Qeb Exec Summary Constellation Energy
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Qeb Exec Summary Constellation Energy

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Quality Executive Board summary of Webinar conducted on accelerating process excellence adoption

Quality Executive Board summary of Webinar conducted on accelerating process excellence adoption

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Qeb Exec Summary Constellation Energy Qeb Exec Summary Constellation Energy Document Transcript

  • Quality Executive Board™ Accelerating Process Excellence Adoption by Business Partners An EPNDesk™ Session with Bruce Rideout, Vice President, Business Performance Improvement Constellation Energy EPNDesk Session Summary Bruce Rideout is the Vice President, Business Performance Improvement (BPI) at Constellation Energy. Prior to his current role, Bruce was the program leader for Constellation Generation Group’s Fleet Business Transformation & Infrastructure Program. In both of these roles, Bruce worked to identify, shape, and drive business transformation across a diverse business enterprise. Previously, Bruce was Vice President, Operational Excellence with Tyco Plastics and Adhesives, and served in a variety of positions with GE Plastics and General Chemical. Bruce is a Six Sigma Black Belt and Master Black Belt. Overview of Constellation Energy’s Business Featured Companies Performance Improvement Group and Executive Insight Constellation Energy, a Fortune 125 competitive energy company, is a leading provider of energy services. The nation’s largest supplier of competitive electricity to large commercial and industrial customers, Constellation Energy is the preferred partner of two-thirds of the Fortune 100, dedicated Bruce Rideout Vice President, Business Performance to being the energy company that is as competitive as its customers. The nation’s largest wholesale Improvement, Constellation Energy power seller, Constellation Energy operates over 78 generating units including nuclear, fossil, renewable & alternative plants capable of producing more than 8,700 megawatts of power, serving customers throughout the United States. Constellation Energy has experienced exponential growth over the last several years through acquisitions, new construction, and organic growth. ‘‘ Constellation Energy’s Business Performance Improvement (BPI) Group focuses on helping people You need to ask yourself—do I have bridge the gap from current state to future state in the quickest and most efficient way. Since the BPI a seat at the table with my business Group partners with individual business units, they are able to successfully provide problem solving, partners? As drivers of process change management and project execution leadership to key business transformation initiatives, with excellence, we are helping to facilitate ‘‘ the development of the strategy the a goal of favorably impacting the bottom line. development of the business strategy management process. Imperatives to Becoming a Strategic Partner #1: Understand the Business’ Needs • Constellation Energy Action: Get Involved Up Front in Business Planning Sessions— The BPI Group recognized that they needed to get involved earlier in business leader ‘‘ planning sessions to influence and support them with strategy formulation. The BPI Your business partners will always Group spends time with business units and staff functions to assist in aligning with their say they have 15, 50, 100 things business strategy. Getting involved earlier with the business makes it easier to get buy-in to do. The job of process excellence is to help them prioritize their top- from business leaders on project strategy formulation. ‘‘ tier activities. This is how you build #2: Build Credibility with Business Partners a healthy dialogue and establish • Constellation Energy Action: Select a Few Key Projects to Work On, and Execute credibility. Them Well—Instead of partnering on too many projects, the BPI Group found that they could secure credibility by picking a few projects and successfully executing against them. They work closely with business partners to sequence and prioritize projects that will deliver the most strategic value to the organization. This enables them to focus their resources on a few core projects which lead to successful execution and increased credibility with the business. EPNDesk Session Summary QEB1ABWBR5 | 1
  • Quality Executive Board Accelerating Process Excellence Adoption by Business Partners |2 Imperatives to Becoming a Strategic Partner (Continued) #3: Pick the Right Metrics • Constellation Energy Action: Measure Success Based on Achievement of Strategic Business Results—The BPI Group found that many key performance indicators (KPIs) do not monitor the linkage between project stages and the original strategy. The BPI Group is continuing to assist business units in the development of a strategy tracker to establish this ‘‘ linkage. This will allow them to keep strategic goals in sight and redirect projects, as needed, You must ensure that strategy in the event they shift during execution. does not become the document you create and then put on a Conversation #1: What has been the biggest barrier to shelf and bring out only once driving business leader adoption of process excellence ‘‘ a year. It needs to be a living methodologies? breathing document throughout the project execution process. Constellation Energy Overview • The most common barriers to the adoption of process excellence is the lack of familiarity among senior leadership. However, once they experience process excellence fi rst-hand and see the results, senior leadership often tends to be among its biggest proponents. • Rather than initially focusing on senior leadership buy-in, the BPI Group primarily targets mid-level management to educate them on the value proposition of process excellence. This group has the