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page page 7 Proposal to Provide Reengineering Services To The Guardian 1. Our Understanding Of The Current Environment: The recent restructuring of The Guardian’s National Operations structure has presented Group management with the opportunity to examine the processes of each Regional Home Office in order to improve service and reduce cost. Actively pursuing this opening, management has begun to examine the front-end processes associated with multiple Group products (e.g. Small, Traditional and Large Account group business). The initial review has raised three major issues: The front-end and Add Issue processes are too slow and performance is below industry averages. The “assembly line”, sequential system of handing off work by functional department, will not take advantage of the simultaneous /parallel processing capabilities of the new Phoenix system which is due to come on line in the second quarter of 1995. Perhaps, most important, the current workflows lack accountability (e.g. field personnel must contact different departments to assemble an answer to an inquiry). There is little standardization of workflows among the Regional Home Offices as each product line within the RHO has initiated a different workflow. Based on these observations, a Design Team was formed this past summer consisting of Managers from each Regional Home Office (Administration, Underwriting, and Claims) and, together with outside consultants, they began to formally examine the Small Group workflow. They found many delays and redundancies and have made the business case that opportunities exist for dramatic improvement through reengineering of the core front-end processes. Subsequently, they have produced a conceptual new workflow that would move much of the initial information gathering in this segment from their field Sales offices into the Regional Home Office new business area. They have also proposed a high level “team managed” organization model that would replace the tradi