Issues Facing Lyon Assurance Company

Jim Toy, Customer Services Director (UK) for French-owned Lyon Assurance Company, is faced with a perplexing challenge. The parent company has invested three (3) million pounds associated with the implementation of information systems that were intended to reduce the cost of processing new insurance policy applications. Senior management perceived this as a necessary move in order to remain competitive in the European insurance market. Unfortunately the results promised with respect to productivity improvement and customer service, are not apparent to management and they are concerned. Jim has to assess the situation and report back to headquarters. It is unlikely the problem will be completely solved by making changes within the Customer Service Department.

Ron Smith manages the UK Customer Service Department and was one of the architects of the new system. In spite of the new system, Ron's department has a four (4) week backlog of work, very few of the workers are not performing well, and there is a growing level of complaining going on within Ron's department associated with the difficulty of performing queries because of the complexity associated with the new system.

Ron believes the only way to solve his problem is to increase his depart

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difficult to assess if software system quality is anything more than a secondary factor. However, the statements made regarding the difficulty in making system queries indicates to the experienced viewer, a likely and fundamental shortcoming in the design of the system and/or a lack of training of the user community. Most likely it is some combination of both factors. Communication Traditional writing and speaking skills not withstanding, the challenges faced today by technology, staff turnover, and a myriad of other issues, make the building and maintenance of human relationships more and more important. System level complexity is increasing. Traditional management methodology is losing ground to that which establishes mutually satisfying relationships between management, subordinates and client. Factors to enhance communication include (McLeod & Smith, 1996, p. 87): Use of small teams with high levels of skill Breaking the task(s) into manageable chunks with minimal coupling between them. Use of highly structured, graphics-oriented specification and design techniques that reduce communication problems. In the information technology arena, there are many managers (and individual contributors) who believe themselves to be

Category: Business - I