Reference no: EM131463672

Question: Hospital administrative processes*: A director of administration for a large hospital receives some disturbing news. A recent auditor's report states that 28% of all hospital costs are related to administrative costs. The director is determined to lower this figure. She has read some magazine and newspaper articles about business process design and has decided to try it to see if it works. She calls a special offsite meeting. The meeting is held at a luxury hotel, and only senior-level managers are invited. At the meeting, she presents her concerns. She then states that the purpose of the meeting is to redesign the various administrative processes. A brainstorming session is conducted to identify potential problems. The problems are then prioritized. The meeting breaks for lunch.

After lunch, everyone works on developing some solutions. A number of high-level process maps are taped to the wall, and the director discusses each of the identified problems. One suggested solution is reorganization. Everyone loves the idea. Instead of 12 major divisions, it is suggested to reorganize into 10. After the meeting is over, the director spends 4 h hammering out the details of the reorganization. She returns to work the next day and announces the reorganization plan. Sitting in her office, she reflects on her first process redesigning efforts. She is pleased.

a. How would you rate the director's redesign project? Would you give her a pay raise?

b. How would you conduct this process redesigning effort?