The Case of Chase Manhattan Bank Essay Example

or series of parallel processes. In the second phase of the workflow diagram, called focus, a process mapping tool is used to assess various aspects such as process, organization, finance, and information technology. The process mapping tool collects data related to finance and production, gathers costing information based on activities, and performs automated simulations.

Additionally, the process mapping tool also includes organization mapping. Organization mapping provides senior executives with a comprehensive view of their organization, including the relationships between different departments and with customers. It helps in analyzing factors such as spans of control, productivity, staff skills and training, and the relationship between the organization and its customers.

Chase Manhattan Bank has the ability to identify major process improvement opportunities, eliminate duplicate handling and errors, reduce cycle time, eliminate reviews, optimize supplier relationships, and more. The bank has also leveraged information technology (IT) to automate and enhance services such as customer satisfaction, e-banking, ATMs, and integrating branch networks. It is important to view organization as a system, with various sub-systems working together to achieve a common goal.

Each subsystem in an organization has its own processes and works alongside other subsystems to achieve the overall goals of the organization. These subsystems are organized in a hierarchy and consist of multiple functional levels. The organization's structure is reflected in vertical operational responsibilities and horizontal linkages, often depicted in an organization chart. The relationship between different levels can be represented across various functions. Within the traditional functional organization of Chase Manhattan Bank, sub-systems were mapped out.

The organization's map reveals its significant sub-systems, including departments, programs, divisions, and business units. However, this traditional model fragmented tasks into numerous individual tasks and

lacked collaboration and coordination. Consequently, a reengineering effort is required to establish a newly engineered process. The organization takes a functional perspective.

The staff can be empowered and autonomous work groups can be established. Reengineering the organization can boost staff morale, encourage them to undergo more training, and improve their skills.

Hypothesis Driven Analysis

Hypothesis driven analysis is a method that relies on hypothetical problems to define objectives and solve issues. Chase utilized this tool during the focus phase analysis to propose a problem, collect and test data, and ultimately develop conclusions and solve the problem.

The simulation tool is a method for testing new designs before implementation. During the invent phase, Chase redesigned the business process in detail and provided a visualization of the projects. Prior to launch, the ideas and assumptions were tested through simulation, which incorporated the process, technology, and organization. This tool enabled Chase to achieve objectives during the invent phase. Additionally, the input/process/output diagram tool is a method for defining a process and consists of a chain of value-added actions.

The inputs undergo a process of alignment, coordination, and movement to achieve the goals. The outputs are tangible results, such as products or services for customers. Chase utilized this tool to analyze the process within the context of reengineering.

Strategies (Implementation Strategy and Other Strategies)

Chase enlisted IBM's help in developing the strategies for implementing business process reengineering. IBM tailored a methodology consisting of four phases: energize, focus, invent, and launch.

The different phases in Chase Manhattan Bank have different strategies to achieve objectives. These strategies must provide a roadmap for incremental changes, ensuring stepwise progression in implementation plans.

Implementation Strategy (Energize, Focus, Invent and

Launch)

Energize

The first phase aims to motivate action and provide the necessary vision for change. Chase improved its strategies to achieve this objective. To instill motivation, Chase established a framework consisting of four plans: a persuasive plan, led by top management, explaining the necessity of reengineering; a plan to establish project organization and teams; an overall project plan; and a communication plan. This phase instills the company's values and beliefs among employees, fostering consensus.

Focus

The focus phase is aimed at understanding the current process before the reengineering team can move forward with the redesign. The main goal is to identify disconnected and value adding processes. Chase should analyze the current environment from both the customer perspective and business perspective. Additionally, the team needs to map, analyze, and improve upon the existing processes in order to identify opportunities for redesign.

Invent

The invent phase is focused on designing the future state process.

The reengineering team is responsible for brainstorming new process ideas and evaluating their feasibility in relation to executive goals and business objectives. Additionally, the team must test these ideas and create a simulation/visualization for the new process.

Launch

The launch phase of the project involves implementing the reengineered process that was developed in previous phases. In business process reengineering (BPR), blueprints are created to identify all the necessary details of the newly reengineered business system and ensure it is constructed as intended. Furthermore, this phase should recommend an initial physical description of the technologies used and their specifications to facilitate significant improvements.

Other strategies include technology improvement and network integration in banks through reengineering. This change brings about a new form

or structure by introducing product and service schemes, such as the integration of branch networks using advanced networking technology and customer personalization programs like Automatic Teller Machine (ATM) and anytime banking. Thus, BPR in banks is crucial for the management and diversification of growth horizons, impacting productivity and profitability.

In Chase Manhattan Bank, a highly flexible platform is provided for customization of multiple card products. The bank also utilizes cash tracking models middleware technology. This allows for customization and diversification of products based on customer segmentation and their diverse needs.

Chase Manhattan Bank offers various card products, including payroll cards, gift cards, and stored value disaster relief cards. The bank places significant emphasis on improving service quality and has developed new models through its BPR team to provide better service. These models aim to simplify processes, remove redundant steps, and make services faster, more intelligent, and more convenient.

The bank incorporates strategic innovative customer schemes through Business Process Reengineering to bridge the service and product gap in the banking sector. Despite a challenging business environment, Chase continues to innovate and launch new products and services such as Blueprint, Ultimate Rewards, Chase Sapphire, and Ink from Chase. This has helped the bank earn a market leadership position in building loyalty and rewards programs, as stated in their Annual Report.