Business Reengineering Case Study: Cigna
About the case: This case basically talks about how CIGNA group introduced business reengineering into its organization five year ago and saved more than 100 million dollar. This business reengineering journey started by small pilot project and it was big hit. Then organization ramped up from this success, exchange their ideas, experiences and learning from this project into larger and more complex parts of the organization. Later on, all the nine division challenged to the match of CIGNA RE.
Core issues:
Because of change in market scenario the organization faced highly downsized and stretched field staff.
Reengineering would have to focus on large business and in addition to achieving operational excellence had to enable new business growth and build competencies for new business.
In P& C , IS personnel had to be much more proactive than in the past because of the short project implementation time frames
Outdated technology
How was the problem dealt with:
CIGNA started their journey with the process of reengineering with its division CIGNA Reinsurance. This was the pilot project.
The administrative operation was restructured into customer service teams.
The reengineering transfers their roles and responsibility.
The project executive start regular meeting with CIGNA RE employs and outside consultants.
The same model was used in different countries. The back-end activities were shifted from UK to Scotland. This process of reengineering improved the cost cutting techniques. However, this was not implemented in Chile and Japan as they change of mind-set in these countries was not possible.
CIGNA P&C was revived using two phases. Phase 1 involved the break-up of functions. One of the functions was experimented with and the result was used in others.
Phase 2 involved implementation which was structured as six projects or streams. Every stream was assigned a dedicated implementation team.
Learning from the case:
1. Learn from
Core issues:
Because of change in market scenario the organization faced highly downsized and stretched field staff.
Reengineering would have to focus on large business and in addition to achieving operational excellence had to enable new business growth and build competencies for new business.
In P& C , IS personnel had to be much more proactive than in the past because of the short project implementation time frames
Outdated technology
How was the problem dealt with:
CIGNA started their journey with the process of reengineering with its division CIGNA Reinsurance. This was the pilot project.
The administrative operation was restructured into customer service teams.
The reengineering transfers their roles and responsibility.
The project executive start regular meeting with CIGNA RE employs and outside consultants.
The same model was used in different countries. The back-end activities were shifted from UK to Scotland. This process of reengineering improved the cost cutting techniques. However, this was not implemented in Chile and Japan as they change of mind-set in these countries was not possible.
CIGNA P&C was revived using two phases. Phase 1 involved the break-up of functions. One of the functions was experimented with and the result was used in others.
Phase 2 involved implementation which was structured as six projects or streams. Every stream was assigned a dedicated implementation team.
Learning from the case:
1. Learn from