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Reengineering the corporation - Coggle Diagram
Reengineering the corporation
The Crisis That Will Not Go Away
Every company's management department is trying to make their company more productive, flexible, and highly competitive in the marketplace, but the opposite results account for a large part in reality. The answer lies in the way of working. and why choose that way?
Central Distribution Center (CDC) & Regional Distribution Centers (RDCs) are doing their
jobs, but the overall system just doesn’t work.
Coordination between departments is the PROBLEM
Why don't companies realize and fix the problem? Due to globalization and the rapid development of science and technology, they have no time to adapt
The New World of Work
Work units change—from functional to process team
Jobs change—from simple to multidimensional work
People’s roles change—from controlled to empowered
Job preparation changes—from training to education
Focus of performance measures and compensation shifts—from activity to results
Advancement criteria change—from performance to ability
Values change—from protective to productive
Organizational structures change—from hierarchical to flat
Executives change—from scorekeepers to leaders
Rethinking Business Processes
what, exactly, does areengineered process look like?
Several jobs are combined into one
The steps in the process are performed in a natural order
Workers make decisions
Processes have multiple versions
Work is performed where it makes the most sense
Checks and controls are reduced
Reconciliation is minimized
A case manager provides a single point of contact
Hybrid centralized-decentralized operations are prevalent
Reengineering: The Path to Change
Reengineering a company means tossing aside old systems and starting over. It involves going back to the beginning and inventing a better way of doing work.
"FUNDAMENTAL; RADICAL; DRAMATIC; PROCESSES"
Example of practicing 4 key words: IBM, Ford, Kodak (Process orientation, Ambition, Rule-breaking, Creative use of information technology)
Not downsizing
The Enabling Role of Information Technology
Automation is different from technology
Apply information technology can improve significantly productivity of the company(Ford as an example)
Think Inductively not Deductively
Old rule => Disruptive technology => new rule
(Only experts can perform complex work => Expert systems => A generalist can do the work of an expert)
Who Will Reengineer?
Leader;Process owner;Reengineering team;Steering committee; Reengineering czar
Leader: Makes reengineering happen
Process owner: Like leader's role but in individual scale
Reengineering Team: actual work
Reengineering Czar: actual manage day-to-day task of the whole reegineering processes..
One Company’s Experience: Deere
Restructuring when the company is on the brink of disaster due to process and market complexity
Softer case of IBM
The company's customers are not familiar with reengineering
Rather than wasting energy on looking for boundaries between, say, reengineering and quality improvement, Deere has brought them all together under process excellence.
The Hunt for Reengineering Opportunities
Product development: concept to prototype
Sales: prospect to order
Order fulfillment: order to payment
Service: inquiry to resolution
Understanding Processes
Understanding in order to make a better process not analyze the old one
Everyone knows there are problems with the current system. There are always symptoms that accompany the disease.
Examples: Symptom: Inventory, buffers, and other assets/Disease: System slack to cope with uncertainty
The Experience of Process Redesign
Bad news: There is no specific 10-step process to follow
Good news: There are models from previous successful businesses to learn and apply
Example: Imperial Insurance, a fictitious but representative auto insurance company.
Principle: As few people as possible should be involved in the
performance of a process.
Embarking on Reengineering
Unifying everyone to understand and participate in restructuring is an important task because successful companies always do this.
5 major elements for effective actions:
-business context
-business problem
-marketplace demands
-diagnostics
-costs of inaction.
Vision plays the most strategic role for the success of restructuring
One Company’s Experience: Duke Power
A successful company still restructures for the purpose of outstanding growth
Jim Hicks and E. O. Ferrell tell us that success
requires leaders to be persistent, stubborn, and consistent
Clear communication throughout the organization is a prerequisite for progress in a reengineering effort.
Small successes create motivation and burn the way back to increase determination to the highest level
One Company’s Experience: IBM
one of the first companies to undergo restructuring in 1990
The first time they failed, then the second time they succeeded
The secret lies in the passionate CEO who triumphed over the corporate bureaucracy
Dare to make mistakes and learn from experience
Succeeding at Reengineering
Mistakes to avoid when reengineering
22 common mistakes
-Drag the effort out
-Pull back when people resist making reengineering’s changes
unhappy
-Try to make reengineering happen without making anybody
-Concentrate exclusively on design
improvement programs
-Fail to distinguish reengineering from other business
retirement
-Attempt to reengineer when the CEO is two years from
-Dissipate energy across a great many reengineering projects
-Bury reengineering in the middle of the corporate agenda
-Skimp on the resources devoted to reengineering
-Assign someone who doesn’t understand reengineering to lead the effort
-Try to make reengineering happen from the bottom up
-Allow existing corporate cultures and management attitudes to prevent reengineering from getting started
-Place prior constraints on the definition of the problem and the scope of the reengineering effort
-Quit too early
-Be willing to settle for minor results
-Neglect people’s values and beliefs
-Ignore everything except process redesign
-Don’t focus on business processes
-Try to fix a process instead of changing it