The engine in reengineering.

• Author: Stead, Jerre L.
• Position: Includes related articles

Most of us are aware that tapping the power of people is the key to leading successful organizations. A reengineering program is the great moment of truth for a company, when getting people focused and engaged is a matter of survival. According to Michael Hammer, co-author of Reengineering the Corporation, two-thirds of all reengineering efforts will not be successful. Obstacles to success have little to do with technology or process design. People issues produce the drag -- issues such as resistance to change, lack of consensus, misunderstanding the business mission, and vague or nonexistent communication.

My experience in leading four very different companies through global reengineering programs in the last 14 years has positively reinforced my belief that the only sustainable competitive advantage any business has is its people. Reengineering takes "people power"--an approach I have found successful at Honeywell, Square D, and two global businesses within AT&T.

"People power" begins with two very important kinds of people: our customers and our employees, whom we call associates. We collaborate intensely with both groups. Our customers provide an objective, outside-in view, telling us what we need to be and do. Our associates get the job done -- when we as leaders develop and inspire commitment. Customer leadership and associate commitment drive people power, which in turn drives reengineering.

This is not "empowerment." In fact, I don't use the word "empowerment," because its meaning is so misunderstood, and often confused with abdication of responsibility and accountability.

What is "people power?" It is allowing people to be successful in their jobs. It is removing the handcuffs from people -- anything that stops us from being successful, whether it be policies, bureaucracy, or past practice. People power means creating a wholesome new business environment, founded on the understanding that people are worthy of trust and respect, know how to do their jobs better than anyone else, and aspire to be successful.

Next is the important corollary to that assertion: The way our associates treat our customers is, and always will be, a reflection of how we treat our associates.

All of this establishes the basis for what I call the Value Equation, a formula for success that begins with committed, accountable associates.

We work very hard to engage and "delight" associates -- who are then motivated to "delight" our customers. When our customers are delighted, we grow profitably. As a result, our company's shareowners are delighted. The value equation is a simple, fact-based approach to help us understand how we create success. Moreover, it underscores the key premise: Reengineering is not a technology-driven or fiscally-driven process -- it is a people-driven process.

Focusing People Power

What can leaders do to harness and focus people power? We do this by developing a clear strategic framework. People need to know clearly where the company is headed and how we're going to get there. And our people deserve the right to be accountable for getting us there. Tapping the power of people begins with making sure that everyone completely understands the company's strategic framework. The best tools and processes will not help us unless people know what to do with them. Success follows associate commitment -- en masse -- to the company's vision, mission, values, objectives, and strategies.

Our job as leaders is not only to create the strategic framework -- we must also communicate it continuously. A CEO must, in fact, be a visible role model for change, communicating change by example. Leaders cannot delegate change. A CEO will be disappointed if he or she thinks a reengineering messiah will make everything happen. A reengineering champion is great to have, however -- the leader must do the leading. We must inspire enduring commitment to values and behaviors through our whole way of life.

How do we begin to create this enormous, all-encompassing strategic framework, which focuses our people power and drives reengineering? For the answer, we look to those people whose trust, support, and interests are the very reason we exist -- our customers.

The best way to understand how our companies can be successful in the global marketplace is by listening -- very closely -- to our customers. Who are our customers, and what exactly do they expect of us? We ask, we listen, and we develop our strategic framework based on what our customers tell us they need. The reengineering process has its origin in what we must be for our customers.

Trial Runs

At AT&Ts Global Business Communication Systems (GBCS) and Global Information Solutions (GIS), we have collaborated with our customers to create a strategic framework, and continue to do so. Our customers serve as focus groups, critique our plans, and participate in trial runs. Their feedback is priceless.

One of the things I ask our associates to do is, "If you are in a meeting and after 15 minutes, no one has mentioned the...