This is a detailed examination, with a case study, of how “re-engineering for growth” should work now that classic business process re-engineering (B.P.R.) has run its course. The first wave of re-engineering emphasized cost. The next wave focuses on creating value and repositioning companies to capture future opportunities.
The authors cite three basic principles for the post-B.P.R. organizational and operational approaches:
1) Enhance the Value for Cost yield. The value-for-cost equation is based on the customer’s perceptions, which reflect the value of a company’s products and services relative to competitive offerings. The goal is to improve value to the customer while simultaneously reducing the total delivered cost.
2) Realign the Processes and Business Systems for Growth. The re-engineering for growth approach requires changes in perspective, process selection and tools. Many of the classic tools, automation, outsourcing, etc., will still remain useful but new tools are required to realign processes and business systems for growth.
3) Refocus on the Soft Side of Capabilities Development. Mobilizing the entire organization toward the new paradigm of growth will entail a significant increase in training and development, while measurement and rewards will also have to change.
Authors: Bud Moeller, Jeffrey S. Tucker, John Devereaux
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