems now and do not predict them in the foreseeable future. These are leading companies pursuing an aggressive marketing policy, not satisfied with the good current state and wanting to achieve better through reengineering.
Thus, the tasks of reengineering are similar to the tasks of innovation: mastering innovations to ensure the competitiveness of products and, ultimately, the survival of the enterprise.
The keyword “process”, as we have already said, is the most important in defining the concept of “reengineering”.
A business process is a set of “internal steps” of an enterprise that ends with the creation of products needed by the consumer. The purpose of each business process is to offer the consumer a product (service) that satisfies him in terms of cost, service and quality.
So, a business process is the actions to achieve the company's goal. At the same time, the effectiveness of the business process is optimized by organizing it on the basis of streamlining horizontal connections in the company's management structure.
A business reengineering project typically involves four phases:
1. Development of a vision for the future company. At this stage, the company builds a picture of how the business should develop in order to achieve strategic goals;
2. Analysis of an existing business - a study of the company is carried out and plans for its current operation are drawn up;
3. Development of a new business - new processes are created and (or) old processes and the information system supporting them are changed, new processes are tested;
4. Introduction of a new business project.
The important thing is that the listed steps are not performed sequentially, but at least partially in parallel, and some of them are repeated.
Of particular note is the role of information technology (IT) and reengineering, since the redesign of business processes becomes possible, as a rule, thanks to these technologies. The main mistake most companies make is that they view IT through the prism of existing processes. They frame the problem as follows: How can we use new technologies to improve what we currently do?
Reengineering is the introduction of the latest information technologies to achieve completely new business zeros. There needs to be a focus on constantly evolving services that best meet the needs of consumers. Therefore, it is necessary to develop an IT strategy as a series of targeted and coordinated actions that allow the use of information and technological resources to create and maintain a sustainable competitive advantage of the company.

1.2 Main stages and principles of reengineering

The reengineering process is based on two main concepts: “future image of the company” and “business model”. The future image of the company is a simplified image of the original, reflecting its main features and not taking into account minor details. A business model is a representation of a firm's core business processes taken in their interaction with the firm's business environment. Models are compiled and calculated using special computer programs.
Business models make it possible to determine the characteristics of the main processes of a business unit and the need for their restructuring - reengineering.
So, the object of reengineering is not organizations, but processes.
Companies are not reengineering their sales or production departments, but rather the work performed by the personnel in those departments.
One of the ways to improve the management of processes that collectively form a company’s business is to give them names that reflect their initial and final states. These names should reflect all the work that is performed between the start and finish of the process.
The term "production", which sounds like the name of a department, is better suited to the process that occurs from the moment of purchasing raw materials until the moment the finished product is shipped. By the same principle, some other repeating processes can be named, for example:
- “product development” - from concept development to prototype creation;
- “sales” - from identifying a potential client to receiving an order;
- “order fulfillment” - from placing an order to making a payment;
- “service” - from receiving a request to resolving the problem.
Once the processes have been identified, it is necessary to decide which ones require reengineering and what the order should be.
A business process is a system of sequential, purposeful and regulated activities in which, through control actions and with the help of resources, process inputs are converted into outputs, i.e. process results that are of value to consumers.
Figure 1 - Typical business processes designed and improved during reengineering activities

Figure 2 - Classification of business processes

The basic categories of reengineering are reflected in Table 2.
Table 2 - Basic categories of reengineering
Basic categories
Category essence
Business Procedure - A function, task, chain of events occurring over a period of time and having recognizable results.
Business process - A horizontal hierarchy of internal and interdependent functional activities, the ultimate goal of which is the release of products or individual
Business system - A connected set of business processes, the ultimate goal of which is the production of products in the form of goods, services, documents

Various sources provide various principles of reengineering. Let us present the proposed versions of the principles.

