Issues with Reengineering
In recent year. both manufacturing and service companies have adopted business process
reengineering in an attempt to be more responsive to the marketplace as well as to increase he overall efficiency of their operations, However, very few of these reengineering efforts have been successful. One reason for this is the inability of management to link the reengineering effort to the overall corporate strategy. The result is often a piecemeal approach here the reengineering program has to compete for scarce resources along with other management initiatives such as total quality management, self-directed work teams. and outsourcing A successful reengineering program must be linked to the corporate strategy of the firm. In other words, reengineering is a strategic issue that must be addressed by the entire organization. at least at the strategic business unit (SBU) level. rather than being viewed as a tactical program, The differences in these two approaches to implementing reengineering are shown in Exhibit 5.13,'1 As with all major projects that require significant organizational changes, the successful implementation of a reengineenng effort is highly dependent upon the commitment and participation of top management.