Many companies struggle to redesign their basic organizational processes in order to more effectively manage work situations. An organization's design directly impacts its capability to perform and, ultimately, its competitive position in an industry sector. The purpose of this paper is to chronicle the events associated with one such company's efforts to reengineer itself and improve its competitive capability. Cymer's organizational structure was functional its executives chose to change the structure to a process-based structure for design and implementation. Rapid changes allowed Cymer to learn valuable lessons on business process implementation, effectiveness measures and internal communication. Thus far, Cymer's efforts to design and implement processes and restructure seem to be successful. Companies that exist in cyclical environments such as Cymer may confront severe difficulties managing their organizations. Cymer executives used the industry downturn as an opportunity to evaluate its organizational structure, realize its effect on operations, and make the appropriate changes necessary to remain competitive. Companies need to be sensitive to growth rates, and closely monitor changes in the competitive environment. A company's internal environment and its ability to respond to market demand must also be closely monitored. If a company takes the time to do long-term planning, evaluate its organizational structure and be willing to change it, it has a better chance of success than those who do not.
