In order to start the process of reengineering / transformation of processes, it is necessary to define the end goal – what these changes are needed for.
The goals can range from a simple increase in process efficiency to a reassessment of the value chain. The depth of changes can also vary based on the need and desire for changes, from improving core processes to creating new processes to expand the value chain. In simple terms, it is necessary to decide whether the company will carry out a “cosmetic overhaul” or a “major overhaul”. The chosen end goal will determine how serious the changes in the processes will be.
For most companies, business process reengineering is associated with obtaining quick benefits and optimizing corporate functions, such as HR processes, budgeting, etc. (depending on the specifics of the organization), while the main processes that generate income remain unchanged. Accordingly, the effect of implementing these changes will be insignificant for the business.
Many companies, choosing the simplest way to change processes through their improvement, expect to receive colossal economic benefits from the changes. Some, having chosen more complex changes along the value chain, want to complete all processes in a very short time, underestimating the duration and depth of the changes being carried out. Often, managing holdings, having chosen a strategic holding as an operating model, actually continue to carry out the processes of an operational holding.
The main message is to set the right goals! From a simple increase in the efficiency of processes to a radical reassessment of the value chain and the implementation of a strategic transformation of the company’s business model.
