ReengineeringAgendaObjectivesReengineeringIntroductiondefinitionsignificanceBain’sreengineeringpracticeReengineeringProcessExampleDefenseCo.ExerciseObjectivesExplainwhatreengineeringisaboutwhatisreengineeringandwhyisitimportant?ConveyBain’sexperienceanduniqueapproachhowdoesBainaddvalue?Overviewtheprocessandtoolswhatdoesareengineeringprojectlooklike?AgendaObjectivesReengineeringIntroductiondefinitionsignificanceBain’sreengineeringpracticeReengineeringProcessExampleDefenseCo.ExerciseWhatIsIt?“IfIwerere-creatingthisbusinesstoday,givenwhatIknowandgivencurrenttechnology,whatwoulditlooklike?”ReengineeringmeansgoingbacktothebeginningandinventingabetterwayofdoingworkDefinitionYetanotherTQMor‘XYZ’project

Repackagedcutbacks/downsizing

Automationofexistinginefficientprocesses

Reorganization/restructuringReengineeringisnot...Thefundamentalrethinkingandradicalredesignofanentirebusinesssystem(coreprocesses)Achievingsubstantiveimprovementincriticalperformancemeasures(cost,customerservice,capital,etc.)Enablingdramaticbreakthroughs/fullpotentialbyarticulatingavisionofimprovementtearingdownorganizationalboundariesleveraginguseofenablingtechnologyProvidingaholisticapproachtobuildingpetitiveadvantageandaframeworkforfuturedecisionmakingReengineeringis...ReengineeringExample:TollCollectionNewProcess7,500carsperhour$2.00tollcollectedinonedirectionOldProcess5,000carsperhour$1.00tollcollectedinbothdirectionsReengineeringExample:AutoAssembly

NewProcessBodyexitspaintshop,beginsfinalassemblyOldProcessDoorsub-assembly;offline,insequenceLowerqualityfromscratchesanddingsTimelostworkingarounddoorsDifficulttoinsertbigitemslikeseatsandinstrumentpanelHigherqualityLesswastedeffortParallelworkflowAssemblyworkersbuildinefficientlyarounddoorsFinishedcarrollsofflineBodyexitspaintshop,removedoorsatstartoffinalassemblyAssemblyworkersbuildoutcarwithoutdoorsRe-attachdoorsinsequence(atendofline)AgendaObjectivesReengineeringIntroductiondefinitionsignificanceBain’sreengineeringpracticeReengineeringProcessExampleDefenseCo.ExerciseSignificanceofReengineeringLeviStrauss&Co.$850millionreengineeringprogramhaltedadditional$14millionallocatedforatwo-year‘education’efforttocalmunhappyemployeesUnsuccessfulReengineeringPrograms

(~2/3ofallprograms)PacificTelesis/PacificBell$XBsavedoverYyearsFederalExpresspackagedeliveryshortenedfrom4daysto1dayGeneralElectricproductivitydoubledinorderfulfillmentTexasInstrumentsorderfulfillmentwentfrom25weeksdownto4weeksUnitedAirlinesplaneturnaroundshortenedfrom40minutesto25minutesSuccessfulReengineeringPrograms

(~1/3ofallprograms)Reengineeringeffortshaveenormouspotential,butareverydifficulttoimplementsuccessfully.ExamplesfromPublicSources:ReengineeringSuccessFactorsObjective,outsider’sperspectiveCreative“outofthebox”thinkingExperienceinreengineeringandcorporatetransformationCoachingandtrainingDedicatedteamtoensurethatprocesscontinuesGroupmoderatingskillsAnalyticalhorsepowerBainValue-Addedpellingcaseforactionfact-basedanalysisvisionforthefuture“Cleanslate”optionsavailabletoredesignteams:challengethestatusquoFocusondeliveringvaluetocustomers:

ClearandconsistentsenseofpurposeTopmanagementleadershipmitmentTherightprocessowners/managers:

BridgeorganizationalboundariesExplicittargetsforsuccessCriticalSuccessFactorsBain’svalue-addedenablesourclientstosuccessfullydesignandimplementreengineeringprograms.AgendaObjectivesReengineeringIntroductiondefinitionsignificanceBain’sreengineeringpracticeReengineeringProcessExampleDefenseCo.Exercise

TheBainApproachtoReengineering(1of2)Baingoesbeyondthetraditionaldefinitionofreengineeringtoreturnmaximumvalue.

