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Business Process Reengineering |
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Hammer and Champy, the gurus of Business Process Reengineering, caution business leaders not to look at their companies as bundles of separate functional units. A company is not a collection of organs, any more than we are. Research and Development, Engineering, Manufacturing, and Sales and Service - these may be separate functions, but they exist only by each other's grace. They must be conceived of as a unity of interests, together giving shape to a dynamic organization, enterprising to become better than all others.
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Hammer and Champy counsel business people to see the various processes at work, which produce the outcomes a company needs to succeed. This calls for a multi-functional approach, or what the authors call a process team. In a reengineered corporation, the management of critical processes is a matter of teamwork. A process team, consisting of a variety of functional experts, is collectively responsible for the upkeep and improvement of an operating process. Functional identities become what they should have always been - labels, and not allegiances.
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Hammer, Michael,. Champy, James. Reengineering the Corporation: A Manifesto for Business Revolution. Harper Business. New York. 1993.
This pioneering work by Michael Hammer and James Champy was the first to introduce the business community to the discipline of business process reengineering. Having coined the term "reengineering", Hammer and Champy define it as "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." The authors use four case studies to demonstrate the principles of reengineering. They show how the implementation of new information technologies and the application of discontinuous thinking can help companies transform collections of uncoordinated corporate functions into coherent business processes. Major themes include a process perspective which identifies employees as customers of and suppliers to other employees inside their company, as well as the reduction of non value adding work. A basic framework for reengineering is provided.
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