Business Process Re-Engineering (BPR)
Definition
Business Process Re-Engineering (BPR) is the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times, and quality. In BPR, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer. They typically adopt a new value system that places increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities in two key areas: speed and cost.
Origin & Usage
The term was popularized in the early 1990s, following a landmark paper by Michael Hammer titled “Reengineering Work: Don’t Automate, Obliterate.” This bombastic approach to corporate streamlining captured the imagination of CEOs worldwide, leading to its widespread adoption—and sometimes, notorious notoriety due to drastic job cuts.
Why It Matters
In an era where agility and efficiency are not just buzzwords but business imperatives, BPR remains relevant. It poses challenges and opportunities: while it can lead to significant improvements and competitive advantage, its implementation can be disruptive and culturally challenging.
Witty Insight
Considering a BPR project? Remember, it’s like a game of Jenga with your business processes — remove the wrong block, and the entire tower might come crashing down. Handle with care!
Business Property Relief (BPR)
Definition
Business Property Relief (BPR) is a significant boon for estate planning, offering relief from Inheritance Tax (IHT) on business assets. This relief is available at rates of either 50% or 100%, allowing a business or interest in a business to be passed on without incurring the standard IHT charges, thus making it an essential tool in succession planning.
Origin & Usage
The relief was introduced to prevent the need to sell family businesses to cover IHT liabilities. It ensures that businesses can pass through generations without being diluted by tax obligations.
Why It Matters
In the context of rising real estate values and fiscal squeezes, BPR provides a lifeline to family businesses, helping to sustain long-term operational continuity. It’s not just a tax relief; it’s a legacy preserver.
Witty Insight
Think of BPR as your business’s knight in shining armor, rescuing your heirs from the fiery dragon of the taxman. Just make sure your business qualifies before you count on this knight making an appearance at your estate-planning round table!
Related Terms
- Estate Planning: Strategizing for the management and disposal of a person’s estate during their life and at death.
- Inheritance Tax (IHT): Tax paid on an estate when someone dies and on certain gifts made during their lifetime.
- Streamlining: In business, the process of simplifying or eliminating unnecessary steps.
- Customer Needs: The wants and necessities of buyers that drive product development and service enhancements.
Further Reading
- “Reengineering the Corporation: A Manifesto for Business Revolution” by Michael Hammer & James Champy. A seminal work that provides a comprehensive overview of BPR principles and case studies.
- “The Family Business Guide: Everything You Need to Know to Manage Your Business from Legal Planning to Business Strategies” by Frederick D. Lipman. Offers insights into utilizing BPR in estate planning to ensure a lasting legacy.
With meticulous planning and strategic application, both forms of BPR can significantly transform business operations and secure business legacies. Beware, though, of turning your business process re-engineering into a demolition derby or relying too heavily on business property relief without proper qualifications.
