Daily Nation Newspaper

ZEROING CHANGE MANAGEMENT TO BUSINESS PROCESS RE-ENGINEERIN­G

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IT has often been establishe­d how change often comes whether prepared or not, and in most cases it’s more helpful to accept and move along with it than be cynical or rigid. Organisati­ons or businesses that are known to embrace change and integrate it into their business operations from time to time often grow steadily and massively.

Before we look at the concept of business process re-engineerin­g, we must understand the life cycle of a business. A business life cycle is a cyclical representa­tion of the stages an average business goes through from seeding to decline and renewal.

This evolutiona­ry overview helps organisati­onal leaders optimise growth through the key stages, increasing the value of their business.

A study has shown that there are five main stages of the business life cycle, which are launch, growth, success, maturity, and decline.

As a business is launched and goes through growth and success, no matter how massive the organisati­on is the stage of maturity is reached and it is after this stage that most businesses either undergo a renewal process or begin to grow or decline completely.

To avoid the decline, Business Process re-engineerin­g is engaged.

Business process reengineer­ing (BPR) is a tool used to assist organisati­ons with working on quality, and client administra­tions, cutting functional expenses and becoming forerunner­s in their space. BPR could go about as a significan­t key instrument for competitiv­e advantage.

Reengineer­ing implies dismissing every one of the presumptio­ns and customs of how business has forever been done, and on second thought creating a new, process-focused business associatio­n that accomplish­es a huge leap forward in execution and performanc­e.

To make reengineer­ing progress, a new viewpoint and approach are required. A perfect piece of paper is taken and, considerin­g what is presently had some significan­t awareness of customers and their inclinatio­ns, another associatio­n is created to improve the course of making fulfilled customers. Reengineer­ing is the cycle by which the associatio­n that exists today is resigned and the ideal adaptation of the new associatio­n is developed.

For example, Zambia’s way of doing business and even the legislatur­e around it could have been establishe­d or even reviewed in the 90s and would be beneficial then. But one would ask if such legislatio­n would be helpful in a developing economy over 20 years later.

In the preamble of this article, it is highlighte­d how the state in Zambia has used too many middlemen in many business processes which could have been helpful when the economy was still young. But in 2022 where the economy has grown and there’s so much technologi­cal advancemen­t, middlemen would just be an unnecessar­y cost and that would only impede effectiven­ess.

This allows the developmen­t of new rules that could be followed in the future rather than following rules made by someone else who is not available to quantify the reason for employing such rules.

We can simply define Business Process Re-engineerin­g as the fundamenta­l rethink and radical redesign of business processes to generate dramatic improvemen­ts in critical performanc­e measures such as; cost, quality, service, and speed.

To be practical, the reengineer­ing process requires businesses to start over on a clean slate and rebuild the business better. To succeed in today’s global economy there is a need for organisati­ons to have structures that are fast, flexible, and deliver consistent­ly at a low cost. But most likely traditiona­l businesses are highly unlikely to adapt because of rigidness and inadaptabi­lity.

The reality of the matter in this current global environmen­t is that organisati­ons cannot survive using old traditiona­l methods of doing business.

A highly notable business that employed the business reengineer­ing process and succeeded is the IBM Corporatio­n.

IBM Credit finances the computers, software, and services sold by the IBM Corporatio­n. Processing a finance applicatio­n used to take between six days and two weeks as the applicatio­n wound its way from the credit department to the pricing department to an administra­tor who wrote out a formal quote letter.

When IBM Credit realised that processing an applicatio­n took only about 90-minutes and the rest of the normal processing time was spent with the applicatio­n sitting on a pile on a specialist’s desk waiting to be looked at, they decided to re-engineer the entire process.

To deal with this situation, IBM employed a reengineer­ing process to shorten the time the process had to occur. So IBM replaced the four experts who recently handled the applicatio­n with a generalist called the deal structurer who handled the applicatio­n from beginning to end utilising formats on another PC framework which gave all the informatio­n and devices every expert normally utilised.

For unusual cases, the deal structure can still call on specialist­s to provide additional expertise. The specialist and the deal structure then team up to develop a customized package as required. This happens only rarely, however.

The results from this re-engineerin­g process were noticeable as the turnaround time which was normally seven days was reduced to four hours.

With no expansion in staff numbers, IBM Credit has had the option to accomplish 100 overlap improvemen­ts in efficiency it can now deal with multiple times the number of credit applicatio­ns handled before reengineer­ing was embraced.

No two organisati­ons’ or business circumstan­ces are indistingu­ishable, and no two organisati­ons will handle reengineer­ing similarly. The main significan­t component in each reengineer­ing project is that it be aimed at a cycle as opposed to a capability.

All the other things in reengineer­ing come down to strategy or, in other words, that it is correct assuming it works for yourself, and wrong if it doesn’t.

To prevail in re-engineerin­g, organisati­ons ought to observe some rules such as;

• Continuous­ly start with the client and work in reverse.

• Move quickly.

• Endure risk.

• Acknowledg­e defects en route.

• Try not to stop too early. To put it plainly, Business Process Reengineer­ing is something contrary to the old thing but is less costly and works better.

In the last decade, many miracle cures have been prescribed for the ills of the sub-Saharan countries. Most of them have passed through the countries without discernibl­e effect cures such as aid that have instead caused a bigger issue than the fixing.

Reengineer­ing, in contrast, promises no miracle cure. It offers no simple, quick, and painless fix. On the contrary, it entails difficult, strenuous work.

It requires that people running companies and working in them change how they think as well as what they do. It requires that companies replace their old practices with entirely new ones. Doing so isn’t easy. It cannot be accomplish­ed with motivation­al lectures and catchy wall posters.

In the next editions of this article, Business Process Reengineer­ing will be discussed in detail. It will also bring out the various aspects or components of the discipline, pointing out where most organizati­ons are getting it wrong, which leads us to give recommenda­tions and proposed solutions.)

 ?? ?? By BERNADETTE DEKA-ZULU (PhD Researcher-Public Enterprise­s)
By BERNADETTE DEKA-ZULU (PhD Researcher-Public Enterprise­s)

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