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ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques

Verdant Insurance is re-engineering its claims handling. Currently a claim is passed sequentially between a registration clerk, an assessor, a validator and a payments officer. The project team proposes that a single case handler will manage each simple claim from receipt to payment, supported by a shared workflow system. Which BPR principle is most clearly illustrated?

The principle illustrated is combining specialised tasks into one integrated role. A single case handler owning a claim end to end removes hand-offs, delays and errors between clerks, which is a core BPR idea, unlike simply automating existing steps or outsourcing one of them.

  1. AAutomating the existing sequential steps without changing them
  2. BCombining specialised tasks into one integrated role to remove hand-offsCorrect
  3. COutsourcing the validation step to a third party
  4. DSetting a benchmark cost per claim from the industry average

Explanation

Hammer and Champy advocate combining several jobs into one and having the person who uses the output perform the process, which removes hand-offs, queues and errors. Merely automating the sequence would preserve the old design, and outsourcing and benchmarking are different techniques.

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