Reengineering the Corporation
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Transcript Reengineering the Corporation
Reengineering….
BPR, Process Innovation, ERP,
Mass Customization, Networked
Organization, Empowerment, Teams,
Virtual Corporations, TQM, JIT
Supply Chain
Flow of materials, information,
and services
Includes organizations and
processes
Manage the entire process
Business Process
Reengineering(BPR)
Reengineering the
Corporation
Written - 1993
Michael Hammer
– One of 1996 most influential
people in the U.S.
Time Magazine
July 17,1996
James Champy
What is Reengineering?
“the fundamental rethinking and
radical redesign of business
processes to achieve dramatic
improvements in critical,
contemporary measures or
performance, such as cost,
quality, service, and speed”
p. 32
Reengineering is...
Reversing the Industrial
revolution
Starting Over from Scratch
Re-creating
Re-Inventing
Innovation
Process Oriented
Impacts
Company
Increase
Customers
Benefit
product by an from better
product
order of
magnitude
Needs are
met
Examine
process
Tendency
to return
Vision
Loyalty
Increase
Profits
Employees
Teams
Less
Workers More Work
Empowered
Layoffs
Why Reengineer
The 3 C’s
– Customers
– Competition
– Change
Nothing is Constant or Predictable
Change is the only constant
To reengineer a company is to
take a journey from the familiar
into the unknown. The journey
has to begin somewhere and
with someone. Where and with
whom?
– P. 101
Keys
Leaders
Staff Empowerment
Broader Scope
– Knowledge / Skills
Tasks to Process
– Redesign of Systems
Information Technology
Community
The 3 R’s
Redesign
– Cross-function approach
Retool
– Information Tools
Reorchestrate
– Organization changes
Problems
Fix vs. Change
Focus
Ignore
Quit
Scope
HR / Unions
Success Rate
Bell Atlantic’s
Experience
The difference is that in a compliance
mode I do what I must do because my
boss tells me I must do it. In a
commitment mode, I understand what the
corporation is trying to achieve and how
we’re going to achieve it, and I will do
whatever it takes to make that happen,
including changing the way I do my job if
that is what is required
– p. 196/197
BPR
No longer a need to destroy
everything - start from scratch
Instead - Flexible approach that
can be executed by proven
methodologies and principles.
Hammer and Stanton[1995]
& Champy [1995]
Process Innovation
Encompasses the envisioning of
new work strategies, the actual
process design activity, and the
implementation of the change in
all its complex technological,
human, and organizational
dimensions – order-of-magnitude
improvements
Davenport (1993)
Process Innovation vs.
Incremental Improvement
Process Innov.
Change
Effects
Involvement
Investment
Orientation
Focus
Abrupt,
volatile
Immediate
Few
champions
High initially,
less later
Technology
Profits
Incr. Improv.
Gradual,
constant
Long-term
From few to
everybody
Low initially,
high to sustain
People
Processes
Networked Organization
Classical/Hierarchical
Formal
Highly Structured
Manage
Control
Direct
Employee a cost
Information
management owned
Risk avoidance
Individual
contributions
Networked Organ.
Informal
Loosely Structured
Delegate/lead
Ownership/participation
Empower
Employees an asset
Information
shared-ownership
Risk management
Team
contributions
Enabling IT
(P. 133)
Old Rule
Information
Intervene Tech
Shared
appears in only
Database,
one place
Inter, Intra
Only expert can Expert
perform
Systems
complex work Decision
Only managers
support
make decisions systems
Locate items
Tracking
manually
technology
New Rule
Information
appears
simultaneously
Novices can
perform work
Decision making
is part of
everyone’s job
Items located
automatically
Add p 138
CHANGE
“It is an educational and
communications campaign”
– p.148