How to fail at reengineering.

When the promise of reengineering is unfulfilled, one or more of these four common errors is likely being committed.

There are many reengineering disappointments. They are typically projects that failed to live up to original expectations for performance improvement. Few companies have made a serious effort to reengineer and failed completely. Most reengineering programs produce beneficial change. But many fail to produce the breakthroughs -- the quantum leaps in business performance levels we hear about in reengineering success stories.

A Harvard Business Review article recently cited examples of companies that had achieved dramatic improvements in individual processes, while overall results declined. Of the 20 companies studied in depth for this article, only six achieved significant overall results -- an average 18% reduction in business unit costs. These six companies used reengineering to improve performance along several dimensions, typically cost, revenue, time, and quality. They did not focus on a single, narrowly defined process.

A narrow approach to redesign, the authors concluded, cannot produce the widespread results that many companies are looking for. That is one way to fail at reengineering.

When we see the promise of reengineering unfulfilled, we see one of four common errors being committed on the playing field of change.

Let's call them:

1. Starting with the wrong game plan.

2. Fielding your second string.

3. Falling to outmaneuver the defense.

4. Dropping the implementation handoff.

I am going to describe what reengineering looks like when you don't pay attention to the basics -- when you don't block and tackle effectively.

Starting With the Wrong Game Plan

Reengineering is painful. It is usually a massive organizational undertaking. It requires a substantial commitment of resources, the undivided attention of senior management, and deferral of other important initiatives. It also requires that you forsake your old, comfortable, secure ways of doing business and that you be prepared to sacrifice people who can't change and adapt.

There is pain enough to go round for everyone. Therefore, companies that reengineer seriously play for big stakes. The gain has to match the pain. And ultimately, that gain needs to translate into improved competitiveness and substantially better bottom-line results.

So ask yourself these questions:

* What drives competitive advantage in your business?

* What do your customers care most about?

* Which processes will make or break your future success?

* Do you need to be the low-cost producer?

* Do you need to be first to market with new products?

* Do you need to be world-class in demand generation? In business development? In customer acquisition?

The way you answer these questions will tell you which processes you need to reengineer to make the gain worth the pain. If you reengineer anywhere else, you're off the rails. The promise of reengineering will be unfulfilled. You'll be improving processes that simply aren't critical to overall performance.