Reengineering The Corporation Michael Hammer Pdf Printer
- Reengineering The Corporation Summary
- Reengineering The Corporation Michael Hammer Pdf Printer Driver
Stanford Libraries' official online search tool for books, media, journals, databases, government documents and more. The most successful business book of the last decade, Reengineering the Corporation is the pioneering work on the most important topic in business today: achieving dramatic performance improvements. This book leads readers through the radical redesign of a company's processes, organization, and culture to achieve a quantum leap in performance.
Contents. Prologue: Reengineering for the Twenty-first Century. 1. The Crisis That Will Not Go Away. 2. Reengineering: The Path to Change.
3. Rethinking Business Processes. 4. The New World of Work. 5. The Enabling Role of Information Technology. 6.
Who Will Reengineer?. 7. The Hunt for Reengineering Opportunites. 8. The Experience of Process Redesign.
9. Embarking on Reengineering. 10.
One Company's Experience: Duke Power. 11. One Company's Experience: IBM.
12. One Company's Experience: Deere. 13. Succeeding at Reengineering.Supplemental links.
BusinessProcess Reengineering:Analysis and RecommendationsByMaureen WeicherWilliam W. ChuWan Ching LinVan LeDominic YuThanks to Dr.Samuel Ryan of Baruch College, City University of New York. This paper was written by a groupof MBA and MS students at Baruch College. May be freely quoted as long as credit is given. Also available in.
Please email questions or comments to Maureen Weicher at( anit-spam measure: change # to @).1. Old Wine in New Bottles?3.
Is BPR a Quick Fix?4. The Price of Experience5. The Role of the Leader and Manager6. Reengineering the Human Resource7. Human Reengineering Case Study: The ConqueringPower of the Small8. BPR Places the Customer at the Center byBreaking Down Organizational Barriers9. Is Information Technology an Enabler or aBottleneck?10.
Alternatives to Reengineering11. Reengineering Recommendations12. BibliographyThe'jumping off' point for this paper is Reengineering the Corporationby Michael Hammer and James Champy. The paper goes onto review the literature on BPR. It explores the principles and assumptionsbehind reengineering, looks for common factors behind its successes orfailures, examines case studies, and presents alternatives to'classical' reengineering theory.
The paper pays particular attentionto the role of information technology in BPR. In conclusion, the paper offerssome specific recommendations regarding reengineering.The conceptof reengineering traces its origins back to management theories developed asearly as the nineteenth century. The purpose of reengineering is to 'makeall your processes the best-in-class.'
Frederick Taylor suggested in the1880's that managers could discover the best processes for performing work andreengineer them to optimize productivity. BPR echoes the classical belief thatthere is one best way to conduct tasks. In Taylor's time, technology did not allow largecompanies to design processes in a cross- functional or cross-departmentalmanner. Specialization was the state-of-the-art method to improve efficiencygiven the technology of the time. In the early1900's, Henri Fayol originated the concept ofreengineering: 'To conduct the undertaking toward its objectives byseeking to derive optimum advantage from all available resources.' Although thetechnological resources of our era have changed, the concept still holds.
Aboutthe same time, another business engineer, Lyndall Urwick stated 'It is not enough to hold people accountablefor certain activities, it is also essential to delegate to them the necessaryauthority to discharge that responsibility.' This admonitionforeshadows the idea of worker empowerment which is central to reengineering.AlthoughHammer and Champy declare that classical organizationtheory is obsolete, classical ideas such as division of labor have had anenduring power and applicability that reengineering has so far failed todemonstrate. BPR does not appear to qualify as a scientific theory, because,among other things, it is not duplicable and it has limited scope. Theapplicability of classical management theories, such as division of labor, were widely duplicable and portable. These ideas stimulatedincreases in productivity, output, and income that led to the creation of themiddle class.If BPR is nota theory, but a technique, Hammer and Champy aresurprisingly vague about the details. This paper attempts to fill in theblanks. Despite their vagueness, Hammer and Champyare clear about who to blame when reengineering attempts fail; it is the faultof the individual company.Cyert and March,among others, point out that conflict is often a driving force inorganizational behavior.
