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1.4.3. Reengineering the corporation

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Reengineering the Corporation (Hammer and Champy 1993) and Liberation Management (Peters 1992) are the provocative titles of two American books published in the 1990s. The idea was to shake up corporate America that had rested on its post-war laurels.

The following quotes, taken from these two books, give an idea of this “crusade”:

1 – “forget what you know about how business should work. Most of it is wrong!”;

2 – “American companies function according to principles that are two centuries old and mainly according to the principle of the division of labor put forward by Adam Smith in 1776”;

3 – “we live in a world governed by the three Cs: customers, competition, change”;

4 – “reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement such as cost, quality, service and speed”;

5 – “reengineering ≠ restructuring ≠ downsizing ≠ reorganizing ≠ flattering an organization ≠ automating'’”;

6 – “Why do we do what we do? Why do we do it the way we do?”;

7 – “People, jobs, managers & values are linked together. Processes, not organizations, are the object of reengineering.”

When we look at what has happened to the American automotive industry in the face of Japanese competition, it is not certain that the message was heard!

The term reengineering can be considered as the awareness of a company that is asking fundamental questions about its existence. It therefore calls on high-level consultants to help it review its strategy and its way of working from top to bottom. One can imagine the state of mind of the employees who are experiencing reengineering and who wonder if the remedy will not kill the patient.

Process Industries 1

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