06 2013 measure your process performance


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June 2013 newsletter from Process Strategy Group.

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06 2013 measure your process performance

  1. 1. Having trouble viewing this email? Click here You're receiving this Newsletter because of your relationship with Process Strategy Group. Please confirm your continued interest in receiving our monthly Newsletter. You may unsubscribe if you no longer wish to receive our emails. Past Newsletters In This Issue: Issue #34 To Manage a Process, You Need to Measure it! How is Process Performance tied to Performance Plans? New article by Andrew Spanyi PSG Alliances PBM Quick Assessment Results Each month we will showcase a question from the Quick Assessment. This month How is process performance tied to performance plans? Process Perspectives Newsletter June 2013 -How are your Processes Performing? Welcome to this month's issue of the Process Perspectives Newsletter! Our goal is to provide you with specific insights so you can help your organization make progress on the road to Process Based Management (PBM). In the main article we review that to manage a process, you need to measure it. The Quick Assessment discussion this month is around the question: "How is process performance tied to performance plans?" The results show that few organizations tie process performance to performance plans. It is no wonder that so few process efforts provide long term value to organizations. We look at the responses based on the role of the person completing the assessment, which provides insight into different perspectives. If you were to complete an organizational Quick Assessment, how would these roles in your organization answer the question? In the last section, we point out a new article by our Alliance partner Andrew Spanyi, "BPM Competence: Are We There Yet". Andrew focuses on what is important to senior managers, which is improving the performance of the organization. Let us know if there is a specific topic you would like to see covered. Keep up the good work on process; your customers see the difference. Pat Dowdle Jerry Stevens Process Strategy Group To Manage a Process, You Need to Measure it! Organizations have all kinds of metrics and measures they report on an
  2. 2. View additional Process content from PSG on Slideshare PSG LinkedIn Company Page Check out our company page on LinkedIn for more process insights! LinkedIn Recommendations: "Assessment Services of the Process Strategy Group are built on Industry Standard methodologies. (Malcolm- Baldrige, etc.). Instead of looking specifically at quality related issues, they are looking for the Process characteristics of Management. Customers are not concerned with the Org Chart, they are concerned with turning their payment into product or service. PBM Assessments examine if and how a company is aligned with the Value Streams of payment to provision. ...where profits come from." Click here or on the icon to see more recommendations for our products and services. Featured Services Try our FREE Quick Assessments! PBM Quick Assessment PI Quick Assessment ongoing basis. Here are some examples: Departments report on their actual spending against their budget Sales is measured based on sale targets Management has ROI, Net income and EPS targets they track IT is measured based on all kinds of metrics that only they understand. Where do we track how we are doing in providing products and services to our customers? Some organizations track customer satisfaction (based on surveys and other approaches). Measuring Customer Satisfaction is important, but not nearly enough! That measure is after the fact: it is a lagging indicator of what has already taken place. Organizations need to measure and monitor how they provide products and services to their customers, which is through their cross functional processes. These processes need measurements in place to track in real time how they are performing. The result of a well designed (and customer focused) process will lead to customer satisfaction. Here are some examples of process measures: Order Fulfillment: % of orders filled completely and on time Schedule to Produce: % of orders produced accurately and on- time Billing: % that are accurate and on-time With these measures in place, reward the employees who work in the process by tying their performance plans to the performance of the process. As we discuss below, most organizations do not do this very well. June PBM Quick Assessment Results This month we show a different view of the Quick Assessment results. We tabulated the responses by role on this Quick Assessment question:
  3. 3. We now have videos on YouTube that feature many process topics. Click on the logo above to visit our page. See what users are saying about the PBM Quick Assessment! Quick Links Services Recent Presentations Process Issues About Us Contact Us If have enjoyed this newsletter and have found value in the information, please send it along to others by clicking the link below. Based on the the role completing the Quick Assessment, we see different perspectives when we ask this question: Over 50% of all roles indicate that their is no correlation; in other words, over half of the organizations that have taken the quick assessment do not tie process performance to performance plans. 10-20% of all roles reward process teams informally for team initiatives. 10-20% of most roles indicate that Process Teams have process performance measures in their performance plans. Process performers were the outlier at 30%. Less that 10% of all respondents indicated that all roles involved in the process efforts have process performance measures. Senior Executives and Process Team members responded that none of this was in place. The results indicate that few organizations have tied process performance to performance plans. Most employees focus on the items that are listed in their performance plans; solid performance versus your performance plan usually impacts your compensation. Without tying process performance to employees performance plans, organizations are signaling that they will not be held accountable (or rewarded for) process performance. Since these responses are from various organizations, they do not provide the level of insight that would come from many people in the same organization taking the Quick assessment, and comparing those results across roles. Do you know what the different roles in your organization think about your process efforts? If not, then our PBM Quick Assessment for an Organization would be an ideal starting point! New Article by Andrew Spanyi
  4. 4. Our Alliance Partner, Andrew Spanyi, Managing Director of Spanyi International, recently wrote an article for BPM Institute titled, "BPM Competence: Are We There Yet?". Andrew points out that a common theme underlying all process maturity models is the lack of a clear link to performance improvement and financial results. He adds further that this linkage is "precisely what senior managers care about most- improved performance-and that is much more a matter of competence than maturity". To read the full article, click here. Forward email This email was sent to info@processstrategygroup.com by info@processstrategygroup.com | Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy Policy. Process Strategy Group | 715 Foxdale | Winnetka | IL | 60093