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How Business Process Reengineering is Reshaping the Enterprise

· 3 min read
Business Process Reengineering office workflow 1990s

In the midst of rapid globalization, relentless competition, and new technology reshaping organizations, the 1990s have seen a management revolution: Business Process Reengineering (BPR). No longer is incremental change enough. To achieve breakthrough improvements in cost, quality, service, and speed, companies are tearing up old processes and starting fresh.

What is Business Process Reengineering?​

Coined by Michael Hammer and James Champy in their seminal 1993 book "Reengineering the Corporation," BPR is the radical redesign of core business processes to achieve dramatic gains in productivity, efficiency, and quality. Rather than automating existing procedures, BPR questions the very assumptions behind how work gets done, tasks are grouped, and value is delivered.

"Reengineering is not about making marginal improvements or fine-tuning; it is about the fundamental rethinking and radical design of business processes." — Hammer & Champy (1993)

Why Now? The Drivers Behind the Reengineering Boom​

Several trends have made BPR a 1990s imperative:

  • Global Competition: Companies face new rivals unburdened by legacy processes.
  • Information Technology: Advances like client-server computing and enterprise software enable new ways to organize work.
  • Customer Expectations: Faster service, customization, and higher quality are the norm.

Businesses ignoring these forces risk being left behind. BPR offers a way to break free from outdated structures and seize new opportunities.

Hallmarks of a BPR Initiative​

A successful reengineering project will often feature:

  • Dramatic, organization-wide change (not just department-level)
  • Cross-functional teams mapping and redesigning workflows
  • Heavy use of IT to enable "process jumps" (e.g., ERP systems, workflow automation)
  • Focus on customer value rather than internal rules

Consider Ford Motor Company's overhaul of its accounts payable process. By questioning why so many invoices had to be prepared and reconciled, Ford used IT to nearly eliminate manual matching, cutting headcount by 75% and processing time dramatically.

Early Success Stories​

A few standout examples:

  • Ford: Streamlined purchasing and payable processes, saving millions.
  • Taco Bell: Redesigned operations to prioritize core customer experience, leading to rapid expansion and improved profit margins.
  • Mutual Benefit Life: Automated and restructured insurance processing, slashing turnaround times.

These companies illustrate that the biggest wins come not from automating the old, but from inventing the new.

Pitfalls and Lessons from the Front Lines​

Despite enthusiasm, many BPR efforts fail or underwhelm due to:

  • Lack of executive sponsorship and clear vision
  • Resistance from employees threatened by change
  • Underestimating cultural transformation required
  • Trying to "reengineer by memo" rather than via real cross-functional teams

Leaders must communicate a compelling purpose, invest in change management, and follow through on the disruptive promise of BPR.

BPR and the Future of Automation​

As the decade progresses, BPR is laying the groundwork for broader adoption of enterprise resource planning (ERP), electronic data interchange (EDI), and further workflow automation. Companies that treat reengineering as a one-time project will fall behind those who see it as an ongoing mindset essential to long-term competitiveness.

Business Process Reengineering is more than a management fad—it's a crucial response to the forces reshaping industry in the 1990s. For organizations willing to reinvent themselves, the rewards are transformational.