The basic principles of business process reengineering include:
concentration of responsibility: several work procedures are combined into one (horizontal process compression);
- delegation of authority combined with self-control: performers make independent decisions (vertical compression of the process);
- the natural order of the process, for example parallel rather than sequential;
- various options for executing processes depending on the situation;
- performing work where it can be done most effectively (up to its transfer to the process client);
- reduction in the volume of approvals, inspections and control - control on the part of managers is replaced, if possible, by control on the part of consumers of this process.
Another option is the following principles. Basic principles underlying business process reengineering:
1. Several work procedures are combined into one. The most common feature of redesigned processes is the absence of “assembly line” technology, in which simple tasks, or work procedures, are performed at each workplace. Performed by different employees, they are now integrated into one - a horizontal compression of the process occurs. If it is not possible to bring all the steps of the process into 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 that occur when handing off work between team members. However, the losses here are significantly less than in the traditional organization of work, when 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 completion of work. It is estimated that horizontal compression speeds up the process by about 10 times.
2. Performers make independent decisions. During reengineering, companies carry out not only horizontal, but also vertical compression of processes. This occurs due to the independent decision-making by the performer, in cases where, in the traditional organization of work, he had to turn to the management hierarchy. In the traditional organization of work, focused on the production of mass products, it was assumed that the performers had neither the time nor the knowledge necessary to make decisions. Reengineering rejects these assumptions, which is quite natural given the rejection of mass production and the modern level of education. Giving employees greater authority and increasing the role of each of them in the company's work leads to a significant increase in their productivity.
3. The process steps are carried out in a natural order. Process reengineering frees you from the linear ordering of work procedures inherent in the traditional approach, allowing you to parallelize processes where possible.
4. Processes have different execution options. The traditional process is focused on the production of mass products for the mass market, so it must be executed uniformly, regardless of the initial conditions, for all possible process inputs. Nowadays, 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. Traditional processes tend 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 situation corresponding to it.
5. Work is performed in the place where it is appropriate. In traditional companies, it is organized by functional departments: order department, transport department, etc., and if, for example, the design department needs a new pencil, then it submits a request to the order department. He finds a manufacturer, negotiates a price, places an order, inspects the product, pays for it and transfers it to the designers. All this is quite wasteful and slow.
6. The number of checks and control actions is reduced. Checks and control actions do not directly produce material assets, so the task of reengineering is to reduce them to an economically feasible level. Traditional processes are full of similar steps, the sole purpose of which is to monitor compliance by performers 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.
7. The number of approvals is minimized.
8. An “empowered” manager provides a single point of contact. The Empowered Manager mechanism is used when the process steps are either complex or distributed in such a way that they cannot be combined by a small team. An “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 predominates. Modern technologies enable companies to operate completely autonomously at the departmental level, while maintaining the ability to use centralized data. The importance of combining the advantages of centralization and decentralization can be illustrated by the example of the work of banks. When working with large corporations, many banks carry out independent financial relationships with the same client through different divisions. This decentralized approach can lead to chaos, since each division monitors only the part of the market that matches its profile.
The stages of reengineering are shown in Figure 3.

