Discovery for Knowledge Work

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Discovery for Knowledge Work

  1. 1. Measuring Drivers of ProcessEfficiency and EffectivenessAKA’s Discovery Method May, 2012
  2. 2. AKA’s Discovery Method - a rapid “MRI” of any as-is business process ANY process or “issue of interest”: ̶ Transactional (Underwriting, Claims, Order-to-cash) ̶ Customer facing (Call centers, customer service, field sales force) ̶ Knowledge Intensive (Systems Testing, Help Desk, Business analysis, etc.) ̶ Issues (e.g. drug rehab program managers, Customer QC, etc.) Uses existing process models or builds its own Calculates task frequency and level of effort At the point of task completion, collects information about task efficiency and effectiveness drivers Delivers quantitative and qualitative process data, concurrently collected An effective resource for process analysis and design, opportunity discovery and investment justification analyses 1
  3. 3. How AKA’s Discovery method works Every time a participant performs a task we care about, we will know: ̶ How long did it take  Thus, how much did it cost ̶ How often was it performed ̶ What initiated the task (project or initiative identifiers) As tasks are executed, Discovery asks questions about that instance providing insights beyond simple task timings and costs. For example: ̶ Process Compliance questions allow us to know:  What is the rate of task satisfaction and compliance; what drives exceptions: time constraints, understanding of the task, acceptance of task’s utility, etc. ̶ Knowledge Management questions allow us to know:  What are the knowledge content requirements of a task; how effectively does the current process or tools enable use of knowledge; what are the issues resulting in knowledge gaps 2
  4. 4. Discovery provides hard data to establish opportunitiesin real, current, quantitative terms KM impact thru meeting preparation Discover & Adapt Internal Best Practices 50% reduction thru KM Low impact internal meetings 3
  5. 5. Case Example: Root Cause Discovery & Analysis Discovery: the 25% of bills were in paper form driving 62% of suspensions. Paper bills take 2x as long to handle Was source paper or electronic? Data Electronic Paper Overall Average Time 1.14 2.01 1.68 Pct of Units 38% 62% 100% Num of Units 2,684 4,439 7,123 Avg Cost/unit $ 0.48 $ 0.84 $ 0.70 Quantified the ROI of moving to 85/15 electronic to paper mix from 75/25 Current Future Suspensions per year total 1,053,000 843,414 From paper 656,223 393,732 From electronic 396,777 449,682 Paper suspend process costs $ 553,005 $ 331,803 Electronic suspend process costs $ 188,829 $ 214,008 Total Process costs $ 741,834 $ 545,811 Savings $ 196,023 Major productivity improvement for 30 person team 4
  6. 6. Case Example: Reduce cycle time & accelerate loanfunding ($4 million revenue gain) Time Lag: Application Arrival to Satisfactory Valuation16 1414 13 12 Average lag: 9.0 days12 Median lag: 7 days 1010 9 Issue: 39% apps need valuation ordered by 8 operator at assessment 8 Too often operator fails to order valuation Goal: Reduce average lag by 2 days by branch 6 ordering all valuations 5 Gain: loan starts 2 days earlier 4 3 3 3 2 2 2 1 1 1 1 1 1 1 0 Review Valuation Group1Days Lag: 1 2 3 4 5 6 7 8 9 10 11 12 14 15 17 19 22 51 101 5
  7. 7. Case Example: Knowledge Management leverage opportunities 80% of legal staff’s hours are spent on tasks with “High” improvement potential via Knowledge Management Improvement Opportunities 1. Technologies that reduce the time to do tasks 2. Technologies that combine and collapse tasks 3. Technologies that improve meeting-related productivity and/or necessity of having some meetings 6
  8. 8. Discovery Metric Study – Three Step Process TM1. Front End Study Engineering: Setup Application (PC) 2. Data Collection: Virtual PDA on PC 1 – 2 weeks 2-3 days 1 hour training + Learning curve 3. Results Reporting Clarifications Group Immediate 100 90Method Summary – 80 36 381. Collect and re-use existing process models or create an as-is 70 process definition 60 22 # Activities Data Transfer Retrieve work item, Apply the definition of as-is processes in the Discovery Tool 50 Process Item to res Enter notes2. Participants self-record process data using the Virtual PDA 40 31 28 application on their PC’s 26 15 30 Data collection is usually 1 week 14 6 20 103. Collected data is analyzed by Discovery’s powerful reporting 27 26 24 11 6 10 8 engine 6 2 14 10 7 8 4 4 4 3 0 1 Pre 8am 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 After 5pm Hourly Time Slot 7
  9. 9. Next Steps Identify processes and functions in need of analysis Craft scope of a project ̶ As few as 10 to 20 participants, up to 100 ̶ Select pilot focus ̶ Engineer, train, deploy, collect data and analyze/present results Contact AKA Group, LLC to find out how to get started ̶ Ira Feinberg Partner/Practice Lead (917) 705-4148 ̶ Doug Brockway Partner (617) 834-0067 ̶ Allan Frank CEO (610) 331-8484 ̶ www.akaplex.com 8

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