Flevy Management Insights Case Study
Operational Efficiency Re-engineering in European Life Sciences Sector


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Business Process Re-engineering to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A European biotechnology firm faced high operational costs and slow time-to-market due to outdated processes, necessitating a comprehensive overhaul. The initiative successfully reduced operational costs by 20% and cycle times by 30%, highlighting the importance of Strategic Planning and Change Management in achieving operational efficiency and regulatory compliance.

Reading time: 7 minutes

Consider this scenario: A European biotechnology firm is grappling with escalating operational costs and elongated time-to-market for new drug developments.

Despite a robust product pipeline and a surge in market demand, their existing processes are outdated and not scalable. The organization's leadership recognizes the need to overhaul their core business processes to maintain competitive edge and ensure regulatory compliance, while also promoting innovation and reducing time-to-market.



In light of the biotechnology firm's challenges, the initial hypotheses might revolve around the lack of process automation, suboptimal resource allocation, and ineffective cross-functional collaboration. These factors could be contributing to the organization's inefficiencies and extended drug development cycles, ultimately impacting its market responsiveness and profitability.

Strategic Analysis and Execution Methodology

The proven methodology to address Business Process Re-engineering involves a 4-phase approach that can systematically identify inefficiencies, redesign processes, and implement changes to achieve Operational Excellence. This methodology enhances agility, compliance, and cost-effectiveness.

  1. Assessment and Benchmarking: Begin with a thorough assessment of current processes against industry benchmarks. Key questions include: What are the existing workflow bottlenecks? How does the organization's performance compare to industry leaders? Activities include mapping out all current processes, identifying pain points, and conducting a gap analysis. Insights from this phase often reveal quick wins and areas requiring deep transformation.
  2. Process Redesign: Focus on redesigning the processes that are most critical to the organization's value chain. Questions to address include: Which processes can be streamlined or automated? What are the best practices in the industry? Activities involve brainstorming sessions, applying best practice frameworks, and designing future-state processes. The challenge is to ensure buy-in from all stakeholders and to minimize disruption to ongoing operations.
  3. Implementation Planning: Develop a detailed implementation plan. Key considerations include: What resources are required for the transformation? How will changes be communicated and managed? Activities include developing a change management plan, resource planning, and setting up a governance structure. A common challenge is aligning the transformation with the organization's strategic objectives.
  4. Execution and Continuous Improvement: Execute the redesigned processes and establish mechanisms for ongoing optimization. Important questions include: How will process performance be monitored? What continuous improvement methodologies will be employed? Activities involve training, monitoring KPIs, and iterating on processes. Challenges often include maintaining momentum and embedding a culture of continuous improvement.

For effective implementation, take a look at these Business Process Re-engineering best practices:

Process Automation & Digitalization Assessment (41-slide PowerPoint deck)
Kaizen (254-slide PowerPoint deck and supporting PDF)
Business Performance Improvement Models (184-slide PowerPoint deck)
Business Process Improvement (BPI 7) (139-slide PowerPoint deck and supporting Word)
5S for the Office (190-slide PowerPoint deck and supporting PDF)
View additional Business Process Re-engineering best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Business Process Re-engineering Implementation Challenges & Considerations

To ensure the methodology's success, executives will need to foster a culture of change, ensuring that teams are motivated and equipped to adapt to new processes. It's vital to manage the human aspect of Business Process Re-engineering, as resistance to change can derail even the most well-planned initiatives.

Upon full implementation, the organization can expect to see a reduction in operational costs by up to 20%, according to McKinsey. Additionally, process cycle times should decrease, leading to faster time-to-market for new drugs and therapies, which is critical in the life sciences industry.

Implementation challenges may include data migration issues, integration of new technology with legacy systems, and ensuring regulatory compliance throughout the transformation process.

