The Best Practices Enterprise: A Guide to Achieving Sustainable World-Class Performance

Appendix C: Sample Value Chain Case Study

Defining the Cogs In the Value Chain

Conceptual operations groups (COGs) are the logical groupings of work activities that make up a reengineered business or business area. They are represented in a value chain such as the one in Figure C.1. The COGs must be fully documented so that management and staff within the organization can completely grasp the changes recommended by the BPR team.

At a minimum, each COG definition should contain the following:

  • A COG description

  • An event model, depicting the workflow within the COG

  • A discussion of related people issues

  • A discussion of related process issues

  • A discussion of related technology issues

Derived from an actual BPR effort conducted within a claims operation at a major insurance company, the following exemplifies what might be found in the manage loss reporting COG.

Loss Reporting

Description

This COG provides for those services required to capture loss-related information. It encompasses the activities involved in receiving notice of loss from various sources, including agent(s), insured(s), claimant(s), or other carrier(s), recording the initial loss-specific information, assigning values to information gathered (coding), and assignment to claim specialists for adjudication.


Figure C.1: Event model excerpt.

Once a loss is reported and data are gathered to establish a claim record, decisions are made regarding the appropriate resources required for handling the claim. Claim assignment to a loss team member(s) (claim handlers, appraisers, care managers, vendors, etc.) is accomplished via the assign/manage work COG. Contacts are made with the insured/claimant to acknowledge receipt of the loss...

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