Theholisticandradicalredesign...…oftheentirebusinesssystem/coreprocesses……toachievefullpotential…...inbuildingstrategicpetitiveadvantageBainApproach

Theradicalredesign...…ofbusinessprocesses……toachievedramaticimprovements…...incriticalmeasuresofperformanceTraditionalReengineeringTheBainApproachtoReengineering(2of2)

ExperienceBain’sApproachtoStrategicReengineeringStrategyResultsBreadthofrelevantexperienceacrossallfunctionalareasvarietyofindustriesStrongandprovenprocessmanagementskillsinlargescaleprojectsExtensivechangemanagementexperienceprehensive,strategicapproachlinksreengineeringeffortstoclient’sstrategicperspectiveUtilizesBain’spletetoolkitImplementationsupporttoensurerealizationoffullpotentialValue-drivenattitudeFact-based,data-drivenanalysisFocusedcreativityFocusonachievingresultsBainExperience/Results

ProcessIndustryResults5times

improvementinrevenue,11times

improvementinoperatingearnings,and10timesincreaseinsharepriceputersDistributionProductpermutationsdecreasedfrom1billionto40,000;orderandeditprocessshortenedfrom11to0

days,schedulingfrom26to4days,timevehicleonlotfrom71to31daysAutomobilesManufacturinganddistribution40-65%headcountreductioninfinancefunctionsAerospaceBudgetingandforecasting70%

reductioninleadtimeConsumerproductsMarketingandadvertising71%

reductioninmanufacturingcycletimeAthleticfootwearManufacturing3-daypricingdecisionreducedto30secondsCreditcardsMarketing50%reductioninheadcountUtilityEngineeringBainhasworkedinavarietyofdifferentindustriesandhasdeliveredsignificantresultsforitsclients.ReengineeringisasignificantportionofBain’sbusinessworldwide.ImportancetoBainAgendaObjectivesReengineeringIntroductiondefinitionsignificanceBain’sreengineeringpracticeReengineeringProcessExampleDefenseCo.Exercise

ReengineeringProcessImple-mentandTrackResultsPrioritize

Sub-Process-esforRedesignDiag-nosePMOFMORede-signQuantifi-cationofPotentialDesignTMO,CreateInitia-tivesIdentifyCriticalPro-cessesInitialPrioriti-zationChangeManagementProcessDefinitionsPMO=PresentModeofOperationTMO=TransitionalModeofOperationFMO=FutureModeofOperationReengineeringToolkitImplementandTrackResultsDiagnosePMO&AllocateCostsFMORedesignQuantificationofPotentialDesignTMO,CreateInitiativesIdentifyCriticalProcess-esInitialPrioriti-zationChangeManagementProcessStrategyreviewPerformancegaps,petitivebenchmarksManagementinterviewsClientinterviewsCustomerinterviewsBusinessdefinitionProcessmappingActivity-basedcostingRAIDanalysisCycle-timeanalysisFishbonediagramsPrioritizationmatrixCustomerneedsBDPanalysisBrainstormRootcauseanalysisITopportunityassessmentCost/benefitanalysisCycletimeimpactCustomersurveysservice,valueimpactInitiativeideassurveysOpportunityclassification,consolidationQuickhitsProductmetricsProcessmetricsFinancialmetricsReengineeringprojectsutilizeanumberofdifferentBaintools.Prioritize

