Creating a Process Based

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Creating a Process Based Management System for
ISO90012000
Version JP.10.1-UK Oct 03 ?The High Performance
Organisation Ltd
Creating a process based management system
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Outline of the day

• What is a process based management system?
• Introduction to process approach
• Designing the management system
• Process design process management
• Key performance indicators
• Implementing process management

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Session one
What is a process based management system?

• Learning points
• To understand the 8 quality principles of
  ISO90012000
• To understand what is meant by the term
  management system
• To be able to put process management in context

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The management systemDefinitions

• Management The action or manner of managing ..
  the conduct of affairs, administration,
  direction, control
• System A whole composed of parts in orderly
  arrangement according to some scheme or plan

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Is the human body a system ?
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Is the human body a system ? does it have?

• an orderly arrangement of parts?
• all parts have specific deliverables?
• all parts contribute to required outcome?
• all parts required for full performance?
• sub-optimal performance if any part is not fully
  functioning or properly connected ?

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Is a business a system ?

• Does (Should) a business have -
• an orderly arrangement of parts?
• a definite scheme or plan?
• all parts with specific deliverables?
• all parts contribute to required outcome?
• all parts required for full performance?
• sub-optimal performance if any part is not fully
  functioning or properly connected ?

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The management system

• Business structure defines the detail of the
  management system
• i.e. the parts to be managed
• parts are defined by the management

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Quality (business) principles

• Customer focus
• Leadership
• Involvement of people
• Process approach
• System approach to management
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationships.

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ISO 90012000 process model
Continual improvement of the management system
Management responsibility
Customer
Customer
Measurement, analysis and improvement
Satisfaction
Resource management
output
Requirements
input
Product realisation
Product
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System management
Customer satisfaction
Products Services
Economic
Environmental
Outcomes / results
Inputs
Law
Regulations
Society
Learn
Change
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The big picture
Systems process thinking
Management systems development
Corporate Social Responsibility / Corporate
Governance
Based on
Management skills development
ISO 90012000
Learning and change
setting off in the right direction is critical
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Session two
Introduction to the process approach

• Learning points
• To understand the high performance cycle and
  its links with ISO90012000
• To understand what processes are and why they
  operate across the organisation
• and not in department silos
• To understand the system, process and
  procedure relationship.
• (The difference between What we do and How
  we do it)

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High performing organisations
Determine customer stakeholder needs
Agree business objectives
Monitor KPIs improve
Define business processes
Establish KPIs
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Processes v silos
Dept 1
Dept 2
Dept 3
Dept 4
Deliver the service?
Service design development?
Customer focused
Business planning?
Communicating winning business?
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Departmental - silo thinking
Environment
Engineering
Planning
Local Land Charges
SLAs
SLAs
SLAs
KPI
KPI
KPI
KPI
What the business sees
95
95
95
95
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Processes - Joined up thinking
Environment
Engineering
Planning
Local Land Charges
New Efficiency and Effectiveness KPIs (stakeholder
/ customer needs)
What the customer sees
95
90
85
81
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Management system structure
Management system
Owner Head of scope

• measure business performance
• finance, customer, process

the what
A process
A process
Owner - Process Owner

• measure efficiency and effectiveness

A procedure
the how
Training Guide
Photograph
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1. What are the potential benefits of having
processes that run cross functionally?2.
What cultural issues does this raise within the
organisation?
EXERCISE ONE
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Session three
Designing the management system

• Learning points
• To learn how to scope your management system and
  identify the
• key business processes

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Management system structure
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A typical system?
Understanding the market
Business planning
Bringing about change
Enabling?
Monitor measure performance
Design / enhance services
Winning business
Deliver services
Managing after sales
Core?
Managing assets
Managing people
Managing finance
Supporting ?
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Points to remember

• Dont use functional / departmental names for
  processes
• Use organisational jargon not management jargon
• Has to be understood by everyone, including
  customers
• Organise processes to reflect the high
  performance cycle
• Think business first then the standard
• Cover all areas of the business
• Dont forget processes that cover stakeholder
  needs, business
• planning and bringing about change etc.
• Use the 8 quality principles to check everything
  is included

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Designing a system
EXERCISE TWO
1. Design a management system for a large
independent Supermarket
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System design session

• Facilitated half day for identification of
  processes
• Cross-functional senior management team
• Introduce business process management
• Focus on business performance not ISO90012000
• Cover all activities
• Add in others (best practice, ISO9001 etc)
• Get feedback from outside the meeting.

