CHAPTER 1How to Improve Internal Processes

Continual internal process improvement is often the greatest threat to any organization. It's never more apparent than when an organization commits to changing a computer system. When a new system is chosen, it will result in the need for process improvement. You may wonder why there would be a chapter on processes in a digital transformation book, and the reason is simple. Eventually, every process in your organization will be digitized, and as a result, your digital processes will reflect your analog processes. For instance, if there are 71 steps in your current loan application process, there will likely be 71 steps in your digitized process. However, a digitized process should reduce steps, improve speed, and improve efficacy. For example, solid processes can—and should—transform a 71-step loan application process into a 3- or 4-step process. Unfortunately, our human instinct to avoid change kicks in. Our instincts are to avoid the unknown and resist things that force us to change, and as a result, getting the process down to a few digital steps will prove to be an uphill battle for even the most seasoned executives.

Regulatory Gridlock

The fear of the unknown is normal for everyone. We know that the existing 71-step process works, so why would we change it? There may even be obvious improvements in the process, and the staff may even acknowledge these initially. Eventually, though, they begin to worry that that outcome of the process ...

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