Customer Reviews

Reengineering the Corporation: A Manifesto for Business Revolution

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This book's subject is the popularized version of the business concept of management process design. Making that concept more accessible is a very useful contribution. The downside of this book is that many people have assumed that it teaches you everything you need to know to do management process design, or to reengineer key processes. That, alas, is not true. If you find the subject of process design or reengineering to be of interest, I suggest that you first read James Champy's excellent book, REEENGINEERING MANAGEMENT. That book is a good template for how to make any beneficial change in an organization, including reengineering. Then, if you want to get fired up to make major changes, use REENGINEERING THE CORPORATION as a way to create passion about the subject for yourself. But do remember, you may not even have all the processes you need, so reengineering is not the only answer. For example, what is the management process that your company uses to improve its stock market valuation? If you are like most, you do not even have an effective process for stock price enhancement. So be sure to see if you have processes where they will do you the most good.

This book has some great ideas, particularly the idea to take a fresh look at processes. For any established process, it's likely that enough has changed since the process was born that the process is no longer the best way to get from the beginning to the result. This book is well written and easy to read and the examples are especially useful in illustrating the major benefits of reengineering.

Unfortunately, many of points are not as well-thought out. For example, the book advocates building teams around discrete processes but fails to realize that this just moves companies from horizontal silos to vertical silos. These vertical silos cause different but still serious problems. Also, the book mentions the critical role of Information Technology, but fails to realize that they can often lead reengineering efforts because if they have a solid knowledge of the business and new technologies they are in the best position to see the new possibilities. Another confusing area is that book indicates certain problems that should be overcome in an initial reengineering project such as functional departments and lack of understanding of reengineering continue to be problems for subsequent reengineerings.

Many of the questions that are not answered in this book are answered in John Case's "Open-Book Management". Open-Book Management and Reengineering have many things in common including empowered workers, performance measured by results, and coaching managers, but Open-Book management does a much better job of explaining what really drives these changes and how they can best be aligned.

"Reengineering the Corporation" was THE management book for the early to mid 90's. Many companies, including my own, adopted the Reengineering philosophy. The book implants basic management principles of process redesign. Specifically, the book encourages business leaders to examine their core processes (e.g. the order fulfillment process). Then, starting with a clean sheet of paper, the book encourages a redesign of those processes to their maximum efficiency. A critical theme throughout the book was employee ownership of processes. In fairness to those that have been involved in process redesign, Hammer and Champy's book does not introduce new management concepts. Rather, it packages the process redesign concept very nicely. The book is a very easy read, including many examples of companies that have successfully reenginered core processes. I would recommend this book to two groups. If you are a manager unfamiliar with process redesign or Total Quality Management, I would recommend this book for you. If you are a student studying business, I would strongly recommend this book. As an MBA student, I have used quotes from this book on numerous occasions. On a final note, James Champy does admit in a later publication, that reengineering has failed in many companies (Reengineering Management). But, the concepts are sound and the examples are moving. Overall, it is a solid business tool. Reviewed by Jay A. Goklani

I think people should read this book because for better or for worse, it has defined the way big business acted in the mid and late 90's. However, it suffers from the same vices that a lot of business books do: over-the-top, breathless panting writing style, exaggerated claims (like this book transcends Adam Smith), too much jargon and neologism, and covering the very real downsides of reengineering with euphemism or omission. The authors argue that American business is lagging because its processes are too bureaucratic and mired in the past. They believe that businesses must junk old processes completely by taking advantage of new information technology. This is alright as far as it goes: why employ elevator operators in automated cars and firemen on diesel locomotives if they are no longer useful there? However, the authors do not concede until almost the very end that reengineering can cost jobs (many, many jobs) and increase the stress of those still working. They are also not particularly helpful to managers who have just had to lay off legions of workers and now face a wopping morale and credibility problem. Instead, they offer much zen-speak about "vision" and "cases for action." The case studies selected for reengineering were particularly depressing examples of pod people speak. Organizations don't change, they undergo a "paradigm shift." People don't have thoughts or ideas, they have "visions." And they never agree, they always "sign on", "get on board" or achieve "alignment." What big business really needs to reengineer is its writing and speaking styles. Like the weather, women's fashions, and other management fads (remember Total Quality Management?), reengineering will have its day in the sun and then fade away. Nonetheless, read the book for its influence rather than its educational or entertainment value.

This book is a must read for anyone from general managers to college students who are considering a business career. As a professional recruiter for Fortune 500 companies, I strongly recommend that you NOT come to the job search market today without proof of your skills in process reengineering on your resume. This book is an excellent start in developing an ability to look critically at your business

This book is about re-engineering that aims at changing organizations in a radical way in the expectation that organizations will gain important advantages in terms of quality, service, efficiency and speed. The assumption of re-engineering is that all organizations are organized according to the principles of functional structure and this structure is the main reason of all problems faced by organizations. In this context, re-engineering is presented as a remedy to all problems of firms thanks to its techniques.

According to the authors, organizations must be structured by processes. Firs of all, the important processes must be understood and must be recreated in order to meet customers need and wants efficiently and effectively. Some problems are assumed common for all organizations and believed that all organizations face same kind of problems, accordingly package solutions are offered. I think that firstly, an organization should understand its problem and after produce the solutions to carry out its problem. Without understanding the problem and its real roots correctly, solutions offered can not be permanent and are subject to recurrence. In this book, Information technology is accepted as a "GOD" who can solve all problems.