Sub-ProcessesforRedesignReengineeringProcessImple-mentandTrackResultsDiag-nosePMOFMORede-signQuantifi-cationofPotentialDesignTMO,CreateInitia-tivesIdentifyCriticalProcess-esInitialPrioriti-zationDefinitionsPMO=PresentModeofOperationTMO=TransitionalModeofOperationFMO=FutureModeofOperationPrioritize

Sub-Process-esforRedesignWhatisaProcess?Aprocessisasetofbusinessactivitieswhichcrossmultiplefunctionalboundariestocreatevalueforacustomer.CorporateStaffFinanceResearchandDevelopmentManufacturingMarketingOrderFulfillmentProductDevelopmentCustomerAcquisitionIntegratedLogisticsVerticalStructureOrganizationsCoreBusinessProcessesExampleCoreProcessesIdentifyCriticalProcessesIdentifyingProcessTypesTherearefourprimarytypesofbusinessprocesses:CoreProcessactivitiesdedicatedtothedesign,production,delivery,andmaintenanceofproductsand/orservicesessentialtosatisfyingcustomerneedse.g.customeracquisition,manufacturingSub-Processanindividualprocessthat,whenbined,createsacoreprocessSupportProcessactivitiesthatsupportcorebusinessprocessesbutarenotdirectcontributorstothecorevaluecreatingprocessforcustomerssupportsandenablestheaplishmentofcoreprocessese.g.humanresources,MISManagementProcessactivitiesthatguidethestrategicdirection,managestakeholderinterests,andmakekeydecisionsregardingtheallocationofhumanandcapitalresourcese.g.budgeting,strategicplanningBeginandendwithanexternalcustomerBeginandendwithaninternalcustomerBeginandendwithkeydecisionmakersandstakeholdersIdentifyCriticalProcessesReengineeringProcessImple-mentandTrackResultsDiag-nosePMOFMORede-signQuantifi-cationofPotentialDesignTMO,CreateInitia-tivesIdentifyCriticalProcess-esInitialPrioriti-zationDefinitionsPMO=PresentModeofOperationTMO=TransitionalModeofOperationFMO=FutureModeofOperationPrioritize

Sub-Process-esforRedesignObjectivesofPresentModeofOperationAnalysisBuilda

baselineofhowthecurrentprocessworks(‘Asis’)criticaldecisionsprocessflowsprocesscostprocesseffectivenessIdentifymajorproblems/issuesandunderlyingrootcauseshighfall-outhighcostslowcustomerresponsetimemultiplehandoffshighlevelofre-workmanualtranslationsandpaperworketc.Uncoverkey

leverageareaswithintheprocessquickhitstoimprovetheprocessimmediatelyinsightsforredesignpriorities(sub-processes)forredesignDiagnosePMOProcessMappingAllowsadiversegrouptocreateaclear,explicitpictureofaplexbusinessprocessamonlanguageeasytounderstand(visualdisplay)Servesasastartingpointtore-designthesystemProcessmappingisacriticaltoolforbusinessreengineering.BuildingBlocks:Objectives:BasicactivitystepsalwaysbeginwithanactionverbNestingdetailDecisionsregardingflowStartorendofprocessor“GoTo”anothersectionorpageReworkloopsInformationsystemStorageMovement/transportationnoyesDiagnosePMOExampleProcessMap:ACSlideDesignProcess

