Tuesday, August 24, 2010

Re-Engineering - Why Or Why Not?

The word Re-Engineering is the latest buzzword around, keeping in view the volatile economic situation. If you are doing business, working in the organization, running your own private hospital etc you may encounter this Phenomenon during the course. Re-Engineering means, to develop a vision of product and reconsider all the best possible ways to deliver it in the light of modern technology.

The need for re-engineering becomes inevitable because of the following reasons.

• Cost
• Quality
• Service
• Speed

High expenses and cost, quality of product has deteriorated significantly, and/or customer complaints have increased significantly and slow down of speed of work as well.

There are some Key aspects of Re-Engineering such as;

• Fundamental re-thinking
• Radical redesign
• Dramatic results
• Processes

By fundamental rethinking means starting over or in other words reinventing the wheel. It requires time and efforts.The radical redesign means downsizing or rightsizing, which ends up with the eliminating jobs of many people working in the organization. The whole phenomenon is defined by Hammer and James as 'the fundamental reconsideration and radical redesign of organizational processes, in order to achieve dramatic results and improvement of current performance in cost, service and speed.

THE CONSEQUENCES OF Re-Engineering

It is often seen that whenever re-engineering efforts has done in any organization with an objective to get dramatic results, it fails miserably because there is no guarantee for early results of this activity. The other problem is the morale and self esteem of employees which goes down over time and they became frustrated, disappointed due to the job insecurity. A term bright sizing is also used in this connection which means that your bright people may quit to other organization with a feeling that they may be the next victim of downsizing.Most of the time the same person carried away important clients and business to your competition.

WHY NOT TO Re-Engineering

It is a quick fix in the disastrous situation to cut costs, improve profitability and ensure that organization is back in action. However, there are certain ways to eliminate and avoid re-engineering the most dynamic among them is Japanese management concepts such as of k-a-i-z-e-n method of continuous incremental improvements. It means quality, effort, and involvement of all employees, willingness to change, and communication.

Although it is difficult to give generic advice as it fits well in incremental change situations that require long-term change while most of the organization has focused on short-term success.

In the end what I conclude is that organization must keep abreast with latest technologies, bring small changes continuously in the system to motivate their employees. When used correctly, these steps can enable an organization to redefine, refine, and continuously improve their operations with effectiveness and efficiency.

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