9.3. Project Definition and Plan
Step 1: Project Defined. In this step, Larry interviews the vice president of operations. His goal is specifically to define the Critical Business Issue (CBI) that stimulated Larry's assignment. Updating the claims manual is clearly the vice president's preferred solution to some problem. If Larry is to be an effective diagnostician, he will need to understand that problem. During the interview, he learns that the vice president's concern is excessive claim payouts. The average amount that PCI is paying per claim is too high and is negatively affecting the company's margins.
Figure 9.1. The Three Levels Performance Improvement Process.
During Project Definition, Larry will also take these actions:
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