Tuesday, February 26, 2013

Reengineering the Corporation


The term "reengineering" came in and out of fashion a decade or so ago, as it was ushered in with much excitement as the next big thing and faded when it didn't seem to produce any real results for most of the firms that jumped on the bandwagon.   I didn't pay it much attention at the time, but Hammer and Champy's recent book on the topic got me thinking that it might be worth revisiting.

Their concept of "reengineering" is next of kin to innovation - and innovation seems to be headed in the same direction: it's very fashionable to be innovate, so firms are plastering the label of innovation on anything they want to grant an aura of importance, and many things that are not innovative or important at all.  This makes the older trend worth a second look.

Fundamentally, reengineering is about changing the way an organization operates - considering the outcomes it is attempting to achieve and asks the question "why?"   In some instances, the answer to that question demonstrates that the goals of an organization are not at all in line with its mission, and that the tacit acceptance of their importance often fails to stand up under scrutiny.

After whittling down the objectives to those that make sense, reengineering starts from a blank sheet of paper to consider how they might be efficiently achieved, regardless of current resources and practices, considering possibilities rather than tradition, and often discovering that their existing operations have been mired in decades-old rituals that no longer make sense, and procedures that have become bloated over time.

All of this sounds a lot like what is currently being billed as "innovation"  - only it's a far more systematic and deliberate approach that is likely to yield more practical results than merely pipe dreaming of gazing longingly at the latest bells and whistles and trying to imagine how they might be useful.

Said another way, reengineering is a process for innovation, and innovation results in reengineering.  As such, it's likely worthwhile to see what can be learned from this older approach to achieving the same goals - if not to salvage innovation, then to be prepared for whatever term comes in to fashion the next time around.

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