Re-engineering means going back to the beginning and inventing a better way of doing work.

Re-engineering first determines what a company must do, then how to do it.

Companies must organize work around processes.

The difference between winning companies and losers is that winning companies know how to do their work better.

Quote: ” If the taxicab engine is broken, I don’t care if the driver is friendly.”

Some people think that companies could cure what ails them by changing their corporate strategies. They should sell one division and buy another, change their markets, get into a different business. They should juggle assets or restructure with a leveraged buyout. But this type of thinking distracts companies from making basic changes in the real work they actually do. It also bespeaks (be evidence of; indicates) a profound contempt for the daily operations of business. Companies are not asset portfolios, but people working together to invent, make, sell and provide service. If they are not succeeding in the business they are in it is because their people are not inventing, making selling and servicing as well as they should.

Playing tycoon might be more exiting for senior managers than dirtying their hands in the mundane details of operations, but it is not more important. Remember, “God is in the details”.

Rapid, dramatic change to the way a business does its work, typically enabled by the capabilities of new technology. (Michael Hammer)

New technology often enabled work to be done so dramatically differently that many companies would be better off ignoring efforts to improve what they do now, and instead they should simply start off again from scratch.

During the 1990s more and more companies did just that. Three themes ran through their work.

  • A shift from sequential work to simultaneous work. With information on paper only 1 person can easily access it at a time; on a database, by contrast, many can do it at once. So many companies are collapsing time consuming, step-by-step procedures into speedy parallel ones.
  • Worker empowerment. The whole point in employing a decision maker lies in not telling him on her what decisions to make. So Management shifts from telling people what to do to coaching them into higher performance.
  • Taking a process view of an organisation. Traditionally, managers have thought about how work gets done in their organisations, laying down detailed procedures for each task. Increasingly re-engineered organisations focus on what is to be done, leaving empowered workers to decide for themselves how these goals can be met.