Reengineering: Dangers and caution needed

Most organizations today are not in need of reengineering their business or operating processes. They are more in need of reengineering their managerial orientation; introducing the right managerial approaches will lead to substantial improvement on the existing base. These organizations would be well advised to adopt a competitive strategy and operate on the basis of the three-stage model, with its promise of success at low risk and minimal investment. The small percentage of organizations (mostly large ones) at the point where their business strategy obliges reengineering focal processes or the business as a whole, would do well to first change their managerial perception by taking a global perspective of the organization, focusing on the essential, and using simple tools. By adopting proven methods such as changing traditional cost accounting procedures and adopting global performance measures, Just In Time, the Theory Of Constraints, the Complete Kit concept, and improving quality, the organization will make short-term gains. In this way, those involved in simultaneously planning reengineering the organization, will be better acquainted with the processes, the market and the people performing the organizational functions.