Figure 3 - Stages of business process reengineering

In general, the stages of the business process reengineering methodology include the following actions:
- project development and identification of business processes. The goals and objectives of the project are determined, a reengineering team is formed and an approach to reengineering is determined;
- documenting business processes. At this stage, graphical models of business processes are constructed based on the proposed methodology for documenting them, and the component operations of business processes are timed:
- comparative analysis of business processes (benchmarking). An analysis of business processes is carried out in order to compare them with the business processes of advanced divisions of the organization or a competitor organization;
- development of the image of the future organization. The purpose of this stage is to formulate a system of views on the new organization according to its goals and capabilities. It is advisable to include subjects of the external environment in the reengineering team;
- problem analysis and redesign of business processes and technologies. The purpose of the stage is to identify problem areas in technological and business processes:
- implementation of new business processes, technologies and evaluation of results. At this stage, it is necessary to compare the results of the effectiveness of the functioning of business processes with the criteria specified at the beginning of reengineering, taking into account costs by type of functional activity.
Other stage options are possible, which are presented below.
I. The desired image of the company is formed. The formation of the future image occurs as part of the development of the company's strategy, its main guidelines and ways to achieve them.
II. A model of the company's real or existing business is created. Here the system of actions and works through which the company realizes its goals is recreated (reconstructed). A detailed description and documentation of the company's main operations is carried out, and their effectiveness is assessed.
III. A new business model is being developed. The current business is being redesigned - direct reengineering. To create a renewed business model, the following actions are carried out:
- Selected business processes are redesigned. More efficient work procedures (tasks that make up business processes) are created. Technologies (including information) and methods of their application are determined;
- New personnel functions are being formed. Job descriptions are revised, the optimal motivation system is determined, work teams are organized, training and retraining programs for specialists are developed;
- Information systems necessary for reengineering are created: equipment and software are determined, a specialized business information system is formed. The level of information support required for reengineering assumes that information should be available to each participant in the reengineering project at any point in the business unit, perhaps simultaneously in different places it can be unambiguously interpreted;
-A new one is being tested; model - its preliminary application on a limited scale.
IV. Introduction of a new business model into the economic reality of the company.
All elements of the new business model are being put into practice. What is important here is skillful integration and transition from old processes to new ones, so that process executors do not feel disharmony in the work environment and do not experience a state of work stress. The elasticity of the transition is largely determined by the degree of thoroughness of the preparatory work.
The main goal of business reengineering is to sharply accelerate the enterprise's response to changes in consumer requirements (or to predict such changes) while reducing costs of all types. Here are the main goals and methods of business reengineering dictated by the new competitive situation:
- a sharp reduction in the time used, the number of employees and other costs for performing production functions,
- globalization of business: working with clients and partners anywhere in the world, working with clients 24 hours a day * 365 days a year,
- increasing employee opportunities and rights, relying on increased personnel mobility,
- work not only for the present, but even more so for the future needs of the client, accelerated promotion of new technologies,
- implementation of the above based on the creative use of information technology.
The success of the reengineering process is determined by certain factors, which are presented in Figure 4.

Figure 4 - Reengineering success factors

Reengineering in organizations is acquiring a pronounced anti-crisis orientation. The focus of organizational activities during crisis management coincides with the dynamics of changes occurring during reengineering.
The following should be noted:
- effective activity of process teams can lead to the creation of new structural units;
- the creation or merger of process teams can lead to the fragmentation or consolidation of the enterprise;
- the creation of process teams in new types of activities contributes to the transition to a divisional model of enterprise management.
Thus, reengineering increases the mobility of the organization during the transition to anti-crisis management technologies, which is especially important in modern Russian conditions.

2 Reengineering theory in practice

2.1 Conditions for successful reengineering

Systematic studies of reengineering attempts have not yet been carried out, but expert estimates show that so far about 50% of reengineering projects have ended in failure. In order to find out the reasons for failures and determine the conditions necessary for success, we conducted special research based on surveys of consultants from more than 40 companies providing services in management, information technology, reengineering, formulation of business strategies, equipment operation, etc.
The following factors have a significant impact on the reengineering process.
1. Motivation. The rationale for undertaking a reengineering project must be clearly defined and recorded. At the same time, senior management must be absolutely convinced that this project will indeed produce a significant result, and understand that the resulting result will cause a change in the structure of the company. To ensure success, management must believe in the need for company-wide reengineering and put the best resources at the disposal of the reengineering team.
2. Leadership. The project must be carried out under the direction of the company's managers; The manager leading the reengineering project must have great authority and be responsible for it. Firm and skillful management is very important for the success of the project. The project manager must understand that there will be difficulties that are inevitable when building a new company: he must resist the “pressure” of the old order and convince his employees that the project is not only feasible, but also necessary for the survival of the company. He must make every effort to advance the project and complete it on time.
3. Employees. The team that carries out and oversees the reengineering project requires the participation of employees with appropriate authority and capable of creating an atmosphere of cooperation. Employees must understand why the project is being undertaken (in other words, they must evaluate the problems that are hampering the business), accept their new responsibilities to be able to carry them out, dedicate the time needed to reengineering, and make reasonable progress toward success. Essentially, all employees must learn and sustainably implement a new set of behaviors. Experience has shown that it is relatively easy to explain a new way of working to lower-level staff, but it is much more difficult for people in management positions to understand what the new company has to offer. The group that specialists should pay special attention to is middle-level managers. American researcher B. Willoch defines three categories of managers at this level:
1. “tigers” - young careerists who, although they participate in a reengineering project with enthusiasm, tend to concentrate on their own tasks to the detriment of the overall goals of the project;
2. “donkeys” - the oldest employees who have reached the peak of their career, who want peace and stability in the company; they can seriously harm the project;
3. "sharks" - employees who developed procedures and instructions for managing the company's operations; they often have real power in the company and can create huge problems by sabotaging real change in the life of the company.
4. Communications. The company's new goals must be clearly formulated and understandable to every employee. The success of reengineering depends on the extent to which management and ordinary employees understand how to achieve the company's strategic goals.
5. Budget. The project must have its own budget, especially if intensive use of IT is planned. It is often mistakenly believed that reengineering is possible on self-financing terms. Therefore, reengineering should be considered as a venture project in nature.
6. Technological support. To carry out reengineering work, support is needed - appropriate methods and tools. Reengineering typically involves building an information system to support a new business.
7. Consultations. Experts (consultants) can provide significant assistance to performers carrying out reengineering for the first time. It is important that consultants play a supportive rather than a managerial role and are not part of the company's staff. Therefore, the reengineering project manager must be a competent customer of consultant services. Factors that contribute to the success of reengineering include risk, clearly defined roles and responsibilities, and tangible results.
Naturally, some of these factors, for example, the style of relationships in a team, cannot be quickly formed, so work on creation must begin in advance.

