X-Engineering the Corporation: Reinventing Your Business in the Digital Age
A book review by D. Richard Dance, CPA and President/CEO of upChannels
and Ann H. Jenkins, Office Manager of upChannels in Seattle, Washington
Copyright 2002
August 2002
The impact of re-engineering was internal. Now James Champy believes that businesses must prepare for the next stage of transformation which is both internal and external and must include internal shareholders, managers, and employees as well as external customers, suppliers, and partners. This book was written to help managers confront the new challenges of connectedness and interdependency.
Introduction
Since Michael Hammer and James Champy introduced their 1993 bestseller Reengineering the Corporation, the economy has been confronted with a period of enormous change.
The impact of re-engineering was internal. Now James Champy believes that businesses must prepare for the next stage of transformation which is both internal and external and must include:
- Internal shareholders, managers, and employees
- External customers, suppliers, and partners
This book was written to help managers confront the new challenges of connectedness and interdependency.
X-Engineering the Corporation stands for crossing the boundaries between organizations.
Definition
Champy says that "X-engineering is the art and science of using technology-enabled processes to connect businesses with other businesses, and companies with their customers to achieve dramatic improvements in efficiency and create value for everyone involved." He believes that X-engineering processes could achieve mammoth savings.
X-engineering Triangle
At the heart of Champy's book is the X-engineering triangle: Process, Proposition, Participation.
Process – X-engineering calls for a re-examination of three types of processes:
- Those you perform yourself
- Those you perform for others
- Those others perform for you
(Champy believes you should be open about your processes except those that are really proprietary.)
Proposition – Consider which value proposition you are offering your customers to achieve breakthrough operational performance
- Customization
- Innovation
- Price
- Quality
- Service
- Speed
- Variety
Participation – who will need to participate with you in X-engineering? How extensively do you plan to cross organizational boundaries?
- Involve your own organization only
- Involve one external organization type
- Involve two others
- Involve all three (customers, suppliers, partners)
The more diverse the participants and the larger their number, the greater your challenge and your opportunity will be.
Chapters 3 to 12
Now that Champy has identified and explained the "Three P's," his next 10 chapters proceed as follows:
Chapter 3 – An example of Solectron
Chapter 4 – Matching the push of your processes to the pull of your customers
Chapter 5 – The need for harmony to get processes to work together
Chapter 6 – How to create compelling propositions for your customers
Chapter 7 – How to find maximum savings and revenues
Chapter 8 – Case studies on which boundaries to cross
Chapter 9 – Which well-known management concepts must change
Chapter 10 – The 10 most common mistakes
Chapter 11 – An example of SciQuest
Chapter 12 – An example of PNC Financial Services Group
My Favorite Chapters
Of chapters 3 – 12, my favorite ones were chapters 5, 9, and 10. I guess that I'm not much for case studies until I am directly working on fixing the problem.
In chapter 5 on Harmony, the questions on page 75 are illustrative of how Champy wants to help you apply technology more intelligently, such as: "Am I using IT to enable the design of new processes and to harmonize my processes with others or am I just automating old processes?"
In chapter 9 Champy explains what will be demanded from you. He does it in a comparative style by showing both the old and new management concept and tenet needed. Page 150 is a good example.
- Old Tenet: Information is power; keep good ideas inside the company.
- New Tenet: Share good ideas with customers and partners as you search non-stop for better ideas.
In chapter 10, Champy declares the top 10 mistakes. One of them in particular focuses on e-business and admonishes to not create a separate e-business.
Although the logic for e-business separation appears good on the surface, he says their usual fate is to:
- hit all the troubles of an immature business,
- pursue goals at cross purposes with the mother ship, and/or
- run out of money.
Epilogue
At the end of the book on pages 220-222 is Champy's epilogue and summary.
Re-engineering evokes from him the words: fundamental, radical, dramatic, and process, while X-engineering evokes the words: technology-enabled, connect, efficiency, and value for customers.
Champy states more boldly than ever before that a company is actually defined by its processes. He argues that X-engineering holds great promise for companies and whole industries. His hope is that the book makes his case and that you will put his ideas into practice.
Author's Changes
Has James Champy changed any in the past ten years? I pondered that question as I read the book because I have previously considered him too harsh for companies that really care about their employees. On pages 164-165 I found some evidence that he had changed.
In a conversation with a group of managers one said passionately, "I'll never do that [Reengineering] again. It was just too hard." Champy's response was:
- Reengineering is demanding, hard, intellectual work.
- One has no choice but to reengineer.
- Maybe there is a kinder, gentler way to do it that involves inspiration.
So I make the simple algebraic comment that Champy is one-third changed and recognizes the pain reengineering and X-engineering can cause people, and two-thirds his former "no choice, do it" self.
Recommendation
If you like reengineering and Champy's style of using case studies to illustrate his points, then buy the e-book, paperback, or hardcover edition and learn from his seasoned observations over time.
If not, look for adaptations of his theory and buy those types of books.
Where to Obtain the Book
Visit his web site at www.twbookmark.com
It can be purchased directly from the following sources:
Amazon.com web site (www.amazon.com) [Download: Adobe Reader] (Digital – February 2002) / $14.95
Barnes and Noble web site (www.bn.com) James Champy/MS Reader eBook/Warner Books, Incorporated/February 2002 | $10.46. Hardcover | $18.16. Paperback | $15.25
Booksamillion web site (www.bamm.com) Hardcover | Regular price $18.16, Club price $16.35
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