Your SlideShare is downloading. ×
Process Managers' Workshop
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Process Managers' Workshop

1,513
views

Published on

An introduction to Process Management for Line Managers who own or manage key business processes.

An introduction to Process Management for Line Managers who own or manage key business processes.

Published in: Business, Technology

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

No Downloads
Views
Total Views
1,513
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
171
Comments
0
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Process Managers’ Workshop Facilitated by Ian J Seath: Improvement Skills Consulting Ltd.
  • 2. Objectives As a result of this workshop you will be able to:  Describe an approach to Process Management and its expected benefits  Explain your role as a Process Manager  Use some process management tools and techniques to improve your process(es)  Develop a process management plan for your process(es)2 © 2011 Copyright ISC Ltd.
  • 3. Agenda Process Management  Principles  The role of the Process Manager The Day-to-day Process Management model  Manage  Define  Quantitatively Manage  Optimise Next steps3 © 2011 Copyright ISC Ltd.
  • 4. People + Process = Performance “We get brilliant results from average people managing brilliant processes, while our competitors get average results, or worse, from brilliant people managing broken processes.”  [Toyota Chairman: Fujio Cho]4 © 2011 Copyright ISC Ltd.
  • 5. People + Process = Performance 100% of your organisation’s performance is a result of how well your people design, operate and continuously improve its processes ENABLERS RESULTS People People Results Key Policy & Customer Leadership Processes Performance Strategy Results Results Partnerships Society & Resources Results INNOVATION AND LEARNING5 © 2011 Copyright ISC Ltd.
  • 6. What is a Process?  Processes take INPUTS, do WORK to them, and produce OUTPUTS for CUSTOMERS Input Process Output They exist to achieve performance OUTCOMES and meet the requirements of STAKEHOLDERS6 © 2011 Copyright ISC Ltd.
  • 7. Today’s challenge? Happier Cheaper Customers More Input Process Output Faster Better7 © 2011 Copyright ISC Ltd.
  • 8. Throw more resource at it… More? Input Process Output More? More?8 © 2011 Copyright ISC Ltd.
  • 9. Possibly not… X More? Input Output Process More? X X More?9 © 2011 Copyright ISC Ltd.
  • 10. So, you will have to… Happier Customers Cheaper More Input Process Output Faster Better10 © 2011 Copyright ISC Ltd.
  • 11. Two typical starting points… We need to get our  We need to fix some processes “in order” problems We need to be able to  We need to make a demonstrate a step-change in consistent, performance in a few professional approach key areas to managing the organisation Process  Process Management Improvement11 © 2011 Copyright ISC Ltd.
  • 12. Process Management: 3 Elements • Business Process Model Management • Process Owners by Process • Process Maturity Model • Define Process • Measure Improvement • Analyse • Improve Projects • Control Management • Day-to-day Process Management of Processes • Process Managers12 © 2011 Copyright ISC Ltd.
  • 13. Management by Process • Business Process Model Management • Process Owners by Process • Process Maturity Model • Define Process • Measure Improvement • Analyse • Improve Projects • Control Management • Day-to-day Process Management of Processes • Process Managers13 © 2011 Copyright ISC Ltd.
  • 14. Business Process Model Process MapsInput Output Procedure Procedure Standard Policy Procedure Text Policy Standard 14 © 2011 Copyright ISC Ltd.
  • 15. Generic High-level Process Model Regulation Legal Market & FrameworkCompetitor Business Data Plans Develop Policy & StrategyPerformance Chief Exec Data Products Product Ideas Available Develop Products & Services Development Manager Customer/Prospect Needs Customer Win Business Orders Support and Enabling Processes Marketing Manager Delivered Orders & Fulfil Customer Orders Invoices Ops Mgr 15 © 2011 Copyright ISC Ltd.