2.2 Technology for reengineering business processes of foreign companies

An example of the application of business reengineering principles in the reorganization of supplies at Ford-Motors.
The company's existing procurement system assumes traditional supply technology according to the scheme presented in the figure. Under this scheme, the supplier ships products in accordance with the placed order and issues an invoice for payment. At the point of receipt of goods (at the warehouse), the received cargo is reconciled with the invoice, and if the quantity and quality of the goods declared in the invoice coincide, it is posted and the corresponding document is transferred to the accounting department. The accounting department reconciles the invoice, invoice and order (contract), and if there are no discrepancies, the invoice is paid. According to this scheme, lengthy clarifications of emerging discrepancies in documents with the delivered goods are possible, and, as a result, the impossibility of quickly using materials in the production process, returns of goods and repeated deliveries.

Figure 5 - The current organization of purchasing processes at Ford

As a result of business reengineering, it was decided that a distributed database should be organized into which the order information shown in the figure is placed. Then the goods receiving point, when accepting the goods, reconciles the invoice with the order information and, if there are no discrepancies and there is money in the current account, automatically initiates payment for the delivery by check. Thus, the work of the accounting department in paying for supplies is reduced to a minimum (resolving controversial cases), and the time required to complete the process is sharply reduced.

Figure 6 - New organization of purchasing processes at Ford

The given example illustrates the implementation of the following principles of BPO: compression and natural order of process execution, reduction of control operations, combination of centralized and decentralized approaches to management.
The main conditions for the success of business process reengineering are:
- Accuracy of understanding of the task by the company's management. Commitment of the company's management to the goals of reengineering - control by senior managers.
- Motivating the company’s employees, focusing on growth, expanding the company’s activities, strengthening the powers and creative nature of the staff’s work.
- Well-organized management of the company’s activities, the ability to carry out the BPO on its own, with the involvement of consultants.
- A solid methodological basis for carrying out RBP, the use of experience in enterprise reorganization accumulated by consulting organizations and the use of modern information technologies.
Attracting general attention to the ideas and practices of reengineering (for example, in the USA alone, where by the mid-90s reengineering was used by more than two-thirds of the largest companies representing the widest range of diverse sectors of the national economy, in 1994 alone there were only more than $7 billion was spent) is explained, not least, by the entry of the world economy into the era of widespread use of information technology based on mass computerization and widespread use of the Internet.
Let us give several examples of the implementation of reengineering opportunities in practice, which reflect the main features of the reengineering process, and also highlight the role of information technology.
For example, the IBM Credit company could, by introducing a computer network into the existing organizational and management system, speed up the processing of loan applications by only 10%. At the same time, computerization of reengineered business processes provided more than 90% productivity growth.
Ford could eliminate 100 of its 500 employees in its supplier accounts department by computerizing its existing payment process to its suppliers, and by reengineering the process and then computerizing it, it could reduce its workforce by 400 in this department.
Kodak could, through the use of modern computer-aided design workstations, shorten the existing process of developing new products and the necessary technological equipment by just a few days. However, by computerizing the reengineered process, a 50% reduction in development time was achieved.
The General Motors Saturn plant opened its database to suppliers. This made it possible to eliminate the phase of sending official orders for parts - now the suppliers themselves deliver the necessary components within the planned time frame, since they already know the production needs and the plant’s work schedule. As a result, they managed to get rid of the labor-intensive correspondence and reduce the number of employees in the parts purchasing department by three times.
This year Unisys Corp. completed a six-month reengineering project in the Transportation Department. With a project cost of $746 thousand, the expected savings are $2 million annually.

