Why Reengineering?

Reengineering has an uneven record. Many efforts are launched with conviction, but end up producing little change, often rushing at the end of the project to eliminate headcount and show savings. The underlying work is still there, but now there are fewer people to do it. The workload is unsustainable, and the headcount starts growing again, or the cost shows up on another line, such as contractor expense.

Real reengineering takes time. In my experience it is best to have a permanent reengineering mindset, constantly evolving the firm, as opposed to an episodic, urgent rush to cut expenses. Think of the following analogy to physical fitness. Reengineering is that daily process of exercising, watching what you eat, and getting enough sleep, so that your body and mind are always operating at peak condition. It requires daily discipline, but it works. Restructuring is the periodic crash diet to lose 25 pounds after ignoring your diet and exercise all year.

My point: think about reengineering every day, and don’t wait for an expense crisis to force you into restructuring.