SlidepletedFill-outSlideScheduleGraphicsPerformResearch/RunModelWalktoGraphicsManagerApproval?no-minormodificationno-radicalredesignGraphicsProducesSlideQuestios/Issues?noyesWalktoGraphicsSubmitSlideWizardCrashes?noyesErrors?yesnoConsultantApproval?noyesProofSlideCorrectSlideBlankSlideCreatedGraphicsCallstoClarifySwearProfuselyDiagnosePMOActivity-BasedCostingAccuratelyallocatecostswithinanorganizationinorderto:highlightleveragedareasforredesignestablishabaselinefromwhichFMOsavingscanbeestimatedActivity-basedcostingprovidesadata-drivenviewofthekeyleveragepointsforareengineeringprogram.Process:Objectives:SummarizeandTestDataCreateDatabaseofCostsGetDataandAssignCostsDefineCoststobeAssignedDefineFunctionstoCostUsePMOprocessmapsSelecttheappropriatelevelofdetailtoenableintendedanalysisLabortypicallythemainfocusMaterialsServicesFixedcostallocationetc.AssigntoeachfunctionAlsoassigntoproduct,etc.asappropriateCut(asneeded)by:activityjobtitleproductcustomeretc.DiagnosePMONegotiating/Contracting100%80%60%40%20%0%PercentofSegmentPercentofTotal811,8346514,7068,7571,1331,677StrategicPlanningBudgetingFinancialsSchedulesConfigurationNewBusinessDevelopmentProposalsAnalyzeRequirementsDefiningSolutionsDescribingProductsTestingProcureBuildDeliverIntegrate

CreateManuals

DeliverManualsTrainingHRSystemsSecurityFacilities

OfficeServicesGovernancePlanningand

ControllingCustomerAcquisitionDesignBuildServiceSupportEquipReviewandIntegrateDiagnosePMOExampleActivity-BasedCostingOutputDefenseCo.PMOHeadcountbyCoreProcessDecision-MakingMatrixClearlyshowkeydecisionsandcurrentdecision-makingresponsibilityinputversusauthorityversusapprovalcross-functionalscopeofdecisionsHighlightmajorissues/concernswithcurrentdecision-makingprocesstoomanypeopleinvolvedfinalaccountability(orlackthereof)appropriatenessofdecision-makingauthorityIdentifyredesignoptions,e.g.,matchdecisionswithcapabilities,knowledgeandpositionwithinprocessAdecision-makingmatrixcanhighlightproblemswiththecurrentdecision-makingprocess.Process:Objectives:ClarifyDiscrepanciesConsolidateResultsCollectInformationfromAllLevelsofManagementDefineMatrixIdentifykeydecisionsfromprocessmapsIdentifyfunctionsinvolvedindecisionsLevelsofinvolvement:R:ReviewA:ApproveI:Inpute.g.prepareinformation,rmendD:DecideMakesureprocessisactual,not‘official’Consolidateina2-dimensionalmatrixdecisionslistedverticallyfunctionsandmanagementlistedhorizontallyRe-interviewmanagementasnecessaryDiagnosePMOExampleDecisionMakingMatrixAAARRAAAAAARAIAAAAAAAAAAAAIADDDIDDDDDDDDDDDDDDIDDDDDDDDDDDDDDIIDDAAAAARAAIIIDDDIIDRDDADIDADIIDDADDADDRDADIADIADIDDIIDDIDIIIDDDDDDIDAAAAAAAAAAAADIIIDDIIIIDRIRIIIIIIIIIDIIIIIIIIIIIDIIIIIIIIIIDDDIIIDDIDIRIIIIIIIDI

AccountplanningPreliminarycustomerneedsassessmentBusinesscasedevelopmentPrioritizationandresourceallocationFinalizedcustomerneedsassessmentProjectstrategyInfluencecustomerBudgetaryquotepetitiveadvantages/strategySystemdesignService/SIplanRiskmanagementanddefectionProposalpricingNegotiationstrategyContractpricingSectorManagementDivision/FieldManagementSalesVPAccountManagerFieldStrategistFieldEngineeringManagerFieldEngineerFieldProgramManagerFieldFinanceBusinessManagerProduct/BrandManagementProductPlanningProductEngineerProductBid&QuoteBid&QuoteContractsManufacturingDropShipR=ReviewA=AdviseI=InputD=DecideDiagnosePMOReengineeringProcessImple-mentandTrackResultsDiag-nosePMOFMORede-signQuantifi-cationofPotentialDesignTMO,CreateInitia-tivesIdentifyCriticalProcess-esInitialPrioriti-zationDefinitionsPMO=PresentModeofOperationTMO=TransitionalModeofOperationFMO=FutureModeofOperationPrioritize

