The Enterprise Management Education Series Module

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The Enterprise Management Education SeriesModule
6 Process Management

• Continuing Our Journey toward Excellence...

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Translating Strategy into Action
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It is not the strongest of the species that
survive, nor the most intelligent, but the one
most responsive to change. Charles Darwin
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Video Herding Cats
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Business Process Management Principles
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Business Process Management

• A view of Sarasota County Government from the
  perspective of a customer/ stakeholder / citizen
  
• Citizen typically does not care how many Business
  Centers or Units combine together to deliver a
  product or service
  
• They view the County holistically

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Why the Interest in Business Process Management?

• Customer Stakeholder Focus
• Efficiency
• Delivering more, better, faster and cheaper
• Transparency
• Consistently knowing the outcome of your
  processes
  
• Having visibility into obstacles
• Having the means to assess improve
• Agility
• Ability to adapt quickly to changing community
  challenges
  
• Ability to shift goals or get into new areas by
  providing the enterprise with the ability to
  quickly and efficiently create new business
  processes

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Can you Get Measurable Results (Competitive
Advantage) from BPM?

• Yes if you
• Demand more efficiency and productivity from your
  people
  
• Are looking to reduce/reallocate resources
• Rely on hundreds of manual processes to run your
  business
  
• Differentiate your business through unique and
  complex processes
  
• Need to mitigate risk and meet compliance
  rules/deadlines
  

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What is a Process?

• A process is a series of activities or steps
• involving people, equipment, procedures, and
• material that produce a product, service, or
• other output, to obtain a desired outcome.
• Every process has
• Inputs
• A sequence of steps
• Outputs
• Cycle Times

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System Group of Related Processes
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A Continuous Flow
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Enterprise Processes Cross Traditional
Organization Charts
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but in reality
a web of processes
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Horizontally Integrated Business Process Value
Chain
A process can be seen as a value chain. By its
contribution to the creation or delivery of a
product or service, each step in a process should
add value to the preceding steps
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Process crosses Functional Boundaries
Rezones Special Exemption Process
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Tie Between Strategy, BPM and Project Management
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Number One Root Cause for Failure Nothing New
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Business Change Common sense must win the day

• Business change must be performance driven
• Business change must be stakeholder based
• The Business must be segmented along business
  process lines to synchronize change
  
• Business processes must be managed holistically
• Process renewal initiatives must be conducted
  from the outside in (Customers View)
  
• Business change is all about people
• Business change is a journey, not a destination

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Business Process Management the Balanced
Scorecard
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Key Elements of the Scorecard

• Community Enterprise Strategic PlanThe
  framework that communicates strategies, goals and
  objectives that support the vision of the Board
  of County Commissioners in delivering services
  that reflect community priorities.
• Core Service An organizational structure
  responsible for operations grouped together
  (across functional areas) due to the consistent
  nature of services performed, to serve a common
  set of customers and to gain economies of scale.
• Deliverable The products(s) and/or service(s)
  provided to the community.
  

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Enterprise Scorecard Template (Strategic Plan)
Core Service Template (Business Plan)
Business Process Template
Process Activity Template
Employee Template
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Business Process Redesign
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Steps of Business Process Redesign
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1. Preparation
Steps of Business Process Redesign

• Senior level commitment
• Sponsorship
• Alignment with Enterprise strategy /outcomes
• Team organization
• Identify the output

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2. Understanding
Steps of Business Process Redesign

• Current business processes
• Current performance and measurement data
• Identify process customers and needs assessment
• AS-IS process

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3. Direction
Steps of Business Process Redesign

• Process Scope, feasibility, and impact
  statements
  
• Return on Investment - ROI
• Benchmarking, Best Practices
• Vision and targets for new process
• To-Be process
• Value / Non value added
• Characteristics of good processes
• Process design issues
• A professional is someone who has the
  responsibility of achieving a result rather than
  performing a task.
  

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3. Direction
Steps of Business Process Redesign

• How to Improve Current Process?
• Reduce non-value added steps
• Define standards at decision points
• Time box around decision point that has rework
  activity
  
• Analyze process inputs and desired performance
• Analyze handoffs
• Automate repetitive steps
• Analyze and reduce cycle time
• Do things in parallel
• Cut out the middle man
• Redesign form

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4. Redesign - Technical Process
Steps of Business Process Redesign

• Process Improvement Technical Implications
• Technical Change Requirements
• Design, Test/Pilot, Train, Revise, Approve

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5. Redesign - Human Process
Steps of Business Process Redesign

• Assess Human Capability
• Process Improvement Human Implications
• Human Change Requirements
• Design, Test/Pilot, Revise, Train, Approve

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6. Implementation
Steps of Business Process Redesign

• Overall implementation plan for new TO-BE
  process
  
• Stakeholder issues resolution
• Business system integration
• People evaluation, selection, testing
• Pilot testing, tracking, evaluation, modifying
• Certification
• TO-BE implementation

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7. Review / Operate / Maintain
Steps of Business Process Redesign

• Process Ownership
• Monitor Change Process- Stakeholder feedback
• Adjust Process as required Continuous
  Improvement
  
• Monitor Performance- Scorecard perspectives
• Conduct Continuous Training and Support programs
• Performance/Status/Problem Reports
• Service Level / Operational Level Agreements

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Basic Tools used in Process Improvement
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Steps of Business Process Redesign
Brainstorming Check Sheet Interviews Surveys  
Process Model Cause and Effect Why technique
  Balanced Sheet Decision Matrix List Reduction
Nominal Group Technique
Check Sheet Interviews Surveys   Histogram Pr
ocess Model Pareto Chart Run chart Why Techniqu
e
Brainstorming Check Sheet Interviews Surveys  
Process Model Cause and Effect Why technique
Histogram
Pareto Chart Run Chart
Process Model Gantt Chart Project Plan Scope
Brainstorming Check Sheet Interviews   Process
Model
Balance Sheet Criteria Rating Form List Reductio
n Nominal Group Technique   Brainstorming Inte
rviews   Process Model Gantt Chart Project Pla
n Scope
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Generating Ideas and Collecting Information

• Brainstorming
• Check Sheet
• Interviews
• Surveys

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Generating Ideas and Collecting Information
Brain Storming

• A powerful way to generate input.
• Working in a team setting, people express their
  ideas the moment they think of them.
  
