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Reengineering the Corporation
Transcript of Reengineering the Corporation
What does it look like?
No more Standardization
Changes that occur on the journey of Reengineering
The Hunt For Reengineering Opportunities
Process Redesign - Reinventing the Business
Recurring characteristics to think about to develop new ideas:
Reengineering the Corporation
Presented by: Cat Tran Nguyen, Yetta Tatik
People don't have time or inclination to monitor and check their work.
Better to have multiple versions of the same process to handle different scenarios.
Perform work where it makes more sense,
by relocating work across organizational boundaries
Reduce external contact points
Why spend more money on control
then the damage that can be
done from having no control?
A hybrid company having decentralization and centralization at the same time
Putting back together what Adam Smith and Henry Ford had broken into tiny pieces
People's job change from simple tasks to multidimensional
Decrease in non-value adding work
Work becomes more rewarding/satisfying
Focus is on customers
Benefits of Process-Team Enviroment:
Role changes from being controlled to empowered
"We don't want employees who can follow rules, we want those who will make their own rules!"
The Crisis That Will Not Go Away
how to handle 1 situation
exercise judgement to do right thing
increasing skills and competence
The story of Great America
increases insight and understanding
When work is fragmented people
are paid for their time, so that efficiency
will be increased
Performing process work allows companies to measure performance and pay on the basis of the value created.
promotion based on performance
promotion based on ability
organization structure becomes flat
no more time consuming meetings
The disappearance of top Fortune 500 companies
What Do Organizations Want?
1) As few people as possible should be involved in the performance of the process.
2) Try turning assumptions on their head or throwing them out entirely
3) See what technology allows you to do, and look for the creative application of technology.
How to sell change to your employees?
Still operate on yesterday paradigm
Diseconomies of scales
Customer take charges
Change become constant
"Here we are and we can not stay here."
"This is what we as a company need to become."
Develop a need for change!
What is Reengineering?
What Reengineering Isn't?
Not Quality Improvement
What Reengineering Is?
Toss Away The Old System
"Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical component measures of performance"
Why Do we Do What We Do?
Why Do we Do it The Way We Do?
Ask the most basic questions:
Get to the root of the problem
Disregard the existing structures
Achieve Quantum leaps in performance
Holistic focus on business objectives +
How the process related
Authorize and motivate the overall process
Visionaire and motivator
Ensure everyone is going in the same direction
A manager with responsibility for a specific reengineering process
Work with other managers to gain cooperation
A group of individual dedicated to one process
Between 5-10 people
Insiders : Work inside the process
Outsiders: Don't work in the process
Policy Making Body of Senior
Hear and resolve conflicts between different processes
Create Overal strategy
An individual responsible for developing reengineering techniques and tools
Manage overall process in a day to day basics
Who Will Reengineer?
1. Identify the hidden process
2. Create a process map
4. Try To Understand The Current process
Look for knowledge and insight
look on the customer end - Jetblue Story
Figure out what the process currently provide
87% are gone
Organization increasingly faces with precarious situation
Connection to Cube One Framework
How Company decide which process to be reengineer?
Product development: Concept to prototype
Sales: prospect to order
Order fulfillment: order to payment
Service: Inquiry to resolution
3. Selecting the process
Dysfunction - The one is broken