  • 16. Telecoms Process Model (example) Design Address Bill build & Sell to Repair & customer Provide customers operate & service maintain needs & service & collect the customers service requirements payment network Operator Service Provide support & Manage people Provide information management16 © 2011 Copyright ISC Ltd.
  • 17. Probation Process Model (example) Lead the business • Assess • Sentence • Programmes Deliver Manage Plan • Unpaid Work Offenders • Implement Intervent- • Approved • Review ions Premises • Evaluate Support the business HR – IT – Info – Finance – Partnerships – Property – Legal - Comms17 © 2011 Copyright ISC Ltd.
  • 18. IT Solutions Provider (example) Enabler Processes: Develop  Manage & Improve Human Strategy Resources  Manage & Improve Information Systems  Manage & Improve Technology  Manage & Improve Financial & Physical Resources  Manage & Improve External Deliver Enabler Win Relations & Partners Solutions Processes Business  Manage Improvement & Change Design & Implement Solutions18 © 2011 Copyright ISC Ltd.
  • 19. Example Process Owner Role Process Owners have end-to-end responsibility for high-level processes. Process owners will “champion” the improvement of the process. Process Owners are members of the Process Control Board. Process Owners are practically responsible for the high-level process to which they are assigned (see above). For key, activity and task level processes Process Owners may appoint Process Managers (sub-process owners). Process Owners are theoretically responsible for changes in any process including and below the high-level process which they own. Process Owners can rely on the Process Manager’s judgement as they see fit if an appointed Process Manager identifies a change in a process as simple and low impact.19 © 2011 Copyright ISC Ltd.
  • 20. Process Capability & MaturityContinuous process improvement (incremental and innovation) Common causes of variation are identified and improved Optimising Processes are agile and “best in class” Targets, standards and measures are used Quantitatively Performance Special causes of variation are identified and Managed is predictable corrected Organisation-wide focus All processes are documented Value chains are identified Defined Measurements are definedDepartmental Some organised processes& Team focus Managed Performance is repeatable No organised processes Initial Ad hoc and reliant on “heroics” Performance is not repeatable20 © 2011 Copyright ISC Ltd.
  • 21. Process Improvement Projects • Business Process Model Management • Process Owners by Process • Process Maturity Model • Define Process • Measure Improvement • Analyse • Improve Projects • Control Management • Day-to-day Process Management of Processes • Process Managers21 © 2011 Copyright ISC Ltd.
  • 22. DMAIC Process Improvement • Agree the problem/opportunity for the Process Improvement Project Define • Identify the process customers and what they want • Define the “As Is” process map • Agree what data is needed to quantify the performance of the process Measure • Identify how the data will be collected • Collect the data • Analyse the performance of the process using the data Analyse • Assess the process using qualitative information • Identify the root causes of the performance of the process • Identify, select and test possible “To Be” process improvement ideas Improve • Develop plans to implement the selected improvements • Implement the new process • Assess the performance of the new process Control • Ensure the required performance can be sustained • Review the project and apply learning for the future22 © 2011 Copyright ISC Ltd.
  • 23. Management of Processes • Business Process Model Management • Process Owners by Process • Process Maturity Model • Define Process • Measure Improvement • Analyse • Improve Projects • Control Management • Day-to-day Process Management of Processes • Process Managers23 © 2011 Copyright ISC Ltd.
  • 24. Day-to-day Process Management Optimising • Benchmark Externally • Establish Statistical Process Control • Establish DMAIC Improvement Projects Quantitatively Managed • Review Performance • Implement Corrective Actions • Measure Performance Defined • Define Performance Targets • Define Process Measurements • Define Systems Standards Managed • Map the Process • Define Customers and their Requirements • Identify the Process and its Owner24 © 2011 Copyright ISC Ltd.
  • 25. Example Process Manager Role Process Managers have end-to-end responsibility for the key, activity and task level processes which they are appointed to manage. Process Managers must report back all changes to processes to the Process Owner. Process Managers must highlight all changes that could affect other processes. Process Managers must highlight all changes that cannot be resolved within the process. Process Managers must highlight all changes that have a medium/high impact on the process.25 © 2011 Copyright ISC Ltd.
