“Is Reengineering and Strategy Implementation Just Another Management Fad or Does It Offer Something of Lasting Value?”
1.0 Introduction
Implementation is the challenge that comes at the end of all new (and old) methods for improving organizations. Strategic planning, architecture development, change management, total quality management, new information systems technologies, and re-engineering, are some of the concepts that are being advocated to effect a radical improvement organizational performance. Advocates of each concept, however, struggle when questioned about successful implementation (Deshpande and Parasuraman, 1986). Strategic planning literature abounds on how to develop a plan, but there is comparatively little said about how to implement a strategic plan once it is developed.
Reengineering is a radical rethinking of an organization and its cross-functional, end-to-end processes (Hammer, 1993). After it’s introduction reengineering had taken corporations by storm. In a survey of over 500 chief information officers (CIOs), the average CIO is involved in 4.4 re-engineering projects (Moad, 1993). Walmart (example 1) is seen as one of the successful executers of reengineering.
Despite the excitement over reengineering, however, the rate of failure for re-engineered projects is over 50 per cent (Stewart, 1993). Hammer and Champy (1993) estimate as much as a 70 per cent failure rate. Luthfansa AG (example 2) is one such company. Such is the position that reengineering is labelled as a “management fad”.
This paper looks to explore the facets of strategy implementation, reegineering that and analyze the label of “fad” is a worthy one or does the two offer a lasting value.
2.0 Literature Review
2.1 The evolution of reengineering
The concept of reengineering was first presented in two articles published simultaneously by Hammer (1990) and Davenport and Short (1990). Reengineering is a totally new approach with regard to the ideas and models used for improving business Hammer and Champy (1993). The reengineering approach is a result of the combination of concepts from different
Implementation is the challenge that comes at the end of all new (and old) methods for improving organizations. Strategic planning, architecture development, change management, total quality management, new information systems technologies, and re-engineering, are some of the concepts that are being advocated to effect a radical improvement organizational performance. Advocates of each concept, however, struggle when questioned about successful implementation (Deshpande and Parasuraman, 1986). Strategic planning literature abounds on how to develop a plan, but there is comparatively little said about how to implement a strategic plan once it is developed.
Reengineering is a radical rethinking of an organization and its cross-functional, end-to-end processes (Hammer, 1993). After it’s introduction reengineering had taken corporations by storm. In a survey of over 500 chief information officers (CIOs), the average CIO is involved in 4.4 re-engineering projects (Moad, 1993). Walmart (example 1) is seen as one of the successful executers of reengineering.
Despite the excitement over reengineering, however, the rate of failure for re-engineered projects is over 50 per cent (Stewart, 1993). Hammer and Champy (1993) estimate as much as a 70 per cent failure rate. Luthfansa AG (example 2) is one such company. Such is the position that reengineering is labelled as a “management fad”.
This paper looks to explore the facets of strategy implementation, reegineering that and analyze the label of “fad” is a worthy one or does the two offer a lasting value.
2.0 Literature Review
2.1 The evolution of reengineering
The concept of reengineering was first presented in two articles published simultaneously by Hammer (1990) and Davenport and Short (1990). Reengineering is a totally new approach with regard to the ideas and models used for improving business Hammer and Champy (1993). The reengineering approach is a result of the combination of concepts from different
Bibliography: 1. Ackere, A., Larsen, E., Morecroft, J. (1993), "Systems thinking and business process redesign: an application to the beer game", European Management Journal, Vol. 11 No.4, pp.412-23 2 3. Al-Mashari, Majed and Zairi, Mohamed (1999). “BPR implementation process: an analysis of key success and failure factors”, Business Process Management Journal; Volume: 5 Issue: 1. 4. Andreu, R., Ricart, J., Valor, J. (1997), "Process innovation: changing boxes or revolutionizing organizations?", Knowledge and Process Management, Vol. 4 No.2, pp.114-25. 5. Arendt, C., Landis, R., Meister, T. (1995), "The human side of change – part 4", IIE Solutions, pp.22-7. 6. Alexander, L.D. (1985), "Successfully implementing strategic decisions", Long Range Planning, Vol. 18 No.3, pp.91-7 7 8. Bartlett, C.A., Ghoshal, S. (1987), "Managing across borders: new strategic requirements", Sloan Management Review, Vol. 28 No.2, pp.7-17. 9. Barrett, J. (1994), "Process visulization: getting the vision right is key", Information Systems Management, pp.14-23. 10. Bashein, B., Markus, M., Riley, P. (1994), "Precondition for BPR success and how to prevent failures", Information Systems Management, pp.7-13.. 11. Bhattacharya, A., Gibbons, A. (1996), "Strategy formulation: focusing on core competencies and processes", Business Change & Re-engineering, Vol. 3 No.1, pp.47-55. 