Dramatic
Operational Shifts
When a process is redesigned there is a radical difference
in how things get done. The following diagram illustrates the magnitude of the
change between the current and target (reengineered) process in a loan-granting
function. The current process includes three reviews of a loan application by
different employees: the salesperson, the manager, and the analyst before an
approval can be made
Exhibit 3-2: Current process.
The target process dramatically changes the work flow by
eliminating the initial review by the salesperson and the manager. A loan
application can potentially be approved without human intervention. The benefits
of the new process are tremendous (the financial benefits of this example will
be discussed later). The target process frees up time of the analyst, manager,
and salesperson creating organizational efficiency. The organization has a much
greater capacity to process loan applications
because the number of reviews is reduced, meaning applicants experience a faster
decision time. shows the makeup of this change.
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