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

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

* Redesign of the chosen processes

The major reengineering effort involved the development of teams and alteration of each individual's tasks to ensure clarity of job descriptions, efficiency, and coherence with every other individual's tasks. The chosen tasks affected the whole business in each division and while the processes were not physically documented, each was considered in detail, clarified and analysed for inefficiencies.

* Initiate change

No change was implemented without agreement from everybody. All the employees participated in the changes and had power to design the way they wanted their tasks to work. Employees were given responsibility for their own tasks and it was up to them to perform. Additionally, the business plan was documented and hung in reception for all to see. This outlined the tasks involved in completing each change and each of these tasks had owners who had to complete their tasks by the agreed due dates.

Considerable support was exhibited by senior management. They knew the details of the changes, and also indicated that they supported the changes wholeheartedly. Their attitude towards employees also emphasised the importance of the people to the business. The divisions were employing more people after each round of change, rather than removing people. This had been one of staff's major concerns and trust in management was strengthened from the promises and assurances which were actually delivered.

It took two attempts to implement satisfactory change at the Electronics division. Morale among staff was low to begin with, as it had been acquired by the firm from receivership and the employees resisted change from the outset. The changes had to be reinforced by the general manager from the Manufacturing division where the reengineering had been considerably more successful. The second attempt gained significantly higher acceptance and this appears to be due largely to the consistent support of management available to the employees.

* Implementation

Implementation was a major task to ensure that all the plans actually came to fruition. The timetables that were agreed upon by each member of the company were adhered to. The general manager was able to ensure this as all parties had agreed to the conditions, requirements and timetable. Further changes are still being planned and implemented.

* Evaluation

A customer survey was conducted both before and after the major changes, as the emphasis on outputs extended to the customer. This was partly in order to evaluate the success of their aims to improve outputs and focus on service. The survey will be repeated to determine the success of the changes that have occurred. Furthermore, the high level of adherence to the agreed timetables was another indication of the permanence and cooperation with the project as a whole.

6.1 Project Success

The success of the project exceeded the expectations of the managing director. After a slow start with the teambuilding, the role restructuring proved to be much better. The teams are very enthusiastic, with management offering considerable support. The divisions are performing better in service, customer relations and also employee relations. The focus on outputs has meant that the teams are more aware of the results of their work, and they have incentives that are related to those outputs.