When should an organization choose to reengineer a process instead of improving it incrementally?

When should an organization choose to reengineer a process instead of improving it incrementally?

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While continuous improvement focuses on small, ongoing changes, there are situations where incremental tweaks are insufficient, and Business Process Reengineering (BPR) becomes necessary.

Indicators for Reengineering:

  • Major Performance Gaps: KPIs consistently underperform despite multiple improvement attempts.

  • Customer Complaints Persist: Frustration levels are high and unchanged even after updates.

  • Technological Disruption: New tech solutions make the current process obsolete.

  • Regulatory Changes: New compliance requirements that the old process can’t accommodate.

  • Merger or Structural Change: Entire organizational workflows need integration or overhaul.

Characteristics of Reengineering:

  • Starts from a blank slate (“What if we redesigned from scratch?”).

  • May involve rethinking goals, technology, roles, and delivery models.

  • Aimed at radical improvement—not marginal gains.

  • Typically larger in scope, more complex, and riskier.