Not every inefficient process needs to be rebuilt.
Sometimes the existing process is fundamentally sound and needs targeted improvements. Other times, years of changes, workarounds and new requirements have left the process itself no longer fit for purpose.
Does the existing process need to work better, or does it need to work differently?
That is the key distinction between business process improvement (BPI) and business process reengineering (BPR).
Business process improvement vs business process reengineering
| Business Process Improvement | Business Process Reengineering | |
|---|---|---|
| Objective | Make an existing process work better | Fundamentally change how the process works |
| Starting point | Existing process | Desired business outcome |
| Scope | Specific steps, workflows or activities | End-to-end process |
| Type of change | Targeted or incremental | Fundamental |
| Typical trigger | Inefficiency, delay, duplication or rework | Process is no longer fit for purpose |
| Disruption | Generally lower | Generally higher |
| Key question | What can we improve? | Would we design this process this way today? |
When is business process improvement enough?
BPI makes sense when the process still achieves the right business outcome, but parts of it create unnecessary cost, delay or effort.
For example:
- approvals take too long
- information is entered more than once
- routine tasks require unnecessary manual work
- different employees handle the same step inconsistently
- a particular handoff creates delays
- a small number of inefficient steps are affecting an otherwise sound workflow
In these situations, the business may be able to improve performance by:
- removing unnecessary steps
- simplifying the workflow
- standardising how work is performed
- clarifying ownership
- improving how existing systems support the process
BPI is usually the better fit when:
- the desired outcome is still right
- the process structure broadly makes sense
- problems can be isolated to particular steps
- targeted changes could resolve the main inefficiencies
- the business does not need to fundamentally change how the work is organised
When does a process need reengineering?
Reengineering becomes relevant when improving individual steps will not solve the underlying problem.
This can happen when a process has evolved over years.
A business grows. New systems are introduced. Additional approvals are added. Teams create workarounds. Spreadsheets fill gaps between systems. Responsibilities move between departments.
Eventually, the business may be operating a process that nobody deliberately designed as a whole.
Signs that improvement may no longer be enough
The process relies on workarounds.
Employees use spreadsheets, email, manual checks or individual knowledge to keep work moving.
Different teams have created their own versions.
There is no consistent end-to-end process.
Fixing one step simply moves the problem.
A bottleneck disappears in one area but appears somewhere else.
The process reflects an outdated way of working.
The business has changed, but the process still reflects old requirements, structures or assumptions.
The process cannot scale.
More customers, transactions or employees require disproportionately more manual coordination.
Previous improvements have produced diminishing returns.
The business has already optimised obvious inefficiencies, but performance remains below what is required.
Business process reengineering vs continuous improvement
BPR is also different from continuous improvement.
Continuous improvement makes ongoing incremental changes to a process that is fundamentally viable.
Reengineering questions whether the existing process is still the right model.
| Continuous improvement | Reengineering |
|---|---|
| Incremental changes | Fundamental changes |
| Works within the existing process | Questions the existing process |
| Targets specific inefficiencies | Redesigns the end-to-end workflow |
| Lower disruption | Greater organisational change |
They are not mutually exclusive.
A business may reengineer a process when the existing model is no longer fit for purpose, then use continuous improvement to keep the redesigned process performing effectively.
Improve, redesign or reengineer?
| If the problem is… | Consider… |
|---|---|
| A small number of inefficient steps | Improve |
| Inconsistent execution | Improve and standardise |
| A manual activity within an otherwise sound process | Improve, then consider automation |
| Overlapping responsibilities across teams | Redesign |
| Extensive workarounds and exceptions | Redesign / reengineer |
| A process built around outdated business requirements | Reengineer |
| A process that cannot scale effectively | Reengineer |
| Repeated improvement has not solved the underlying problem | Reengineer |
The key test is simple:
If you fixed the obvious inefficiencies, would you still want the process to work essentially the same way?
If yes, improvement may be enough.
If no, it is time to consider redesigning the process.
How much change does your business need?
The right approach is not necessarily the most ambitious one.
Choose business process improvement when the process works but contains avoidable inefficiency.
Consider business process reengineering when the process itself has become the constraint.
For Australian businesses, the decision should ultimately come down to the business outcome, the cost of continuing with the current process, and the level of change required to achieve a better one.
Maytech helps businesses understand, simplify and improve the processes behind how they work, from targeted process improvements and workflow redesign through to automation, integration and broader process transformation.
Book a free discovery session to determine what exactly is it that your business needs→
FAQs
Business process improvement makes targeted changes to an existing process. Business process reengineering fundamentally redesigns how a process works to achieve the required business outcome.
Reengineering is appropriate when the underlying process is no longer fit for purpose, has accumulated significant complexity and workarounds, cannot scale effectively, or cannot achieve the required outcome through incremental improvements.
No. Continuous improvement makes ongoing incremental changes to an existing process. Reengineering questions the existing process design and may fundamentally change how work is performed.
Not if the process itself is fundamentally flawed. The process should be understood and, where necessary, redesigned before deciding what should be automated.