Sub-Process-esforRedesignPrioritizationFactors

EaseofFixCustomerServiceImpactpetitiveThreat/StrategicVulnerabilityEstimatedPerformanceGap

(PotentialImpact)Therearemanydimensionsacrosswhichproblemsmaybeprioritized.PotentialSources:DefiningQuestion:ProcessmapsIdeasurveysBrainstormingPMOphaseofreengineeringbrainstormingsurveyingprocessflowsinterviewsride-alongspetitoranalysisBenchmarkingCustomeranalysisClientinterviewsCustomeranalysisCustomerinterviewsFocusgroupsClientinterviewsparticularlysalesforceWhichprocessescanweeasilyimplementtohelpbuildmomentumfortheprocess?littleornoorganizationalbarrierslowcostWhatisthefinancialimpactassociatedwithimprovingtheprocess?lowercosthigherrevenuelesscapitalWhatprocessesaresourcesofpetitiveadvantageordisadvantage?Whichprocesseshavethelargestactualimpactand/orthelargestperceivedimpactoncustomers?PrioritizeSub-ProcessesExampleProcessPrioritizationMatrix

Processeswithhighpetitivethreatsandhighcustomerserviceimpactarethemoststrategicallyvulnerable,andshouldbeprioritizedfirst.HighLowHighLow

CustomerServiceImpactpetitiveThreatImpactSupportprocessServiceprovisioningServicerestorationNetworkoperationsOperatorservicesNetworkcreationCustomeracquisitionProductdevelopmentEstimatedperformancegap=$XMPhaseIPhaseIIPhaseIIPrioritizeSub-ProcessesReengineeringProcessImple-mentandTrackResultsDiag-nosePMOFMORede-signQuantifi-cationofPotentialDesignTMO,CreateInitia-tivesIdentifyCriticalProcess-esInitialPrioriti-zationDefinitionsPMO=PresentModeofOperationTMO=TransitionalModeofOperationFMO=FutureModeofOperationPrioritize

Sub-Process-esforRedesignAlternativeBasesforFMORedesignRedesignBrainstormEnablingTechnologySourcesforRedesignExternalPerspective(Customers,Benchmarking)Breakthroughideasefromavarietyofsources.Assumption-BreakingRelatedLinks:RedesignBrainstormingPrinciplesBrainstormingTechniquesandGroundRulesBrainstormingTacticsExploringExternalPerspectivesAssumptionBreakingExampleAssumptionBreakingQuestionsInformationTechnologyasanEnablerAutomate:ApplicationsofTechnologiesFMORedesignApproachestoRedesignGreenfield/RadicalRedesignDramaticProcessImprovement(DPI)Removenon-value-addedactivitiesConsolidatetasks/removeunnecessaryhandoffsStreamlineprocessGoals:CreatealternativeprocessarchitecturesDesignnewdetailedprocessesEvolutionaryShort-termimpactBasedoncurrentprocesses:majorbarrierssetasideDescription:RevolutionaryLong-termvision“BlankSheet”approach:“Whatifwewerestartingfromscratch?”WhileGreenfieldredesignistheultimategoal,DPIredesignisequallyimportantquantificationoffull-potentialearlyoneasiertogainorganizationalmomentumWheneverpossible,FMOredesignemploysbothofthefollowingapproaches:FMORedesignFMORedesignProcess:Eliminate/Simplify/AutomateTheEliminate/Simplify/Automatelogicdisciplinesreengineeringtoeliminatenon-valueaddedcostbeforehardwiringinefficienciesthroughautomation.Goals:AutomateworktomakeprocessesbetterfastercheaperAreengineeredprocessshouldbe:simple: lessoverheadandnon-value-addedplexityflexible: fluidandjudgment-intensiveintegrated: eliminationoffragmentationpressed: decision-makingonthefrontlineReducehandoffsEliminateunnecessarystepsCreateCustomerValueEliminateAutomateSimplifyDefinition:Eliminateallorpartoftheworkreducevolumeofinputseliminatenon-customervalue-addedprocessesEliminatesourcesoferrorandfall-outimproveflow-throughFMORedesignEliminate,SimplifyExample:AthleticShoeIndustryNumberofMonths0369121518Concept&DesignClientpetitor175Prototype&samplesPromotion/SalesRevisionsPrototypeInitialFitTestsInitialCostingRevisionsSalesSamplesOrdersPlacedTrialRuns/ToolUpWarehouseDeliverytoRetailProductionShippingMarketingStrategyMarketResearchProductBriefsDesign/TechPackageWarehouseDeliverytoRetailPromotio/SalesTool-upforproductionProductionBookOrdersWeeklyProductionOrdersTestMarketContinueProductionBeginShippingDrop-ShipDeliveryFMORedesignAutomateExample:HospitalSuppliesDistribution

