"America's business problem is that it is entering the twenty-first century with companies designed during the nineteenth century." So write Michael Hammer and James Champy in this pioneering book on the most important topic in business circles today: reengineering - the radical redesign of a company's processes, organization, and culture. Reengineering the Corporation offers nothing less than a brand-new vision of how companies should be organized and managed if they are to succeed - indeed even survive - in the 1990s and beyond. Reengineering does not seek to make businesses better through incremental improvements - 10 percent faster here or 20 percent less expensive there. The aim of reengineering is a quantum leap in performance - the 100 percent or even tenfold improvements that can follow from entirely new work processes and structures.
Building on their firsthand experiences, Hammer and Champy show how some of the world's premier corporations use the principles of reengineering to save hundreds of millions of dollars a year, to achieve unprecedented levels of customer satisfaction, and to speed up and make more flexible all aspects of their operations. The key to reengineering is abandoning the most basic notions on which the modern organization is founded. Today's workers and managers are prisoners of antiquated theories about organizing work - theories that date back to the beginnings of the Industrial Revolution. These ideas - the division of labor, the need for elaborate controls, the managerial hierarchy - no longer work in a world of global competition and unrelenting change. In their stead, the authors introduce the notion of process orientation, of concentrating on and rethinking end-to-end activities that create value for customers.
This book is about more than ideas, however. From their work with leading companies around the world, Hammer and Champy have learned how to make reengineering succeed. They lay out the approaches that have enabled such companies as Bell Atlantic, Taco Bell, and Hallmark Cards to reinvent themselves. They offer a vision of the reengineered corporation and a road map for companies to follow in getting there.
Reengineering the Corporation sets aside much of the received wisdom of the last 200 years of industrial management and in its place presents a new set of organizing principles by which managers can rebuild their businesses.
The book provides numerous examples and in-depth case studies of how leading organizations are achieving significant competitive gains through reengineering: How Ford Motor reduced the size of its North American accounts payable organization by 80% while improving the process; how IBM is leasing subsidiary cut its deal-making process from seven days to four hours; and how Taco Bell used a new set of production and management processes to fuel a six-fold growth in revenue.
