11 Canal Center Plaza, Alexandria, VA 22314 T 800.663.7138 F 703.684.5189 www.robbinsgioia.com
Confidential and Proprietar...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Goal
 Understand how strong Process Management &
Process Improveme...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Overview
 Establish definitions – Risk, Risk Management,
Process, ...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Dictionary definition:
 (Exposure to) the possibility of loss, inj...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
 Economic risk
 Business & Operational risk
 Financial risk
 He...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC6
Perceiving Risk
Perceived
through
science
Virtual
Directly
Perceiv...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC7
Issue Management
Active Risk ManagementActive Risk Gathering
Ident...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Common Risk Management Strategies
8
Risk
Management
Strategies
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Process is…
 A process is a series of steps and decisions that
tra...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Process Management is…
 Process management is the ensemble of acti...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Process Management is…
…Complex
11
http://www.braincourt.de/Busines...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Process Improvement is…
12
“Not with inventions, but with improveme...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Succeeding at Process Improvement
• The most successful process imp...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Manage
Processes
Improve
Processes
Two Sides of the Same Process ‘C...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
 Business Processes are the means by which
organizations achieve t...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Traceability to Strategy
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
 Customers do not experience processes, they experience
a series o...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC18
Managing Uncertainty to Improve Outcomes
Hypothetical Example: Un...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
 This perspective increases understanding of
processes from a cons...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
 This two-fold, balanced approach helps the
organization enhance i...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
The Point of AllThis
 Risk Management is NOT separate from Process...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
Communication
“The two words ‘information’ and ‘communication’
are ...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
In Conclusion
 Do not think about Risk Management as separate
and ...
Confidential and Proprietary © 2014 Robbins-Gioia, LLC24
Questions?
Answers
Confidential and Proprietary © 2014 Robbins-Gioia, LLC
 Contact Information:
Mark Barnett
mark.barnett@robbinsgioia.com
25
Upcoming SlideShare
Loading in …5
×

Overcome Risk Using Process Management and Improvement

1,008 views

Published on

Process management helps to provide a line of sight from strategy through execution of organizational initiatives. Akin to the business analysis (BA) requirements discipline, this traceability enables performance maturity, better communication, clearer roles and responsibilities, and good governance. Clarification of problems or opportunities for improvement is integral to business analysis and process management. In each, you must elicit and clearly state a specific problem that quantifiably affects business/operation and that ultimately matters to your customers. Process management is
• an integral part of business analysis, implementation, improvement, and sustainability
• solves problems
• expedites risk identification, mitigation, and impact
In this webinar I will explain how to:
• tie process management to organizational strategy
• use process management as a foundation of good decision making, change management, and governance
• increase efficiency and value optimization throughout the organization.

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,008
On SlideShare
0
From Embeds
0
Number of Embeds
61
Actions
Shares
0
Downloads
39
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Overcome Risk Using Process Management and Improvement

