Introduction

If you have been through a reengineering effort, you might have experienced something like the following: reported earnings were too low, because expenses were too high, again, for another quarter. Stock analysts wrote reports criticizing your company, the stock price dropped, the board of directors probably called your company’s CEO to discuss the situation. Eventually a management consulting firm was called in to “reengineer” your company. This led to a bunch of meetings behind closed doors, eventually a layoff, and a charge to earnings. If you have been at the company long enough, you might have been through this same ordeal several times over the years.

I remember the first time I went through a reengineering project at my employer’s company. I was puzzled by the whole affair. Our mission as an organization was to deliver products and services to our customers as efficiently as possible, earning a fair return for our shareholders. We did this all day long, every day. Why were we paying outsiders, who were unfamiliar with our company, to come in and do the job we were supposed to be doing? Several decades later, I now understand why this was necessary.

This book arose out of my years of experience, both as a reengineering leader at a large company and as a reengineering consultant. In practice I find that folks often do not understand the true meaning of reengineering, and sometimes confuse it with restructuring. I wrote this little book for my clients, to clarify terms, and to show reengineering in action through a simple fictional example.