Business Process Re-engineering KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What you measure is what you get. Senior executives understand that their organization's measurement system strongly affects the behavior of managers and employees.
     – Robert S. Kaplan and David P. Norton (creators of the Balanced Scorecard)

  • Process Cycle Time: measures the efficiency gains in critical processes.
  • Cost Reduction Percentage: quantifies the financial impact of the re-engineering efforts.
  • Compliance Rate: ensures all processes meet industry and regulatory standards.
  • Employee Adoption Rate: indicates the success of change management initiatives.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it’s been observed that organizations which establish a dedicated Business Process Re-engineering team, including cross-functional experts, tend to achieve more sustainable results. This team's focus on monitoring, analysis, and continuous improvement helps in embedding the new processes into the organizational culture.

Business Process Re-engineering Deliverables

  • Operational Assessment Report (PDF)
  • Best Practice Framework (PowerPoint)
  • Redesigned Process Documentation (MS Word)
  • Implementation Roadmap (Excel)
  • Performance Management Dashboard (Excel)

Explore more Business Process Re-engineering deliverables

Business Process Re-engineering Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Business Process Re-engineering. These resources below were developed by management consulting firms and Business Process Re-engineering subject matter experts.

Business Process Re-engineering Case Studies

A global pharmaceutical company implemented a Business Process Re-engineering initiative that resulted in a 30% reduction in their drug development cycle, leading to an expedited time-to-market for critical medications. The initiative involved streamlining R&D processes, adopting agile methodologies, and enhancing cross-functional collaboration.

Another case involved a medical device manufacturer that re-engineered its supply chain processes, leading to a 25% improvement in inventory turnover. The organization utilized lean management principles and advanced analytics to optimize its inventory levels and distribution strategies.

Explore additional related case studies

Ensuring Alignment with Strategic Objectives

During Business Process Re-engineering (BPR), it is crucial to align the redesigned processes with the organization's strategic objectives. This alignment ensures that the re-engineering efforts contribute to the overall direction and goals of the company. According to Bain & Company, companies that closely align their improvement initiatives with their strategy can see profit margins improve by 3 to 4 percentage points more than their competitors.

To achieve this alignment, a detailed strategic review should precede any BPR initiative. This review will help identify the critical processes that directly impact the achievement of strategic goals. Subsequently, the BPR efforts should focus on these processes to enhance their efficiency and effectiveness, thus propelling the organization towards its strategic objectives.

Change Management and Employee Adoption

Change management is an integral part of any BPR initiative. It addresses how employees adapt to new processes and technologies. Deloitte insights reveal that projects with excellent change management programs meet or exceed objectives 95% of the time, compared to 15% of projects with poor change management. A robust change management strategy involves clear communication, training, and involvement of employees in the redesign process to foster a sense of ownership and minimize resistance.

Moreover, measuring employee adoption rates is essential to gauge the success of the change management efforts. Regular feedback sessions and the establishment of a support structure can assist employees in adapting to new workflows, thereby ensuring the sustainability of the re-engineered processes.

Technology Integration and Data Migration

The integration of new technology systems and the migration of data are often complex aspects of BPR. A study by Gartner indicates that nearly 83% of data migration projects either fail or exceed their budgets and timelines. To mitigate these risks, a phased approach to technology integration and data migration should be adopted. This approach allows for the resolution of issues on a smaller scale before a full-scale roll-out.

Furthermore, it's advisable to involve IT specialists early in the BPR project to plan for the technical requirements of the new processes. This proactive involvement can ensure that the technology solutions are fit for purpose and capable of supporting the re-engineered processes without causing significant disruptions.

Regulatory Compliance in Re-engineering

In the life sciences industry, regulatory compliance is non-negotiable. The re-engineering of business processes must be conducted with a clear understanding of the regulatory landscape. According to a report by PwC, regulatory compliance issues are among the top risks facing life sciences companies, with non-compliance leading to significant financial and reputational damage.

Therefore, it is essential to involve compliance experts during the BPR initiative to ensure that all redesigned processes adhere to the necessary regulations. Additionally, embedding compliance checks within the new processes can ensure ongoing adherence and reduce the risk of future compliance breaches.

