Reengineering

Reengineering is the term used for radical change processes in the organization. Sometimes the concept of BPR (Business Process Reengineering) is used. The authors and fathers of this concept are American Consultants Mike Hammer and James Champy, who published the most famous work about reengineering in 1993, which is defined as “redesign of business processes in order to achieve dramatic improvements in key performance indicators such as quality, service and speed.” Reengineering builds the need for change on the three C’s:

• Customers
• Competition
• Change

The organization under this approach must focus on key processes with high added value and “slash” irrelevant side processes with minimal added value. Key processes are reorganized so that they could go smoothly and eliminate their bottleneck.

Radical change of processes was built heavily on new information and communication technologies, which at that time into use on a massive scale came in organizations. The disadvantage of the first generation of reengineering was less emphasis on human resources, which was, inter alia, more accentuated in the so-called second generation of reengineering, which is represented, for example by the PPP methodology.

Process approach: Unlike creation of the typically vertically oriented formal organizational structures, it focuses on going horizontally across going organizational processes.