12. Bruss, L., Roos, H. (1993), "Operations, readiness and culture: don’t reengineer without considering them", Inform, pp.57-64 13 14. Carr, D., Johansson (1995), Best Practices in Re-engineering: What Works and What Doesn’t in the Re-engineering Process, McGraw-Hill, New York, NY 15 16. Chu, W., Lin, W., Le, V., Weicher, M., Yu, D. (1996), "Business process re-engineering analysis and recommendations", Business Researcher’s Interests (BRINT), BPR Papers, [http://www.netlib.com/bpr1.htm#isit] 17 18. Davenport, T. (1993), Process Innovation: Re-engineering Work through Information Technology, Harvard Business School Press, Boston, MA 19 20. Davenport, T. (1994), "The business change and re-engineering interview", Business Change & Re-engineering, Vol. 2 No.1, pp.2-6 21 22. Davenport, T., Short, J. (1990), "The new industrial engineering: information technology and business process redesign", Sloan Management Review, Vol. 31 No.4, pp.11-27 23 24. Deshpande, R., Parasuraman, A. (1986), "Linking Corporate Culture to Strategic Planning", Business Horizons, Vol. 29 No.3, pp.28-37 25 26. Earl, M., Khan, B. (1994), "How new is business process redesign?", European Management Journal, Vol. 12 No.1, pp.20-30.. 27. Edwards, C., Peppard, J. (1994), "Business process redesign: hype, hope or hypocrisy?", Journal of Information Technology, Vol. 9 pp.251-66 28 29. Ettorre, B. (1997), "What’s the next business buzzword?", Management Review, pp.33-5 30 31. Guha, S., Kettinger, W., Teng, T. (1993), "Business process re-engineering: building a comprehensive methodology", Information Systems Management, pp.13-22 32 33. Hall, J., Rosenthal, J., Wade, J. (1993), "How to make re-engineering really work", Harvard Business Review, pp.119-31. 34. Hammer, M. (1990), "Re-engineering work: Don’t automate, obliterate", Harvard Business Review, Vol. 68 No.4, pp.104-12. 35. Hammer, M., Champy, J. (1993), Re-engineering the Corporation: A Manifesto for Business Revolution, Harper Business, New York, NY 36 37. Hammer, M., Stanton, S. (1995), The Re-engineering Revolution, Harper Collins, New York, NY 38 39. Harrison, D., Pratt, M. (1993), "A methodology for re-engineering businesses", Planning Review, pp.6-11 40 41. Hinterhuber, H. (1995), "Business process management: the European approach", Business Change & Re-engineering, Vol. 2 No.4, pp.63-73 42 43. Hussey, D. (1998), "Strategic management: past experiences and future directions", in Hussey, D. (Eds),The Strategic Decision Challenge, John Wiley & Sons, Chichester/New York, NY, pp.1-28 44 45. Johansson, H., McHugh, P., Pendlebury, J., Wheeler, W. (1993), Business Process Re-engineering: Break Point Strategies for Market Dominance, John Wiley & Sons, Chichester 46 47. Khong, Kok Wei and Richardson, Stanley (2003). “Business peocess reengineering in Malaysian banks and finance companies.” Managing Service Quality. Volume. 13, Number. 1, pp. 54 – 71. 48. Keen, P. (1991), Shaping the Future: Business Design through Information Technology, Harvard Business School Press, Boston, MA. 49. Kettinger, W., Teng, J., Guha, S. (1997), "Business process change: a study of methodologies, techniques, and tools", MIS Quarterly, pp.55-80. 50. Klein, M. (1994), "Re-engineering methodologies and tools: a prescription for enhancing success", Information Systems Management, pp.30-5 51 52. Miller, A., Dess, G. (1996), Strategic Management, International ed., McGraw-Hill, New York, NY, 53 54. Moad, J. (1993), "Does Re-engineering Really Work?", Datamation, Vol. 39 No.15, pp.22-8. 56. Okumus, F. (2001), "Towards a strategy implementation framework", International Journal of Contemporary Hospitality Management, Vol. 13 No.7, pp.327-38 57 58. Pettigrew, A.M. (1987), "Context and action in the transformation of the firm", Journal of Management Studies, Vol. 24 No.6, pp.649-70. 59. Plowman, B. (1995), "Corporate transformation means re-engineering plus", The Strategic Planning Society NEWS, pp.8-10. 60. Rastogi, P (1994), "Nature, significance and rationale of business process reengineering", Productivity, Vol. 35 No.3, pp.467-76 61 62. Schmelzer, C., Olsen, M. (1994), "A data-based strategy-implementing framework for companies in the restaurant industry", International Journal of Hospitality Management, Vol. 13 No.4, pp.347-59 63 64. Skivington, E.J., Daft, L.R. (1991), "A study of organizational framework and process modalities for the implementation of business level strategic decisions", Journal of Management Studies, Vol. 28 No.1, pp.45-68 65 66. Venkatraman, N. (1993), "IT-induced business reconfiguration", in Scott-Morton, M. (Eds),The Corporation of the 1990s: Information Technology and Organisational Transformation, Oxford University Press, New York, NY, pp.122-58. 67. Venkatraman, N. (1994), "IT-enabled business transformation: from automation to business scope redefinition", Sloan Management Review, Vol. 35 No.2, pp.73-87. 68. Wendel, C.B., Svensson, E. (1995), Business Buzzwords, Amacom, New York, NY., . 69. Zairi, M. (1992), Competitive Benchmarking: An Executive Guide, Technical Communications (Publishing), 70 71. Zairi, M., Sinclair, D. (1995), "Business process re-engineering and process management: a survey of current practice and future trends in integrated management", Management Decision, Vol. 33 No.3, pp.3-16.