Title: Seven Deadly Sins of Business Process Improvement
1Seven Deadly Sins of Business Process Improvement
- Gregory C. Oberland
- Sr. Vice President
- Insurance Operations
2Business 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
3Seven Deadly Sins
- 1
- Lack of a continuous process improvement culture
at all levels in the organization.
4Seven Deadly Sins
- 2
- Failing to determine whether a business process
is a competitive advantage before implementing
solutions.
5Key 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)
6Principles
- 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)
7Business Decision Support
Financial Reporting
Transaction Processing
8High
Analytical/ Decision Support
Low
High
Low
Cost/Cycle Time
9Seven Deadly Sins
- 3
- The inability to take an enterprise view on
certain business process issues/projects.
10Seven Deadly Sins
- 4
- Engaging in complex business process projects
without having a long-term plan/vision.
11Seven Deadly Sins
- 5
- Not having the right people with the right
resources working on business process
improvements.
12Profiled 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
13Reporting Structure
CEO / High level management
Division A
Division B
Division C
Division D
Division E
Champion
Champion
Champion
Champion
Champion
Four business improvement staff
14Seven Deadly Sins
- 6
- Underestimating the amount of time, energy and
work involved with successfully implementing
change.
15Faced 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
16Clean 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
17Preparing 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
18Sell 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
19Seven Deadly Sins
- 7
- An absence of high-level leadership in business
process improvement initiatives.
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