A response on the “Reengineering the Corporation: A Manifesto for Business” and “The Goal”
A response on the “Reengineering the Corporation: A Manifesto for Business” and “The Goal”
The speed of development in the information technology is constantly increasing in this 21st century. Indeed, various changes have been seen in the corporation because of this reason. It is evident that the whole corporate system is updated at a significant speed. Owing the diverse and dynamic character of information technology, various corporations around the globe have adopted a comprehensive reengineering process in order to remain competitive in the brutal competition from competitors globally. In the previous years, competition among major corporations in the world was based on product quality. To be precise, most corporations were very much focused on the actual production and development of products in order to gain a competitive advantage over another. Strangely enough, consumers used to only lay emphasis on the quality of the product manufactured rather than the process involved in its production. However, this notion reengineered to a large extent. Subsequently, consumers no longer focus on the product quality only, but also the process involved in production. The competitive advantage among all corporations has been based on the uniqueness of the product manufactured. According to the information above, this assignment is going to analyze the ideas, compare and contrast theories from the books “The Goal” and “Reengineering the Corporation”.
In the book “The Goal” author Eliyahu M. Goldratt points out that the efficiency of supply chain entirely depends the weakest link (Goldratt 1992). This is because the weakest link often provides the baseline for identifying an area of improvement. Once this area has been ascertained, then in order to attain a reengineering process, a new and fresh perspective as well as approach in needed to rectify the existing weakness. In other words, the supply chain solely depends on the current state of the organization. Based on the evaluated weaknesses of the current system, the desired organizational state is established.
Goldratt also exposes that the remedial measure should be changed with regards to the diverse characteristics of the prospective weakest link (Goldratt 1992). This is done in order to improve the transformation process from the initial link to the final link without bringing any form of undesirable aspect or element. Essentially, when a particular problem in a department has been solved then that given department stops being the weakest link. Therefore, then a different department becomes the new weakest link that needs to be rectified. The process goes on and on until the whole organization has been fully reengineered.
In another book “Reengineering the Corporation: A Manifesto for Business”, Michael Hammer and James Champy defined the reengineering as “the fundamental rethink and radical redesign of business process to generate dramatic improvements in critical performance measures—such as a cost, quality, service and speed” (Hammer & Champy, 2003, p. 35). This is true as reengineering involves disregarding all traditions and assumptions of the way business operations have always been conducted, and as an alternative developing a fresh and process centered organization that attains a successful performance index. Moreover, the desired organizational state works beyond the triple constraints thus achieving the organization’s goals and objectives.
Another point that Hammer and Champy point out is that the reengineering processes not only involves a change, but actually a significant change. A significant change means that all organizational structures as well as the management systems and the employee responsibilities need to be renovated in order to achieve the desired organizational state (Hammer & Champy, 2003). This is right, but implementing significant change needs the organisation to be really careful and considerate because in the event of a drastic reengineering process, a number of projects may fail to attain the inherently great expectations. As a result, the entire organization may be destabilized due to the unanticipated results obtained from the whole process. Furthermore, the drastic change may lead to loss of morale as well as the momentum that had been built in the organization over a long period of time.
Points of disagreement
Form “The Goal”, it indicates that once the constraints has been fixed, then it will not be the constraints anymore, then another department may become the new constraints. If the corporation can constantly find out the solution for each of new constraints, then the corporation will be successful (Goldratt 1992). This is too idealistic because there are some many situations in most corporations call alternative rather than coexist. For example, it is a dilemma whether the Chinese should growth of their economy first or manage the environment. Third world countries like China are riddled with several social problems like poverty, famine, pollution, population problems and wars which hinders the economic growth of the country. These countries make a trade-off by allowing businesses to carry out polluting business activities banned in the developed countries in exchange of foreign aids. Such business activities include garbage disposal, treating toxic waste, hazardous chemical plants, textiles, smelting, etc. Businesses in countries with stringent environmental laws and worker safety laws choose the option of conducting hazardous business activities in the third world countries (Perkaus, 1995). Third world countries are always under financial pressure and they allow business to set up operations so that money flows into the economy and unemployment is reduced. Environmental laws or workers health and safety laws are often not very stringent in the third world countries and these are bent to accommodate such businesses as they may attract more international investments, thus increasing employment and standard of living of the people. So it is a tradeoff that is done to get some economic growth in the country. Thus, this idea is improbable.
Compare and contrast
New questions Sparked
After, reading “The Goal”, the main question that sparked is what is the role of the strongest link in the chain? Can it improve the overall result? Does it represent the highest class level for the corporation? Take the computer as an example: Does an excellent hardware can improve computer performance? Another question is that how can output be maximized while minimizing the operating expense and the inventory? Consequently after reading “Reengineering the Corporation: A Manifesto for Business”, the main question that sparked is who is usually responsible for the ultimate performance of the entire reengineering process?
Conclusion
The book “The Goal”, talks about the “Theory of Constraints” where it focuses on the profit improvement based on a suitable organizational change. Moreover, the book emphasizes that each and every corporation needs to find out constraints and improve constantly, if it anticipates gaining a competitive advantage over its rivals. On the other hand, the book “Reengineering the Corporation: A Manifesto for Business” talks about a Business Process Reengineering which is a Business Management Strategy that lays emphasis on the analysis as well as the design of workflows alongside process inside a corporation. In other words, the book rationally talks about now corporation can rethink their strategies for them to dramatically cut operational cost and improve customer service thereby becoming world class competitors. However, from the two readings, it is evident that change may involve a number of undesirable results since not all changes will meet an adequate probability of success. For that reason, it is therefore paramount for corporations to consider any anticipated undesirable outcome that may be caused as a result of the inertia. This will ensure an awesome organizational performance.
References
Goldratt.E. (1992). The goal. Great Barrington, MA: The North River Press Publishing Corporation ISBN 0-88427-061-0.
Hammer, M. & Champy, J. (1994). Reengineering the corporation.New York: Harper Business. ISBN 0-88730-687-X.
Perkaus, J. (1995). EnvironEthics - A Declaration of Interdependence. Retrieved from http://www.neodot.com/eemscrpt.html
