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Redesign Processes for Strategic Advantage

  • Jul 14
  • 8 min read

Imagine a world in which your business operates at its full potential, with every process streamlined for maximum efficiency. Innovation becomes second nature and performance reaches new heights. Business process reengineering can make this vision a practical and achievable reality.


Business process reengineering involves more than just minor adjustments; it reshapes the core operations of your organisation. Significant improvements in productivity, quality and overall performance can be achieved by fundamentally altering workflows, eliminating inefficiencies and addressing bottlenecks.


Techniques such as process mining reveal hidden opportunities for improvement by highlighting tasks that can be simplified, automated or outsourced more effectively. Beyond improving efficiency, reengineering drives collaboration and innovation within teams, transforming the way work is approached and creating a lasting impact on organisational success.



“If I had one hour to save the world, I would spend fifty-five minutes defining the problem and only five minutes finding the solution. “ - Albert Einstein


Identify Inefficiencies and Hidden Opportunities


The identification of inefficiencies, redundancies and hidden opportunities in the re-engineering of business processes requires a systematic approach.


Business Process Reengineering


1. Map Current Processes

Create detailed flowcharts or process maps to outline each step of your workflows. These visual guides help team understand stages and components, giving you better coordination and a basis for discussing how work should proceed.


Gather data on the duration of each step, the resources involved and any delays or waiting times. This information helps you spot bottlenecks, compare performance with plans and guide decisions that help processes run smoothly.


  • Develop comprehensive process maps to visualise each workflow stage

  • Collect data on timing, resources and delays to identify inefficiencies

  • Analyse bottlenecks and redundancies to prioritise improvement actions


Which parts of your processes slow progress or create unnecessary complexity?


Example: A manufacturing firm maps its assembly line, identifies a step where materials frequently run short and reallocates resources to ensure continuous flow, reducing production delays and improving output.



2. Analyse the Data

Look closely at your workflow and identify bottlenecks where tasks accumulate or slow down. Remember, a process is only as strong as its slowest point and each delay directly impacts your bottom line.


Next, examine your tasks for redundancies, spotting duplicated or unnecessary work that inflates costs. Measure performance through key performance indicators (KPIs) to see if objectives are met and determine steps to enhance overall efficiency.


  • Identify bottlenecks by tracking task accumulation and delays

  • Detect redundant or unnecessary tasks to streamline workflows

  • Measure performance against KPIs to guide targeted improvements


Where are the critical slow points in your processes that, if addressed, could deliver the greatest efficiency gains?


Example: A private bank reviews its loan approval process, finds that multiple compliance checks were being repeated across teams, streamlines the workflow and reduces approval time by 30%, improving client satisfaction and operational efficiency.



3. Engage Stakeholders

Speak directly with the employees involved in each process to uncover daily inefficiencies and challenges they face. Their practical insights are invaluable, helping you pinpoint issues that might not be visible from a managerial perspective.


Engage stakeholders in brainstorming sessions to explore improvements and ensure everyone is aligned with project goals from the start. Leveraging the expertise of skilled employees can enhance operations, boosting both efficiency and overall profitability.


  • Conduct interviews and workshops with employees to uncover operational pain points

  • Involve stakeholders in collaborative problem-solving to generate actionable improvements

  • Ensure alignment on objectives and responsibilities to support seamless implementation


How are you capturing frontline insights to drive meaningful improvements across the organisation?


Example: A hedge fund consults its trading desk and operations teams to identify delays in trade settlement, implements process adjustments based on their feedback and reduces settlement errors, enhancing both efficiency and risk management.



4. Leverage Process Mining

Use process mining tools to pull data directly from your IT systems, giving you a factual foundation for understanding and refining your processes. Many businesses underestimate process variability and the effect it has on overall performance.


Create visual representations to reveal deviations from intended workflows, showing how these variations and performance issues develop and interact. Detect common patterns and trends that indicate inefficiencies or opportunities for optimisation, uncovering valuable insights.


  • Extract and analyse system data to map actual workflows and identify deviations

  • Visualise process flows to pinpoint inefficiencies and recurring bottlenecks

  • Use insights to prioritise improvements and optimise resource allocation


Which process variations are most affecting efficiency and where can technology deliver the greatest impact?


Example: A private bank uses process mining to examine its client onboarding system, discovers delays caused by repeated document checks across departments and redesigns the workflow, reducing onboarding time by 40% and improving client experience.



5. Benchmarking

Compare your processes with industry standards or best practices to evaluate your core activities on a wider scale. This perspective, combined with a clear understanding of each element, provides a vital benchmark for improving baseline performance.


Identify where your processes lag behind top-performing organisations and use gap analysis to pinpoint and address these differences. Closing these gaps allows you to enhance performance, streamline operations and move closer to achieving your strategic goals.


  • Compare your workflows against industry benchmarks to identify performance gaps

  • Conduct gap analysis to prioritise areas for improvement and set measurable targets

  • Implement best practices to elevate efficiency, reduce costs and strengthen competitiveness


Where does your organisation fall short compared with peers and which gaps offer the greatest opportunity for improvement?


