Business Process Reengineering became popular in the 1990s after the publishing of a Harvard Business School article titled Reengineering Work: Don’t Automate, Obliterate. Business Process Reengineering (BPR) describes the redesign of core business processes to improve productivity, quality, cost reduction, or cycle times.
Business Process Re-engineering (BPR)
Key Elements
Analysis
Implications
Applications
Examples
Definition
Business Process Re-engineering (BPR) is a fundamental rethinking and redesign of business processes to achieve significant improvements in performance, efficiency, quality, and customer satisfaction. It often involves radical changes and innovation in how work is done.
Analyzing BPR requires a critical assessment of existing processes, identification of inefficiencies or bottlenecks, and a clear vision of the desired future state. BPR aims to streamline operations, eliminate unnecessary steps, and leverage technology to enhance productivity and value delivery.
BPR can lead to substantial improvements in business performance, including reduced costs, faster cycle times, enhanced quality, and better customer experiences. However, it also involves significant change management challenges and may disrupt established workflows. Successful BPR requires strong leadership, clear communication, and employee buy-in.
BPR can be applied across various industries and functions, including manufacturing, finance, healthcare, and customer service. It is particularly beneficial when organizations seek to transform their operations, respond to market changes, or leverage digital technologies for competitive advantage.
– Streamlining order-to-delivery processes in an e-commerce company to reduce lead times and enhance customer satisfaction. – Overhauling healthcare administrative procedures to eliminate paperwork and improve patient care coordination. – Redesigning financial approval workflows in a multinational corporation to reduce costs and increase efficiency. – Restructuring manufacturing processes to implement just-in-time inventory management and reduce waste.
Process Analysis
Process analysis involves a comprehensive examination of existing workflows, including inputs, outputs, tasks, responsibilities, and technology. It identifies inefficiencies, redundancies, and opportunities for improvement.
Analyzing processes includes mapping the current state, measuring key performance indicators (KPIs), and benchmarking against industry standards. This phase aims to gain a deep understanding of how processes operate and where bottlenecks or delays occur. Analyzing data helps pinpoint areas for optimization.
Process analysis is the foundation of BPR, as it provides insights into where changes are needed. It enables organizations to identify root causes of problems and prioritize process improvements based on their potential impact. Effective analysis leads to targeted redesign efforts.
Process analysis can be applied to any business function, from supply chain management to customer support. It is critical for identifying bottlenecks, inefficiencies, and areas where automation or technology can streamline operations. Data-driven analysis is essential for making informed decisions.
– Conducting a value stream mapping exercise to visualize and assess the efficiency of a manufacturing process. – Analyzing customer service call logs to identify common issues and opportunities to reduce call handling times. – Examining procurement processes to identify areas where digital automation can expedite vendor selection and ordering. – Using process mining tools to analyze data and uncover hidden inefficiencies in financial reporting workflows.
Redesign
Redesign involves reimagining and reconfiguring processes to achieve desired outcomes. It often requires creative thinking, challenging the status quo, and exploring innovative solutions. The redesigned processes should align with strategic objectives and maximize efficiency.
Analyzing redesign requires a holistic approach, considering various factors such as workflow, technology, roles, responsibilities, and customer needs. It may involve simplifying processes, automating tasks, and eliminating unnecessary steps. Redesign efforts should aim to create a more streamlined and agile operation.
Redesign can have significant implications for the organization, including changes in job roles, responsibilities, and reporting structures. It is essential to communicate the benefits of the new processes and involve employees in the redesign process to gain their support and buy-in. Successful redesign leads to improved performance and competitiveness.
Redesign can be applied at different levels, from department-specific processes to end-to-end business processes. It is especially valuable when organizations seek to adapt to changing market conditions, leverage emerging technologies, or enhance customer experiences. Redesigned processes should align with the organization’s strategic vision.
– Redesigning a procurement process to implement e-procurement technology and streamline vendor selection and ordering. – Overhauling a healthcare billing process to simplify invoicing, reduce errors, and expedite payment collections. – Rethinking a product development process to accelerate time-to-market and enhance collaboration among cross-functional teams. – Transforming a mortgage origination process in a financial institution to improve customer onboarding and reduce processing times.