  • 26. Day-to-day Process Management Optimising • Benchmark Externally • Establish Statistical Process Control • Establish DMAIC Improvement Projects Quantitatively Managed • Review Performance • Implement Corrective Actions • Measure Performance Defined • Define Performance Targets • Define Process Measurements • Define Systems Standards Managed • Map the Process • Define Customers and their Requirements • Identify the Process and its Owner26 © 2011 Copyright ISC Ltd.
  • 27. SIPOC Process Definition Sub-process Process steps Purpose Input Output Process Name (Verb + Noun) Suppliers Customers Boundaries include: Boundaries exclude:27 © 2011 Copyright ISC Ltd.
  • 28. Process: Recruit StaffPurpose: To ensure the right staff are available with the right skills, at the right time.Owner: HR DirectorSuppliers Inputs Process Outputs CustomersLine Manager Request to fill 1. Specify needs New member Line Manager a vacancy 2. Authorise of staff recruitment 3. Place adverts 4. Assess applicants 5. Offer appointment 6. Confirm startBoundaries:Start-point: End-point:Includes: Excludes:Full & part-time staff Budgeting for recruitmentAll Grades except SMT HR Workforce Planning 28 © 2011 Copyright ISC Ltd.
  • 29. Process:Purpose:Owner:Suppliers Inputs Process Steps Outputs CustomersBoundaries:Start-point: End-point:Includes: Excludes: 29 © 2011 Copyright ISC Ltd.
  • 30. Customers and Requirements Customer: anyone who requires the output(s) of your process Requirements: those things that are needed by the customer in order for them to be satisfied Expectations: customers often have expectations, either about the output or the performance of the process - they may not be expressed explicitly, but are worth knowing as they can significantly affect perceptions of your performance30 © 2011 Copyright ISC Ltd.
  • 31. Tools and techniques to identify andagree customer requirements Interviews Questionnaires Focus Groups Customer Requirements Analysis Service Level Agreements Customer Charters31 © 2011 Copyright ISC Ltd.
  • 32. Process mapping with Control 2007 Input Activity Output (Verb & Noun) Resource32 © 2011 Copyright ISC Ltd.
  • 33. Sequence Map33 © 2011 Copyright ISC Ltd.
  • 34. Swimlane Map34 © 2011 Copyright ISC Ltd.
  • 35. Day-to-day Process Management Optimising • Benchmark Externally • Establish Statistical Process Control • Establish DMAIC Improvement Projects Quantitatively Managed • Review Performance • Implement Corrective Actions • Measure Performance Defined • Define Performance Targets • Define Process Measurements • Define Systems Standards Managed • Map the Process • Define Customers and their Requirements • Identify the Process and its Owner35 © 2011 Copyright ISC Ltd.
  • 36. Define Systems Standards Your process might be adequately documented simply by drawing an up-to-date process map  However, in many cases you will need more than a map Systems Standards provide information on the level of performance that must be achieved  Standards may be quantified (in which case they are no different to Targets), or they may be qualitative, such as "compliance with National Standard ABC"36 © 2011 Copyright ISC Ltd.
  • 37. What could you measure?37 © 2011 Copyright ISC Ltd.
  • 38. Process MeasurementInternal Measures Output Measures Satisfaction Measures Processing time (work  Error Rate or Accuracy  Perceptions of reliability, time in process steps) (Right First Time) assurance, tangibles, Cycle-time (end-to-end,  Timeliness (delivery vs. empathy, responsiveness elapsed time) deadline/requirement) Delay or Waiting time  Completeness  Any “objective” (e.g. between steps) measures gathered by Conformance to customer(s) or Volume (input)  Standard stakeholder(s) Cost (direct cost per  Success Rate/Attrition  Compliments transaction) Rate/Output Volume Overhead cost  Complaints  Awards 38 © 2011 Copyright ISC Ltd.
