Although the above mentioned briefly about the difference between continuous improvement and reengineering, it is worth more elaborated further, not only differences, but also similarities, to know more clearly about the BPR.
For the CEO, continuous improvement and reengineering can be likened to a driver and a putter for golfers. Reengineering is the drivers and continuous improvement is putternya. They're very different, but mutually necessary and complementary. Both are needed for the company to win the competition. Both forms or models of how these changes:
Emphasizing on customer satisfaction.
Using a measure of improved performance (performance improvement measures) and engineering problem solving (problem solving technique).
- Focus on business processes.
- Using teams and teamwork (teamwork).
- Making changes in values and beliefs (if successful).
- Encourage decision-making process of the upper level to the lower layers in the organization.
- Requires the commitment of senior managers and management or change management (change management) in order to succeed. But both ways or approaches also have differences and significant enough.
REASONS AND WHEN DOING Reengineering
For several years have proven that a company will feel safe and can continue and develop their lives if they can compete in one of three areas as follows:
- Cost / productivity.
- Quality / services.
- Speed / flexibility.
In the case of the mediocre competition and stable, the work can be divided into a number of routine and simple task for most workers who do not / less skilled or not / less educated to achieve large economies of scale. Here arises the layers of oversight and supervision to connect the workers. In other words, the relationship between workers is indirect. But in its development, the work becomes more and more complex. Now, with terusmenerusnya demands for speed, flexibility, quality and quick response from our customers, companies are encouraged to develop a simple job process becomes more complex work nature. Such complex jobs can only be created and developed by connecting directly the people or workers who are there for and that each job is complex and multi-disciplinary nature. Such complex jobs can not be done by simply adding a layer of oversight and supervision by an indirect relationship, because it would be too long. In other words, the decision making process would be too long. What is needed is a direct relationship and the workers are guided by a shared understanding of the vision of the company and the process is done. From this comes the following:
The development organization is more 'flat' (flat organization) and the level of control over 'thin', compared with the old organization characterized by many classes of (layers and supervision).
Span of control (span of control) wider, which is necessary to control the flatter organization.
Wide span of control can be done either with the help of increasingly sophisticated information technology. Each company must decide for themselves, whether or not they require reengineering.
Reengineering should only be done if it can help the company achieve or push towards a strategic position. Therefore, before doing reengineering, first need to clearly know about the company's strategy. Indicators that are strategic to be made to answer the question whether or not the required reengineering are:
Reality and conviction whether the competitors will benefit in cost, speed, flexibility, quality or service.
Where there is no vision or strategy such as the need to establish specific operational capabilities.
Need to analyze the new strategy choices, for example, to enter new markets or redefine the types of products / services.
The process is still the company's core technology, the old ways or approaches.
Major changes occur in the market, including the following:
- Significant deterioration in market share (market share).
- Developing a new base in the competition or the emergence of new competitors.
- The emergence of important new regulations.
- Shorter life cycle products age.
- The new technology comes into play.
On the other hand, the possibility of reengineering is not required by a company. The position of a company in a given industry can make a difference. The new company that has directly using methods, approaches and cutting-edge technology or just a massive change, usually do not need to do reengineering. For companies that are still doing business with the model or old ways of the old and outdated from the ways used by its competitors, should be doing this reengineering. Reengineering is a kind of high doses of the drug, which is not always appropriate to treat a disease. Technical or operational issue alone usually does not require reengineering. Most of the problems the company is not technical or operational issues, but strategically. Therefore, before doing reengineering, really need to be clear about the company's strategy. If not, it might be time, money and effort thrown away in vain for things that may not or should not be done.