Multiple benefits of reengineering

In 1995, the Phoenix, Ariz., Water Services Department embarked on a reengi neering process to change its organizational structure, improve work practi ces, and enhance its technology. The utility transformed the way it runs it s business by instituting a changed culture of empowered and responsible em ployees, self-directed work teams, employee-developed work practices, enhan ced technology, and a new model for cooperation among employees, union, and management. AS a result of the reengineering process, the utility was able to reduce staff without any layoffs (and despite continued growth) and ach ieve first-year savings of $3 million.