  • 39. Stratification examples… Who Customer Supplier Individual, Grade, LoS Group/Team/Dept. Gender/Age/Ethnicity When Year, Month, Week, Day Hour, Minute, Second Point in cycle Where Region, Area, Town Office, Hostel, Court In the process What Order, Sentence, Crime Risk Category Reason39 © 2011 Copyright ISC Ltd.
  • 40. Define Performance Targets Targets should ideally be expressed in SMART format: Error Rate (%) 30  Specific 25 20  Measurable 15  Achievable 10 5  Relevant 0  Time-bound Target40 © 2011 Copyright ISC Ltd.
  • 41. Possible sources of Targets Past performance (e.g. +x%) Competitors’ known performance Customer requirements Externally imposed standards Internal comparators (benchmarks) External comparators (benchmarks)41 © 2011 Copyright ISC Ltd.
  • 42. Day-to-day Process Management Optimising • Benchmark Externally • Establish Statistical Process Control • Establish DMAIC Improvement Projects Quantitatively Managed • Review Performance • Implement Corrective Actions • Measure Performance Defined • Define Performance Targets • Define Process Measurements • Define Systems Standards Managed • Map the Process • Define Customers and their Requirements • Identify the Process and its Owner42 © 2011 Copyright ISC Ltd.
  • 43. Data Presentation ToolsFreq. Histogram (#) Error80 Rate (%) Line Graph 3060 25 2040 1520 10 5 0 0 Response Time Cost Pareto Diagram (£)120100 80 60 40 20 0 A B C D E F G H Error Type 43 © 2011 Copyright ISC Ltd.
  • 44. Corrective Action Process What is the problem? DefineHas it worked? What data do you have? Control MeasureHow can you solve it? What are the root causes? Improve Analyse44 © 2011 Copyright ISC Ltd.
  • 45. Problem Definition Questions Inside the Outside the Problem Problem What? Where? When? Who? How big?45 © 2011 Copyright ISC Ltd.
  • 46. Review performance – where are you? Optimising • Benchmark Externally • Establish Statistical Process Control • Establish DMAIC Improvement Projects Quantitatively Managed • Review Performance • Implement Corrective Actions • Measure Performance Defined • Define Performance Targets • Define Process Measurements • Define Systems Standards Managed • Map the Process • Define Customers and their Requirements • Identify the Process and its Owner46 © 2011 Copyright ISC Ltd.
  • 47. Review performanceFocus of Review: Qtr 1 Qtr 2 Qtr 3 Qtr 4Purpose and business outcomes XCustomer & Supplier requirements X XProcess flow, interfaces and documentation XStaff capacity and capability XMeasurement system and performance targets XSystems standards and conformance/compliance XPreventive and corrective action systems XDMAIC Improvement projects & changes made XBenchmarking & changes made X SIP 230408: 47 © 2011 Copyright ISC Ltd.
  • 48. Day-to-day Process Management Optimising • Benchmark Externally • Establish Statistical Process Control • Establish DMAIC Improvement Projects Quantitatively Managed • Review Performance • Implement Corrective Actions • Measure Performance Defined • Define Performance Targets • Define Process Measurements • Define Systems Standards Managed • Map the Process • Define Customers and their Requirements • Identify the Process and its Owner48 © 2011 Copyright ISC Ltd.
  • 49. DMAIC Process Improvement • Agree the problem/opportunity for the Process Improvement Project Define • Identify the process customers and what they want • Define the “As Is” process map • Agree what data is needed to quantify the performance of the process Measure • Identify how the data will be collected • Collect the data • Analyse the performance of the process using the data Analyse • Assess the process using qualitative information • Identify the root causes of the performance of the process • Identify, select and test possible “To Be” process improvement ideas Improve • Develop plans to implement the selected improvements • Implement the new process • Assess the performance of the new process Control • Ensure the required performance can be sustained • Review the project and apply learning for the future49 © 2011 Copyright ISC Ltd.
