REENGINEERING

By Sheryll G. Aure MS I/O Psychology

What is REENGINEERING?

Is a fundamental rethinking and radical redesign of business to achieve dramatic improvements in performance This transforms how the organization originally delivers goods and services This structural design breaks down specialized work units into more integrated, cross-functional work processes

.. REENGINEERING

This streamlines work processes and makes them faster and more flexible Makes work more responsive to changes in competitive conditions, customer demands, product life cycles and technologies Results in radical changes in the organization---- more of revolutionary change that alter status quo

.. REENGINEERING
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Reengineering can be linked to transformation of organization structure and work design It focuses on work processes that helps to break down the vertical orientation of functional and self-contained-unit organizations

.. REENGINEERING

More focused in changes for the work team but fails to apply to individual differences in peoples reaction to work- designs prescription

Stages of REENGINEERING
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PREPARE THE ORGANIZATION Start with assessment and clarifications

SPECIFY ORGANIZATION STRATEGY AND OBJECTIVES - Business strategy determines the focus of reengineering and guides decisions for strategic success

.. Stages
FUNDAMENTALLY RETHINK THE WAY WORK GETS DONE a. Identify and analyze core business process - Core business process are essential for strategic success - Development of a process map - Assigning costs - Assessing value-added activities

.. Stages
b. Define performance objectives - Possible level of performance for any particular process is identified c. Design new processes - Redesign current business processes - Address the question If we were starting this company, what process do we need to obtain sustainable competitive advantage?

.. Stages
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RESTRUCTURE THE ORGANIZATION AROUND THE NEW BUSINESS PROCESSES Changing the organizations structure to support the new business processes This results into process based structure Important element in this restructuring is implementing new information and measurement systems

CHARACTERISTICS OF A REENGINEERED ORGANIZATION

Work units are converted to process teams Jobs become multidimensional work People become empowered Performance measures and compensation focus on results

.. Characteristics

Organizational structure becomes flat Managers becomes coaches; executives becomes leaders

Result from Reengineering

Clear vision of the future Specific goals for change Use of information technology Top managements involvement and commitment Clear milestones and measurements Training of participants in process analysis and teamwork

Example of a Reengineered Company

SCHLAGE LOCK COMPANY