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Seven Deadly Sins of Business Process Improvement

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Seven Deadly Sins of Business Process Improvement Gregory C. Oberland Sr. Vice President Insurance Operations – PowerPoint PPT presentation

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Title: Seven Deadly Sins of Business Process Improvement


1
Seven Deadly Sins of Business Process Improvement
  • Gregory C. Oberland
  • Sr. Vice President
  • Insurance Operations

2
Business Process Improvement
multiple jobs, processes and functions
VERY LARGE
VERY HIGH
multiple jobs and processes
multiple jobs
SMALL
VERY LOW
Change Management Complexity
Savings Opportunities
3
Seven Deadly Sins
  • 1
  • Lack of a continuous process improvement culture
    at all levels in the organization.

4
Seven Deadly Sins
  • 2
  • Failing to determine whether a business process
    is a competitive advantage before implementing
    solutions.

5
Key Decisions
  • Look at work processimprovements first
  • Use PeopleSoft financial modules unless proven
    otherwise
  • Do not customize software(configure is OK)
  • Financial process is generic (vs. core)

6
Principles
  • Drive down costs (vs. control increase)
  • Reduce cycle time (speed matters)
  • Keep it simple
  • Easier to use (more intuitive)
  • Lowers cost
  • Makes it faster
  • Continuous improvement
  • Keep score (measurement)

7
Business Decision Support
Financial Reporting
Transaction Processing
8
High
Analytical/ Decision Support
Low
High
Low
Cost/Cycle Time
9
Seven Deadly Sins
  • 3
  • The inability to take an enterprise view on
    certain business process issues/projects.

10
Seven Deadly Sins
  • 4
  • Engaging in complex business process projects
    without having a long-term plan/vision.

11
Seven Deadly Sins
  • 5
  • Not having the right people with the right
    resources working on business process
    improvements.

12
Profiled Companies Change Management Team
Structure
  • Company Size Location Structure History
  • A 9 HR Matrix 4 yrs
  • B 30 HR Matrix 2 yrs
  • C 70 Prod. Line Decentralized 3 yrs
  • D 23 Corp. Decentralized 2 yrs
  • E 4 Corp. Matrix 1.5 yrs
  • F 8 Finance Ad Hoc 3 yrs

13
Reporting Structure
CEO / High level management
Division A
Division B
Division C
Division D
Division E
Champion
Champion
Champion
Champion
Champion
Four business improvement staff
14
Seven Deadly Sins
  • 6
  • Underestimating the amount of time, energy and
    work involved with successfully implementing
    change.

15
Faced with the choice between changing ones mind
and proving that there is no need to do so,
almost everybody gets busy on the proof
John Kenneth Galbraith American Economist
16
Clean Air Policy Transition
  • Research/Benchmarking
  • Survey of Employees
  • Task Force/Discussions with Union
  • Transitional Policy
  • Final Policy
  • Communications (included CEO message)
  • Support Programs
  • Changes to Building/Procedures

17
Preparing for Change
  • Clear Vision
  • Succinctly describe change and why it must
    happen.
  • Sponsorship
  • Get commitment from the top dog.
  • Understand/Address Organization Impact
  • Assess whos losing what? Address losses.
  • Plan
  • Develop detailed change plan.
  • Communication
  • Frequently communicate purpose, goal, plan,
    role.
  • Training/Integration
  • Assess how behavior has to change. Provide
    training.
  • Support

18
Sell Problems, Not Solutions
  • People let go of outlived arrangements and
    bygone values more readily if they are convinced
    that there is a serious problem that demands an
    ending.

Managing Transitions - Making the Most of
Change William Bridges
19
Seven Deadly Sins
  • 7
  • An absence of high-level leadership in business
    process improvement initiatives.

20
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