credibility to influence up and down the chain and often has a better understanding of the business’ pain points. For these reasons, the BPI Group relies on middle management to influence senior leadership and front-line employees on process excellence decision making. • Another barrier the BPI Group faces is a lack of acceptance and support among certain business units. In this case, BPI develops a clear engagement strategy for each business unit, which helps our group focus on the businesses they can most effectively partner with, while not wasting resources in areas where the barriers to involvement remain too high. Key Takeaways • Focus on a “middle-up” strategy as a way to educate the organization on the benefits of process excellence. • Develop a clear engagement strategy for each business unit to ensure efficient partnerships. Conversation #2: Does the process excellence group at Constellation Energy have a tagline that helped propagate the process excellence movement? Constellation Energy Overview • Initially, the BPI Groups’ branding approach focused on training. Many employees rotated through the process excellence group to gain key skills in project execution. Now, the BPI Group is rebranding itself away from a training-centric function to that of a strategic business partner. • The BPI Group makes their project execution tools available to anyone in the organization ‘‘ We’re continuing to do everything through Constellation Energy’s online portal. This helps brand the group as a resource center we can to attract the right talent that anyone throughout the organization can utilize for education and project execution help. to Quality. There’s no better • The BPI Group has also explored the use of online collaborative tools, such as Wikis and way to show value than to have practice communities, to help increase the transfer of knowledge and stimulate conversation ‘‘ people experience what we have among the various project leaders. to offer first hand by doing a Key Takeaways rotation through our group. • Make process excellence a destination function for people in the organization to increase the visibility and value proposition of the group. • Enhance the process excellence community using online portals and Wiki technology to transfer knowledge and stimulate conversations across the organization. EPNDesk™ Session Summary QEB1ABWBR5 | 2
  • Quality Executive Board Accelerating Process Excellence Adoption by Business Partners |3 Conversation #3: What are some early indicators that you look for in project/program failure? Constellation Energy Overview • The BPI Group forms a Quality Assessment Group, composed of process excellence professionals and business unit employees, to conduct an organizational health check. • The cross-functional composition of this team gives the business unit visibility into the health of the project. It also enables efficient knowledge transfer and cross-pollination of ideas. • The assessment includes asking relevant business questions on problem identification, project scope, governance, and team structure. By reviewing these key components, the business can effectively monitor the elements of success within their project. Key Takeaways • Develop a health-check process to ensure consistent review of ongoing projects. • Create cross-functional assessment teams to ensure that all key stakeholders are involved in the process. Executive Productivity Additional Questions Network™ Member Question: You talked about partnering from mission to metrics and EPNDesk ensuring the selection of the appropriate tools/deployments? What you recommend? Bruce Rideout : There are a lot of materials out there—we’ve gravitated to the balanced scorecard. The potential concern is that if people have had bad experiences T h e Q u a li t y E xe c u ti ve B o a rd with certain components of the balance scorecard, they may have internal barriers is p l e as e d to p re s e nt m e m b e r to overcome. I think it also depends on what you’re trying to do. It’s just all about p e r s p e cti ve s f ro m t h e making sure you have the line of sight—keep it fresh, month to month, every quarter E xe c u ti ve P ro d u cti v i t y N et wo r k and ensure the measurement capabilities are there. If you have a list of initiatives and ( EPN ) D e s k. T h e EPN D e s k you’re talking to your governance and leadership teams about them, you need to make e n a b l e s exe c u ti ve s to j o i n sure you can track what strategic theme they tie back to. to g et h e r i n a di a l o g u e o n t h e m o st p re s s i n g is s u e s fa c i n g Member Question: What are some of your observations about the tremendous t h e f u n cti o n a n d g et p ro m pt, progress seen in the financial services area with regard to process excellence a cti o n a b l e a d v i c e f ro m ot h e r adoption? l e a di n g Q u a li t y a n d P ro c e s s Bruce Rideout : Some banks have seen great success with their Six Sigma E xc e ll e n c e exe c u ti ve s a c ro s s programs. Intuitively we may all think that process excellence is just reserved for t h e g l o b e. the manufacturing space, but it’s not. Six Sigma/Lean is really just about creating a methodology so that you can drive a continuous improvement culture. Many banks I f yo u wo u l d li ke to j o i n have done a nice job linking a lot of their activities back to their strategy, whether u p c o m i n g EPN D e s k S e s s i o n s, they are productivity or growth-related—thus creating a tremendous amount of p l e as e c li c k h e r e to re g iste r alignment. By removing touch points, linking initiatives back to strategy and getting a n d v i ew o u r We b s i te. people to think differently about a continuous improvement culture, they have seen explosive growth. Washington, D.C. • Chicago • San Francisco • London • New Delhi • Sydney www.qeb.executiveboard.com QEB1ABWBR5 © 2008 Corporate Executive Board. All Rights Reserved.