Process Paradox

"The process paradox, the startling fact that businesses can decline and even fail at the same time that process reform is dramatically improving efficiency by saving the company time and money and improving product quality and customer service" 

• A computer company reengineers its finance department, reducing process costs by 34%-yet operating income stalls 
• An insurer cuts claims processing time by 44%-yet profits decline.  
• A software developer proclaims a 20% cost reduction, and a 25% quality improvement - business unit costs increase and profit declines

Sources: The Process Edge:- Peter Keen How to make Reengineering work, HBR 11/12 1993

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