By Mike Myatt, Chief StrategyOfficer, N2growthTimes are tough, andthey're likely to get tougher, so my question is this; Should you,or should you not consider a move toward corporate reengineering?Whether directly or indirectly, your business will likely facenegative repercussions of the struggling economy at some point, andthere will be tough decisions that need to be made. The merediscussion of corporate reengineering can cause fear, anxiety, andin some cases even panic. This is so much the case that some CEOswill avoid restructuring initiatives at all costs. There are evensome business theorists (see "RethinkingGood To Great") that warn against undertaking complexrestructurings because of the great risks involved. My question isthis...since when have fear and avoidance become prerequisites forsuccess as a CEO? Give me real leaders who possess courage, vision,and a bias toward action, and spare me the timidity of mediocremanagers posing as leaders. In today's post I'll examine thebenefits of, and the need for corporate reengineering...Anybodycould be a CEO if business were a static proposition. If change andinnovation weren't critical success metrics, and the enterprisecould just run on auto-pilot, you could replace the CEO with aGeneral Manager. The fact is that business is not a staticendeavor. Quite to the contrary; there are few things that requireas much fluidity as effectively increasing profit, growing revenue,and driving brand equity in today's global marketplace. In fact, Iwould go so far as to say that if you as a CEO are not consistentlyreengineering elements of your business in today's businessclimate, one of the following two conditions exist; 1) You have aperfect business, or; 2) You are an ineffective CEO.What do greatCEOs do when the business model, the strategic plan, and therevenue hurdles don't seem to be in alignment? They make changes.They don't sit idly by and watch the business lose market share,suffer margin erosion, see their competitive value propositionsvaporize, or watch their brand go into decline. Great CEOs arewilling to make the tough decisions...that's what they're paid for.Facing reality and being able to make what are often times verypainful organizational/structural decisions are the hallmarks ofgreat CEOs.In an attempt to avoid confusion as to what I'm speakingabout, I put together the following definition of corporatereengineering: "Corporate Reengineering is leadership recognizing,taking ownership over, and acting to correct strategic or tacticalbusiness flaws, and/or to realign elements of the enterprise withcurrent or anticipated changes in market conditions." This isn'trocket science, rather it's just plain-old, good leadership. It isactually the fiduciary obligation of a CEO to make the neededchanges to protect shareholder value.So why is it that so many CEOsshirk their responsibility, stick their heads in the sand, andavoid making necessary changes? It is my experience that theyeither lack the personal skill sets, or haven't built the rightexecutive team to lead change, they just don't recognize the needfor change, or they just don't care. The good news is that there isa cure for all four of the preceding problems: Items one throughthree can be solved with an emphasis on leadership development andtalent management, and item four can be solved by holding the boardof directors accountable for CEO performance and firing the CEO whodoesn't care. Following are five representative tips that will helpyou recognize the need for a reengineering initiative:

1. Unusual declines in revenue, margin, market-share, customerloyalty, or brand equity.
2. Even if the above areas are not yet in decline, but you arewitnessing unusually slow growth or zero growth you still have aproblem.
3. The inability to recruit or retain tier-one talent.
4. Current or anticipated changes in market conditions that willadversely impact your business model.
5. Obsolescence of intellectual property, products, services,solutions, or competitive value propositions.