Friday, January 29, 2010

Service Journal: Question 5 of 15

Here are a couple of definitions related to business process design:
1. Complexity: number and intricacies of the steps in a process
2. Divergence: requirement of exercising judgment or discretion in a process

The way to spot complexity in a service blueprint is to count the number of steps. Complex procedures have many steps. Alternatively, divergence is seen in the nature of the steps. When there are multiple ways of handling steps there is high divergence.

1. Think about your focal company....in general, would it's service blueprint exhibit complexity, divergence, both, neither. Talk a little bit about where we might see either complexity or divergence (types of activities, why these are complex/divergent).
IHC as a health care and insurance provider exhibits both complexity and divergence. A doctors office provides services through triage; this is based on several functions, and a patient file may be handled by many different individuals dependant on laboratory tests performed physicians background knowledge and area of expertise, or the network of how doctors at differing site refer patients. For instance Jeff is complaining of chest pain he could see any number of doctors a generalist may refer him to xray for a chest exam, or an MRI, or sonogram, or a bronchial levage could be preformed. The doctor may refer him to an internal medicine doctor or a cardiologist dependant on symptoms and physicians background experience with like situations. In short this is a very complex system in that many other systems may be touched nursing, radiology, cardiology, laboratory, billing both physician and hospital. It is also a very divergent practice in that no two cases are alike and may be treated differently in kind. There is standardizaton as much as can be but medical treatment is fluid and unpredictable. In contrast the insurance side of the business is based on set prices for all procedures all transactions are delt with through automated systems for the most part it is niether complex nor divergent dependant on program utilized.
2. If you had a choice between subsituting divergence for complexity or vice versa, which would you do? Why? Under what circumstances? I would choose complexity for areas where a great amount of choice is important such as a university education. I would chose divergence for experienced difficult situational services such as medical or law practices

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