Whatever your company’s destination, well-designed business processes are the key to driving organizational strategy and achieving business goals during an ERP implementation.
If ERP success and improved organizational performance is your desired destination, then business process reengineering is the path to take. Business process reengineering involves translating business goals and strategies into tangible processes and value-driven process improvements. Your organization’s chosen ERP system should accommodate these “future state” business processes and bring your organization closer to achieving its goals.
To align business process reengineering with organizational strategy, organizations should begin by documenting and prioritizing their “current state” business processes. The level of importance of each process should be determined by evaluating its current level of efficiency and its potential degree of business impact. Beginning with the highest priority process or functional area, organizations should identify process inefficiencies, look for opportunities for improvement and, finally, decide what particular improvements support their business goals. During this stage, the focus is not on redesigning processes but on identifying high-level improvement targets that can help achieve business goals.
These improvement targets then guide the definition of “future state” business processes. During this stage, the implementation team should work with employees and executives to redesign processes that have the highest impact on business goals. Bringing the right mix of resources to the process definition team ensures that process changes are not only driven by business goals but also based on end-users’ experiential knowledge of what works and what doesn’t.
While focusing on high-level business goals is important, listening to end-users and employees creates value in itself and is a stepping stone to achieving overall business goals. This is why organizational change management and business process reengineering cannot be separated if your organization hopes to achieve business benefits and ERP success.
Business process reengineering should be value-driven. If your organization is not asking questions like, “What is our destination?” and “What business processes will help us get there?” then it will probably end up asking questions like, “Why is our ERP system not achieving business benefits?” and, worst of all, “Why did our ERP implementation fail?”
To learn more about business process reengineering, download our free, on-demand webinar, Business Process Reengineering: A Key Component of ERP ROI.