Additional Resources Relevant to Business Process Re-engineering

Here are additional best practices relevant to Business Process Re-engineering from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced operational costs by 20% through the systematic redesign and automation of key processes.
  • Decreased process cycle times by 30%, enabling faster time-to-market for new drug developments.
  • Achieved a 95% compliance rate with industry and regulatory standards post-implementation.
  • Employee adoption rate of new processes reached 85%, indicating successful change management efforts.
  • Integration of new technology systems with legacy systems completed with minimal disruptions.
  • Strategic alignment of re-engineered processes resulted in a projected profit margin improvement of 3-4%.

The business initiative to overhaul core processes at the European biotechnology firm has been markedly successful. The significant reduction in operational costs and process cycle times directly addresses the initial challenges of high operational expenses and prolonged time-to-market. The high compliance and employee adoption rates further underscore the effectiveness of the change management and regulatory adherence strategies employed. However, the initiative faced challenges in technology integration and data migration, indicating that a more gradual, phased approach might have mitigated some of these issues. Additionally, while employee adoption was high, there's room for improvement to reach closer to 100% adoption through enhanced training and engagement strategies.

Given the success and learnings from the initiative, the recommended next steps include focusing on continuous improvement and optimization of the newly implemented processes. This could involve establishing a dedicated team for continuous monitoring and improvement, leveraging advanced analytics to identify further efficiency gains, and enhancing employee training programs to increase adoption rates. Additionally, exploring opportunities for further automation and digital transformation, especially in areas that were not the primary focus of the initial project, could yield additional operational efficiencies and competitive advantages.

Source: Operational Efficiency Advancement for a D2C Semiconductor Firm, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Business Process Re-Engineering for a Rapidly Growing Consumer Goods Manufacturer

Scenario: A consumer goods manufacturer in a rapidly growing market is facing escalating costs and operational inefficiencies due to rapid customer and revenue growth.

Read Full Case Study

Operational Efficiency Advancement for E-Commerce in Competitive Landscape

Scenario: The organization is a mid-sized e-commerce player specializing in consumer electronics, facing significant challenges in its order fulfillment and inventory management processes.

Read Full Case Study

Operational Efficiency Advancement for Aerospace Manufacturer in Competitive Market

Scenario: The organization in question operates in the aerospace sector, specializing in the production of advanced components.

Read Full Case Study

Efficiency Enhancement in Specialty Chemicals Production

Scenario: The organization is a specialty chemicals producer facing significant delays and cost overruns in its manufacturing processes.

Read Full Case Study

Customer Engagement Strategy for Wellness App in Digital Health Space

Scenario: A leading digital health organization focusing on wellness applications faces a strategic challenge in enhancing process improvement to stay competitive.

Read Full Case Study

Operational Excellence in D2C Specialty Food Retail

Scenario: A specialty food retailer, operating directly to consumers, faces challenges in maintaining operational efficiency while scaling rapidly.

Read Full Case Study

Operational Efficiency Enhancement in Agritech for Sustainable Farming

Scenario: The company is a mid-sized agritech firm specializing in sustainable farming solutions in North America.

Read Full Case Study

Operational Efficiency Advancement for Ecommerce Platform in Competitive Digital Market

Scenario: The company, a burgeoning ecommerce platform, is grappling with the intricacies of scaling operations while maintaining service quality.

Read Full Case Study

Operational Efficiency Strategy for Mid-Size Hospital in Urban Market

Scenario: A mid-size hospital in a competitive urban market is facing significant challenges with Business Process Improvement, impacting its operational efficiency and patient care delivery.

Read Full Case Study

AgriTech Firm's Yield Optimization in Sustainable Agriculture Sector

Scenario: An AgriTech company situated in North America is facing challenges in crop yield optimization.

Read Full Case Study

Operational Excellence Initiative in Retail Apparel Sector

Scenario: The organization in question operates within the highly competitive retail apparel industry, facing significant pressure to reduce costs and increase efficiency.

Read Full Case Study

Lean Manufacturing Enhancement for Automotive Supplier in North America

Scenario: The company is a Tier 1 automotive supplier based in North America, grappling with production inefficiencies and escalating operational costs.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.