Managing for Results1. Leadership

2. Team Effectiveness

3. Communication

4. Strategy & Planning for Results

5. The Changing Workplace

6. Conflict Resolution

7. Process Management8. Managing Performance

9. Due Diligence

10. Managing Diversity02·1

A enda

• Overview• Developing a Process Perspective• Why Process Orientation?• Workflow, Types of Work• Successful Processes• Managing Processes• The 6-Point Checklist• Process Improvement vs. Reengineering• Process Mapping and Review• Redesign and Implementation• Conclusion

02·2

Ob-ecfives

• discuss the concepts of ProcessManagement

• distinguish between Process Improvementand Reengineering

• map a work process

• review a process for inefficiencies

02·3

S stems and Processes

A SYSTEM is a network of independant partsthat come together to achieve a specificpurpose. The parts of systems are connectedby relationships and processes.

PROCESSES are:

• the way work gets done

• a series of activities that transform inputs intooutputs

• a group of tasks that create value for thecustomer

02-4

Wh a Process Orientation?

Processes are the heart of anenterprise, how it creates anddelivers value to its customers.

It is important that we manage the ways by whichwe accomplish work and work goals, to do theright things, in the right way, at the right time,without wasting resources. We must apply bothpeople-oriented and technical skills to processmanagement !

02-5

Process Orientation Focusses on the End Result

02-6

Wh a Process Orientation?

02-7

• Key Business Objectives are dependent oncross-functional business processes.

• products and services that go to the customerresult from a variety of processes.

• as business environments change, businessprocesses can react too slowly or be ignored.

• Lack of process management results inbusiness processes becoming obsolete,overextended, bureaucratic, rigid, inefficientand non-competitive.

• Quality problems exist largely because theprocesses don't make sense any more.

Process Observations

02-8

• Carl Aspler, GE Canada

• everything in life is a process

• life is a spaghetti of intertwining processes

• even the simple processes are more complicatedthan they first appear

• most processes involve a multitude of people

• the opportunity of things going wrong is a function ofthe length of the process and its' complexity

• every process has some sort of regulationmechanism

Without Process Orientation We Risk:

• losing touch with customers

• losing stakeholder confidence

• territorial silos that inhibit cooperative work

• missing opportunities for improvement

• becoming obsolete

• losing out to competition

• rise in overhead costs

• lower productivity

• going out of business

02-9

WorkFlow

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Dn02-10

Four Types of Work

1~ ~

1. Strategic Work

2. Core Work

3. Support Work

4. Management Work

02·11

VALUE

In managing work processes, it is important thatwe consider:

Value- Adding Tasks, where we work for thecustomer,

Non-Value Adding Tasks, where we work forourselves, and

Waste, where we work for nobody.

02-12

Successful Processes

EFFECTIVE• achieve the desired result, as defined by customer

needs, stakeholder expectations, and businessrealities

• all activities add value and waste is eliminated

EFFICIENT• accomplish the desired result with minimum use of

resources, without compromising on quality• minimal interfaces, steps, activities, no duplications• common information sources, simple

02·13

Mana a Process

• Managers manage the Process

• Employees manage the Work

02-14

a Process Means

• ensuring team members know the process• ensuring team members know roles and

responsibilities• establishing direct performance measures• establishing process measures• resourcing the process• coaching and guiding team members• reviewing process efficiency and effectiveness• determining how change impacts on the process• implementing positive changes to the process• managing issues, boundaries, & resolving problems

02-15

Process Issues to be Mana ed

o

02-16

6-Point Checklist

Strategy

Processes

/PeopleRewards --

Structure

G02-17

Process Improvement Cycle

Measure andAssess Process

Performance

Select Process and Team

'\Determine Customers Identify ~ Set Goals

and Their Needs, -~ Performance - Map ProcessBenchmark Competitors Gap t

Assess performance,Select Improvements

t I----tModify Replace

Process Process

t ~_I~==I---II____ Evaluate ......_ .Results

02-18

Process Improvement vs

PROCESS IMPROVEMENT

Refines Processes

Incremental Steps

Bottom - Up

IT Useful

a way of life

REENGINEERING

Re-invents Processes

Quantum Leaps

Top - Down

IT Essential & Enables

disruptive02-19

The Reen • •Ineerln Process

Mobilization ...Diagnosis ... Redesign ... Transition

identify process to bound and scope develop vision establish measuresbe reengineered process

implement pilotcreate breakthroughappoint process map current process design concept realize initial benefitsowners

understand customer identify improvementsneeds &stakeholder develop supportassign team

members objectives develop and test infrastructure

formulate BPR identify weaknessesmodels, learn, improve rollout

strategy, schedule in exisiting design develop institutionalize

determine process set targets for new implementation planimplement

prioritization designs succeedinQ releases

Leadership Resources Insi~ht Desi~n

Get organized.... Get oriented... Get creative... Get real02·20

Process Mapping

PROCESS: Process Owner:

