presentation on book review of book"reengineering the corporations"

1. 1 January 28, 2011 wasim abbas

2. Reengineering the Corporations By Michael Hammer and James Champy Reviewed by WasimAbbasDDO®,NaushehraVirkan January 28, 2011 2 wasim abbas

3. Introduction Of The Book It was printed in 1993 by Harper Collins publishers in New York USA. The book under review is a reprint edition published in 2003. Its price is 16.95 $US or Canadian 25.95 $. ISBN 06-055953-5. It spreads over 257 pages. It is the best selling book on business for 1990s. January 28, 2011 3 wasim abbas

4. Defining Reengineering The writers have defined the term in chapter 2 of the book as, “Fundamental re-thinking and radical re-design of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed”. January 28, 2011 4 wasim abbas

5. Fundamental rethinking why do we do what we do and why do we do it the way we do? it starts with no assumptions or givens rather it starts with a clean chit of paper. Defining an objective and then devising method on the basis of contemporary knowledge. January 28, 2011 5 wasim abbas

6. Radical redesign Radical is derivative of Latin word radix meaning root. It means getting to the roots of things rather to make superficial changes. It means reinvention of business rather than making improvement or enhancement or modification. It symbolizes paradigm shift by totally disregarding the existing one. January 28, 2011 6 wasim abbas

7. Dramatic It means quantum leap in performance. Means blowing up the old and replacing it with new. Means bringing about improvements which are startling or unbelievable to achieve. It does not mean making 10% or 20% improvements in performance but 100% or tenfold or hundredfold or even more. January 28, 2011 7 wasim abbas

8. Processes It is the most important word in the definition of reengineering for the reason that it is not the organizational setup but process that undergoes reengineering. It is a collection of activities or jobs or tasks that takes certain inputs and gives monolithic output, valuable to customers. It contradicts with the Adam Smith's concept of division of labor. January 28, 2011 8 wasim abbas

9. What is not reengineering? It is not downsizing or right sizing. It is not restructuring or reorganization. Reengineering is not automation or software reengineering. It is not reduction or modification in bureaucracy but its reformation is automatic result of reengineering. It is not just quality improvement as the latter works within the existing framework. It is not for improvements or enhancement. January 28, 2011 9 wasim abbas

10. Why Reengineering? THREE C,s THEORY Customers take charge. Concept of mass marketand consumer market. Competition intensifies.outsmarting others in terms of quality, quantity, service (before, during and after) and price is only way to survive. Change becomes constant.Product life cycle is shortening geometrically. January 28, 2011 10 wasim abbas

11. Keys for radical redesign of process You need not to be an expert. Being an outsider helps. Discard preconceived notions. See through customer's eye. Redesign is best done in teams. Knowledge of current process is not essential. Redesign can be a fun. January 28, 2011 11 wasim abbas

12. Characteristics of reengineered processes Several jobs are combined together i.e. horizontal compression of processes. Workers make decisions i.e. vertical compression of processes. Processes have multiple versions. Work is performed where it makes most sense Checks and controls are reduced. Reconciliation is minimized. January 28, 2011 12 wasim abbas

13. Changes in a company after reengineering Change in work units – from division of labor toprocess team or virtual team. Jobs change-from simple to multidimensional-from specialists to generalists. More empowerment needs less monitoring. Education replaces training. Value creation for customers and not Job rank or seniority or showing up is criterion for rewards. Decision making is part of everyone’s job. January 28, 2011 13 wasim abbas

14. Continued……. Annual increments are to the extent of inflation adjustment. Promotion is reward for ability not performance. Good performance results in bonuses rather in annual increments. Change in culture i.e. customers not the company pay salaries, sense of responsibility, ownership, knowing the value and pride of one's job. Organizational structure changes from hierarchical to flat. Roll of managers change from supervisors to coaches. January 28, 2011 14 wasim abbas

15. Roll of information technology in reengineering IT is essential enabler. Only IT cannot undertake reengineering rather its misuse can further block reengineering. A company that looks at IT through the lens of existing processes cannot reengineer. Think inductively rather deductively. IT allows plans revision instantaneously rather than periodically. January 28, 2011 15 wasim abbas

16. Who reengineers? Companies don't reengineer themselves but following roles emerge in reengineering Leader: usually a CEO who provides vision, motivation, inspiration and purpose. Process owner: he is a senior manager responsible for a process and its reengineering and enjoys prestige, credibility and clout within a company. Reengineering team: a group of individuals which identifies, diagnose and redesign a process and also oversee its implementation. Steering committee: a policy making body that develops overall reengineering strategy and monitors progress. Reengineering czar: he is the chief of staff of leader or CEO who interacts among above rolls and keeps leader informed. January 28, 2011 16 wasim abbas

17. Appraisal The writers are overwhelmed with their term. Is re-eng. uses IT or IT gives birth to re-eng. Empowerment does not always eliminate the role of monitoring. Old wine in a new bottle. January 28, 2011 17 wasim abbas

18. Conclusion- A roadmap to reengineering Take workers on board. Define processes and respective owners. Nominate individuals and teams for reengineering. Redesign processes by making horizontal and vertical compressions. Seek the roll of latest IT to help in execution of new processes. 18 January 28, 2011 wasim abbas

19. THANKS & QUESTIONS January 28, 2011 19 wasim abbas