Global Financial Corporation Harvard Case Solution & Analysis


Nancy Rodriguez, VP of the Global financial and manager of Bakersfield office is facing a very stiff task in the first month of this position that is to bring the time taken to conduct a loan application down to 10 days, against which the parent company considers this branch to be working on 85% capacity and workload could be increased that will allow any further additions of staff. The capacity percentage was quoted by the head office on back of the conducted research, which states a standard application can be completed within 2 days and a News application in 3 days; these figures are calculated by using standard deviation and mean.

global financial corporation case solution

global financial corporation case solution

In the first quarter, results evaluated by Nancy showed a total of 218 applications received out of which only 51% were processed within 10 days or less, which means there was some technical error while calculating the days per application using standard deviation. Whereas,  throughput analysis showed that applications received from Region-1 were 78 that took on average 127 hours per application, Region-2 received 66 that took 35.9 hours on average and Region-3 received 74 applications that took on average 54.6 hours. Two different methods were giving two different stories.

The bottlenecks within the current process needed to be identified and rectified so as to bring time taken per application down to an acceptable level.


The biggest flaw of the current loan processing system is that it designed the way the head office wants it to be rather than how the division wants it in order to benefit from it.

The first step involves evaluation and analysis, where three teams are formed with two people in each team so as to handle applications from one of three regions as the head office believed this will enhance the efficiency if sales teams and analysis team will get to know each other. But this process seems completely useless as each region receives different number of applications of different difficulty level as per the throughput analysis having three same teams do not help in achieving efficiency.

Interest Rate Determination is the second step, which is a very simple step that requires just one person to give half of his time in this task, which begs the question can this process be integrated with any other process or not?

Terms of the loan is the third step, it is that three teams with two persons should be headed by one person each and that each team should evaluate terms per region. Again each region has a different load of applications having same number of people for each region will not lead to efficiency.

Final issuing is the last step of this system where two people make the final adjustments and conduct printing of the final papers performed by either of two, which means even one person can perform this task.


The staff is the bottleneck resource in the entire system; the system needs to be reorganized to achieve efficiencies that is optimum utilization of resource. The system should be changed to focus on the standard and news applications rather than applications from different regions. The structure will be as follows,

Firstly, there will be a process for classification, it will comprise of two people who will determine if a application is straightforward (which will take less time) or if it is News or complicated (meaning it will take more time). Once, the classification has been done then it will be transferred for evaluation and analysis that will comprise of two departments one for straightforward application, which ......................

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