Process improvement and change management


Published on

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Process improvement and change management

  1. 1. Change Management and ProcessImprovement Rene AlvarezRene Alvarez, 2010
  2. 2. Issues It is not easy to deal with “real world” problems People tend to “resist changes” Managers tend to jump to solutions pressed by the need of obtain results, thinking that the analysis “is a waste of time” These solutions (usually called “low hanging fruits”) do not address the root causes of the problem Therefore, the problem appears again and again . . .Rene Alvarez, 2010
  3. 3. So . . . we need a methodology Intuitively, most people know how to solve problems, but are unable to, because they have no method of focusing their intuition. Without a means to focus, people will do the opposite of what they really believe and will play a lot of games with numbers and words. Eli Goldratt. It’s not luck.Rene Alvarez, 2010
  4. 4. How do we use to deal with problems? Causes and effects are not ‘close in time and space’ Where to apply changes to get significant improvements is usually non obvious to most participants in the system Our non systemic ways of thinking are so damaging specifically because they consistently lead us to focus on low- leverage changes: we focus on symptoms where the stress is greatest. We frequently repair the symptoms not the problem Senge, P. M., (1990) The fifth discipline: the art and practice of the learning organization. Such efforts only make matters better in the short run, at best, and worse in the long runRene Alvarez, 2010
  5. 5. Why do we resist to change? Disagreement on the problem Disagreement on the direction of the solution Disagreement as to whether the solution will result in the desired effects “Yes, but . . .” the solution has negative outcomes (side effects) It’s not exactly clear how to implement the solution Raising doubts about the collaboration of others (un- verbalized fear) Theory of Constraints, Eli Goldratt Theory of Constraints, Eli GoldrattRene Alvarez, 2010
  6. 6. The problem is us . . .Rene Alvarez, 2010
  7. 7. The solution: To use a methodology Whether it is in medicine or engineering, continuous improvement processes should be conducted following a logical methodology that allows the team to achieve its goals, without spending time in futile discussionsRene Alvarez, 2010
  8. 8. The strategy: break the layers of resistance !!1. Achieve an agreement on the problem2. Achieve an agreement on the direction of the solution3. Design the detailed solution based on those agreementsRene Alvarez, 2010
  9. 9. To solve the problem . . . We need to define the problem We need to achieve “an agreement on the problem” We need to eliminate the root causes of the problemOkay, Houston, weve had a problem here.‘ Okay, Houston, weve had a problem here.‘John Swigert, Jr. US’s Apollo 13 Moon flight John Swigert, Jr. US’s Apollo 13 Moon flightRene Alvarez, 2010
  10. 10. What are the root causes of the problem? We need to find them using a “logic methodology”Rene Alvarez, 2010
  11. 11. Cause-effect diagrams will help us in finding the rootcauses . . .Rene Alvarez, 2010
  12. 12. The Good news !! After a collective process of building the cause-effect diagram, we have broken the first layer of resistance to the change . . . We have an agreement on the problem !Rene Alvarez, 2010
  13. 13. Improving stages1. Achieve an agreement on the “Direction of the solution” to remove the root causes2. Design the “detailed solution”3. Evaluate the alternatives4. Probe the effectiveness of the solution5. Implement the solutionRene Alvarez, 2010
  14. 14. Solution Once the team has identified the root causes of a problem, it is necessary to eliminate them through developing a “solution”Rene Alvarez, 2010
  15. 15. The direction of the solution The direction of the solution is the “Strategic guideline for the detailed solution” Teams must concentrate on the desired future state Teams must avoid going into details in this phase (“Yes, but . . . ” will be welcome in later steps, not now)Rene Alvarez, 2010
  16. 16. Types of changes New written procedures Additional training for the staff New equipments and technology Changes in the responsibilities Staff empowermentRene Alvarez, 2010
  17. 17. Successful brain storm Judging is not permitting Far-out ideas are encouraged The emphasis is on quantity of ideas Participants should expand and elaborate other ideas to produce new ideas by association There are not “silly ideas” Make contributions in turn Do not provide explanations on your ideas “Yes but . . . ”are not allowedRene Alvarez, 2010
  18. 18. Agreement We have broken the second layer of resistance to the change ! Now we have an agreement on the direction of the solution !Rene Alvarez, 2010
  19. 19. Now . . . Having an agreement on the direction of the solution, we can design a detailed solution for the problemRene Alvarez, 2010
  20. 20. Change design The goal is to obtain a new “well designed process” The new process must reduce waste and add value from the customer’s perspective We need to understand the current process first through a process map exerciseRene Alvarez, 2010
  21. 21. Three different approaches Break down old Future assumptions State New Technology Current State New Process ModelRene Alvarez, 2010
  22. 22. Breaking down old assumptions W hy? W hy? W hy? W hy? W hy?Rene Alvarez, 2010
  23. 23. What to analyze? What are the customer’s needs? Who does the work? Where the work is done? When the work is done? What resources are needed? Why do we do this work? What are the constraints for the work? How do we control the process? What are the “contact points” with the customer?Rene Alvarez, 2010
  24. 24. New process models1. Re-localize the work2. Minimize the hand-offs3. Reconfigure and reorder steps4. Create new mixed teams5. Integrate tasks6. Eliminate intermediates7. Reduce the amount of decisions8. Relocate the decision points9. Share information to allow staff to see “beyond the walls”10. Improve process cycle efficiency by eliminating stages that do not add value from the customer’s point of view11. Make visible those invisible parts of the process (“Staple to and follow the customer in his/her journey” to see the whole process through his/her eyes)12. Focus on those aspects of the process that cause the 80% of the undesirable effect13. Standardization14. Minimize variation Rene Alvarez, 2010
  25. 25. How to evaluate different alternatives Total cost Impact in the problem Cost/Benefit Relationship Impact in the culture Time to implement Risks Impact in the staff Impact in the customerRene Alvarez, 2010
  26. 26. Effectiveness of the solution Pilot tests Dry runs SimulationRene Alvarez, 2010
  27. 27. Implementation1. Design a plan2. Describe the change3. Describe why the change is necessary4. Implement written procedures5. Involve in the implementation process all those who are affected by the new procedureRene Alvarez, 2010
  28. 28. The beginning . . . Rene AlvarezRene Alvarez, 2010