Before getting into business process reengineering, it is important that you first understand the basics of business process development. Once you understand the difference between a “good” and a “bad” business process, you will be able to recognize business process in your organization that may need to be rethought!

1. What is Business
Process
Reengineering?

2. • A business process is:
• a set of work activities that are
carried out by employees to
achieve business objectives
• integral to maintaining
sustainable growth because it
allows a company to operate
consistently from one location
to another as it expands
What is a business process?

3. Example: Coffee shop with franchise locations
• When a franchise location is established, the
franchise owner must adhere to strict
guidelines in relation to:
• Appearance, Branding, Recipes, etc.
• These guidelines are business processes
which allow for customers to have a
consistent experience from one
location to another
What is a business process?

4. A “good” business process
must have three elements:
1. Purposeful Goals
2. Quantifiable and Controllable
Elements
3. Consistent Outcomes
What defines a “good” business process?

5. • Business processes must take into
account the needs of the company, the
employees, and the customer
• Example: Coffee Shop
• a business process that the company may
create would be the process by which
employees make coffee
• a specific measure of coffee grounds must be
used in order to produce the coffee
1. Purposeful Goals

6. • The goals of this process include:
• Corporate goal: minimize the amount of
waste produced during the brewing
process thus increasing the profit margin of
a cup of coffee
• Employee goal: teachable process that
allows employees to make the coffee
correctly
• Customer goal: ensure a consistent
customer experience in terms of the
coffee’s taste
1. Purposeful Goals

7. • While establishing a business
process, companies should make
the process as specific as possible
• Example: Coffee Shop
• Good: Add x tablespoons of coffee
grounds to the coffee machine and brew
for x minutes to make x amount of coffee.
• Bad: Add coffee grounds to the coffee
machine and brew the coffee.
2. Quantifiable and Controllable

8. • The “bad” process does not
specify the:
• exact amount of coffee grounds
• length of brewing time
• amount of resulting coffee
• When these amounts are specified,
the process is both quantifiable and
controllable making it a “good”
business process
2. Quantifiable and Controllable

9. • While developing a business process,
a company must test it to ensure that
the outcome is consistent each time
the process is completed
• Example: Coffee Shop
• the outcome of the coffee making process is
freshly brewed coffee
• the coffee should look and taste the same each
time it is brewed in order for it to meet this
criterion
3. Consistent Outcomes

10. • Business process reengineering:
• the redesign of core business processes
to improve employee productivity and
product/service quality
• The goal is to make a business
more efficient for all
stakeholders involved
• Stakeholders: the company, the
customers, and the employees
What is business process reengineering?

11. • A couple of examples of changes that the
internal stakeholders must be willing to make
are:
• Shifting the emphasis from managing activities to
delivering results
• Getting rid of overly complex processes in favor of simpler
ones
• Streamlining the organizational hierarchy
• Developing new processes that will help the company work
towards the future rather than simply carrying on with
what has always been done
What is business process reengineering?

12. • Companies should engage in business
process reengineering in order to
increase their efficiency and
consistency
• When a company has efficient business
processes, it reduces its expenses
because less resources (materials or
time) are wasted during the production
process
Why engage in business process
reengineering?

13. • Consistent business processes
allow companies to create a more
reliable product/service which will
likely lead to increase customer
loyalty
• Loyal customers make repeat purchases
which increases revenue
• With revenue up and expenses down, the
company’s profitability increases
Why engage in business process
reengineering?

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