Business Process Re-engineering

Never Say Die!

Long Live Business Process Re-engineeringBusiness fads come and go. The concept of process re-engineering has been around since the days of Henry Ford, but the formal BPR concept began in the early 90’s as organizations radically redesigned many of their critical business functions to remain competitive.

In the early 90’s, with the advent of large-scale ERP systems like SAP information technology solutions were used as the drivers for the infamous “brown paper” sessions in many organizations. You could argue that the process changes implemented at that time were driven by the new ERP business model rather than pure process re-engineering goals.

The impact on human capital was the most sigin-icant outcome. Staff reductions and the elimina-tion of management levels were the norm in many organizations. As a result, BPR began to take on negative connotations almost exclusively associated with layoffs.

Throughout the 90’s and over the most recent decade, other process improvement methodologies have evolved including Lean, Six Sigma and Busi-ness Process Management. Most involve specific techniques to measure inefficiencies using statistical and gated methods and ultimately lead to changes in process and information technology systems.

While some would argue that the pace of social and technological change has increased dramatically in recent years, you could argue that dramatic change has been around throughout business history. For those of us who remember the advent of the per-sonal computer, the widespread adoption of e-mail or the introduction of the Internet, these changes took years to evolve, yet their effect at the time was as rapid and profound as today’s digital revolution seems to us.

The key point is that the need to improve, to change and re-engineer never goes away. Organizations that budget for process improvement through capital appropriations, ad-hoc projects or through IT system implementations are still reacting to market and competitive forces, rather than evolving. The need for process improvement should be core to any organization, as important as the quality of their product or the sanctity of their financial records.

How Business Process Outsourcing can Institutionalize Process Re-engineeringUtilizing an effective BPO strategy, managers can embed many of the above principles into an established operation, even using their existing staff. BPO allows the organization to define a new set of operating rules, largely free from the existing constraints and structures. Done correctly, the results are increased productivi-ty, lower cost and an enhanced ability to react to change.While a new structure brings immediate and measurable change, if not managed correctly the newly created BPO organization will im-mediately begin the precipitous decline back to the ways of old. Productivity will fall and costs will rise. To avoid this eventuality, effec-tive BPO strategies must embrace the con-tinuous improvement philosophy throughout their organizational life.

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Every dollar counts

“The need for process improvement should be core to any organization, as important as the quality of their product or the sanctity of their financial records.”

There are many ways to promote continuous improvement activities, but keep in mind these five rules of the road:

Avoid using capital to fund these initiatives – Our tax laws define the appropriate use of capital to fund tangi-

ble assets that have a defined life-span. Hence the concept of depreciation. Many corporations limit their capital budgets and as a result, pro-cess improvement initiatives often lose out when compared against other “urgent” projects.

Add Process Improvement to employee scorecards – Process improvement should be included as

an ongoing, persistent part of every employee’s annual goals.

Seed change champions through-out the organization – Every team needs an agent of change. These em-

ployees will always challenge the status quo and offer productive feedback. Harness their energy and you will be surprised with the results.

Use the data you have – billions of dollars are spent on databases, data warehouses, and business intelli-

gence platforms yet employees and managers often lack the capability to effectively utilize the information. The once “geeky” math major is

now one of the hottest commodities in the job market as organizations grapple with the huge volumes of data they are gathering on a daily basis. Do not be complacent with poor data quality. Demand actionable data. If it is not right, fix it!

Microsoft Excel is one the most important technology tools in the world. It is also fraught with risk! –

The world runs on a spreadsheet. If you look in the dictionary for “ubiquitous” you should find the word “Excel.” The challenge with the use of spreadsheets is the lack of structure and con-trol, ineffective data sharing and the unwavering reliance that organizations and their employee place on these tools. Countless Business Intel-ligence implementations have failed because people revert back to their spreadsheets at the first hint of data anomalies in their BI platform. While spreadsheets are ideally suited to model a process or to design complex calculations, be sure to systemize them before the spreadsheets themselves become institutionalized.

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© 2013 Smart, Devine & Company, LLC. All rights reserved.

smartdevine.com 267-670-7300

A c c o u n t i n g T a x A d v i s o r y

SMART DEVINE CAN HElp YouSMART DEVINE offers custom BPO solutions with 100% focus on the operation itself. We offer a consultative approach to BPO that embeds a continuous improvement philosophy throughout the life of the engagement. For more information, please contact Rob Drover at 267.670.7387 or rdrover@smartdevine.com

Outsourcing Solutions Include:n Application Management • IT support services available from implementation through legacy maintenance • Support a wide variety of enterprise applications • Blended models to incorporate with existing Helpdesk structuren Back-Office Outsourcing • Wide range of outsourcing services from back-office accounting to special compliance projects • Scalable infrastructure • Process optimization methodology is core to every engagement • Access to deep resource bench from clerical to specialized functional resourcesn Professional Services • Partnering with software and other professional services firms • Class action lawsuit administration • Data management services • Professional staff backfill

n Data Governance • Gain the promised value from your Business Intelligence investment • Automated data quality and custom monitoring solutions • Ensure compliance throughout critical business processes • Ensure correct information is delivered for executive dashboards and corporate reporting

Rob M. Drover Managing Director

Rob is a Managing Director in the Business Advisory Services Practice at Smart Devine. Rob specializes in enterprise-level application and infra-structure support, high-volume data management and business process outsourcing (BPO). With a focus on operational excellence and process improvement, Rob has assisted a wide range of clients including Fortune 200 organizations optimize their enterprise level applications and processes.

Rob has over 21 years of experi-ence in Financials, Sales and Market-ing and Information Technology. He brings extensive experience in Project Management, Production Support and Business Process Re-engineering. Rob’s industry experience includes over 8 years in the Chemical Industry and 12 years in large Pharmaceuticals.

Smart Devine provides a full range of accounting, advisory, tax and investigative forensic and litigation services to organizations across a variety of industries. For more information about our services call 267-670-7300 or visit our website at smartdevine.com.

Financial aDviSory• CFO Outsourcing Services• Accounting & Finance Process Improvements• Corporate Governance & Regulatory Compliance• Enterprise Risk Management• Financial Planning & Budgeting• Internal Audit Planning & Reporting•Profit&CashFlowImprovement• Sarbanes Oxley Compliance

ManageMent conSulting ServiceSCOO/CAO Outsourcing Services• Management Reporting Design & Optimization• Key Performance Indicator (KPI) Design & Analysis• Strategic Sourcing & Spend Management• Contract Compliance Assessments•OrdertoCashProcessOptimization• Human Capital management Effectiveness

technology conSulting ServiceS•StrategicTechnologyLeadership•ProgramManagementOfficeServices•SoftwareEvaluation&SelectionServices•TechnologyEnvironmentAssessment• Operational Assessment• Business Process Outsourcing

Smart Devine provides the superior service your organization deserves. our enhanced list of services include:

Smart Devine | 1600 Market Street | 32nd Floor | Philadelphia, PA 19103 | T 267-670-7300 | info@smartdevine.com© 2013 Smart, Devine & Company, LLC. All rights reserved.

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