Implementation
Implementation involves putting the redesigned processes into practice. It includes training employees, updating technology systems, and monitoring performance to ensure that the new processes deliver the expected benefits.
Analyzing implementation requires careful planning, change management, and communication. Organizations must prepare employees for the changes, provide necessary training, and ensure that technology solutions are implemented effectively. Monitoring and measurement are essential to track progress and make adjustments as needed.
Implementation has both short-term and long-term implications. In the short term, organizations may face challenges, resistance to change, and potential disruptions. In the long term, successful implementation leads to improved performance, cost savings, and competitive advantages. Effective change management is critical to overcoming resistance and ensuring success.
Implementation efforts are critical for realizing the intended benefits of BPR. It involves collaboration among different stakeholders, including employees, IT teams, and leadership. Organizations should establish clear performance metrics and milestones to track the impact of the redesigned processes over time.
– Training employees on new procedures, software tools, and workflow changes to ensure a smooth transition. – Deploying updated technology systems and software to support the redesigned processes effectively. – Monitoring key performance indicators (KPIs) to assess the impact of process changes and identify areas for further improvement. – Conducting regular reviews and evaluations to ensure that the redesigned processes continue to deliver value and meet organizational goals.
Continuous Improvement
Continuous improvement is an ongoing effort to fine-tune and optimize processes over time. It involves collecting feedback, analyzing performance data, and making iterative refinements to maintain efficiency and effectiveness.
Analyzing continuous improvement requires a feedback loop where organizations gather insights from employees, customers, and performance metrics. The goal is to identify areas where further refinements can be made to enhance processes continuously. Continuous improvement fosters a culture of learning and adaptability.
Continuous improvement has long-term implications for organizations, enabling them to stay competitive, adapt to changing market conditions, and leverage new technologies. It ensures that processes remain efficient and aligned with strategic goals. Organizations that embrace continuous improvement are more agile and responsive.
Continuous improvement is essential for sustaining the benefits of BPR and remaining competitive in dynamic markets. It involves regular reviews, feedback collection, and data-driven decision-making. Organizations should empower employees to contribute ideas for process enhancements and create mechanisms for continuous learning.
– Collecting feedback from employees and customers to identify pain points or areas for improvement. – Analyzing performance data, such as cycle times, error rates, and customer satisfaction scores, to pinpoint areas needing refinement. – Implementing small-scale process changes or automation enhancements to address specific issues or bottlenecks. – Celebrating successes and recognizing employees’ contributions to foster a culture of continuous improvement.
The HBR article asserted that many businesses use new technology to automate ineffective processes. However, author Michael Hammer notes that a more efficient approach is to simply re-design the process itself.
This can be achieved through the systematic and disciplined nature of BPR.
Both human and automated workflows can be analyzed to identify process improvements. Some common scenarios where BPR may be useful include:
Six key steps encourage a fair, transparent, and efficient BPR process.
Here is a look at each.
Define business processes
Start by mapping the current state of affairs (workflows, activities, roles and reporting, business rules, supporting technology, and so forth).
Analyze business processes
Then, identify any elements that contribute to organizational inefficiency or prevent a goal or objective from being realized.
This may encompass gaps, root causes, or strategic disconnects.
Identify and analyze improvement opportunities
How can the elements identified in the previous step be addressed? Often these initiatives will be innovative and forward-facing.
That is, they are not associated with current processes.
Design future state processes
In this step, select the improvement opportunity deemed to have the greatest impact on organizational efficiency.
Here, the business should ensure that it has sufficient resources. Time, capital, and talent are the most crucial.
Complete this step by creating a future state map outlining the selected opportunities.
Develop future state changes
It’s important to realize that a new opportunity is only as robust as the processes that underpin it.
Each process needs to be designed from the ground up and communicated to relevant staff.
The new functionality must also be rigorously tested before becoming operationalized.