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Time/~

Sequence

02-21

Benefits of Usin a Process Ma

• enables you to see the whole process

• helps to see how events are linked

• helps to see who is involved

• provides a basis for thinking through a difficultprocess in a simplified, visible manner

• helps to identify areas where work can be takenout, simplified, consolidated

• helps the team to focus on facts and operationsrather than personalities.

02-22

Process Mapping Procedure

• Have all cross functional team membersdescribe their activities as related to the process.

• Ensure each activity is logical. Record these asan action "verb - noun" combination - with inputsand outputs.

• Sequence activity steps in order.

• Record work times for each activity step.

• Record times between activity steps.

• Construct a rough version of the process map,then review and finalize it.

02-23

A Process MaCUStomSIS:

Senior manager,SupelVisor,Employee PERFORMANCE APPRAISAL PROCESS (Owner - W. Xyzhr)

c E F F1IDevelop 1- Implement OngoingAchieveindividual goals action plan~ review: ~

Self Assess adjust goals, goals

knowledge, 'r action planD G

skills, abilities

twhen needed

Completeals Employee & LeadeKnow job -- agree on goals ~ formal annual

ish description Develop action performance

t InIan to meet aoals review &establish

EstablishCoach, Maintain coming year'sInput to criteria &

development of feedback on anecdotal individual

individual aoalsmeasures

nerformance goals

'r

Coach, provide Feedback onfeedback on perfonnanceperformance

tI

Feedback on Feedback onI performance I perfonnance

Establteam

oals

B

Input toteam go

Establishbusinessunit goals

Establishprojectrequirements

Leader

BranchDivisionO.U.Leader

Customer

Employee

X·FunctionLeader

Time A1° 1

B • C • 0 .10 '_11.)1: ..o(E------ e· F· F1

The Most Common Mistakes...

• relabelling functions as processes

• taking an introspective point of view

• failing to specify inputs and outputs

• drawing boxes first

• using inappropriate names

• being influenced by structural considerations

• diverging from the business strategy

• expecting to get it right immediately

02-25

Processes Must Add Value

• Real Value:value that the customer recognizes ascontributing to the product or service

• Business Value:value in a process step that ensures safety orquality of the operation

• No Value:any activity that does not add real or businessvalue

02-26

Common Process Inefficiencies

• Controls

• Hand-Offs

• Duplication

• Error Correction

• Territorialism and Silos

• No-Value Added Activities

• Lack of Knowledge of the Process02-27

Effects of Process Deficiencies .

• delays, slow cycle time

• cost overruns, high overhead

• bottlenecks or backlogs in work flow

• critical issues lost

• blurred accountability

• employee dissatisfaction

• customer dissatisfaction

02-28

Process Review

• examine each step of the mapped process forpurpose, value and significance

• look beyond the group for information and facts

• consider each step using the 6-point checklist

• examine the complete process to discover: whyit is done, what it looks like, how much work andresources usage is involved, who is involved,and insights into the workings of the process

• focus on what is of VALUE

02-29

Redesign Patterns

• relocate work• minimize connections• reorder steps• centralizing or decentralizing• integrating and compressing tasks• coordination of experts• eliminating non-value adding work• decreasing number of outputs• increasing alternatives for customers• reduce overhead and management• make decisions earlier or later

02-30

The Redesign Mindset

• think: customer customer customer!

• focus on leverage points

• increase value

• ask: "Is it worth it?"

• emphasize simplicity

• apply the right performance measures

• pursue the ideal

• test the limits

• treat problems as design issues

• avoid the familiar02-31

Implementation

• do as quickly as possible

• monitor changes

• apply chosen metrics

• identify unforseen problems

• expect and deal with mistakes as they occur

• always look for opportunties to improve more

• if a large change, start with a small pilot groupto pre-test the new process

• keep the customer involved

02-32

Summa

• Developing a Process Perspective

• Why Process Orientation?

• Workflow, Types of Work

• Successful Processes

• Managing Processes

• The 6-Point Checklist

• Process Improvement vs. Reengineering

• Process Mapping and Review

• Redesign and Implementation02-33