• It is an informal process.

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Generating Ideas and Collecting Information
Brain Storming
Three methods of brainstorming
Free-wheeling Round-robin Slip metho
d
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Generating Ideas and Collecting Information
Check Sheet
Used to determine how often an event occurs.
Information is usually collected for events as
they happen. Although intended mainly to tr
ack (not analyze) data, they often help to indi
cate why a problem may be occurring.
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Generating Ideas and Collecting Information
Check Sheet
Example A check sheet prepared by a telephone
coverage team.
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Generating Ideas and Collecting Information
Interviews
A structured techniques for collecting
information from individuals or groups.
Can be a very efficient means of data collecti
on having access to people who have the info
rmation you need. Its often the best way to l
earn about your customers needs and expectati
on.
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Generating Ideas and Collecting Information
Surveys

• Much like interviewing but on paper.
• Major advantage - Can get a great deal of
  information from a lot of people very
  economically.
  
• Downside People may interpret questions
  somewhat differently than intended Answers may
  be ambiguous No opportunity to test
  understanding.
• Closed or Open-Ended Questions.

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Analyzing and Displaying Data

• Process Model
• ROI
• Cause and Effect Diagram
• Run Chart
• Pareto Chart

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Analyzing and Displaying Data
Process Model
An activity-based, schematic picture(s) used to
describe a process being studied.
It outlines a sequence of actions that allow a
reviewer to examine how activities in a process
relate to each other. It helps you uncover sourc
es of delays,bottlenecks, rework and other
pitfalls. It also shows improvement and allows f
or assigning measures.
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Analyzing and Displaying Data
Process Model
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Analyzing and Displaying Data
Return-On-Investment (ROI)
An important factor for justifying and
monitoring the success of projects.
Used in conjunction with process improvement mo
dels (As-Is and To-Be) to illustrate and
determine cost recovery periods or related
benefits associated with process improvement
project.
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Analyzing and Displaying Data
Return-On-Investment (ROI)
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Analyzing and Displaying Data
Cause and Effect Diagram
Systematic way to pinpoint various factors that
may be causing the problem. It is also called
Fishbone Diagram The effect (problem) is the
head of the fish Main bones represent major c
ategories of causes Equipment, Method,
Personnel, Environment (suggestions only).
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Analyzing and Displaying Data
Cause and Effect Diagram
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Analyzing and Displaying Data
Run Chart
Allow a team to study observed data (a
performance measure of a process) for trends or
patterns over a specified time period.
Graphs the results of a process such as delays,
errors, rework, etc. as they vary over time.
Focus attention on truly vital changes in the
process, i.e. when six or more points run on
one side of the average.
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Analyzing and Displaying Data
Run Chart
Number of Fee Calculation Errors by Month
(October 2003 - September 2004)
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Analyzing and Displaying Data
Pareto Chart
A form of a vertical bar graph that helps to
reveal problems by the frequency of their
occurrence in a process. Pareto analysis involve
s identifying the vital few contributors that
account for the most problems in a process.
Also called the 80-20 rule, meaning that 80 of
the problems are often due to 20 of the causes.
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Analyzing and Displaying Data
Pareto Chart
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Reaching Consensus

• Balance Sheet
• List Reduction
• Voting Approaches
• Simple
• Ranking
• Decision Matrix

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Reaching Consensus
Balance Sheet

• Allow a group to identify and review the pros and
  the cons of various options.
  
• Like the other tools for reaching consensus,
  balanced sheet wont make decisions. It will,
  however, organize the information and facilitate
  discussion among group members

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Reaching Consensus
Balance Sheet
Difficult for one individual to dominate Eve
ryone is encouraged to
take part
Difficult to wait ones turn Some loss of energ
y
Can be used with very large groups Anonymity
allows sensitive
topics to surface
Not possible to build on ideas of others Sl
ow
Some ideas not understandable
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Reaching Consensus
List Reduction

• If needed, clarify the meaning
• Eliminate or combine duplicates
• Use letters rather than numbers to list each idea

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Reaching Consensus
Voting Approaches Simple Ranking Decision M
atrix
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Reaching Consensus

Simple

• Decide on number of votes for each team member
• Ways to vote
• Dots
• Show of hands
• Slip method
• Total votes from team members

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Reaching Consensus

Ranking

• Each member of the group ranks the top items in
  order of importance (decide on number of votes
  for each team member)
  
• For ranking, decide if 1 is the most or the least
  important
  
• Combine rankings for all team members and order

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Reaching Consensus
Decision Matrix

1 low rating

3 medium rating

5 high rating

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Process Repository

• Process repository is a centrally
  located collection of processes used throughout
  Sarasota County.  You can narrow the list either
  by selecting a Core Service and/or Business
  Process from the drop down lists or search for a
  specific process by entering a key word.
• Link http//scgdev/oed/tpmDefault.asp

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Questions