Business process re-engineering in the small firm: A case study

INFOR, Feb 1996 by Hale, Andrea J, Cragg, Paul B

Following the restructuring, external facilitators were used as the firm engaged in a 'team building' process in an attempt to promote a more cohesive attitude towards the business. Initially the team building was attempted with groups from across each division. This was followed by focusing on particular groups of employees who interact frequently. However this initiative achieved only limited success. The many teams were motivated, but also frustrated as they returned to work where little around them had changed.

5.2 The Solution -- Role Restructuring

Two years later, to fully implement the team building, the firm decided to undergo what was called "role restructuring". In this second stage, the efforts were led initially by the managing director and the external consultants remained as facilitators rather than leaders. In the Manufacturing division the general manager provided the support for employees in working towards the team approach. The general manager then transferred to Electronics which had not responded to the role restructuring in the same positive manner as Manufacturing. The same process was repeated and aimed at solving the more fundamental problems that had been glossed over in the first attempt. Electronics has since shown similar improvements to Manufacturing.

Table 1 shows the approximate dates for each step of their process from the initial decision to redefine the business. (Tables omitted) Further changes are still possible in the future.

Stated briefly, an extremely flat management structure was implemented with clearly defined tasks and an organizational culture of teams and high information sharing. Administration was affected to a greater degree than the production departments.

To emphasise the flat structure within the organization, the title of "manager" is now only used for general managers and above. For example, the production manager's role was redefined as "production controller". Some others who had previously had the title Manager are now "team leaders" who, among others, report directly to their general manager. General managers have taken on a "resource provider" role, rather than a decision maker role.

In the role restructuring, tasks were analysed and job descriptions formulated incorporating various specific tasks into each individual's job. Role restructuring clarified the processes of the business, eliminated inefficiencies and handover delays and generally improved the organization of the business. Typically teams were formed from individuals who previously communicated frequently, meaning that their tasks were much more closely linked and individuals knew when and where to seek assistance. Individuals were given greater responsibility for specific tasks. This responsibility was re-inforced by each person having their own operating budget and performance targets.

Within the Trading Division for example, their main administrative team deals with customer sales. From their many tasks, employees defined their key tasks, and focused on outputs. New job descriptions were prepared. For this team, role restructuring led to job specialisation where one person dealt with product enquiries and quotes, another with product management, and another with re-order problems. This clarified their roles and set priorities, replacing a situation where many persons dabbled at many tasks in an unco-ordinated and ineffective way.