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2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
2 Virtuous Circles: transforming performance improvement
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2 Virtuous Circles: transforming performance improvement

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This presentation discusses the pathway from strategy to execution and how this is most effectively achieved from a process-based management perspective. It begins by illustrating the links between …

This presentation discusses the pathway from strategy to execution and how this is most effectively achieved from a process-based management perspective. It begins by illustrating the links between the development of strategy themes, determining the organization’s value propositions, and documenting the highest levels of the business process architecture. The use of 2 Virtuous Circles is then proposed for the ongoing management of the business processes that create, accumulate, and deliver value to an organization’s customers and other stakeholders, and hence execute its strategy. A fictive case study, the Whyte & Brite Laundry, is used to illustrate the process pathway to strategy execution. Practical advice is offered about the ongoing management of organizational performance with the 2 Virtuous Circles.

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  • 1. 2 Virtuous Circles transforming performance improvement
  • 2. © Roger Tregear, Leonardo Consulting 2014 2 2 Virtuous Circles Copyright Notice Copyright © 2014 Leonardo Consulting. All rights reserved. This work is licensed under a Creative Commons Attribution- NonCommercial-ShareAlike 4.0 International Licence
  • 3. © Roger Tregear, Leonardo Consulting 2014 3 2 Virtuous Circles Leonardo BPM Curriculum BPM Consulting Services BPM Maturity assessment Process Improvement projects Process Architecture development 7 Enablers Rollout Office of BPM development Process culture development Executive BPM coaching Process practitioner coaching Process performance analysis Process governance design Process modeling management Process automation BPM capability development Measuring Processes 3 days of valuable insights into, and practical tools for, the discovery, definition and management of effective process performance measures Improving Processes This 3-day course delivers practical advice and tools you can use immediately to generate great process change ideas. Stop relying on chance. Process Modelling Excellence This 1-day, tool-neutral seminar is a breakthrough experience for modellers and those who manage them. It will improve your Return on Modelling. BPTrends Professional Certificate Over 5 days the Professional Certificate program teaches a practical approach to analysing, measuring and improving process performance. BPTrends Enterprise Certificate Beyond process improvement, the Enterprise Certificate 5-day program teaches how to build and maintain a truly process-centric organization. better practices Derivation New Process Utilisation potential practices Enhancement current practices Innovation new practices analytical creative
  • 4. © Roger Tregear, Leonardo Consulting 2014 4 2 Virtuous Circles
  • 5. © Roger Tregear, Leonardo Consulting 2014 5 2 Virtuous Circles Failure to Execute 70% myth? The Economist suggests 44%* Strategy execution is: complex, difficult, demanding, conflicts with daily operations Disconnect with day-to-day reality Top-down fades out Result: frustration, cynicism, change fatigue, missed opportunities * Why Good Strategies Fail: Lessons for the C-Suite. 2013. The Economist Intelligence Unit Limited
  • 6. © Roger Tregear, Leonardo Consulting 2014 6 2 Virtuous Circles
  • 7. © Roger Tregear, Leonardo Consulting 2014 7 2 Virtuous Circles Process Management Failure Not embedded in daily management No unifying system No compelling reason Focus on modeling and IT rather than management and transformation Lack vision and ambitious targets Bottom-up fades out Result: frustration, cynicism, change fatigue, missed opportunities
  • 8. The Gray Zone © Roger Tregear, Leonardo Consulting 2014 8 2 Virtuous Circles Strategy Execution Process Management The Gray Zone
  • 9. © Roger Tregear, Leonardo Consulting 2014 9 2 Virtuous Circles What would success look like? Strategy-driven, process-centric Focused on value delivery Embedded improvement culture Proactive + responsive
  • 10. © Roger Tregear, Leonardo Consulting 2014 10 2 Virtuous Circles M is for Management Problems + Opportunities
  • 11. © Roger Tregear, Leonardo Consulting 2014 11 2 Virtuous Circles The ‘M’ in BPM stands for ‘Management’ Functional Organization Process Organization Managing resources Creating, accumulating, delivering value
  • 12. © Roger Tregear, Leonardo Consulting 2014 12 2 Virtuous Circles Delight Dissatisfaction Expectations exceeded Expectations not fulfilled Exploration - go beyond constraints - Exploitation - work within constraints - Source: Michael Rosemann, QUT Improvement?
