7 principles for effective process management
TRANSCRIPT
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7 PRINCIPLES FOR EFFECTIVE PROCESS
MANAGEMENT
Presented by Er Ralston
for
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How to think
about process
Apple is a very disciplined company, and we have great processes. But that's not what it's about. Process makes you more efficient. Steve Jobs
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Definition of Process Management • Design, Maintenance, and Improvement
• Linked work activities
• With purpose of producing a product or service for a customer or user
Using Process Management, you will achieve
improved customer satisfaction and business
results.
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Why Manage Processes?
Fundamentals of Process Management
• The purpose of a company is to create customer value • Customer value is created through processes • Business success results from superior process performance • Superior process performance is achieved by having:
- Superior process design - The right people - The right environment
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PROCESS Inputs Outputs
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Processes and Tasks
START TASK 1 TASK 4 TASK 2 TASK 3 FINISH
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Functional Management Systems
Functional objectives are common in a
vertical, hierarchical
organization.
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Process Management Systems
A process typically crosses departments or functions until it reaches the customer.
Order Acquisition
Production
Invoicing
Recruiting, Developing Employees
Customer Requirements
Process
Objectives
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7 Principles for Effective Process Management
Principles of Process Management
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1. Identify key processes
2. Select process owners
3. Identify needs & set requirements
4. Define & document process
5. Select key metrics
6. Implement process controls
7. Evaluate & improve the process
Principles of Process Management
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Identify/Prioritize Key Processes
Tasks
• Identify Key Processes in Your Organization
• Distinguish Core and Support processes
• Link processes to sub-processes
• Prioritize processes for process management efforts
PRINCIPLE 1
When you can name the process, you can
manage the process.
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Identify/Prioritize Business Processes
Organizational Processes
PRINCIPLE 1
.
Products and Services
Organizational Mission
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Process Hierarchy
Macro Process
Sub-Processes
PRINCIPLE 1
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Key Process Types
Core Processes
–Linked to mission
Key Support Services and Processes
–Internal support
PRINCIPLE 1
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Select Process Owners
Tasks
• Define the roles and competencies of process owners
• Identify and name process owners in your organization
PRINCIPLE 2
Process owners achieve performance
excellence by managing end-to-end
processes.
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Process Owner’s Major Roles
• Design
• Coaching
• Advocacy
from Beyond Reengineering, 1996, Michael Hammer
“The process owner is a linker, a facilitator, an enabler of those who actually do the work. It would be more accurate to say that he reports to the performers – since he is on call, at their disposal – than to say that they work for him.”
PRINCIPLE 2
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Identify & Set Process Requirements
Tasks
• Identify key customers and customer needs
• Determine key process requirements aligned to customer needs
• Document the requirements for key processes
PRINCIPLE 3
When you know the target, then
you can hit the target.
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Identify & Set Process Requirements Customer/Stakeholder
Needs
Organization Goals
Process Aim (purpose)
Process Requirements
PRINCIPLE 3
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Define/Document Process
Tasks
• Map key processes
• Develop appropriate documentation for key processes
PRINCIPLE 4
Well defined processes are easier to
manage to get the desired results.
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Select Key Process Measurements/Metrics
Tasks
• Define key process measurements
• Develop measurement systems for key processes
PRINCIPLE 5
When you measure the key inputs,
you get better outputs.
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Select Key Process Measurements/Metrics
The basis for determining how
well you are meeting
requirements
PRINCIPLE 5
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Implement Process Controls
Tasks
• Develop process control plans for key processes
• Institutionalize process control plans to make smart
operational decisions
PRINCIPLE 6
When you control the process, you
control the results.
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How to Control
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PRINCIPLE 6
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Evaluate and Improve the Process
In the process-centered organization, this program of process improvement is not a secondary and peripheral activity. It is the essence of management.
Hammer, Michael, Beyond Reengineering, 1996, P. 80
Tasks
• Define systematic improvement methods for your organization
• Train leaders and the workforce to improve processes
• Use formal evaluation and improvement methods to achieve better process and
organizational results
PRINCIPLE 7
Systematic improvements are sustainable improvements.
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Systematic Process Improvement Methods
PRINCIPLE 7
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About Ralston Excellence
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Trusted advisors for operational and performance excellence
We provide high impact coaching and training services to improve organizational performance. Services include:
• Business Process Management Training and Coaching
• Lean Six Sigma Training and Coaching
• Process Improvement Project Facilitation and Coaching
• Performance Excellence Assessments
Er Ralston
336.749.7008
2637 Arbor Place Court
Winston-Salem, NC
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