The goal was to be nibble enough to go rapidly in and out of specialist highly leveraged markets. o Profit and loss needed to be turned, o Corporate culture had to be changed. The focus was to be placed on profitability instead of volume (revenue). o A new element was to expand performance evaluations from strictly financial measures to those that included marketing, human resources, underwriting, claims, and producer relations. There had to be significant structural changes in order to identify the problem and focus on solutions. 3. What’s your evaluation of Approach Taken in terms of vision, restructuring the organization, bringing in the consultants, design approach, approach taken for analysis?
NAS: Vision was not exceptional, as mentioned in the case that His vision was neither particular original – most company claims that they want to be the specialists rather than generalists because they are the best performers in the property and casualty business – nor particularly compelling – being in he top 25% of an industry hardly appears to be a stretch goal. However, in P’s financial context, these were large aspirations. But if we look into the restructuring and implementation part, it was really managed exceptionally well. Bringing the consultant in to the system and approach taken for analysis were breakthrough in this context.
The analysis phase was executed over a 10 – week period. Ism focused on mild restructuring and building relationships with the executive team, the consultant outstretched an extensive analysis effort. The iris three weeks were dedicated to performing 60- to 90- minute interviews with more than 100 employees to determine how the business worked. This is the most crucial and most important step to implement any change in system. He tries to understand the under laying cause of the business issue. 4. What is your Assessment of Reengineering Design?
NAS: Transformation and Reengineering initiatives were carried out in as follows o Significant structural change – divided P&C into 3 new divisions and further into 18 business units o In discussion with Valerie, head of Transformation, name up with reengineering plan o Formed a new executive team – President’s Executive Council o Renaissance appointed to contribute by its IT approach and its Balanced Scorecard methodology o Gemini was assigned to do a thorough analysis and help in implementing Business Process Redesign The overall processes go through the several steps of data collection, designing of the organizational structure, decision making tools for successful reengineering implementation The analysis phase was executed over a 10 – week more than 100 employees to determine how the business worked. The remaining weeks were spent conducting surveys, telephone interviews, and customer workshops. Out of the collected data, members of the evaluation team began to formulate new process maps for 18 business processes. The results of the analysis led directly to a significant change in the project’s dynamics.
It became evident that there were fundamental problems in the various business functions; P&C needed more than organizational realignment to become a top competitor. The 10 – week period proved to be a core meltdown phase, and as a result, the management group members became convinced that more drastic measures ere needed than they had originally predicted. 5. What is your Evaluation of Implementation Approach? Do you feel implementation will be Successful? Why or why not? NAS: Similar to his vision if we look into the restructuring and implementation part, it was really managed exceptionally well. Bringing the consultant in to the system and approach taken for analysis were breakthrough in this context.