Synchronizing People, Processes & Information for Automating Operational Effectiveness

Enabling collective awareness for better decision making

Presenters Jeremiah Mapes

Steve Lincoln

Shanna Dulong

Martin Levesque

Process Improvement Consultant

Process Improvement Consultant

Product Manager & Process Improvement Consultant

Director of Professional Services

Session Breakdown & Agenda

General Intro & ClosetMaid (15 min) Session 1

● Common Errors in Analysis - Introduction (10 min)● Process Description & Role-play Scenario Video (5min)● Group Participation (45 min)● Corrective Action Review (15 min)

BREAK (10 min) Session 2

● Design Pitfalls Introduction (15 min)● Group Participation (25 min)● Corrective Action Review (15 min)

Session 3● Continuous Improvement Discussion (15 min)● Wrap Up / Q&A (5 min)

Their Mission for Reducing DSO’sHarnessing tribal knowledge and eliminating routine decisions to dramatically improve response times.

Martin LevesqueDirector of Professional Serviceswww.iDatix.com

Reducing DSO Through Automation

Automate Routine Decisions to Accelerate Processing for Each Type of Credit being Issued by ClosetMaid to their Client Base in the U.S, Canada and Mexico

(Defective products, Shortages, Promo incentives) Develop a Platform that Brings Together the 3 Elements of their

Business: People, Processes and Information Use Existing Legacy AS400 System Events and Logic to Drive

Workflow Automate Escalation and Sign Off of Approvals via Dollar

Amount/Regional Exec. Provide New Human Centric Process Metrics

Manual DSO Process

Three Major Areas of the Credit & Collections Process

Initial Claim Review Escalation of Approvals Final Review & Release

Using these component areas as a reference, let’s look at how they are represented in our automated workflow.

Combining People, Process and Information

Data from retailers is sent to Closetmaid through EDI Transfer Enters local database server

● Credit memo documents are created from raw data● Document is stored in iSynergy where it enters workflow

Automatic escalation based on debit code

Target

Wal-mart

Home Depot

Outsourced DE Team

EDI Transfer

Local AS400

Update DM Transactions Escalate

Process

Release

Credit Memos Are Automatically Created

Eliminating Routine Decisions

Supporting Docs Associated for Review

Verify Valid Signatures, Claim code.Balance Credit in workflow with AS400

AS400Claim CodeRouting OVER $10,000?

Manager Review

VP Review

UNDER $10,000?

Accounting Review

Credit Released in AS400 and Exits Workflow

Automated Routing Review

Automated Escalation of Approvals

Facilitated Final Review

WalmartEDI

Create Credit Memo

Ready to begin Session 1!

Session 1 of 3

Pitfalls Of AnalysisIdentifying and avoiding common errors found in the discovery process

Objectives

Pitfall #1: Client Self Diagnosis

Pitfall #2: Focusing on Exceptions

Pitfall #3: Not Getting all Perspectives

Pitfall #1: Client Self Diagnosis

Indicator: Process sequence is ignored● Only describes actions that involve execution of work ● Omits what triggers work to begin and how it completes● Routine tasks are left out of the process

Indicator: Being stubborn about solving X (my problem)● Frustration is top of mind● Ideal current state is not part of the conversation● My problem is paramount to all others

Indicator: Provided a vague vision, goals, objectives● The exec sponsor wants the process to “work better”● The mid-manager wants to deal with fewer problems● The knowledge worker is overwhelmed

Pitfall #2: Focusing on Exceptions

Indicator: Problems hide the core process ● Criteria for how and why something happens is missed● Relationship of exception to the core process is assumed● Solving for a specific issue defines how work is performed

Indicator: Frequency is not discussed● High impact, high frequency● Low impact, high frequency● High impact, low frequency● Low impact, low frequency

Indicator: Impact to business is not considered ● Describing departmental impact as rare● Inter-departmental impact is too politically sensitive to discuss● Organizational impact often involves external factors

Pitfall #3: Not Getting all Perspectives

Pitfall #3: Not Getting all Perspectives

Indicator: Total faith in one source ● Talking to the process owner is not possible● Information gatekeepers are afraid to reveal anything● KPI’s are used to tell the whole story

Indicator: Trusting an issue is real ● A vocal process critic is assumed to be right● Process description has words like always and never● Details about tasks not associated with the core

process

Indicator: Process description is assumed consistent ● Gaining consensus is not part of the methodology● Process discrepancies and gaps remain unclear● The entire process is loosely defined, but clear to

everyone.