2.3 Reengineering in Russia

Reengineering is necessary for Russian business, as it requires significant changes. Moreover, most companies require crisis reengineering.
In relation to the specifics of the Russian economy, it is recommended to start with a trial project in the field of activity in which it can bring proper success. The company's management will be able to evaluate the possible results of applying the methodology in other areas of the organization's activities. The implementation of business process reorganization projects leads to significant changes in its methods in the organization. Therefore, managing the change process is of paramount importance. There is no room for haste, underfunding, or failure to address internal resistance to change.
The main components of the change management process are assessing the organization's readiness for them and developing a plan for their implementation. The roles of employees involved in the change process must be clearly defined.
Change initiators must have the authority to make decisions about changes and implement them. The role of people who do not have formal power in the organization, but can use their influence in the team to initiate the process of change, is also very important. Consultants offer the following method for Russia to use the potential of reengineering.
1. Determining the direction of business development. At this stage, the organization clarifies the goals and principles of its activities, solves a number of important issues, for example, identifying key markets, customer groups and their basic needs. In this case, you can focus on the results of competitors or the experience of other companies.
2. Determining the scope and ultimate goals of the project, for which analysis and modeling tools are used, for example, data flow diagrams and techniques for comparing current performance results with those planned for the period after the completion of the project.
3. Process planning, carried out by specialists who work on the design of individual processes. At the same time, such goals as reducing the production cycle time, optimizing the control function18, etc. are set. A system for assessing the process and monitoring its effectiveness is determined.
4. Determining the structure of the organization and personnel policy. It is necessary to specify the infrastructure to ensure the effective functioning of new processes. The organizational and personnel implications of the proposed solution must be analyzed and determined. It is important to establish what principles of corporate culture should be the basis of the new organizational model. This will help determine the various structural units, working relationships, distribution of powers, and will allow us to predict the number and types of positions, the required level of qualifications of employees and the need for their training. It is also useful to create a workforce planning model.
5. Technology support, when requirements for the functional, technical and operational characteristics of new technologies are formulated and their impact on the organization’s work is assessed. Based on this, technologies that are effective for a given organization are selected.
6. Determination of physical infrastructure, when the characteristics of the premises, equipment (composition, location, purpose, functional features, etc.) are identified, plans and designs of premises and necessary life support systems (energy system, water supply systems, ventilation, etc.) are agreed upon. .
7. Implementation of the internal policy of the enterprise and assessment of the impact of current legislation. Areas where changes in internal policy are necessary to implement the selected decisions are identified. Typically, the need for such changes is identified earlier in the project and it is necessary to decide as early as possible whether a policy change is possible or whether new processes should be built on existing ones.
8. Mobilization of resources for the implementation of the project, when planning new processes is ensured to obtain the fastest and most effective results. A final cost budget (including capital and implementation costs) is drawn up, and the benefits and risks associated with each business decision are assessed. A change management strategy is implemented to ensure successful project implementation. The work plan is designed to record goals, deadlines, problems, resources and those responsible for each area. It is necessary to use automated planning tools to optimize the work plan and monitor the progress of their implementation.
9. Implementation. In the process of reengineering, it becomes possible to achieve rapid success with minimal involvement of resources.
It is important to implement it at an accelerated pace. To test the effectiveness of the developed approaches and recommendations for the development of new business processes, as practice has already convinced, it is usually necessary to carry out trial (pilot) projects designed to demonstrate their viability and effectiveness. However, the core of implementation is the activities described in the implementation plan.
Implementation of such projects requires considerable effort. It is necessary to create a team of specialists, which should include: one of the leaders of the organization, design groups for each process undergoing reengineering, implementation groups that may overlap with design groups, as well as a supervisory committee necessary to coordinate the project and consisting of authoritative representatives of the organization and external consultants.
In Russian conditions, the strategic task of the enterprise is to achieve modernization and a significant increase in business efficiency through the implementation of a comprehensive reengineering program, including qualitative improvement of core business processes with the simultaneous introduction of new information technologies.
In modern Russia, legislative activity is so great that up to 1,000 documents are adopted per month, which in total introduce several thousand more changes. To avoid being ensnared by outdated information and making costly mistakes, every business must have a reliable tool for resolving legal issues. These questions arise every time you have to conclude another contract with a partner or develop a new type of service. In large organizations, these processes are necessarily controlled by special units - legal services. During the preparation of contracts, specialists from other departments are often involved, who must also be aware of the latest changes in legislation. A rational solution to this problem from the point of view of reorganizing this business process seems to be the use of a centralized legal information service, to which all interested structural units have access. The Consultant legal reference system, which is actively used in a number of Russian banks, has become such a tool for many thousands of specialists in Russia and abroad.

