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Critical Success Factors of Process Redesign


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The disciplines for a successful process redesign include having a clear process, roles and organization, and a strategy.
What are the critical success factors for process redesign?

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Critical Success Factors of Process Redesign

  1. 1. ©2013  Hammer  and  Company.  All  rights  reserved.   Steve  Stanton   Webinar:  October  10,  2013   Process  Redesign   A  Four-­‐day  Course  for  Process  Sponsors,  Teams,   And  Consultants  
  2. 2. 1  ©2013  Hammer  and  Company.  All  rights  reserved.   A  Process  for  Process  Redesign   •  Develop enterprise process model •  Appoint process owner and establish governance •  Formulate process strategy and measures •  Draft charter and recruit team members Mobilization •  Bound and scope the process •  Observe customer experience •  Understand the current process •  Identify gaps and opportunities •  Establish performance targets and dependencies   •  Review design principles and apply patterns •  Determine IT capability required to support future state •  Build out dimensions and dependencies •  Develop measurement architecture •  Develop business case •  Develop release plan and implementation roadmap •  Design and conduct lab prototype •  Design and conduct pilots •  Roll out initial release •  Recruit and orient teams •  Engage stakeholders Diagnosis Redesign Transition Change  Management  
  3. 3. 2  ©2013  Hammer  and  Company.  All  rights  reserved.   Process  Model  Establishes  the  Landscape   Core Process Core Process Core Process Suppliers Customers Enabling Processes Governing Processes
  4. 4. 3  ©2013  Hammer  and  Company.  All  rights  reserved.   The  Art  of  Process  Modeling:    Mistakes   To  Avoid   •  Relabeling  funcIons  as  processes   •  Taking  an  introspecIve  point  of  view   •  Failing  to  specify  inputs  and  outputs   •  Drawing  boxes  first   •  Using  mealy-­‐mouthed  names   •  Diverging  from  the  business  strategy   •  ExpecIng  to  get  it  right  immediately   •  Assuming  the  model  will  stand  on  its  own      
  5. 5. 4  ©2013  Hammer  and  Company.  All  rights  reserved.   Process  Owner  Drives  Consistency  and  Results   Across  Boundaries   Acquire and Maintain Customers Clear Lines Deliver Products and Services Calculate, Bill and Collect Northwest Northern Central Southern Region       Process  
  6. 6. 5  ©2013  Hammer  and  Company.  All  rights  reserved.   The  Art  of  Process  Ownership:    A  CombinaDon   Of  Clout  and  Influence   Design   owns  the  end-­‐to-­‐end  business  process  design   Customer   advocates  for  the  customer   Performance   understands  current  performance  vs.  desired  performance   Strategy   creates  vision  for  the  process  and  sells  the  journey  map   Resources   allocates  resources  to  execute  the  process  plan   Capability   provides  the  tools  for  people  to  be  successful   ROI   manages  the  process  as  an  asset  and  maximizes  the  return  on  the  company’s   investment  
  7. 7. 6  ©2013  Hammer  and  Company.  All  rights  reserved.   Process  Strategy  Answers  Fundamental   QuesDons   •  Where  are  we  now?   •  Where  do  we  need  to  be?   •  What’s  the  performance  gap?   •  How  do  we  intend  to  close  it?  
  8. 8. 7  ©2013  Hammer  and  Company.  All  rights  reserved.   The  Art  of  Process  Strategy:    Disciplined   Pursuit  of  PerfecDon   Determine key success factors Develop improvement plan Find and fix execution problem Improve design Modify design Replace design Measure results GAP Set new performance target Understand process performance Scan customers, competitors, ecosystem Ensure process compliance Design, document, and implement process
  9. 9. 8  ©2013  Hammer  and  Company.  All  rights  reserved.   Redesign  Team  Does  the  Heavy  LiNing   Technical Back Office Region Product Suppliers HR Production Financial Insiders & Outsiders Dedicated & Capable 5 – 8 Total Committed Players Field Legal Regulatory Sales
  10. 10. 9  ©2013  Hammer  and  Company.  All  rights  reserved.   The  Art  of  RecruiDng  a  Redesign  Team   Finding  them   5  –  20%  are  candidates   GePng  them  to  join   lowering  disincenIves  by  minimizing  downside   addressing  career  concerns   the  value  of  financial  incenIves:    upside  potenIal   personal  recruiIng  by  the  leader  to  overcome  skepIcism   appealing  to  idealism   if  this  doesn’t  excite  them,  we  don’t  want  them   GePng  the  organizaDon  to  let  them  go   the  need  for  execuIve  intervenIon   GePng  them  to  go  back   “I  was  born  to  do  this”   Acquiring, affording, aftermath