This great management tool ! is presented as an antithesis to Total Quality Management. TQM is denounced because of its Japan origin. At the same time, Re-engineering opposes to Adam Smith and his narrow "division of labor" concept. By using IT, organizations can demolish the negative impacts of strict division of labor according to the authors. Authors decry the routine work performed by employees because of its alienation effect and so develop an emotional sense but does not care the products of re-engineering projects such as unemployment - a great contradiction - .

Basically, this book is based on the experiences of authors in organizations they served as advisors.If you look at recent articles of Hammer, you can easily see that Hammer works to put re-engineering into the conventional structure of organizations and meanwhile emphasizes the human side of organizations. If you would like to read this book, read it. But you must be the devils advocate in order not to be entrapped by rhetoric.

Although the authors do not acknowledge it, business process reengineering looks like a blend of lean principles applied to white collar activities with software engineering concepts like data-flow modeling. For a business best seller, it is unusually clear-headed, concise and to the point. This being said, it has a few shortcomings:

* The authors did not anticipate how extensively "vocabulary engineering" -- that is, attaching new labels to old structures, would thwart implementation of their ideas. Executives have titles like "VP of order fulfillment" and managers refer to themselves as "process owners," but behind this facade, it is largely business as usual.
* The "process" model does not do justice to the full complexity of business organization. Not everything can or should be organized as a process. The contrast between functional departments and processes is relevant and useful, but not sufficient.
* Some very successful companies, such as Toyota, are not systematically organized around business processes, but with functional departments supplemented by cross-functional committees at the top management level and a variety of structures at lower levels.

According to Hammer and Champy, business process reengineering "is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed" (p. 35). It is important that you do not confuse business process reengineering with other types of change management. It is not incremental change, down-sizing, total quality management, nor a "doing more with less" strategy. In business process reengineering, quantum changes are made to core processes, which results in far greater advances. Not only are the emerging business processes vastly different from what was previously in place, but the entire organization must change also. Employees, managers, core processes and business relationships will change in a reengineered company, and the change is significant.

The authors say this process-based approach will benefit three types of companies: 1) Those in deep trouble 2) Ones who are not yet in trouble but have the foresight to see future problems and 3) Those in peak condition but are looking to take a greater lead over their competition.

The authors present their case in a well-written manner and use frequent real world examples to great effect. I would like to see the authors use future printings to update the currency of their examples. They also need to examine the internet's role in reengineering. The few pages in the updated introduction are not adequate. The most recent printing does include an updated introduction where they remark on reengineering's successes and why it is still relevant today. This printing also adds a very useful frequently asked questions section to clarify their position on business process reengineering and lessons learned since the initial printing.

This book is for mid- and senior-level managers who believe whole-scale process changes are warranted. Also, entrepreneurs will glean important ideas for developing sound business processes. It is ideal for students studying management, organizational behavior, or process change. The author's compelling argument may not be for all business situations but their provocative manifesto deserves a thorough examination and serious consideration in today's business environment. Some readers will no doubt find reengineering as a panacea; others will see it as a relevant alternative. Read the book and judge for yourself.

I recommend this book.

The title might suggest that this one would be a bit of a sleeper. Not so. Somehow the authors managed to make it an enjoyable read. It's surprisingly straightforward. It starts out explaining a problem - i.e. companies are not designed properly. Decades ago, efficiency was achieved through the division of labor -by thin-slicing tasks into meaningless activities. Bloated bureaucracies were required to manage all the disparate parts/functions. It worked fine back then, but not any more. The customer has more say now, competition is stiffer, and change is rampant. In order to thrive today, businesses must organize around process not around functional silos.

The answer? Reengineering. It's not about making gradual improvements - like six sigma or TQM. Rather, it's about "tossing aside old systems and starting over." It's about dismantling the obsolete structures and redesigning processes to achieve dramatic improvements.

The book goes into a fair amount of detail explaining how to undertake a reengineering project. Examples of companies that have achieved successful reengineering efforts are provided to assist. Very helpful.

This is an important read for anyone that works in corporate America - from the CEO to the front-line employee. All can benefit.

-- Nick McCormick, Author, "Lead Well and Prosper: 15 Successful Strategies for Becoming a Good Manager"

Authors and reengineering consultants Michael Hammer and James Champy begin their book rather defensively by insisting that reengineering is not merely a forgotten fad of the 1990s. And they may be right, particularly given their insistence that companies must be totally, absolutely willing to discard the old and replace it with the new. The authors make dramatic claims for the potential of reengineering, and highlight interesting victories - such as Kodak, a company rarely cited as an example of success. The book presents reengineering as a simple, straightforward way to view business processes, figure out how to make them more rational and economical, and then implement necessary changes. The authors made a splash by labeling this approach as reengineering in the 1990s. The term became a euphemism for firing people in droves, then fell into discredit. This update may be intended to rescue the concept from its bad image, but it doesn't quite succeed. In the new millennium, companies deal with complex, costly processes by outsourcing them, yet the word "outsourcing" does not yet appear in this book's index. Such time lags aside, we find this business landmark well worth reading. After all, it's the management Bible of the '90s. Many of its hoary old verities still have the ring of truth.