DEFINITION
The Reengineering According to Michael Hammer, reengineering is to start from scratch on a blank sheet, because it is believed that virtually everything we did before, as companies appear to be wrong considering the results.
reengineering, at first, a process that must be done from top to bottom, ie it must be initiated by the leader of an organization or country ("transformational leader"). If there is no political will to carry it out, if no decision and if resources are channeled to it, this will not succeed. Reengineering arises to rethink and redo the process of an organization based on two central arguments:
The Reengineering According to Michael Hammer, reengineering is to start from scratch on a blank sheet, because it is believed that virtually everything we did before, as companies appear to be wrong considering the results.
reengineering, at first, a process that must be done from top to bottom, ie it must be initiated by the leader of an organization or country ("transformational leader"). If there is no political will to carry it out, if no decision and if resources are channeled to it, this will not succeed. Reengineering arises to rethink and redo the process of an organization based on two central arguments:
the case for action. _ Hammer defined as the "wedge" and that is the fundamental reason why we want or need to change. If you do not have a compelling reason, we will not make the change. It's like when the doctor tells the patient to have to change way of life or you will die within a month. The more radical and compelling is this argument "pro action", the more convinced we made the change.
The Argument Pro Vision . _ Hammer defined as the "magnet" and that is the vision that draws us, that is the goal or ideal that we are looking to change. The clearer vision of what we more easily we will move towards it and we will succeed. That vision, from chaos theory, is an "attractor" and a self-organizing drive, that align to all members of an organization toward the same purpose and the restoration of "order."
Behind the word reengineering, a new business model and a corresponding set of techniques that executives and managers will be employed to reinvent their companies. Under traditional thinking management of many of the employees performing tasks that had nothing to do with meeting the needs of customers. Many of these tasks are executed to meet internal demands of the organization of the company. In today's environment nothing is constant or predictable, or growth of the market or customer demand, and life cycle of products. How did the re-engineering? Many companies were forced, with the new features of the environment, to look different from the traditional ways to meet the great challenges of a highly competitive market. The traditional ways of dividing the work of structuring the organization by function, to seek specialization, etc. were not sufficient to make great leaps in a globalized environment, as studied and put into practice different ways to approach the job.The world is facing for the first time a relatively open setting, characterized by what some call the three C : Customers, Change and Competition. In fact, is no longer producing or selling the most important factor, but the customer.
The change is transformed from a sporadic phenomenon to something permanent.
The competition, open markets, passed a national or regional to a global. This environment demands high levels of quality, speedy service, great cost reductions and high levels of productividad.Es in this context emerges reengineering.
Customers gain a decisive position in the markets, demanding better services tailored to their own needs, forcing companies to review their concepts aimed at mass markets. The strong international market penetration by Japanese companies since the early eighties created new competitive conditions, in which the possibilities of choice by consumers is increasing.
change is pressured by technological advance, which offers new alternatives in the process, automation systems, improved quality and lower costs. Is this new scenario could only deal with traditional practices? The response of some companies was negative and, therefore, sought radical changes, which gave birth to what is now known as reengineering.
more specific definition
Customers Customers took command, and does not apply the concept of the customer, this customer now, because the mass market today is divided into segments, some as small as a single client. Customers are no longer satisfied with what they find, and now have multiple options to meet your needs. This is equally applicable in the customer-supplier relationship between the companies themselves, and claims are often expressed in: "Or what do you do as I want or do it myself." Customers have placed in an advantageous position, in part through access to more information. For companies that grew up with mass-market mentality, the reality is more difficult to accept about customers, in that each one counts. If a customer is lost today, no more appear to replace. Before competition was simple: the company could go to market with a product or service at the lowest price acceptable and make a sale. Now there is more competition and class very different. Globalization brings with it the fall of trade barriers and no company has its territory protected from foreign competition. American companies, Japan, Europe have experience in highly competitive markets and are very eager to win a portion of our market. Being big is no longer invulnerable, and all existing companies must have the wit to discover new companies on the market. New companies do not follow known rules and make new rules to run their businesses. The CambioEl change becomes a constant, the nature of change is also different. The speed of technological change also promotes innovation The life cycles of products have gone from years to months. Has decreased the time available to develop and introduce new products. Today, companies have to move faster, or soon will be completely paralyzed. The executives believe their companies are equipped with radar to detect the change effective, but most of them are not, what are the changes detected by them hope. The changes that can derail a company are what occurs outside their expectations.
ROLES OF THE RE-ENGINEERING To carry out the reengineering of processes have identified the following roles: Leader. Owner or responsible for the process. Reengineering team. Steering Committee. "Czar" of reengineering. The Leader is a senior executive who supports, empowers and motivates total reengineering effort. You must have sufficient authority to persuade people to accept radical changes involving reengineering. Without this process reengineering leader is in good intentions without ever culminating as expected.
should keep the ultimate goal of the process, you need the vision to reinvent the company under new competitive schemes, maintains communications to employees and managers to achieve the purposes and progress. Designate who will own processes and assigns responsibility for the progress in performance. Process Owner Area Manager responsible for a specific process and the corresponding engineering stress. In traditional companies do not think in terms of processes, functions departmentalize, which organizational boundaries are made to processes.
Processes must be identified as soon as possible, assign a leader and the owners of the processes. It is important that process owners have acceptance by peers with whom they will work, accept the processes of change that brings the re-engineering, and its main function is to monitor and encourage implementation of the reengineering. The office of the owners does not end when comprehensive re-engineering project, when it is committed to be focused on processes, each process is dealing with an owner who takes responsibility for its implementation.
ADVANTAGES AND DISADVANTAGES Advantages
effort is concentrated in areas of organizational and procedural point.
best accomplished in a short-term and visible results
If there is reduction of defective products, results in a reduction in costs as a result of lower consumption of raw materials.
increases productivity and leads the organization to competitiveness, which is critical for organizations today.
contributes to adaptation to technological processes.
Deletes repetitive processes.
Disadvantages
When the improvement is concentrated in a specific area of \u200b\u200bthe organization, they lose sight of the interdependence of all members of the company.
requires a change throughout the organization, as for success requires the participation of all members of the organization at all levels.
Given that managers in small and medium enterprises are Conservative Continuous Improvement is a long process.
have to make major investments.
CONCLUSION
Reengineering is the fundamental tool and the last change. She runs the business process of an organization. In its current state, helps set the business from old paradigms to a new service and information. In the future will continue to move the business. Reengineering using the continuous change to achieve competitive advantage. Opportunities for organizations to continue to grow if one considers that one way or another, most of these organizations will benefit businesses without much effort. However, businesses that earn the most will be those who can assimilate the latest technologies and take advantage of opportunities, so they prepare themselves for change.
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