10.5.1 What is Business Process Reengineering?

In the early 1900´s Henri Fayol, the "father" of management theory, originated the concept of engineering: "To conduct the undertaking toward its objectives by seeking to derive optimum advantage from all available resources."1

According to Hammer M. Champy:
"Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed"2

So what does BPR imply for your company? The term covers all the drastic changes which may be implemented on your management system, the company´s structure, personnel management and so on. BPR deals with all changes that can affect the manner in which business is conducted.3

1 Lloyd, Tom, Giant with Feet of Clay/ Tom Lloyd Offers a Contrasting View. of Business Process Reengineering, Financial Times, December 5, 1994; Pg. 8.
2 Hammer,M., Champy.J., (1993), Reengineering the Corporation: A Manifesto for Business Revolution., Harper Collins, London.
3 Successfully Performing BPR, By Michael Covert, Visible Systems Corporation, Copyright © 1997, Visible Systems Corporation. Pp1.