fcb partners webinar: 6 drivers of process performance

6 Drivers of Process Performance: The Process Performance Diagnos1c

Steve Stanton, Managing Director

Webinar February 24, 2016

1 ©2016 FCB Partners. All rights reserved.

Ques%ons to Be Answered by the PPD:

How healthy is my process today? will current performance meet stakeholder requirements?

Will we be able to sustain our performance into the future? are the condiHons for success in place?

Where should we best focus to improve our results? where are our leverage points?


PPC Benefits and Beneficiaries

Process Owners an objecHve scorecard on current performance a roadmap for improvement fewer and beJer audits

Process Performers a beJer and more aligned process for execuHon improved morale and retenHon

The Enterprise improved efficiencies and profit improved customer saHsfacHon beJer process alignment


Six Leading Indicators of Process Performance Process Purpose linking to strategy and how to track performance

Process Profile providing the specificaHons for execuHon

Process Progress improving the process’s design and execuHon

Process Power ensuring governance role clarity and decision rights

Process Performers focusing on the people who execute the process

Process PlaJorm leveraging the plaPorms that support the process


Four Levels of Process Performance Chaos: No confidence in performance, high vola9lity, not understood unmanaged and unmeasured ad hoc and inconsistent elements

Control: Uncertain confidence, moderate risk consistent performance, repeatable across transacHons

Competence: Moderate confidence, low risk documented superior performance structured management of change

Compe%%ve Advantage: High level of confidence in future performance hits stretch goals and outperforms compeHtors dynamically self-‐correcHng by performers or algorithms

Note: Not all processes need to aspire to the highest level of performance, but all do need to move toward improvement, but at different speeds


Process Purpose

Chaos Control Competence Compe%%ve Advantage

Value CreaHon

Weak and implicit connecHon to strategy

Process design and vision logically linked to strategy

Process design and vision qualitaHvely and quanHtaHvely linked to strategy

Design embodies and helps shape strategy (capability driven)

Metric Design

Many funcHonal metrics, mostly cost and process measures undefined

Clear, high-‐level E2E outcome measures defined

Outcome measures, performance targets, and baselines all defined complete with leading and lagging indicators

Complete, balanced, and dynamic process scorecard linked to incenHves is in use

Metric Use

Primarily retrospecHve reporHng

ReporHng and improvement, with episodic diagnosis yielding occasional ‘gap’ insight

ReporHng, improving, and predicHng uses with conHnuous ‘gap’ measurement, trend analysis

ReporHng, improving, predicHng, and moHvaHng uses with all key metrics automated for evoluHon and instant feedback, correlaHon analysis


Process Profile Chaos Control Competence Compe%%ve

Advantage IdenHty Process is a

collecHon of renamed funcHonal tasks

E2E process intenHonally designed and SIPOC elements defined and documented at some levels

E2E process completely defined and documented at all levels

E2E process completely defined and documented electronically to facilitate frequent changes

Flexibility Frozen in Hme Slow evoluHonary design change

Frequent change and some experimentaHon, some experience with mulHple simultaneous versions

ConHnuous redesign and innovaHon, and old and new versions comfortably co-‐exist

Consistency No defined standards

Standards defined, but with many excepHons and non-‐conformance, and no compliance mechanisms

Standards defined with high conformance with designed excepHon procedures

Standards defined with high conformance and acHve experimentaHon

ConnecHvity Fragmented and unmanaged interfaces

Well integrated within this process, but boundary management issues

Well integrated within this process and across all other internal processes

Well integrated internally and externally, up-‐ and down-‐ the value stream


Process Progress Chaos Control Competence Compe%%ve

Advantage

Voice of the Customer

A distant echo, only responding in crisis

AcHve listening and usage in ad hoc ways. Customer requirements defined

AcHvely listened to and responded to; customer journey reflected in process model

Customer acHvely involved in product/service and process design (co-‐creaHon)

Voice of the Performer

A suggesHon box AcHve idea solicitaHon with ad hoc usage

AcHve involvement in idenHfying and execuHng improvements

Primary driver of improvements

Voice of Other OrganizaHons

NIH prevails Some best pracHce exploraHon, mostly with direct peers

AcHve search for best pracHces and comparaHve benchmarks

Deep involvement in best-‐pracHce sharing communiHes

Toolkit No recognized tools

Some improvement tools, primarily CI, with limited training

Full toolkit with wider training

Complete toolkit with all process performers training in use

Project PorPolio

“Project-‐iHs” Visible inventory of many non-‐prioriHzed projects, but no project launch rules

Managed inventory of well staffed improvement projects

Balanced inventory of projects with high success rates


Process Power


Process Leader Role

Informal posiHon, with no clear definiHon; operaHng with no levers of power

Well-‐defined formal role as process sponsor operaHng primarily thru influence, but unclear decision rights vs. funcHonal managers

Formal role occupied full-‐Hme with power derived from control process improvement budget and staff

Powerful formal role, supported by execuHve power with explicit decision rights idenHfied for process and other axes

Process Leader AcHons

Project sponsorship Sponsorship and developing process vision and goals

Sponsorship and advocacy about process within and across the organizaHon

Leader

Process Forums

None Occasional ad hoc discussions

RouHne and well aJended sessions with all important stakeholders

Empowered councils that lead design, improvement, and prioriHzaHon decisions


Process Performers


Role TradiHonal and funcHonally defined

Defined in the context of both funcHon and process

Expanded decision-‐making parameters

Knowledge Limited educaHon on organizaHon’s business and no process educaHon

Expanded business educaHon and some process training. Can name process

Significant business and process educaHon and training. Can name process and outcomes

Intense educaHon and training. Understands own process and the customer’s processes.

Skills FuncHonal discipline FuncHonal and problem solving

FuncHonal, problem solving, and analyHc

FuncHonal, problem solving, analyHcal, and change management

Behaviors Limited collaboraHon and results focus IJWH, INMJ

Ad hoc collaboraHon and teaming

Strong teams with clear focus on results


Process PlaJorms


Technology Infrastructure

FuncHonal legacy systems inhibit process technology

ERP enables some process technology focus, but slow change

IT and process change in parallel with systems conforming to process definiHons

IT and process operate in harmony with innovaHons in one immediately transferring to the other

New Technologies

No usage Lagging compeHtors in use, ‘Followership’

AcHve funded experimentaHon, Leadership

AcHve experimentaHon and exploitaHon leading to market disrupHon

Data Poor quality Good data quality with isolated analyHc capabiliHes

Excellent data with dispersed analyHc capabiliHes

Real-‐Hme, accurate, shareable data with widespread analyHc strengths


FCB 2016 Public Courses

Event Dates and Loca%ons

Change Leaders and Catalysts Advanced Cer1fica1on Course Arlington, VA, April 4-‐5

Implementa%on and Execu%on Advanced Cer1fica1on Course Arlington, VA, April 6-‐7

Process Redesign Hammer Cer1fica1on Course Arlington, VA, April 5-‐8

Power of Process Hammer Cer1fica1on Course New Orleans, LA, October 24-‐25

Leading Transforma%on Hammer Cer1fica1on Course New Orleans, LA, October 26-‐28


For More Informa%on FCB Partners

Lindsay Field, Program Director

617 245 0265 [email protected]

fcb partners webinar: 6 drivers of process performance

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