The Process of Business Restructuring in Organisation

Business restructuring is an improvement-focused approach that most organizations would undertake with the aim of making adjustments to increase efficiency and effectiveness in the business process. This process has its history in the private sector, where there was a need to rethink processes in organizations with the aim of improving customer service, reduce the costs of operations and become more competitive in the market. The fundamental question here is whether reconstruction has led to happy endings in all the organizations it has been undertaken. First of all, it is important to recognize the major role played by fundamentals in the process of business restructuring, as the issue of Information technology. (Grover et al. 1995). The effectiveness of a business restructuring process in terms of producing happy endings is dependent on the major enabling factors without which the happy endings cannot be realized, as it has been noted in some organizations. Successful business restructuring has enabled organizations to experience huge returns, especially after some hard times of financial drawbacks due to stiff competition in the markets. Organizations have been able to achieve success with redesign approaches because of adopting the right tools and taking the correct methodology. From experience in a car manufacturing firm that has witnessed tremendous results from the business restructuring process, a number of issues have to be underscored as observed. The first key factor in business restructuring concerns the preparations. Great results were achieved because the management of the firm demonstrated a high level commitment, took the right methodology and using the correct Information technology tools and personnel it was easy to achieve the targets of the plan. To show that indeed the process had achieved success the results of business restructuring were well communicated to the organization. (Girling et al 2007)The second factor involves identification of the main business processes that require change. The identification process must be undertaken with a lot of considerations to ensure that the deserving processes are given priority and bring the desired results and happy endings. Most of the organizations that have made the right identification for instance in the information systems department have ended up with improved and more efficient ways of managing information thus cutting down on costs of managing systems. It is important for an organization to understand well the motive behind reengineering process. According to studies that have been done in various organizations, the drive behind business reengineering is the need to cut costs that the organizations incur in running processes. Competitive pressure coming from other organizations has also driven organizations into the process of reengineering. Success in the respective departments have been noticeable with more innovations in products and quality of products all of which are geared towards putting the business in a more better competitive position than the competitors. Once the process of reengineering is capable of bringing such an essential change in an organization then it can indeed be said to be a happy ending since the desired goals of the organization have been realized. (Grover, et al 1995).

Product quality can also be another drive towards business reengineering process. I have seen Ford Motor company undergo the process of reengineering and changed from just a mere vehicle manufacturing firm into a company that was able to produce quality cars for all of their customers. Other than just quality improvements in their vehicles this organization was able to cut down on costs that were being incurred previously due to poor quality vehicles. This is so because poor quality vehicles in most cares ended up with numerous warranty repairs that were costly to the company. Thus reengineering and manufacturing quality vehicles enabled the organization to avoid the warranty related repairs and saved a lot that could be channeled into other process. Isnt this a happy ending? The process of reengineering also enabled Ford to guarantee their customers on the safety and quality of their vehicles as they come from the assembly line. This was through various measures that ensured that all vehicles coming from the assembly line have all their parts. This was achieved through the installation of a various devices in all the departments. Communication within the company was also improved by adopting VOIP to cut down on costs of meetings between the various departments. ( Hunt, Daniel 1996) Ford is therefore a good example of an organization that has utilized business reengineering to achieve costs reduction and thus happy endings in their production activities. (Girling et al 2007)

According to Peter Aiken & Bill Girling, data reengineering process in an organization can bring about good results in terms of rules that can streamline activities within the organization. This has been achieved whereby data reengineering has provided internal information that was not readily available for users implementation within the organization. The provision of such information to personnel is therefore considered to be a good result of data reengineering in an organization. Data reengineering has made availability and accessibility to essential information in real time. This means that information within organizations and outside the organization can be accessed in real time. This is very important for efficiency in service provision to customers especially in situations whereby customers need immediate response to certain queries. Real time data is a product of data reengineering process and can be said to be a good ending in business reconstruction endeavor.Dell is a major PC company in the world and has utilized business reengineering process to achieve tremendous results in the past that has seen it in its current position in the PC industry. Dell adopted the strategy of keeping the smallest inventory that facilitates direct link to the manufacturer. This all has to do with the efficiency with which orders from customers are handled. This process has seen the company attain sales of over $10 million daily which is indeed a happy ending for the company.

Implementation of massive IT changes in organizations has been studied to be precarious in nature. However organizations undergoing reengineering have been able to negotiate the high costs and risks that are associated with IT overhauls. The successful completion of projects associated with reengineering has led to significant tangible returns on investment. This is great progress and is fundamental in pushing the organization towards achieving its objectives and mission.Data reverse as a new formulation in organization has been able revitalizes organizations whose information systems were characterized with confusion or deterioration. This has been achieved through bringing of information together for the sake of managing customers and prospects information by the use of intranets within organizations. (Aiken)

However even though business reengineering process has produced desired results in organizations, it is important to note that the process has resulted in some undesirable effects in some organizations.( Hunt, Daniel 1996)

One important feature that has characterized business restructuring in organizations is the resistance to change. As much as this can be an obstacle in the implementation of a business reengineering strategy, resistance especially from a portion of the employees can led to unhappy endings in this important process. This is because in the minds of th policy makers once the process is initiated , it has to reach its ending despite of the forces of resistance encountered on the way. Most employees may be an obstacle to the implementation of reengineering because of the threat the process may have to their employment. In some organizations, business reengineering has led to downsizing of the company employees and hence it has resulted in unemployment which is not a happy ending for a number of employees especially those who are affected.

In some departments business reengineering has led to even more costs especially in situations whereby there is no better negotiation on risks and costs for implementing the process in the case of making use of external third party services.

Business reengineering has resulted in further loss of long earned internal talents within the organization especially are circumstances where the organizations engage in outsourcing services to initiate reconstruction. (Girling et al 2007)

In conclusion, it is vital to underscore the fact that business reengineering process can yield good results and happy endings if the company has the adequate resources to undertake the process and sets the targets well to be achieved within realistic time frames. To add on this the methodology has to be well understood and the scope of the process be precisely defined. This is in accordance to the experience the successful companies have gone through to reach happy endings with business process reengineering.

Reference

Girling, Bill, Aiken, Peter. Presenting: An Integrated Data, Systems, and Process Reengineering Case Study. VCU.edu 2007.

Hunt, Daniel.V., (1996), Process Mapping: How to Reengineer your Business Process., John Wiley and Sons Inc, New York.

Feldmann Clarence.G, (1998),The Practical Guide to Business Process Reengineering using IDEF0., Dorset House Publishing, New York.

Grover,Varun., Malhotra, Manoj.K.,(1995), Business Process Reengineering: A tutorial on the concept,evolution, method, technology and application., Journal of Operations Management 15 (1997) 193-213.

PeopleSoft (2000) Building a Real-time Government.

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