Add your review
Avg. Rating: 4
Highly Recommended!
Authors and reengineering consultants Michael Hammer and James Champy begin their book rather defensively by insisting that reengineering is not merely a forgotten fad of the 1990s. And they may be right, particularly given their insistence that companies must be totally, absolutely willing to discard the old and replace it with the new. The authors make dramatic claims for the potential of reengineering, and highlight interesting victories - such as Kodak, a company rarely cited as an example of success. The book presents reengineering as a simple, straightforward way to view business processes, figure out how to make them more rational and economical, and then implement necessary changes. The authors made a splash by labeling this approach as reengineering in the 1990s. The term became a euphemism for firing people in droves, then fell into discredit. This update may be intended to rescue the concept from its bad image, but it doesn't quite succeed. In the new millennium, companies deal with complex, costly processes by outsourcing them, yet the word "outsourcing" does not yet appear in this book's index. Such time lags aside, we find this business landmark well worth reading. After all, it's the management Bible of the '90s. Many of its hoary old verities still have the ring of truth.
Good ideas, but not completely thought through
Although the authors do not acknowledge it, business process reengineering looks like a blend of lean principles applied to white collar activities with software engineering concepts like data-flow modeling. For a business best seller, it is unusually clear-headed, concise and to the point. This being said, it has a few shortcomings:
* The authors did not anticipate how extensively "vocabulary engineering" -- that is, attaching new labels to old structures, would thwart implementation of their ideas. Executives have titles like "VP of order fulfillment" and managers refer to themselves as "process owners," but behind this facade, it is largely business as usual.
* The "process" model does not do justice to the full complexity of business organization. Not everything can or should be organized as a process. The contrast between functional departments and processes is relevant and useful, but not sufficient.
* Some very successful companies, such as Toyota, are not systematically organized around business processes, but with functional departments supplemented by cross-functional committees at the top management level and a variety of structures at lower levels.
Manifesto or Miscalculation?
According to Hammer and Champy, business process reengineering "is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed" (p. 35). It is important that you do not confuse business process reengineering with other types of change management. It is not incremental change, down-sizing, total quality management, nor a "doing more with less" strategy. In business process reengineering, quantum changes are made to core processes, which results in far greater advances. Not only are the emerging business processes vastly different from what was previously in place, but the entire organization must change also. Employees, managers, core processes and business relationships will change in a reengineered company, and the change is significant.The authors say this process-based approach will benefit three types of companies: 1) Those in deep trouble 2) Ones who are not yet in trouble but have the foresight to see future problems and 3) Those in peak condition but are looking to take a greater lead over their competition. The authors present their case in a well-written manner and use frequent real world examples to great effect. I would like to see the authors use future printings to update the currency of their examples. They also need to examine the internet's role in reengineering. The few pages in the updated introduction are not adequate. The most recent printing does include an updated introduction where they remark on reengineering's successes and why it is still relevant today. This printing also adds a very useful frequently asked questions section to clarify their position on business process reengineering and lessons learned since the initial printing. This book is for mid- and senior-level managers who believe whole-scale process changes are warranted. Also, entrepreneurs will glean important ideas for developing sound business processes. It is ideal for students studying management, organizational behavior, or process change. The author's compelling argument may not be for all business situations but their provocative manifesto deserves a thorough examination and serious consideration in today's business environment. Some readers will no doubt find reengineering as a panacea; others will see it as a relevant alternative. Read the book and judge for yourself. I recommend this book.
Review this book
|