3 Does Russia need reengineering?

The author of the popular concept is confident that an enterprise can grow more efficiently if it starts improving business processes as early as possible.
The concept of reengineering still remains relevant, insisted one of its authors, James Ciampi, at the press conference “Is reengineering needed in Russia?”, held as part of the eighth annual international conference “Workflow 2007”, which is traditionally held by IDS Scheer. Published in May 1993, James Champy and Michael Hammer's book, Reengineering the Corporation. Reengineering the Corporation: A Manifesto for Business Revolution quickly attracted the attention of managers and management consultants.
The state of the American economy then required a revision of the enterprise management methodology in almost all industries.
“Companies no longer need to organize work using Adam Smith's idea of ​​division of labor,” wrote Hammer and Champy. The functionally oriented nature of work has become obsolete as customer populations, competition, and technological change have impacted the macro business environment. Post-industrial companies must be rebuilt in accordance with the concept of reengineering. The processes require a leader with a strong vision for using IT, working closely with suppliers to reduce inventory, and delegating decision-making to the individual level so that it becomes part of the job.
The idea of ​​Hammer and Champy has had its ups and downs. Initial enthusiasm gave way to skepticism based on the realization of the impossibility of living in an environment of permanent revolution. However, when a sound management concept emerged behind the veneer of youthful radicalism, reengineering returned to the arsenal of management consultants. In an interview with the Director of Information Services magazine, Ciampi described the role of reengineering as a technology for regularly adjusting an organization’s business processes. Naturally, in accordance with the Deming cycle, continuous improvement of processes is carried out, but this smooth process is not entirely adequate to the rapid nature of the development of the modern market. From time to time the need for deep and rapid restructuring arises. Thus, in practice, the most rational is a reasonable combination of reengineering and continuous improvement. Ciampi cited the Russian economy as an example of the significance of revolutionary changes in modern business. This is potentially the largest consumer of the updated reengineering concept. Speaking to conference participants, Ciampi noted: “The opportunities for growth in Russia today are extraordinary. But high growth rates also have a downside. With revenues growing by leaps and bounds, many operational problems are not visible. And companies often act ineffectively and do not pay due attention to the state of their processes. This can play a cruel joke on the company, because managing change is very difficult. A company can grow more effectively by engaging early in business process improvement and thinking about how it will benefit its customers.”
Of course, over the past years the management concept could not but undergo changes. Its authors have also changed.
“I have always advocated for fundamental changes in the company. You can't dwell on small achievements. Goals should be set as ambitious as possible, Ciampi emphasized. - Of course, my point of view is changing. When I was young, I believed that major transformations could be carried out in one or two years; now I believe that this period is five to ten years.”
According to Ciampi, the basis of reengineering has remained the same, the implementation of this concept has acquired new features. He notes that two factors had a major influence on reengineering. First, IT capabilities have increased significantly. Hammer and Champy could not predict such a rapid development, in particular the widespread use of the Internet. According to Ciampi, the current state of IT significantly expands the capabilities of reengineering, allowing for much deeper transformations to be implemented at the same time. Thus, the implementation of reengineering is greatly simplified and allows solving more complex problems. Secondly, during the formation of this concept, the phenomena of economic globalization were not so noticeable. Accordingly, business processes have acquired a transnational character, which also significantly increases the complexity of reengineering projects, at least due to the scale and the need to take into account national characteristics. At the same time, companies that want to survive must adapt to new conditions and, in many cases, radically restructure their operations. Hence, according to Ciampi, the growing relevance of the concept of reengineering follows.