  1. 1. 11 Canal Center Plaza, Alexandria, VA 22314 T 800.663.7138 F 703.684.5189 www.robbinsgioia.com Confidential and Proprietary © 2014 Robbins-Gioia, LLC Overcome Risk Using Process Management and Process Improvement
  2. 2. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Goal  Understand how strong Process Management & Process Improvement disciplines can be leveraged to overcome Risk Management challenges 2
  3. 3. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Overview  Establish definitions – Risk, Risk Management, Process, Process Management and Process Improvement  StrategyTraceability  A Portfolio Perspective  Overcoming Risk via Process Management and Improvement 3
  4. 4. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Dictionary definition:  (Exposure to) the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility. The ISO definition:  the 'effect of uncertainty on objectives' Risk is related to probability and severity:  “The probable frequency and probable magnitude of future loss” A Threat is a risk with potential negative outcomes An Opportunity is a risk with potential positive outcomes What is Risk? 4
  5. 5. Confidential and Proprietary © 2014 Robbins-Gioia, LLC  Economic risk  Business & Operational risk  Financial risk  Health, Safety & Environment (HSE) risk  Information technology & security risk  Examples Types of Risk 5
  6. 6. Confidential and Proprietary © 2014 Robbins-Gioia, LLC6 Perceiving Risk Perceived through science Virtual Directly Perceived
  7. 7. Confidential and Proprietary © 2014 Robbins-Gioia, LLC7 Issue Management Active Risk ManagementActive Risk Gathering Identify and Assess Risks Triage Risks Need Mitigation / Contingency Plan No Mitigation / Contingency Plan Needed Develop and Manage Mitigation / Contingency Plans Program Start (Stage 0) Assess New Risk During life of program Risk Becomes an Issue Execute Contingency Plan V Take Steps to Mitigate Risks Formal Risk Assessment (Stage 1) New Risk Identified For Each Risk OR VOR Revise or Add Mitigation Plans Close / Downgrade Risk Monitor Risks & Reevaluate as Needed • Identify and Rate Risks • Create Risk Management Plans • Monitor Risks • Identify and Rate New Risks • Execute Contingency Plans for Risks that have become Issues End-to-End Risk Management
  8. 8. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Common Risk Management Strategies 8 Risk Management Strategies
  9. 9. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Process is…  A process is a series of steps and decisions that transform inputs into outputs in order to deliver a product or service of value to customers while meeting the business objectives of the organization  Inputs can be material or information or both  The fundamental expectation is to produce good results for customers and the organization while managing problems or unforeseeable events. 9 In our definition, Process includes what we traditionally think of as ‘process,’ along with its enablers: People and Technology
  10. 10. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Process Management is…  Process management is the ensemble of activities of planning, monitoring and controlling process performance.  Planning: defining, designing, building, testing, deploying and measurement planning  Monitoring: measuring, tracking & trending, analyzing and interpreting  Controlling: taking actions within the current-state process to maintain process outcomes within the desired ranges 10
  11. 11. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Process Management is… …Complex 11 http://www.braincourt.de/Business-Process-Management.96.0.html
  12. 12. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Process Improvement is… 12 “Not with inventions, but with improvements you create fortune.” Henry Fordx  Process Improvement is a series of actions taken to define, analyze and improve existing processes within an organization to meet goals and objectives.  Adoption is necessary to realize the potential benefits.  Sustainability is required for benefits to be ongoing.
  13. 13. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Succeeding at Process Improvement • The most successful process improvement effort is one that concentrates on: • Increasing value to the Customer • Creating effective processes • Reducing resource consumption by improving process efficiency 13
  14. 14. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Manage Processes Improve Processes Two Sides of the Same Process ‘Coin’… 14 Opportunities & Threats Changes to Process & Measurements There must be a balance between continual improvement and ongoing management of processes
  15. 15. Confidential and Proprietary © 2014 Robbins-Gioia, LLC  Business Processes are the means by which organizations achieve those aspects of their Strategy that are realized through Operational Execution.  Clarification of problems and opportunities for improvement is integral to business analysis and process management. 15 Guiding Principles – Strategy Realization
  16. 16. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Traceability to Strategy
  17. 17. Confidential and Proprietary © 2014 Robbins-Gioia, LLC  Customers do not experience processes, they experience a series of “moments of truth.”  Process management oversees multiple improvements, larger-scale transformations, and/or automation efforts to manage overall performance within and across processes.  A strategic focus on process clarifies the underlying risk management strategy for the whole organization. 17 The End-to-End, Portfolio Nature of PM & PI
  18. 18. Confidential and Proprietary © 2014 Robbins-Gioia, LLC18 Managing Uncertainty to Improve Outcomes Hypothetical Example: Uncertainty about Likelihood of Success versus Typical Program Spending Profile Relative Uncertainty about Success Spending Profile Low High Gate 0 Program Start Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Launch 0% 100% RelativeUncertainty %ofProgramSpend fromGates0-5 50%
  19. 19. Confidential and Proprietary © 2014 Robbins-Gioia, LLC  This perspective increases understanding of processes from a constricted efficiency focus, to a more robust insight into risk mitigation and opportunity realization.  Maintaining a balanced focus on managing and improving processes helps organizations address risk in a structured manner 19 Where we are…
  20. 20. Confidential and Proprietary © 2014 Robbins-Gioia, LLC  This two-fold, balanced approach helps the organization enhance its success by: • Proactively addressing performance issues with timely and informed decision making based on business process data analysis • Systematically managing a disciplined approach to evaluate/improve effective control and governance processes • Maintaining a continual focus on risk within and across all processes and change initiatives 20 Contributing to success
  21. 21. Confidential and Proprietary © 2014 Robbins-Gioia, LLC The Point of AllThis  Risk Management is NOT separate from Process Management  Reframe Opportunities andThreats as upside and downside Risks  Not all types of risk may be in the scope of Process Management & Process Improvement 21
  22. 22. Confidential and Proprietary © 2014 Robbins-Gioia, LLC Communication “The two words ‘information’ and ‘communication’ are often used interchangeably, but they signify quite different things. Information is giving out; communication is getting through.” - Sydney Harris 22 One of the biggest risks any organization faces is not lack of information, it is lack of communication
  23. 23. Confidential and Proprietary © 2014 Robbins-Gioia, LLC In Conclusion  Do not think about Risk Management as separate and distinct from Process Management & PI  Process Management provides an ongoing means for identifying and managing risks  Risk Management activities feed the Process Improvement pipeline  Create a culture of constant awareness of risk  What’s changed about current risks? What new risks are there?  What can we do about it? What will we do about it?  Communicate with clarity and verify understanding 23
  24. 24. Confidential and Proprietary © 2014 Robbins-Gioia, LLC24 Questions? Answers
  25. 25. Confidential and Proprietary © 2014 Robbins-Gioia, LLC  Contact Information: Mark Barnett mark.barnett@robbinsgioia.com 25

×