  • 13. © Roger Tregear, Leonardo Consulting 2014 13 2 Virtuous Circles Explore Exploit
  • 14. © Roger Tregear, Leonardo Consulting 2014 14 2 Virtuous Circles Strategy Execution Value Delivery Process Management
  • 15. © Roger Tregear, Leonardo Consulting 2014 15 2 Virtuous Circles The Whyte Brite Laundry a fictive case study
  • 16. Whyte Brite Organization Diagram Whyte Brite Laundry – Strategy Themes Service Innovation © Roger Tregear, Leonardo Consulting 2014 16 2 Virtuous Circles General Environmental Influences Competition Capital Markets Labor Markets Technology Providers Vendors Owners Personal Customers Commercial Customers Organizational Capital Development Excellence Customer Care Excellence Environmental Excellence
  • 17. Whyte Brite Process Architecture © Roger Tregear, Leonardo Consulting 2014 17 2 Virtuous Circles Management Processes Provide Personal Laundry Service Provide Commercial Laundry Service Core Value Chains Lead The Organisation Support The Organisation Innovate Service Delivery Control Environmental Impact Other Support Processes
  • 18. © Roger Tregear, Leonardo Consulting 2014 18 2 Virtuous Circles Strategy Meets Process Management Processes Provide Personal Laundry Service Provide Commercial Laundry Service Core Value Chains Lead The Organisation Support The Organisation Innovate Service Delivery Control Environmental Impact Other Support Processes
  • 19. © Roger Tregear, Leonardo Consulting 2014 19 2 Virtuous Circles Management Processes Provide Personal Laundry Service Provide Commercial Laundry Service Core Value Chains Lead The Organisation Support The Organisation Innovate Service Delivery Control Environmental Impact Other Support Processes So What? ?How does this help deliver value? ?How is it to be managed? ?Who is responsible?
  • 20. © Roger Tregear, Leonardo Consulting 2014 20 2 Virtuous Circles The Chasm Aspiration Reality
  • 21. © Roger Tregear, Leonardo Consulting 2014 21 2 Virtuous Circles Crossing the Chasm ‘Deliberate excellence’ embedded in the culture: strategy=process, improvement, innovation, active management Systemic, practical, creative, credible, useful Proven benefits Mindset, not just toolset Enabling leadership
  • 22. © Roger Tregear, Leonardo Consulting 2014 22 2 Virtuous Circles NOT Crossing the Chasm Random acts of management Some success, no momentum ‘Posters’, not systems useful artefacts Failed to deliver value Encouraged but not empowered Cultural barriers, e.g. measure to persecute, not understand All too hard … back to BABAE BABAE = Business As Bad As Ever
  • 23. © Roger Tregear, Leonardo Consulting 2014 23 2 Virtuous Circles 2 Virtuous Circles putting process at the centre of business management
  • 24. © Roger Tregear, Leonardo Consulting 2014 24 2 Virtuous Circles
  • 25. © Roger Tregear, Leonardo Consulting 2014 25 2 Virtuous Circles Continuously testing performance Set process performance targets Measure what is really happening Do something if results are not what they should be Do something if results are what they should be Target-Measure-Respond: unrelenting focus on process performance. ‘Mind The Gap’ – core of Process Owner role.
  • 26. © Roger Tregear, Leonardo Consulting 2014 26 2 Virtuous Circles Respond to process performance anomalies opportunities Understand current situation, define target, design change required Not just a ‘To Be’ or ‘To Do’ but new ‘As Is’ Methodology neutral At least occasionally – Remarkable! Close the process performance gap, i.e. ensure effective strategy execution
  • 27. © Roger Tregear, Leonardo Consulting 2014 27 2 Virtuous Circles Key processes at every level always ‘turning’ at right speed Triggered by PO, delivering change create new ‘As Is’ close the gaps
  • 28. © Roger Tregear, Leonardo Consulting 2014 28 2 Virtuous Circles PO or PI First? PO supports: the idea of BPM supply/service chain better mgt reporting customer focus PI supports: operational problems single process view time, cost, quality BPM PoC
  • 29. © Roger Tregear, Leonardo Consulting 2014 29 2 Virtuous Circles Keep the Circles Turning PO circle defines essential role of management - continuously uncover resolve current and emergent performance issues PI circle seeks, finds, and effects the changes required to close the performance gaps Together achieve much more than either alone ‘Circular momentum’ drives improvement and innovation, resisting influences that seek to maintain the status quo
  • 30. © Roger Tregear, Leonardo Consulting 2014 30 2 Virtuous Circles It can be done: leadership, mindset, action Define architecture, measures, process owners – a system Enable the Process Owners Focus on performance - proven benefits, occasionally remarkable - run ‘100’ PIPs Give practical support Create momentum Keep the circles turning
  • 31. © Roger Tregear, Leonardo Consulting 2014 31 2 Virtuous Circles www.leonardo.com.au www.slideshare.net www.linkedin.com
  • 32. © Roger Tregear, Leonardo Consulting 2014 32 2 Virtuous Circles +61 (0)419 220 280 r.tregear@leonardo.com.au
  • 33. © Roger Tregear, Leonardo Consulting 2014 33 2 Virtuous Circles Roger Tregear +61 419 220 280 r.tregear@leonardo.com.au www.leonardo.com.au www.rogertregear.com Let’s connect! More information on BPM and related topics can be found at the websites listed above and at www.bptrends.com. Roger’s column, Practical Process, is published by BPTrends and all columns can be accessed at the website (enter “Tregear” in the search field). Many of the columns are also available as a single collection in the Amazon Kindle book, Practical Process. Copies of the Office of BPM book are available from Roger on request.
