The document discusses the history and ongoing importance of business process reengineering (BPR). It describes how BPR began in the early 1990s as companies redesigned processes to remain competitive. While some criticized early BPR efforts as overly focused on layoffs, the document argues that process improvement needs to remain core to any organization. It suggests that business process outsourcing can help institutionalize continuous process improvement.

1. Business Process
Re-engineering
Never Say Die!

2. Long Live Business Process
Re-engineering
Business 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-engineering
Utilizing 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.
© 2013 Smart, Devine & Company, LLC. All rights reserved.

3. smartdevine.com 267-670-7300
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.
u
v
w
x
y
© 2013 Smart, Devine & Company, LLC. All rights reserved.

4. 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 You
SMART 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 structure
n 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 resources
n 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 & Cash Flow Improvement
• Sarbanes Oxley Compliance
Management Consulting Services
COO/CAO Outsourcing Services
• Management Reporting Design &
Optimization
• Key Performance Indicator (KPI)
Design & Analysis
• Strategic Sourcing & Spend Management
• Contract Compliance Assessments
• Order to Cash Process Optimization
• Human Capital management Effectiveness
Technology Consulting Services
• Strategic Technology Leadership
• Program Management Office Services
• Software Evaluation & Selection Services
• Technology Environment Assessment
• 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.
Business Advisory