Reengineering involves redesigning operations of organizations to avoid bottlenecks arid duplication of effort.
In the traditional system, pieces of related activities in a business-process are performed in various departments.
However, in reengineering, work-efforts are redesigned in such a way that all pieces of related activities are. performed by relevant employees in a group.
All relevant people are grouped together and they are asked to perform the tasks in the whole process. The activities are not allowed to be performed in separate departments.
A telephone company in the private sector was tremendously successful in reengineering bureaucratic procedures in the company. The company pulled workers who performed related activities in various departments, and then put them in teams to handle customer requests of recurring nature.
If the business processes are properly reengineered, organizations can expect to gain efficiency, reduce waste and achieve greater coordination among functions.
The notable difference between.benchmarking and reengineering are that the former tries to adopt or adapt a best-in-class process of hiring another partnering organization without devoting time and resources for designing a new process or designing a duplicate of the superior process, while the latter tries to design a new process in its entirety.
Thus, reengineering is time-consuming and expensive, and at the same time, the organization may not have the desired competitive process even after the spending so much time and resources.
For this reason, an organization should seriously think about not going for reengineering if there is a scope for benchmarking. In the USA, in particular, many trade associations and special interest organizations are how providing databases on best practices, process reengineering, and TQM online.