  • 34. © Roger Tregear, Leonardo Consulting 2014 34 2 Virtuous Circles Partners in Process Organizations are traditionally managed via the organization chart. Yet not one of the entities shown on that chart can, by itself, deliver value to a customer. The reality is that we create, accumulate, and deliver value by collaboration across the chart. We manage resources vertically using the organization chart; we create and deliver value via business processes operating across the organization chart. Organizations want to reduce costs, enhance products and services, and be more attentive to customers. Business Process Management (BPM) offers a practical solution, refocusing management on how value is created, accumulated, and delivered to customers and other stakeholders. The focus is on the way work gets done, and what impedes it being done in the most straightforward, efficient and effective way. Leonardo Consulting provides assistance with the seven enablers that put process at the center of business management.
  • 35. © Roger Tregear, Leonardo Consulting 2014 35 2 Virtuous Circles Together, building BPM Together, we … document the process architecture This allows you to … • understand how you create deliver value • focus clearly on the most important elements Together, we … define process measures This allows you to … • deeply understand organizational performance • prioritize process improvement investments Together, we … establish process governance This allows you to … • respond to process performance anomalies • sustain continuous performance improvement Together, we … improve process performance This allows you to … • resolve important performance issues • realize process improvement benefits Together, we … raise sustain process awareness This allows you to … • create a mindset of continuous improvement • generate enthusiasm for performance excellence Together, we … enhance process capability This allows you to … • develop consistent, reusable approaches • build in-house process improvement capability Together, we … establish ongoing process support This allows you to … • maintain process improvement quality • embed continuous performance improvement
  • 36. © Roger Tregear, Leonardo Consulting 2014 36 2 Virtuous Circles Accelerating BPM development Leonardo Consulting provides consulting, education and technology accelerators for organizations wishing to develop higher levels of maturity in each of the seven enablers of BPM. For 15 years we have been a trusted advisor to our customers delivering quality education, technology and consulting services. Our approach is process-centric; our focus is performance-driven. Our ability to assist organizations with innovative process-based management is sound, practical, deep and proven. Our work is unrelentingly focused on helping customers achieve their goals using business process-centric management approaches. Leonardo Consulting specialises in helping organizations achieve effective process-based management. It’s what we do. It’s who we are.
  • 37. © Roger Tregear, Leonardo Consulting 2014 37 2 Virtuous Circles Leonardo BPM Curriculum BPM Consulting Services BPM Maturity assessment Process Improvement Projects Process Architecture development 7 Enablers Rollout Office of BPM development Executive BPM coaching Process practitioner coaching Process performance analysis Process governance design Process modeling management Process automation BPM capability development Measuring Processes 3 days of valuable insights into, and practical tools for, the discovery, definition and management of effective process performance measures Improving Processes This 3-day course delivers practical advice and tools you can use immediately to generate great process change ideas. Stop relying on chance. Process Modelling Excellence This 1-day, tool-neutral seminar is a breakthrough experience for modellers and those who manage them. It will improve your Return on Modelling. BPTrends Professional Certificate Over 5 days the Professional Certificate program teaches a practical approach to analysing, measuring and improving process performance. BPTrends Enterprise Certificate Beyond process improvement, the Enterprise Certificate 5-day program teaches how to build and maintain a truly process-centric organization. better practices Derivation New Process Utilisation potential practices Enhancement current practices Innovation new practices analytical creative

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