Situation: A major public utility was undergoing an extensive reorganization and reengineering in response to current and potential regulatory and competitive pressures and trends. A pilot Activity Based Costing project was being launched for the customer billing activity, with the goal of producing guidelines for a following reengineering project covering the same activity.
The customer billing activity was spread over half a dozen departments, under several senior managers, and employed several hundred people, with responsibility for several million customer relationships in four major customer categories.
After preliminary project plans had been completed, the project team had six weeks to create, validate and add survey information to process maps and activity outlines for the entire customer billing function. The maps and outlines would be used both for the Activity Based Costing project and for the reengineering work that was to follow it.