BPR claims to stress teamwork, yet paradoxically, itmust be 'driven' by a leader who is prepared to be ruthless. Oneexecutive with BPR experience warns not to assume 'you can simply issuedirectives from the center and expect it to happen.' According toThomas Davenport, 'classical reengineering' repeats the same mistakesas the classical approach to management by separating the design of work fromits execution. Typically, a small reengineering team, often from outside thecompany, designs work for the many. The team is fueled by assumptions such as'There is one best way to organize work; I can easily understand how youdo your work today; I can design your work better than you can; There is littleabout your work now that is worth saving; You will do your work the way Ispecify.' Davenport suggests thatthe engineering model/analogy that BPR is based upon is flawed, both in termsof process design and information technology. He proposes an'ethnographic' approach to process design and an'ecological' approach to information systems.
Partipativebusiness makeovers are discussed later in this paper.BPR is oftenused by companies on the brink of disaster to cut costs and return toprofitability. The danger is that during this process the company may slash itscapacity for future growth. The example of 'Star Vault, Inc.' , amid-sized entertainment company illustrates this conundrum. After BPR, Star Vaultreturned to short-term profitability by sacrificing its internal productioncapability to create new products.Seniormanagement soon discovered that the company's library was becoming overexposedand competition for the most attractive product acquisitions more intense. StarVault was forced to reevaluate its strategic direction. It opted to focus onniche markets.
Interactual player download windows. 'Instead of simply improving the processes, the companyeliminated non-value- added expenses, and evaluated which organizationalelements were relevant to the strategy. As a result, the company now has theopportunity to sustain and increase its market share.' To reaplasting benefits, companies must be willing to examine how strategy andreengineering complement each other - by learning to quantify strategy (interms of cost, milestones, timetables); by accepting ownership of the strategythroughout the organization; by assessing the organizations currentcapabilities and processes realistically; and by linking strategy to thebudgeting process. Otherwise BPR is only a short term efficiency exercise. One of thehazards of BPR is that the company becomes so wrapped up in 'fighting itsown demons' that it fails to keep up with its competitors in offering newproducts or services.
While American Express tackled a comprehensivereengineering of the credit card business, MasterCard and Visa introduced a newproduct - the corporate procurement card. American Express lagged a full yearbehind before offering its customers the same service. Another writer urgesconsultants not to present BPR as a quick fix program since it 'may helpyou save money tomorrow but will leave you in a worse position next month ornext year.' Why are somany companies still eager to experiment with reengineering, even when theyhave experienced previous failures themselves? Companies such as AmericanExpress and Amoco were able to learn from earlier reengineering failures, andsucceed on later attempts.
It seems that 'experience, more than thepossession of the right approach or methodology, is the key to reengineeringtriumph.' This acknowledgement may help explain the increasing interest in reengineering,despite the high failure rate.Wheatley, onthe other hand, describes the appeal of reengineering as a sign of'collective desperation.' She notes 'when a star is in its deathstage, about to collapse on itself, it burns at its brightest, with tremendousenergy and fury. Reengineering is the supernova of our old approaches toorganizational change, the last gasp of efforts that have consistentlyfailed.' Many articlespoint out that BPR must have the full support of top management to succeed. Ifresistance is encountered, the leader must be willing to 'drive'change, even to the point of ruthlessness.
One article even exhorts the leaderto emulate a private detective - such as Philip Marlowe - who adheres to thefollowing 'heroic' qualities; Relentless adherence to what is right;Courage - moral as well as physical; Recognition that surface appearance isoften an illusion; A dogged determination to get at the deeper truth. Managers in acompany undergoing reorganization must work to quell the fears of employees andresistance to change (despite the fact that they may have their ownapprehensions.)According toone executive with BPR experience, 'Once the reengineering plan is inplace, you've got to pull out the stops and execute it. You cannot live inlimbo between what you used to do and what you're going to do.' Otherwise,the dramatic results are sacrificed, people lose theirfocus, and 'reengineering slips into process improvement.' Employees may beenthusiastic about reengineering during the initial phases if they view it as a'win- win' situation.
