Reinventing/ Re-engineering an Organization

According to encyclopedia, Organization re-engineering is the study, capture, and modification of the internal mechanisms or functionality of existing system-management processes and practices in an organization in order to reconstitute them in a new form and with new features, often to take advantage of newly emerged organizational competitiveness requirements, but without changing the inherent purpose of the organization itself. It is also known as systems management reengineering.

Organizational Re-engineering is not about making minor organizational changes here and there. It involves reviewing every function in the organization and studying processes and reforming it in a way that it will be more functional, economy-driven and systematic.

Reengineering is a term used to describe the change of processes with the aim to boost the performance of a business. According to the definition of Hammer and Champy (1993), "reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed."

This activity involves one or more of the four common re-engineering challenges listed below, or a special challenge specific only to particular industry.

1.    Business Strategy Assessment: to evaluate the degree to which the mission, goals and strategic objectives of your organization are realistic, attainable and capable of being accomplished.

2.    Change Process: to lead and manage a specific corporate project to ensure its successful completion, on time, within budget and functioning correctly. Example of this is Information technology update.

3.    Management Structure: to assess the appropriateness of divisions of responsibility and authority within the organization and advance recommend changes for greater efficiency and effectiveness.

4.    Critical Concern: to help correct or overcome a particular business challenge (e.g., regulatory, financial, operational) that is negatively impacting business or represents a significant threat.