business process improvement - a strategic and supply chain perspective
Post on 17-Oct-2014
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DESCRIPTION
A short session I conducted at IIM Bangalore on sharing my experience on the what, how and why of business process improvement in strategy and supply chain. Credit for the concepts (and charts) go to my time spent at Booz & Company in Europe doing most of this work.TRANSCRIPT
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BPI in Supply ChainA view from the field
Amit Kapoor
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Write down the first three words that come to you mind
when you hear the word Strategy
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SystemStoryDesignSubtletySceneGimmick
LearningAdaptQuickRespondCulture
ActionSetupProcedurePolicyTacticsProcess
ExcellenceExecutionOperationalQualityPeople
FocusProgramPresentCoreHarvest
CompetenceCapabilitiesCentralManeuvering
ApproachBlueprintMethodPlanPlanningStrategic
CompetitiveIndustryExploitHigh GroundProfitCost
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Identity | Advantage
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Advantage is Transient“Now, here, you see, it takes all the
running you can do, to keep in the same place” said the Red Queen
- Lewis Caroll, Alice in Wonderland
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Identity is Slow to Change
"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in
its success, than to take the lead in the introduction of a new order of things."
— Niccolo Machiavelli, The Prince
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Identity is your Strength
The innate qualities of an organization that distinguish it from all others — its
operational processes, culture, relationships, and distinctive capabilities
— are built up gradually, decision by decision, and continually reinforced
through organizational practices and conversations.
- Art Kleiner, The Right to Win
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Identity - Advantage
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Supply Chain
"A supply chain is a goal-oriented network of processes and stockpoints used to deliver
goods and services to customers."
“Cost, Quality, Speed, Service and Flexibility are the dimensions on which manufacturing and
service enterprise compete”
— Wallace Hopp, Supply Chain Science
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SC CharacteristicsPurpose -- there is an ambition to the organisation, beyond
traditional business objectives, that motivates the pursuit of excellence
Direction -- explicit choices are made about the offerings and
markets served, the way value will be created through operations, and the approach that will be differentiated and break traditional constraints
Responsiveness -- the organisation maintains awareness in
the operating environment -- including customer needs, competitive threats, supply conditions -- and resets its direction accordingly at pace
Coherence -- the various elements of the company’s business
model -- such as the commercial, operations, and people strategies -- are complementary and mutually supporting
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SC Characteristics
Empowerment & Trust -- the full extent of a business’s
human assets are aimed and engaged in driving performance and trusting each other to deliver
Learning -- the key components necessary for a learning
organisation are in place: curiosity, humility, experimentation, and communication
Execution -- once a decision is made, the organisation can
execute effectively, quickly. Decision rights, information flows, incentives, and responsibilities are clear, consistent, and understood
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Exemplar
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BPI in SC: Conceptual
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Thinking about BPI
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Four Key Questions
What we do? | InherentHow do we do it? | Structural
How well do we do it? | SystemicHow well do we apply it? | Realized
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Value Drivers in SC
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How many Trucks?
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Careful on an Oil Rig
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Don’t mess with the Falcon
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Sweet Success of
Process
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Build Capabilities
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Towards a Learning Org
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Culture eats Strategy for Breakfast
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Amit KapoorPartner, narrativeVIZ Consulting
Website: amitkaps.comEmail: [email protected]: @amitkaps