Some companies experience resistance in laterstages when employees begin to harbor doubts about the impact of reengineering,and managers are forced to adopt a more 'insistent' policy. CSC Indexpoints to poverty of ambition as a reason why BPR projects fail.'
Companies that just flirt with reengineering suffer the pains withoutthe gains.' Reengineering advocates urge management to pull out all the stops and implementchange on a grand scale. Managers in the organizations after reengineering arecompared to coaches. They do not order; they guide. They do not direct the workof others; they coordinate, facilitate and empower.Hammer and Champy recognize the importance of the human resource whenthey state 'companies are not asset portfolios, but people working togetherto invent, sell and provide service.' However, they fail todemonstrate how to reengineer the human resource in conjunction withreengineering processes.
Of the four cases presented in Reengineering theCorporation, only the case of Capital Holding addresses this area. CapitalHolding performed a 'cultural audit' which revealed that theunwritten code of conduct encouraged information hoarding and barelyacknowledged the customer. In order to combat these tendencies, seniormanagement provided a constant flow of information throughout the companyregarding reengineering expectations and successes, and revised the performanceappraisal system to emphasize the new values of team work and cooperation.AlthoughHammer and Champy provide a long list of whyreengineering fails, nowhere do they include the prerequisite that noreengineering effort will succeed without first reeducating and retraining thepeople who will ultimately work with the new process.
According to MegWheatley, 'If you're going to move information and responsibility down tothe local level, then the key question is how can you be sure that people willbehave appropriately? You need to make sure that everyone is playing by thesame rule book.' CSC Indexidentifies principle obstacles to BPR include the fear among employees thattheir jobs are endangered and that years of experience will account fornothing. To overcome these apprehensions, managers must constantly communicatetheir plans and expectations. Althoughcompanies which are seeking to reengineer may work on revamping the performanceappraisal system to support new values, this can be problematic.
When bonusesare linked to profits or even the performance of a team, this may lead to asituation where the individual is judged on factors beyond his or her control. Human Reengineering CaseStudy: The Conquering Power of the SmallGTO Inc.
Is asmall company which manufactures automatic gate openers based in Tallahassee, Florida.When the founder died suddenly, the company was appeared to be in desperateneed of reengineering: GTO was losing money on a monthly basis,it lacked a line of credit and suppliers shipped only on a COD basis. Employeeswere required to work twenty-four hour shifts to fill important orders andsalesmen were reduced to writing minuscule orders to supplement their incomes.The new CEO, Chuck Mitchell, adopted '.a strategy made up of smallgestures rather than sweeping moves.' These gesturesconsisted of creating an atmosphere of trust and optimism among GTO's harried employees by listening to and adopting theirsuggestions and improving their health and disability insurance. When thingsstarted to turn around, pay was increased and bonuses distributed from a profitsharing plan. The salesman were put on salary withincentives.
Reengineering The Corporation Summary
Acts such as fixing the leaky roof, allowing ten minute breaks, andkeeping the coffee machine stocked convinced the employees that Mitchell was'genuine.' The following year, GTO witnessed a cultural and companyturnaround. Net profits moved from the red to nearly $500,000. This wasaccomplished by a 9% increase in gross sales along with a 33% decrease in totaloperating and administrative costs. Employee turnover decreased equallydramatically.
Reengineering The Corporation Michael Hammer Pdf Printer Driver
As employees began to seek outside education and were promotedfrom within, the number of returned goods fell. GTO's dramaticturnaround was a result of many small steps which could be said to fosterprecisely the 'culture of incrementalism'that Hammer and Champy warn against. The focus was onhuman resources rather than on processes.
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