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A management system
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A management system
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Session four
Process design and process management

• Learning points
• To understand what a process is and how it can be
  mapped
• To understand what process management is and how
  this links
• to the overall performance of the organisation

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Management system structure
Management system
Owner Head of scope

• measure business performance
• finance, customer, process

the what
A process
A process
Owner - Process Owner

• measure efficiency and effectiveness

A procedure
the how
Training Guide
Photograph
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What is a process?
Transformation activity
Inputs
Output
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Extract from HPO process map
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(No Transcript)
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What is process management?
Organisation as a series of activities
Outcomes
Inputs
Measure against targets, learn improve
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Process management
Knowledge
Inputs
Outputs
Resources
Budget
Competence
Tar Act Var
Step 4
Step 1
Step 2
Step 3
Teamwork
Ownership
Learn
Change
Training Guide
Photograph
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Process owners role

• Identifying the process
• Identifying process KPIs
• Reporting process performance
• Holding process review meetings
• Approving and implementing process improvements

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Session five
Key Performance Indicators (KPIs)

• Learning point
• To understand the importance of KPIs in a
  process
• based management system
• To understand the importance of selecting the
  right KPIs
• To understand how system and process KPIs
  link together

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Linking KPIs at different levels
Stakeholder Needs ISO 9004
Customer Needs ISO 9001
Business (quality) objectives
Monitor Performance Improve
System KPIs
Processes
Process KPIs
Key performance indicators
shaped by the needs of stakeholders customers
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What is a KPI?

• Metric not a target, often percentage
• Measures efficiency (in the process) - process
• Measures effectiveness (of the process) - product
• Allows management by fact
• Managing processes not procedures
• Meaningful to those involved
• Utilise existing KPIs.

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Example KPIs

• People
• Staff turnover
• absenteeism / sickness
• enjoy working at organisation
• Process
• stock turnover
• on time delivery performance
• energy consumption
• Customer
• of market share
• of very satisfied customer
• of existing customer growth
• Finance
• Operating profit
• Debtor days
• return on investment

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The business focussed management information
system
Business objectives KPIs
Process objectives KPIs
People objectives KPIs
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EXERCISE THREE

• Why is the choice of KPIs so important?
• How can effective process management influence
  the performance of the overall organisation?

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Session six
Implementing process management

• Learning point
• To understand the key steps to be taken in
  implementing a process based management system
• To understand the key stages of the ISO90012000
  assessment process

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Project phases

• Design management system
• Identify processes
• Develop processes KPIs
• Set up management information system
• Review / develop procedures
• Implement changes
• Carry out process audits
• Compare with standard
• Improvement (KPI data audits)
• Registration.

Education Change
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ISO90012000 assessment process

• Obtain quotes agree assessment company
• Pre-assessment option
• The assessment visit itself
• Question the Auditor
• Decision on the day
• Follow-up action
• Continuing assessment visits

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Session seven
Summary
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Management system essentials

• Adding together all process outputs will deliver
  the strategic objectives
• Taking away any one output will not allow all
  strategic objectives to be met
• High performance cycle is embedded in both the
  processes and the system
• It is not just about process mapping
• It is a communication tool
• It is a live system - developing over time

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Guidance, advice support
In partnership with The High Performance
Organisation Ltd 01604 470837 enquiries_at_the-hpo.co
m www.the-hpo.com