ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence
Brenton Bank wants to improve overall performance by fundamentally redesigning its loan approval process from scratch, ignoring existing departmental boundaries, to achieve dramatic gains in speed and cost. Which approach is this?
This is business process re-engineering, which radically redesigns processes from scratch across departmental boundaries to achieve dramatic improvements in speed and cost, unlike kaizen, which relies on small continuous incremental changes.
- AKaizen
- BBusiness process re-engineeringCorrect
- CBenchmarking
- DManagement by objectives
Explanation
Business process re-engineering involves radical redesign of processes, starting afresh and cutting across functions, to achieve dramatic improvement. Kaizen is incremental and continuous. Benchmarking compares against others, and management by objectives is a goal-setting approach.
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