Conclusion

The world in which modern entrepreneurs live has changed significantly over the past 10 years.
First, consumers in the civilized world have taken control of the market. They are much more aware of their market position and the product choices available to them than they were in the early 1980s.
Secondly, new expectations have emerged regarding the goods and services offered to consumers. Products that are consumed are those that are adapted to the specific needs of a particular consumer and delivered in the most appropriate way at the time specified by the consumer.
Thirdly, the means of production and technology have changed significantly, and among the latter, primarily information technology. Information technology is not only the basis of many other important technologies (computing, communication, robotics, distributed databases, etc.), but also the way in which information is offered to the consumer.
However, despite these changes, many companies with a long history of operating in the market continue to cling to old management ideas by inertia. Therefore, it is necessary to rethink the way business is organized and use a fundamentally different approach that will fully realize the benefits of new technologies and human resources. This approach is the basis of business (business process) engineering, the most important area of ​​which is reengineering, or the restructuring of existing companies.
The object of reengineering is not organizations, but processes. Enterprises are not reengineering their sales or production departments, but rather the work performed by the personnel in those departments.
Reengineering of business processes of enterprises 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, etc. An enterprise seeking to survive or improve its position in the market must constantly improve production technologies and ways of organizing business processes.
A business that does not invest in change is putting its ability to survive in the market at stake, but the desire for change alone is not a guarantee of survival in the competition. Skillful management of these changes is required.
Consequences of business process reengineering:
1. Transition from functional departments to process teams.
2. The performer's work changes from simple to multifaceted.
3. Requirements for employees are changing: from being a controlled performer of assigned tasks to making independent decisions.
4. Requirements for employee training are changing: from training courses to education.
5. The assessment of work efficiency and remuneration is changing: from assessment of activity to assessment of results.
6.The criterion for promotion changes from efficiency in performing the job to ability to perform the job.
7. The goal of the performer changes: from meeting the needs of the boss to meeting the needs of clients.
8.The functions of managers change from supervisory to coaching.
9. The organizational structure is changing from hierarchical to flatter.
10. Administrative functions change from secretarial to leadership.
Here are some points that entrepreneurs who decide to engage in business reengineering should think about:
- Reengineering must be clearly linked to the current business, market and organizational strategy. If this connection is not traced, no joint meetings will help.
- Those responsible for carrying out reengineering should include HR managers who are busy implementing their own renewal programs. It also needs to gain stronger support from employees exhausted by nearly a decade of cuts.
- There are several effective ways to stimulate employee motivation in connection with reengineering. One of them is increasing the level of education. The reengineering movement has given this issue only a fraction of the attention that quality management has given it.
- Those leading reengineering efforts must carefully consider how their programs and projects should be integrated with other important organizational improvement activities, such as achieving quality leadership, customer satisfaction and retention, and increasing economic value added.
- Reengineering must demonstrate in the most decisive manner its ability to have an impact on the enterprise as a whole, and not just on individual functions. Otherwise, reengineering will be seen as another tool with which the administration can “correct” its current results, forgetting about the most important tasks assigned to it to create something new, create a market and achieve growth.
Unfortunately, other questions arise that also need to be answered, preferably before changes in the company. Such as:
- Why does reengineering work in some cases and not in others?
- What are the possible mistakes and miscalculations of companies that have embarked on the path of reengineering?
- How do company personnel accept change, since people, unlike production processes, cannot radically change overnight?
- What are the solutions to the problem of job security, because with reengineering there will be less need for workers?
- What about labor standards and working conditions for those who remain?
The experience of most American corporations is known, which, unable to withstand competition from Japanese enterprises, were in a deep crisis. Since then, most have been able to rebuild and regain their competitiveness. One of the techniques they used was reengineering. This experience and these management methods are of great importance for Russia today. Most industrial enterprises created during the USSR period need a radical restructuring of their work. To confirm this, simply visit the nearest factory.

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