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
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.