Implement future state changes
Once implemented, the change must be evaluated for effectiveness through performance monitoring. Is the new opportunity meeting KPIs?
When should Business Process Reengineering be used?
One drawback of BPR is that the larger a business is, the more expensive it will be to implement.
Indeed, a start-up with only a few months of operating experience will find it much more cost-effective to pivot to a new opportunity.
Nevertheless, the ability to respond to unforeseen circumstances is important in all businesses – regardless of size. BPR is also well suited to any business that wants to break free of the status quo and achieve goals once thought too ambitious.
If a business is still unsure of BPR, it should ask itself the following questions:
Who are our customers and what values are we offering them?
Are current operations delivering these values?
If not, do some operations need to be reconfigured?
Do our processes reflect our strategic objectives or long-term mission?
How would these operations be implemented if we were a new company?
Drawbacks of Business Process Re-engineering (BPR)
High Risk and Disruption:
Operational Disruption: Implementing BPR can significantly disrupt existing business processes, impacting daily operations.
Risk of Failure: BPR projects carry a high risk of failure if not managed properly, due to their complexity and scope.
Resource Intensive:
Requires Significant Investment: BPR often demands substantial time, financial resources, and human effort.
Dependence on External Consultants: Many organizations rely heavily on external consultants for BPR, which can be costly and may lead to over-dependence.
Resistance to Change:
Employee Resistance: BPR initiatives typically involve major changes, which can lead to resistance from employees uncomfortable with the new processes.
Organizational Culture Challenges: Successful BPR requires a culture that supports change, innovation, and rethinking of traditional processes, which not all organizations possess.
Potential for Negative Impact on Employees:
Job Losses: BPR can lead to downsizing or restructuring, resulting in job losses or role changes.
Stress and Anxiety: The uncertainty and scope of changes can cause significant stress and anxiety among employees.
Complexity in Execution:
Difficult to Implement: BPR involves complex redesigning of processes which can be difficult to implement correctly and effectively.
Challenges in Maintaining Quality: There is a risk that focusing too much on efficiency and cost-cutting might compromise the quality of products or services.
When to Use Business Process Re-engineering
Appropriate Contexts:
In Need of Major Overhaul: Ideal for organizations requiring a fundamental rethinking and radical redesign of processes to achieve dramatic improvements.
Competitive Market Pressure: In situations where external market pressures demand significant improvements in cost, quality, service, and speed.
Strategic Application:
Revamping Outdated Processes: Useful in updating and streamlining outdated business processes that are no longer efficient or competitive.
Aligning Processes with Business Strategy: When business processes are misaligned with the current business strategy or goals.
How to Use Business Process Re-engineering
Steps in BPR Implementation:
Identify Key Processes: Start by identifying the processes that are crucial for the business and are in need of re-engineering.
Analyze Current Processes: Understand and document the current processes to identify inefficiencies and bottlenecks.
Envision New Processes: Design new processes that align with business goals and customer needs.
Implement Changes: Deploy the new processes, often involving significant changes in organizational structure and IT systems.
Monitor and Optimize: Continuously monitor the new processes and make necessary adjustments for optimization.
Best Practices:
Engage Stakeholders: Involve employees, management, and other stakeholders in the BPR process to gain buy-in and reduce resistance.
Comprehensive Planning: Ensure thorough planning and analysis before implementation to identify potential risks and mitigation strategies.
Effective Communication: Maintain clear and consistent communication throughout the BPR process to keep all stakeholders informed and engaged.
Change Management: Implement effective change management practices to ease the transition for employees and maintain operational continuity.
What to Expect from Implementing Business Process Re-engineering
Potential for Significant Improvements:
Operational Efficiency: BPR can lead to substantial improvements in operational efficiency and productivity.
Cost Reduction: Streamlining and re-engineering processes often result in significant cost savings.
Organizational Impact:
Transformational Change: BPR can bring about fundamental changes in how the organization operates, potentially leading to a more competitive and agile business model.
Cultural Shifts: May initiate a shift in organizational culture towards continuous improvement and efficiency.
