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The IT division of a well-known insurance company decided to enhance the computer system in their dental division. Customers were complaining. There was an average 19-minute hold time to reach customer service. Claims were backed up, averaging an alarming – and costly –20 days. An initiative was funded to deliver new computerized systems.
Although a great deal of time, effort and money had been spent, the Dental IT Enhancement initiative had made almost no progress and was terribly over-budget. Elaborate project plans had been developed using the latest tools. Consultants were hired to make the project successful. However, the software was only adjudicating 50% of the dental claims submitted; the rest were still backed up. The division was forced to hire a group of temps, who were racking up excessive overtime making complex claim determinations. Call times had not been reduced. The scope of the project was continually changing. Software engineers were missing key deadlines and milestones were not being met.
The Dental IT Enhancement initiative was now under scrutiny by executive management. Heads had rolled. The project team was arguing and pointing fingers. Costs were rising. Management was concerned.
A year later , a new executive was place in charge of the division's IT function with instructions to regain control over this initiative. She had already changed the project leadership once, and was considering replacing the current manager, who was also failing to deliver crucial milestones. She was frustrated: although the project had been planned and re-planned more than 5 time since its inception, the new consultant that had just been hired was proposing yet another new plan! The failure of the project was choking the dental division to death. Costs were skyrocketing. The temps were working overtime to manually process claims, errors were rampant, files were piling up and customers were angry. Starting its third year, the initiative was hemorrhaging red ink. The company turned to ACT.
ACT consultants reviewed the project plan, observed project review meeting, and interviewed key people to determine the root cause of the issues plaguing the project. To address them, ACT introduced the project team to a few, simple, low-tech processes.
It took only two weeks to clear the air and quell the hostility within the ranks. Scope creep was stopped in its tracks. The project team began engaging in day-to-day self-management. Respect for each other's integrity grew; trust and confidence replaced fear. They did not have to replace the project manager. Costs were contained.
Three months later, the project everyone expected to take yet another year and additional funding was instead meeting milestones, passing functionality tests and remaining within its allocated budget. In six months, the entire project was complete and the new computer system operational. Claims were processed faster, at lower expense, the backlog was eliminated and customer hold times were dramatically improved. Executive management was delighted and the dental division once again began to grow.
Since then, the company had found several ways to put the easy-to-implement practices of ACT to use as it takes market leadership in America's health insurance industry. They currently have more than 58 million members.

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