Meet Craft Brew Co.

Craft Brew Co. is a microbrewery Will be studying their Material Fulfillment & Payment process

● Brewers submit material (ingredient) requisitions for individual batches of beer that they are tasked with brewing

Personnel available for interview● Brewmaster● Accounting Manager● AP Clerk● Receiving Agent

Hands On Activity

Get in groups of 15.

We will rotate between groups as you perform the business analysis on our roles in the process.

Your task is to identify the pitfall and take some notes on how your group either corrected the pitfall or would correct the pitfall.

Each round of questioning will last 8 minutes.

Analysis Pitfall Review

The hands on activity is over

Review Each Pitfall to decide which role(s) were exemplifying the behavior

Pitfall Corrective Action●How did you correct each identified pitfall?

General Review

Ask a question, and then ask it again

Ideally you would interview people involved in the order they interact with the process ● Not practical for workshop due to time constraints● Can’t always get access to people you need at a given time

Recommended to revisit interviewees to reconfirm after interviews covering the same process steps especially for discussions that occur out of order

Self Diagnosis: My Problem Demonstrated

Brewmaster● Partial orders affecting profits

We could better track when each brew is able start● Late payments

Costing us penalty fees Causing delays in delivery of subsequent orders

● Receiving not notifying the brewers Accounting Manager

● Receiving unnecessary invoices for approval ● Not receiving invoices for approval that I should be receiving

Receiving Agent● Blame game from Accounting● Brewers make us do multiple trips back and forth because they forget items● Receive POs for items with distant deliveries mixed in with current deliveries

Self Diagnosis: Vague Vision Demonstrated

Brewmaster● I want to become the number 1 craft

brewery!

● We need better scheduling so that we can increase profits

● If we can increase profits, we could brew at higher volumes

Self Diagnosis – Corrective Action

Self Diagnosis ● Provide a framework for the interviewee to follow how to describe the

process in terms of people, actions and artifacts needed to execute Middle of the Process

● Define Starting Point – How do you know you have something to do in this process? What triggers you to take action? What are the expected inputs and outputs of this role?

● Define ideal completion point and high frequency, high impact exceptions My Problem

● Investigate stated external factors negatively impacting the role separately Vague Vision

● Recognize that vague visions lead to vague results● Use the vision as a starting point ● Zoom into details of the vision

Focus on Exceptions Demonstrated

AP Clerk● Vendor Documentation Exceptions

Barley Breeze – different invoice format every time Duplicated invoices spanning multiple purchase orders

● International Vendor Exceptions Currency issues causing additional work for international orders

● Personnel Issues Brewers forgetting add all ingredients needed on the initial order Orders missing paperwork – requires redo of Purchase Orders

Focusing on Exceptions – Corrective Action

Exceptions Dominate the Interview● Maintain focus on Core Process● Recognize when the discussion is getting off track● Reset the conversation to focus on the ideal state of the process

Frequency is Ambiguous● Ask about Frequency● How Often does this happen? How bad does it affect us?● (Event Impact) X (Frequency) = total business impact

Impact to the Business is not Covered● Investigate stated external factors negatively impacting the role separately

Exceptions – Impact versus Frequency

Moderate InterestException

High Interest

Rule

Low InterestException

Moderate Interest

Rule

Business Impact

Frequency

Not Getting All Perspectives Demonstrated

Approval levels● AP Clerk say values are $250 for Accounting Manager review and $1000 for

Brewmaster review.● Accounting Manager & Brewmaster says values are $500 for Accounting

Manager review and $5000 for Brewmaster review.

Production Goals● Brewmaster wants to increase production rates by 15% by decreasing the

overall cycle time from requisition to batch completion.● AP Clerk delays orders by 5 days due to brewers frequently submitting

incomplete requisitions

Not Getting All Perspectives – Corrective Action

Trust but verify the information provided is accurate● Follow up with all resources involved with the process● Maintain an environment of confidentiality

Validate stated issues are experienced by others● Revisit and observe end users for demonstrated behavior● Collect feedback on possible solutions

Gaining Consensus is Key● When differences are identified, bring the team back together and

establish a common understanding of the process.

Up Next: Session 2

Common Design Pitfalls