Challenges in Implementation:
Initial Disruption and Adjustment: The organization may face initial disruption and a period of adjustment as new processes are implemented.
Risk of Low Morale: Significant changes can affect employee morale, especially if not managed with sensitivity and transparency.
Long-Term Organizational Benefits:
Sustained Competitive Advantage: If successfully implemented, BPR can provide a sustainable competitive advantage through improved processes.
Enhanced Customer Satisfaction: Improved efficiency and effectiveness can lead to better customer service and increased customer satisfaction.
BPR is a powerful approach but requires careful consideration of its potential impact, meticulous planning, and strong leadership to ensure successful implementation and to mitigate its challenges.
Business process reengineering examples
While BPR has existed for around three decades now, how are modern, twenty-first-century businesses initiating process design transformations?
Airbnb is a platform business model making money by charging guests a service fee between 5% and 15% of the reservation, while the commission from hosts is generally 3%. For instance, on a $100 booking per night set by a host, Airbnb might make as much as $15, split between host and guest fees.
At some point in its recent history, Airbnb wanted to create a sustainable, efficient, product development process.
The only problem was that the company’s designers, engineers, and researchers were only involved in the process at specific times.
For example, designers were forced to wait for engineers to write the code before a model could be visualized.
Engineers themselves also had to wait for researchers to validate product ideas in a process that routinely resulted in incorrect project assumptions.
To foster deeper and more consistent engagement between its various teams, Airbnb used BPR to develop three solutions:
Treat dispersed resources as if they were centralized – a single, digital environment was created where both designers and engineers could collaborate. This eliminated countless rounds of quasi-prototypes and enabled files to reflect real-time updates and data. Even if Airbnb staff could not interact in the same physical space, they needed to have access to the same product information at the same time.
Organize around outcomes instead of tasks – product teams were then organized around outcomes to avoid wasting time on irrelevant features. This encouraged teams to use emotion when talking about outcomes in addition to the logical, detail-oriented perspective of writing code.
Link parallel activities – instead of researchers becoming involved at the end of the process, they now participate across the entire product development process to ensure that the voice of Airbnb’s hosts and guests are heard and incorporated throughout. This allows teams to validate developmental stages and reduce instances of backtracking.
T-Mobile
Mobile telecommunications company T-Mobile outwardly preached that happy customers were its main priority.
But internally, the company based customer success and indeed staff remuneration on two metrics: Average Handling Time (AHT) and First Response Time (FRT).
The problem for T-Mobile was two-fold. For one, its KPIs were not reflective of satisfied customers, while the second problem was more complex.
Thanks to the introduction of self-serve portals, customers no longer contacted the company’s call centers with basic problems such as a change of address request.
Instead, there was a clear shift toward them requiring assistance with far more complex issues that customer support personnel were unable or unwilling to solve.
Here are two ways the company used business process reengineering to improve its customer service standards across the board:
1 – Ensure those who output processes perform those processes
To start, T-Mobile untethered itself from its archaic AHT and FRT metrics and redesigned its team structure to fundamentally shift the way customer service is delivered.
The company instituted the Team of Experts (TEX) model where cross-functional teams of 47 people each serve a dedicated geographical market.
Instead of handing off an issue to someone else, the team structure now empowers individuals to stick with the same customer from start to finish and solve their problem.
In rare cases where a hand-off is necessary, the rep stays on the line while the customer speaks with a tech specialist to learn how to address a similar question in the future.
Customer service KPIs are now connected to profit and loss, and reps are invested in each outcome because they handle the entire customer service process.
2 – Build control into the process and place decision points where work is performed
It was also important that T-Mobile shifted decision points and authority under the new TEX model.
Previously, managers were called into the process over superficial details that only just exceeded the role responsibilities of a low-level rep.
This increased customer wait times and rendered these reps powerless in many situations.
Using BPR, the decision point was shifted to afford them more responsibility and, by extension, the capacity to impact customer service outcomes.
Customer wait times were also reduced since trivial details did not need to be clarified with a superior.