  • 50. DMAIC Tools and TechniquesDefine Measure Analyse Improve ControlSIPOC Process Customer Pareto Analysis Creative StatisticalDefinitions Surveys Thinking Process ControlProcess Maps Focus Groups Value-add Clean Sheet Visual Analysis Design ManagementImprovement Data Collection Line, Bar & Force Field DMAICProject Checksheets Scatter Charts Analysis Problem SolvingDefinitionsCurrent State Interviews Cost & Cycle- Risk AnalysisValue Stream time AnalysisMaps Activity 7 Wastes Future State Sampling Value Stream Maps Cause & Effect Poka Yoke Diagrams (Mistake- proofing) 50 © 2011 Copyright ISC Ltd.
  • 51. Establish Statistical Process Control SPC enables a judgement to be made about whether or not a process is in statistical control, and therefore determine when to make an adjustment in the process It is used to improve performance by reducing process variation There are two types of variation:  Common Cause  Special Cause51 © 2011 Copyright ISC Ltd.
  • 52. Common and Special Cause VariationCommon Cause Special Cause Stable, consistent  Pattern changes over pattern of variation time Repeatable and  Unstable and predictable unpredictable Numerous causes  “assignable” Always present “chance”52 © 2011 Copyright ISC Ltd.
  • 53. Example: Journeys to work 120 100 Upper Control Limit 80 Mean Lower Control LimitMins. 60 40 20 0 Days: Consecutive Journeys 53 © 2011 Copyright ISC Ltd.
  • 54. Process Control and Improvement Improvement 160 140 120 100 80 60 40 20 0Control 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Breakthrough 54 © 2011 Copyright ISC Ltd.
  • 55. Metrics, Process and Organisational Benchmarking Metrics Benchmarking compares your numbers with somebody else’s  It tells you “what” they achieve, but nothing about “how” Process Benchmarking compares your processes with somebody else’s  It tells you “how” they achieve it, but not why Organisational Benchmarking compares your organisational approach (people, structures, skills, culture etc.) with somebody else’s  It tells you “why” they achieve it, as well as “how”55 © 2011 Copyright ISC Ltd.
  • 56. 4 Types of Benchmarking Internal  comparing within your Service, between sites and departments Competitive  direct comparisons with competitors offering the same services as you Functional  comparing with other organisations in a similar field but who are not in competition Generic  comparing similar processes regardless of the nature of the industry/sector56 © 2011 Copyright ISC Ltd.
  • 57. Benchmarking Process • Agree the process/service scope of the Benchmarking ProjectDefine • Define the “As Is” process and current performance • Identify potential comparator organisations • Determine data collection methodsMeasure • Plan data exchange and partner visits • Collect comparator data (desk research and/or visits) • Analyse the performance of the comparators using the dataAnalyse • Assess the performance of the comparators using qualitative information • Determine the performance gaps in your process/service • Identify and select possible practices to adapt or adoptImprove • Develop plans to test and implement the selected practices • Gain acceptance and implement the improvements • Assess the performance of the new process/serviceControl • Ensure the required performance can be sustained • Review the project and apply learning for the future57 © 2011 Copyright ISC Ltd.
  • 58. Process Management Plan No action and nothing Planned, but no action Underway Complete Reviewed planned Process is continuously improving (“Optimising”)BenchmarkexternallyEstablish StatisticalProcess ControlEstablish DMAICprojects Process is “Quantitatively Managed”Review performanceImplementcorrective actionsMeasureperformance Process is “Defined”Define performancetargetsDefine processmeasurementsDefine systemsstandards Process is “Managed”Map the processDefine customersand theirrequirementsIdentify the processand its Owner58 © 2011 Copyright ISC Ltd.