February 23, 2012

Re-Engineering

Process re-engineering became a huge buzz in recent years past but has emerged as more of an isolated effort than an integral task interrelated with organizational design.  The organizational shape, staffing levels, internal systems and external relationships are all but a few of the factors impacting process efficiency.

Existing and proposed processes can be designed or analyzed for revision and retooled to better fit the organization and its purpose. Processes can be adjusted to meet regulatory requirements, streamlined for efficiency and be tailor-made to new products or services.

Business can be analyzed from the inside-out and from outside-in. The advantage of inside-out analysis is that businesses know themselves better than most. The downside of inside-out analysis is the threat of subjectivity and flaws in critical thought.

Outside-in analysis can suffer from a lack of business-specific or industry-specific knowledge. However, outside-in analysis offers objectivity from a viewpoint external to the organization while also being immersed in it. A hybrid approach is best where organizational stakeholders participate with the consultant in re-engineering the business processes and systems.

Process re-engineering can also lead to a wealth of new opportunities and provide insight into internal breakdowns and their causes. Organizations can be reborn through a complete business analysis and emerge as leaders in their field.

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