There was also a significant impact on customer churn (down 25%) and Net Promoter Score (up 56%).
Key takeaways
Business Process Reengineering is the redesigning of business operations to facilitate improvements in quality, cost, service, or alignment.
Business Process Reengineering is underpinned by six key steps that are fair, transparent, and efficient.
Business Process Reengineering can be an expensive undertaking for large companies. To ensure that BPR is money well spent, a business should consider some guiding questions to determine if operations are in alignment with broader strategies.
Key Highlights
Understanding BPR: Business Process Reengineering (BPR) is a methodology aimed at redesigning core business processes to achieve improvements in productivity, quality, cost reduction, or cycle times. It gained popularity in the 1990s after an influential Harvard Business School article by Michael Hammer titled “Reengineering Work: Don’t Automate, Obliterate.”
Rationale for BPR: The premise of BPR is that businesses often automate ineffective processes using new technology. Instead, BPR suggests re-designing the processes themselves to achieve greater efficiency and effectiveness.
Six Key Steps of BPR:
Define Business Processes: Map current workflows, activities, roles, rules, and technology.
Analyze Business Processes: Identify elements causing inefficiencies or hindering objectives.
Identify and Analyze Improvement Opportunities: Innovatively address identified issues.
Design Future State Processes: Select impactful opportunities and design processes.
Develop Future State Changes: Build and test new processes.
Implement Future State Changes: Evaluate effectiveness and monitor performance.
When to Use BPR: BPR is useful for businesses facing challenges like rising inventory, governance issues, employee conflicts, or cash flow problems. It’s especially effective for those aiming to break free from the status quo and achieve ambitious goals.
Examples of BPR:
Airbnb: Used BPR to enhance collaboration among design, engineering, and research teams. Created a digital environment, organized around outcomes, and linked parallel activities to streamline the product development process.
T-Mobile: Transformed customer service by shifting metrics from AHT and FRT to customer satisfaction. Implemented the Team of Experts (TEX) model, empowering teams to resolve customer issues from start to finish and shifting decision points to improve customer outcomes.
Related Frameworks
Definition
Focus
Application
Business Process Re-engineering (BPR)
BPR involves the radical redesign of core business processes to achieve dramatic improvements in critical performance measures such as cost, quality, service, and speed. It often entails questioning existing assumptions, eliminating non-value-added activities, and leveraging technology for process automation and optimization.
Focuses on the fundamental rethinking and redesigning of business processes to achieve significant improvements in efficiency, effectiveness, and competitiveness.
Business Process Improvement, Organizational Transformation, Operational Excellence
Six Sigma
A data-driven methodology for process improvement, focusing on minimizing variability and defects to achieve near-perfect quality in products or services. It follows a structured approach of Define, Measure, Analyze, Improve, and Control (DMAIC) to identify and eliminate process defects and inefficiencies.
Focuses on reducing process variation and defects to improve quality and performance, employing statistical methods and rigorous problem-solving techniques.
Process Improvement, Quality Management, Operational Excellence
Lean Management
A management philosophy and set of principles aimed at maximizing customer value while minimizing waste and inefficiencies in processes. It emphasizes continuous improvement, respect for people, and the elimination of non-value-added activities through the application of Lean tools and techniques.
Focuses on streamlining processes, eliminating waste, and optimizing flow to enhance efficiency and customer value, with a strong emphasis on employee involvement and continuous improvement.
Process Optimization, Waste Reduction, Operational Excellence
Total Quality Management (TQM)
A management approach focused on continuous quality improvement across all aspects of an organization. TQM emphasizes customer satisfaction, employee involvement, process improvement, and the use of data-driven decision-making to achieve excellence in product or service quality.
Focuses on embedding quality principles and practices throughout the organization, fostering a culture of continuous improvement and customer focus, and striving for excellence in all aspects of operations.
A Japanese term meaning “change for the better” or “continuous improvement.” Kaizen involves making small, incremental improvements to processes, products, or services on a continuous basis. It emphasizes employee involvement, teamwork, and a focus on simplification and standardization.