Nurse/doctorhandwritesorderSupplierOrderEntryDepartmententersorderSuppliermainframeSupplierdistributiondepartmentpicksupanddeliversorderPurchasingAgentbatchesrequestPurchasingAgentcallssupplierNurseentersorderoninstalledterminalSuppliermainframebatchesordersSupplierdistributiondepartmentpicksupanddeliversorderFutureModeofOperatingPresentModeofOperatingFMORedesignTypicalChangesfromPMOtoFMODecision-MakingAuthority:BusinessFocus:Accountability:Roles,JobContent,CareerPath:BeforeAfterHighestpossiblelevelfor“consistency”Lowestlevelforcustomerresponsiveness“Provideaproduct/service”“Buildapersonalcustomerrelationship”FragmentedprocessLackofperformancemeasures,ormeasuresfocusedonsmallpartsoftheprocessFewerhandoffsandreducedfinger-pointingPerformance

measuresforalljobsfocusedoncustomervalueaddedEveryoneisaspecialistCareerpathupinafunctionalareaMoregeneralistswithfewerspecialistsCareerpathup,across,andbetweenfunctionalareasFMORedesignTypicalChangesfromPMOtoFMOBehavior:Organizational:Rules:BeforeAfterLittleornorisk-takingParent/childbehaviorHighlymotivated,“can-do”attitude,proactiveCreative,risk-takingbasedonsoundjudgementFriendly,personableserviceLearningenvironment-selfimprovementHierarchicalFocusedoncontrolandadministrationFlatter,teamorientedLearning-basedwithemphasisonmentoring/coachingLotsofthem;littlelatitudeBasedonpastproblems/constraints“Outofthebox”thinkingContinuousimprovement“Bend”rulesFMORedesignReengineeringProcessDefinitionsPMO=PresentModeofOperationTMO=TransitionalModeofOperationFMO=FutureModeofOperationSeeRelatedTopics:WhatistheTMO?RoleoftheTMOExampleDetailedOpportunityDescriptionImple-mentandTrackResultsDiag-nosePMOFMORede-signQuantifi-cationofPotentialDesignTMO,CreateInitia-tivesIdentifyCriticalProcess-esInitialPrioriti-zationPrioritize

Sub-Process-esforRedesignReengineeringProcessDefinitionsPMO=PresentModeofOperationTMO=TransitionalModeofOperationFMO=FutureModeofOperationImple-mentandTrackResultsDiag-nosePMOFMORede-signQuantifi-cationofPotentialDesignTMO,CreateInitia-tivesIdentifyCriticalProcess-esInitialPrioriti-zationPrioritize

