Business Process Change

ACCA P5 Advance Performance Management

Levels of process:

There are three levels at which a process perspective can be used to analyse a business:

Strategic level – looking at the business, or its supply chain, as a whole

Operational functions of the business – for example, looking at purchasing, marketing, or manufacturing operations

Sub-operational processes – looking at individual processes within the operation’s functions; for example, placing television advertising within the marketing operation

Business Process Redesign: Redesign focus on simplifying process (increases flexibility and reduces time), cost effectiveness and quality improvement with utilizing the concept of business integration, lean management and benchmarking (best practice). Best practices are used in redesigning process under the umbrella of diverse management approaches such as Total Cycle Time compression, Lean Enterprise and Constraints Management. Implementation of redesigned process imposes socio-cultural challenge to an organisation.

Refer to the link for a comprehensive table of:

Survey of best practices in business process redesign – From page3

Business Process Reengineering: Reengineering means viewing things from a different perspective (ie. Reinventing the wheel/process).

Synopsis from the article “Business Process Re-engineering”

BPR promised a novel approach to corporate change, and was described by its inventors as a “fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service and speed”.

The technique involved analyzing a company's central processes and reassembling them in a more efficient fashion and in a way that rode roughshod over long-established (but frequently irrelevant) functional distinctions. Functional silos were often protective of information, for instance, and of their own position in the scheme of things. At best, this was inefficient. Slicing the silos into their different processes and re-assembling them in a less vertical fashion exposed excess fat and forced corporations to look at new ways to streamline themselves.

Best practices in business process redesign: an overview and qualitative evaluation of successful redesign heuristics

Business Process Re-engineering

ACCA Article: Business Process Change