Example: A hedge fund evaluates its trade reconciliation processes against industry standards, identifies slower-than-average settlement checks and adopts automated reconciliation tools, cutting errors and speeding up daily operations.



6. Conduct Root Cause Analysis

Use techniques such as the "5 Whys" or fishbone diagrams to uncover the root causes of inefficiencies and redundancies affecting your team, department or organisation. Concentrate on resolving these core issues rather than simply treating surface-level symptoms.


Remember, root causes are the underlying reasons behind problems, whereas symptoms are just visible signs indicating something is wrong. By addressing the true origins, you create solutions that are more effective, sustainable and capable of preventing recurring issues.


  • Apply structured methods like the "5 Whys" or fishbone diagrams to identify underlying causes

  • Differentiate between symptoms and root causes to target lasting solutions

  • Implement corrective actions that prevent recurrence and improve overall efficiency


Which fundamental issues are driving recurring problems and how can you tackle them at the source?


Example: A private bank investigates frequent delays in fund transfers, traces the problem to inconsistent data entry across multiple systems and standardises the process, significantly reducing errors and improving transaction speed.



7. Simulate and Test Changes

Create small-scale prototypes or pilot projects to test proposed changes. These pilots act as practical learning tools, letting you experiment on a manageable scale and gather insights into feasibility, costs and potential returns before full implementation.


Evaluate how these changes affect efficiency, cost and quality. While structured processes help maintain order and productivity, it is just as important to continually question and assess them, ensuring they evolve to meet organisational needs and drive lasting improvements.


  • Develop pilot projects to trial process changes on a small scale before full rollout

  • Measure the impact of changes on efficiency, costs and quality to inform decision-making

  • Refine approaches based on pilot results to optimise outcomes and minimise risk


How can you safely test improvements to validate benefits without disrupting core operations?


Example: A hedge fund pilots an automated portfolio rebalancing tool with a single trading desk, monitors its impact on execution speed and error rates and then scales the solution firm-wide after confirming efficiency gains.



8. Implement Automation

Identify tasks suitable for automation to cut down on manual effort and minimise errors. Focus on repeatable, high-volume and standardised activities, as these offer the greatest potential for efficiency gains through automation.


Deploy tools such as robotic process automation (RPA), AI and machine learning to streamline these processes. Using these technologies wisely lets you optimise resources, reduce operational strain and concentrate your attention on areas that require human expertise and strategic input.


  • Pinpoint repetitive, high-volume tasks that can be automated to improve efficiency

  • Deploy RPA, AI, or machine learning tools to reduce manual effort and errors

  • Monitor automated processes and refine them to ensure optimal performance and value


Which routine processes consume the most time and could deliver the greatest benefit if automated?


Example: A private bank automates client account reconciliation using RPA, cutting manual processing time by 60% and allowing staff to focus on advisory services that generate higher revenue.



Implementing Change

 

Implementing business process reengineering isn't for the faint of heart, but it's worth the effort. The journey typically involves seven major steps:

 

 


“The key to real change lies not in implementing a new process, but in getting people to hold one another accountable to the process.” - Kerry Patterson


Common Applications of Business Process Reengineering

 

The impact of business process reengineering extends far beyond the boardroom - it's about delivering tangible results that resonate with both customers and stakeholders.


By embracing business process reengineering, companies can:

 

  • Reduce Costs and Cycle Times: By eliminating wasteful activities and optimising workflows.

  • Enhance Organisational Agility: Empower teams to make faster decisions and adapt to evolving market demands.

  • Elevate Quality: Standardise processes to minimise errors and focus on high-value activities.

  • Support Collaboration: Break down barriers between departments to facilitate seamless information flow and collaboration.



The Process of Creating a Process | Moustafa Moursy (President @ Push Analytics)



Sample Case: Ford Motor Company

Ford once employed more than 500 people in its accounts payable department, processing invoices in a traditional, multi-step approval workflow. Each invoice was manually matched to purchase orders and receiving documents, creating delays, errors and unnecessary handoffs.


Rather than improving the existing process, Ford redesigned it entirely. By integrating purchasing, receiving and accounts payable systems, invoices were largely eliminated. Payments were triggered automatically when goods were received and matched digitally against purchase orders.


The result was a dramatic reduction in manual work, faster cycle times and a 75% reduction in headcount within accounts payable - not through cost-cutting alone, but by removing the need for the process itself.


Key takeaway: Ford did not streamline accounts payable; it questioned why invoices were needed at all. True process reengineering starts by challenging assumptions, not by refining inefficient workflows.



"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." - Michael Martin Hammer (American Engineer)


In essence, business process reengineering isn't just a buzzword - it's crucial for your organisation to thrive in today's competitive landscape. By embracing change and challenging the status quo, you can unlock new opportunities for growth, innovation and success.


As you consider the insights shared, what steps will you take today to start rethinking your processes? How can embracing change lead your organisation to newfound success and resilience in a continuously developing landscape?


Don't shy away from rethinking how things are done. Approach this with an open mind and be willing to make bold decisions. The results can be transformative.

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