Sub-Process-esforRedesignImportanceofMeasurementMetricsprovidecriticalfeedbackastowhetherornotpositivechangeistakingplacemagnitudeandspeedofimpactresultsandanalysisofexperimentation/pilotsMetricsmunicateprioritiesandalignactionsBytyingindividualperformancemeasurementtoindividuals,metricscanhelpmotivateemployeestocreatevalueAwelldesignedsetofmetricsisalwaysakeysuccessfactorinanychangemanagementeffort.ImplementandTrackResultsProcessImprovementMetricsTopletelymeasureprogress,onemustlookatproduct,process,andfinancialmetrics.ShareholderValuesValueCreationMetricsProductCostCustomerValuesProductQualityProcessCostProcessSpeedFlexibilityRevenueEnhancementProfitabilityProductMetricsProcessMetricsExampleMetrics:ROMROSProfitperemployeeEconomicValueAddedCustomerperceptionWaittimeasa%ofprocesstimeCycletimeNumberofprocessstepsCustomerperceptionTimetorespondtocustomer-drivenchangesCustomerperceptionOverheadratesReworkhoursasa%oftotalInventoryturnsUnitcostValue-addedperunitNumberofpartsperunitCustomerperceptionDefectrateDeviationsorwaiversperunitSalesperemployeeChangeinbacklogPercentofcustomersretainedFinancialMetricsImplementandTrackResultsAgendaObjectivesReengineeringIntroductiondefinitionsignificanceBain’sreengineeringpracticeReengineeringProcessExampleDefenseCo.Exercise

OldEstimatingProcessDefenseReengineeringExampleEstimatingProcessSpanTimeandLaborHoursDefenseReengineeringExampleLessthan20%ofthespantimewasspentonactivitiescoretoestimatingandonly30%ofthelabortimewasconsumedbyactualestimatingactivities.20%40%60%80%100%PercentofTotalManhours

1327SpanTimeManhoursReviewing,253hoursEstimatingDocumentingReviewforAccuracymunicating/SummarizingReviewforunderstandingQueueTime,Actual010203040509CalendarDays

AdministrationReviewforAuthorizationNewEstimatingProcessDefenseReengineeringExampleThenewprocessreliedonacrossfunctionalteamapproachandtherebyeliminatednearlyallofthereviewing,municating,andadministeringeffort.Teamprisedof:TeamleaderDivisionestimatorEngineeringestimatorOperationsestimatorLogisticsestimatorMaterialestimatorFacilitatesmunicationandcoordinationandeliminatestherepeatedneedtoassignandoverseetheworkResults:SpanTimeandLaborTimeperEstimateSpantimewasreduced50%inthepilot,whilelabortimewasreduced54%.SpanTimeLaborTimeAgendaObjectivesReengineeringIntroductiondefinitionsignificanceBain’sreengineeringpracticeReengineeringProcessExampleDefenseCo.Exercise

BackgroundReengineeringExerciseIn1992,afterACtraining,agroupofBainACsdecidedthattheyhadlearnedenough,sotheystartedapanytofocusontheslideproductionbusiness.Asastart-upfirm,ACUhadnotimetothinkaboutoptimizingbusinessprocessesbecausetheywerecaughtinahighgrowthslide-crankingmode.Today,ACU-amulti-milliondollarslideproductionfirm-hasgrownto200employeesandservesallmajorconsultingfirmsthroughouttheworld.Infact,thepanyhaspletelyoutgrownitshumblebeginningsandalloftheoriginalpartnersarenowlivinginWestPalmBeach.ThroughoutACU'shistory,Bain&panyhasbeentheprimarydriverofACU'sgrowthandnowaccountsforamajorityofACU'ssales.BecauseslideserviceshadbealargeportionofBain'sexpenses,BainperformedaninternalVMRstudyandconcludeditcouldworkwithACUtodrivesl