Process Planning & Technology Decisions - The Process becomes the Product or Service

Background:

Many times processes involve numerous steps along the way until the product or service is complete. In fact, at times the process takes on a life of its own, almost becoming the product or service itself. This occurrence is sometimes called red tape and managers must work to refocus attention on the actual product or service. One such example of red tape comes from IBM's credit application process:

 

IBM's Credit Application Process

The traditional IBM credit application process took many steps, answering initial customer calls, conducting credit checks, computer entry of customer information, determination of interest rates and loan terms, and finally credit approval. All these steps relied on the transfer of paperwork from one group inside IBM to another. In fact, the process itself took up to two weeks to finish. Eventually IBM redesigned the process and the credit application turnaround time was cut to four hours.

Questions for Thought:

1. Why do processes take on a life of their own?

2. What can managers do so processes do not become the product or service themselves?

3. In the video clip, Peter Gibbons has been assigned the task of updated TPC reports. however, his bosses have a different task for him. Have you ever been in a situation like Peter's where the process has become the product or service you are working to fulfill instead of the real end product or service?