“It is no longer necessary or desirable for companies to organize their work around Adam Smith’s division of labor. Task oriented jobs in today’s world of customers, competition, and change are obsolete. Instead, companies must organize around process.
This is an assertion as radical and far-reaching today as Adam Smith’s was in his time. Managers who understand and accept this concept of process-based work will help their companies leap ahead. Those who don’t will stay behind.”
… from Michael Hammer & James Champy – Reengineering the Corporation – P. 28
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In my mind, this is why so many western companies are in trouble. Management is not able to adapt to new paradigms. Blame goes to China, outsourcing, and so on, instead of taking a critical look at themselves. Many companies have been successful for long periods of time, doing exactly what they've been doing, so tighter margins must be the name of the game and making external competitive pressures the culprit is just so much safer for the ego than exploring internal opportunities that may entail radical change and throw everyone out of their comfort zone.
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