Focuses on making small, incremental improvements to processes, systems, and workplace practices to achieve gradual but sustainable enhancements in performance, quality, and efficiency.
Continuous Improvement, Employee Engagement, Process Optimization
Agile Methodology
An iterative approach to software development and project management, emphasizing flexibility, collaboration, and customer feedback. Agile frameworks such as Scrum and Kanban prioritize delivering working solutions incrementally, adapting to change, and continuously improving processes.
Focuses on delivering value to customers through iterative development cycles, collaboration, and adaptability to changing requirements, enabling organizations to respond quickly to market dynamics and customer needs.
Software Development, Project Management, Product Development
Theory of Constraints (TOC)
A management philosophy developed by Eliyahu Goldratt, focusing on identifying and managing constraints (bottlenecks) in processes to maximize throughput and achieve organizational goals. TOC emphasizes the importance of system thinking, buffer management, and continuous improvement.
Focuses on identifying and alleviating bottlenecks in processes, improving flow, and optimizing system performance to achieve overall organizational objectives, often using methodologies like the Five Focusing Steps and Drum-Buffer-Rope scheduling.
Process Optimization, Throughput Improvement, System Thinking
Design Thinking
A human-centered approach to innovation and problem-solving that emphasizes empathy, creativity, and iterative prototyping. Design thinking involves understanding user needs, defining problems, ideating solutions, prototyping, and testing to develop innovative products, services, and experiences.
Focuses on understanding user needs and behaviors, fostering creativity, and iteratively designing solutions to complex problems, with an emphasis on empathy, collaboration, and experimentation.
AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.
Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.
Agile Program Management is a means of managing, planning, and coordinating interrelated work in such a way that value delivery is emphasized for all key stakeholders. Agile Program Management (AgilePgM) is a disciplined yet flexible agile approach to managing transformational change within an organization.
Agile project management (APM) is a strategy that breaks large projects into smaller, more manageable tasks. In the APM methodology, each project is completed in small sections – often referred to as iterations. Each iteration is completed according to its project life cycle, beginning with the initial design and progressing to testing and then quality assurance.
Agile Modeling (AM) is a methodology for modeling and documenting software-based systems. Agile Modeling is critical to the rapid and continuous delivery of software. It is a collection of values, principles, and practices that guide effective, lightweight software modeling.
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.
Agile leadership is the embodiment of agile manifesto principles by a manager or management team. Agile leadership impacts two important levels of a business. The structural level defines the roles, responsibilities, and key performance indicators. The behavioral level describes the actions leaders exhibit to others based on agile principles.
The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).
Bimodal Portfolio Management (BimodalPfM) helps an organization manage both agile and traditional portfolios concurrently. Bimodal Portfolio Management – sometimes referred to as bimodal development – was coined by research and advisory company Gartner. The firm argued that many agile organizations still needed to run some aspects of their operations using traditional delivery models.
Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole business model. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.
Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.
A design sprint is a proven five-day process where critical business questions are answered through speedy design and prototyping, focusing on the end-user. A design sprint starts with a weekly challenge that should finish with a prototype, test at the end, and therefore a lesson learned to be iterated.
Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.
DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.
Product discovery is a critical part of agile methodologies, as its aim is to ensure that products customers love are built. Product discovery involves learning through a raft of methods, including design thinking, lean start-up, and A/B testing to name a few. Dual Track Agile is an agile methodology containing two separate tracks: the “discovery” track and the “delivery” track.
eXtreme Programming was developed in the late 1990s by Ken Beck, Ron Jeffries, and Ward Cunningham. During this time, the trio was working on the Chrysler Comprehensive Compensation System (C3) to help manage the company payroll system. eXtreme Programming (XP) is a software development methodology. It is designed to improve software quality and the ability of software to adapt to changing customer needs.
Feature-Driven Development is a pragmatic software process that is client and architecture-centric. Feature-Driven Development (FDD) is an agile software development model that organizes workflow according to which features need to be developed next.
