Business' Reengineering


So far your company has been subjected of periodic reviews that have led into changes of lower importance trying to improve the results, in several occasions reducing structural costs, widening the markets to new regional areas, lightly modifying the products catalog and services offered.
The moment has arrived, in order "to start from zero" and reinvent your business gaining advantage of the most modern organizational, marketing and financial concepts, of the latest production and management technologies.

BPR - Business Process Reengineering

The structure of the company tends to divide processes into successive tasks, specializing the people and organizing them in a hierarchy. This working method leads, after some years, into the fragmentation of the business activity that influences in a negative way on the costs and in the motivation of the people that work in it.
In several studies solutions have been suggested but in a partial way, like the ones that offer the extension and task enriching methodologies, circuits optimization, Just-in-Time, Time-to-Market, etc.
The novelty of the "Business Reengineering" methodology is in its global character . It allows to determine, within the complexity of the company, which are the processes or basic circuits of the business, how are they conceived and how could they be imagined again in order to make them more effective. The reengineering process of an organization allows to obtain efficiency improvements of highly importance, but it demands an important commitment with the information and communication technologies.

Our experience: 30 years managing big companies.


In order for companies to become competitive again, they should review the way in which their work its done. Many of the performing problems that these companies experienced are the consequence of the fragmentation of the processes that take place in it. This originates:

  • Inflexibility
  • Lack of customer focus.
  • Obsession with the activity rather than the result.
  • Bureaucratic Paralysis.
  • Lack of innovation.
  • Higher indirect costs.

All of these problems have always existed, but before, the only thing necessary was to manage how the company's growth was done. Now this growth has leveled, so the factors listed above appear playing a key role. This is way the concept of reengineer emerges as a new focus methodology to confronts this new environment. "Reengineering is the fundamental review and the radical redesign of processes to achieve spectacular improvements in critical and contemporary measures of performances, such as costs, quality, service and speed". .
This definition highlights four key concepts:

1. Fundamental Review

Reengineering first determines what a company must do and how it should be done. It does not give anything for granted. It completely forgets what it is and focuses on what it should be.

2. Radical Redesign

When speaking of reengineering, radically redesign means to dismissed all the structures and existed procedures and inventing entirely new ways of carrying out the work. Redesign is to reinvent the business, no improve it or modify it.

3. Spectacular Improvements

Reengineering is not a matter of marginal or incremental improvements but huge jumps of performance. In this sense there are three types of organizations that are dedicated to undertake the reengineering:

  • Those who are in big difficulties and have no other choice.
  • Those who are not in difficulties yet, but whose administration are forecasting that problems lie ahead.
  • Those who are in optimal conditions.
4. Processes
A business process is define as a set of activities that receive one or more entrances and creates a product of value for the customer. It is the most important concept of the four. In Reengineering, the informatics acts as a "Key enabler". Without it, a process might not be redesign.


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Jose Luis Royo



Patricia Pineda