The document discusses business process reengineering (BPR) of a company called "Group Pracsis" that is in the strategic growth stage. It outlines the goal of developing a conceptual framework for fundamentally changing processes with a focus on customers. It analyzes Pracsis' existing magazine editing and financial processes and suggests improvements. For finances, it recommends establishing a payment planning system, prioritization system, and payment notification system. The document also discusses BPR theory, definitions, key steps, examples from Ford Motor Company, and considerations for implementing BPR in Russia.

1. +
BUSINESS PROCESS
REENGINEERING OF A
COMPANY AT THE STAGE OF
THE STRATEGIC GROWTH

2. +
Goal and Subject of Research
• Goal of research: conceptual framework development of
fundamental and radical changeover in connection with
process approach in order to refocus the business to an
ultimate consumer.
• Subject of research: academic, methodological and
practical aspects of business-process reengineering
implementation.

3. +
Target of Research &
Research Task
• Target of research: business-processes of OOO «Group
«Pracsis»
• Research task:
 To enquire into theoretical issues of business-process
reengineering;
 To analyze the existing network of business-processes of a
company;
 To suggest a new order of business processes for a company;
 To summarise the effect of business-process reengineering for a

4. +
Plan
• I. Theoretical Issues of BPR
• II. International Practices of BPR
• Ford Motor Company
• OOO “Pracsis”
• Magazine Edition Process
• Financial Processes
• III. Summary
 “Reengineering must be initiated . . . by someone who
has . . . enough status to break legs.»
Planning Review, May/June 1993

5. +
What is Business-Process
Reengineering?
• Reengineering is the FUNDAMENTAL RETHINKING and redesign of
BUSINESS PROCESSES to achieve DRAMATIC IMPROVEMENTS in
critical, contemporary measures of performance, such as cost, quality,
service and speed.
(Hammer & Champy, 1993)

6. +
Collision between
BPR & Other Concepts
BPR
Radical
Rebuild
Greater Focus
High Investment
Limited Number of Initiatives
Process Simplification
Incremental
Improve Existing
Process Focus
Low Investment
Various Simultaneous Projects
Continuous Improvement
Incremental
Improve Existing
People Focus
Low Investment
Work Unit Driven
(Source Coulson-Thomas, 1992)

7. +
Key Steps of BPR
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan

8. +
Ford Motor Company Before
Department of
Accounts
Payable
Supplier
Procurement
Department
Department of
Reception of
Goods
1. Purchase
Order
1. Sales
Order Copy
2. Receipt
2. Goods
3. Form of
Acceptance

9. +
Ford Motor Company After
Online
Database
Supplier
Payment
Process
Receiving
Process
Ordering
Process
Purchase Order
Goods
Payment

10. +
‘Enemies’ and ‘Allies’ of BPR in Russia
 Strong hierarchical order
 Contradiction between private and
public interests
 Business owners’ narrow-
mindedness
 Crisis
 Numerous opportunities for
benchmarking
 Multiskilled personnel
‘Enemies’ ‘Allies’

11. +
OOO “Pracsis”
Editor in Chief Journalist Literary Editor
Magazine Plan
Writing an
ArticleAgreement on
the Article
Literary Edit
Tasks for
Journalists
Agreed?
No
Yes

12. +
Performance Quality Review
Payment Process
Invoice Collection
Invoice Approval
Head of the
Company
Chief
Accountant
Financial
Department
Invoice
Reception
Invoice Collection
Verification
Current Assets –
Approval - Payment
Payment Plan
Cash Flow Analysis
Payment
NotificationPayment
Notification
Payments’ Status
Request
Operating
Accountant
Prioritisation
Payment Made?

13. +
Conclusions on the analysis of existing
financial activities
 System of payment planning is missing:
 Liquidity crisis
 Payment prioritising fallacy
 Payment control – accounting department. Debt financing
– financial department
 Constant requisite payment process monitoring

14. +
Invoice Collection
Budget Forming
Payment Process
Head of the
Company
Financial
Department
Accounts
Department
Invoice
Reception
Prioritising
Verification
Payment Plan
Development
Current Assets -
Approval
Lack of Current
Assets –
External
Financing
Payment Plan
Approval
Payment
Process
Performance Quality Review
Payment
Notiification
Cash Flow
Analysis
Payments’ Status
Report

15. +
Conclusions on the analysis of existing
financial activities of OOO ‘Pracsis’
 Payment control – financial department (planning,debt
financing planning)
 Suggestions:
 Payment planning system
 System of payment prioritising
 System of payment status notification for the parties concerned

16. +
Summary
• Reengineering is a fundamental rethinking and redesign of business
processes to achieve dramatic improvements
• Rules and symbols play an integral part of all BPR initiatives
• Reengineering in Russia has its peculiarities
• Everything in the world changes. The only thing that doesn’t change
is a ‘change’ itself.

17. +
Thank You for Your Attention
Questions, please!