A Gemba Walk is a fundamental component of lean management. It describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place”, or in business, “the place where value is created”. The Gemba Walk as a concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing. Ohno wanted to encourage management executives to leave their offices and see where the real work happened. This, he hoped, would build relationships between employees with vastly different skillsets and build trust.
GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Google product manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.
The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).
The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.
The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.
A startup company is a high-tech business that tries to build a scalable business model in tech-driven industries. A startup company usually follows a lean methodology, where continuous innovation, driven by built-in viral loops is the rule. Thus, driving growth and building network effects as a consequence of this strategy.
As pointed out by Eric Ries, a minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology.
Kanban is a lean manufacturing framework first developed by Toyota in the late 1940s. The Kanban framework is a means of visualizing work as it moves through identifying potential bottlenecks. It does that through a process called just-in-time (JIT) manufacturing to optimize engineering processes, speed up manufacturing products, and improve the go-to-market strategy.
Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.
The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.
RAD was first introduced by author and consultant James Martin in 1991. Martin recognized and then took advantage of the endless malleability of software in designing development models. Rapid Application Development (RAD) is a methodology focusing on delivering rapidly through continuous feedback and frequent iterations.
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle. These are the five stages of a retrospective analysis for effective Agile project management: set the stage, gather the data, generate insights, decide on the next steps, and close the retrospective.
Scaled Agile Lean Development (ScALeD) helps businesses discover a balanced approach to agile transition and scaling questions. The ScALed approach helps businesses successfully respond to change. Inspired by a combination of lean and agile values, ScALed is practitioner-based and can be completed through various agile frameworks and practices.
The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.
The Spotify Model is an autonomous approach to scaling agile, focusing on culture communication, accountability, and quality. The Spotify model was first recognized in 2012 after Henrik Kniberg, and Anders Ivarsson released a white paper detailing how streaming company Spotify approached agility. Therefore, the Spotify model represents an evolution of agile.
As the name suggests, TDD is a test-driven technique for delivering high-quality software rapidly and sustainably. It is an iterative approach based on the idea that a failing test should be written before any code for a feature or function is written. Test-Driven Development (TDD) is an approach to software development that relies on very short development cycles.
Timeboxing is a simple yet powerful time-management technique for improving productivity. Timeboxing describes the process of proactively scheduling a block of time to spend on a task in the future. It was first described by author James Martin in a book about agile software development.
Scrum is a methodology co-created by Ken Schwaber and Jeff Sutherland for effective team collaboration on complex products. Scrum was primarily thought for software development projects to deliver new software capability every 2-4 weeks. It is a sub-group of agile also used in project management to improve startups’ productivity.
Scrumban is a project management framework that is a hybrid of two popular agile methodologies: Scrum and Kanban. Scrumban is a popular approach to helping businesses focus on the right strategic tasks while simultaneously strengthening their processes.
Scrum anti-patterns describe any attractive, easy-to-implement solution that ultimately makes a problem worse. Therefore, these are the practice not to follow to prevent issues from emerging. Some classic examples of scrum anti-patterns comprise absent product owners, pre-assigned tickets (making individuals work in isolation), and discounting retrospectives (where review meetings are not useful to really make improvements).
Scrum at Scale (Scrum@Scale) is a framework that Scrum teams use to address complex problems and deliver high-value products. Scrum at Scale was created through a joint venture between the Scrum Alliance and Scrum Inc. The joint venture was overseen by Jeff Sutherland, a co-creator of Scrum and one of the principal authors of the Agile Manifesto.
Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.
Stretch objectives describe any task an agile team plans to complete without expressly committing to do so. Teams incorporate stretch objectives during a Sprint or Program Increment (PI) as part of Scaled Agile. They are used when the agile team is unsure of its capacity to attain an objective. Therefore, stretch objectives are instead outcomes that, while extremely desirable, are not the difference between the success or failure of each sprint.
The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible.
The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. Importantly, the word “total” means that all employees are involved in the process – regardless of whether they work in development, production, or fulfillment.
The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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