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How Sloan Valve Has Implemented Process Management: A Journey of Process Integration

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Tom Coleman, Chief Information Officer and Chief Process Officer at Sloan Global Holdings, shares over a decade of experience and lessons from process management, focusing on the key role of linking everything to a cross-functional strategic planning process.

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How Sloan Valve Has Implemented Process Management: A Journey of Process Integration

  1. 1. ©2014 FCB Partners. All rights reserved. Tom Coleman, CIO and Chief Process Officer, Sloan Global Holdings Webinar Roundtable Discussion: May 14, 2014 How Sloan Valve Has Implemented Process Management: A Journey of Process Integration
  2. 2. 1©2014 FCB Partners. All rights reserved. Key Discussion Points for Today’s Webinar  Corporate strategy as an end-to-end governance process  Relationship of corporate strategy to BPM  The necessary synergy of BPM methodologies  A few points about engaging IT  A few points about engaging HR  Conclusion
  3. 3. 2©2014 FCB Partners. All rights reserved. 2 AboutSloan • Founded in Chicago in 1906 • Privately held, U.S. based commercial plumbing products • The most comprehensive line of commercial restroom solutions • The leader in water and energy high efficiency solutions • 4,300 distributors, 69 rep offices, 60 countries • 10 major locations IL, China (3), PA, MA, AR, MI, Mexico, CA • Global supply chain and wholesaler distribution network • SAP Business System enabling breakthrough business processes
  4. 4. 3©2014 FCB Partners. All rights reserved. BPM Starts With Strategy Current State (As-Is / Today) Required Future State (New Tomorrow) Resources STRATEGY WIGs 1. Discovery 2. Core Ideology 3. Value Proposition 4. Business Imperatives 5. Goals / WIGs 6. Strategy Deployment 7. Employee Perf. Mgt. (EPM) “Must Do Can’t Fail”
  5. 5. 4©2014 FCB Partners. All rights reserved. Simplistic Wheel of Competitive Strategy 1980 Source: Michael E. Porter (Competitive Strategy) 4 Goals Strategy Objectives Finance Mfg Mktg Sales Service HREngineering Other 1980
  6. 6. 5©2014 FCB Partners. All rights reserved. SPP Strategic Planning Process Master Governance Process Governance Processes Core Processes Enabling Processes (many more) EPM Employee Performance Mgt Process ADKAR Change Management Process QAP Quality Assurance Processes S&OP Sales & Ops Planning Process AOP Annual Oper Plan Process STP Source-to-Pay Process MDM Master Data Mgt Process ECM Engineering Change Mgt Process HCM Human Capability Mgt Process BPM Business Process Mgt Processes DGP Demand Generation Process OAP Order Acquisition Process OTC Order-to-Cash Process CSP Customer Support Process NPD New Product Development Process Sample Enterprise Process Model
  7. 7. Process Enterprise “An enterprise in which all work is thought of, designed, performed, and managed as process work by everyone” Inspired by Dr. Hammer 2002
  8. 8. BPM is a management discipline that treats processes as assets that directly drive enterprise performance through operational excellence, business agility, and strategic differentiation. Sloan 2004
  9. 9. The Carpenter’s Toolkit  BSC/Hoshin  TOC  HCM  ADKAR  Six Sigma  Lean  BPR/DFSS  4DX  IT  Etc. 8  Saw  Hammer  Screwdriver  Pliers  Square  Mech. Pencil  Level  Measuring tape  Knife BPMCarpenter
  10. 10. The “Recipe” German Apple Cake  2 eggs  1 cup vegetable oil  2 cups white sugar  2 teaspoons of cinnamon  ½ teaspoon of salt  1 teaspoon of vanilla extract  2 cups all-purpose flour  1 teaspoon of baking soda  4 cups of apples (peeled, etc.) BPM  BSC/Hoshin  TOC  HCM  ADKAR  Six Sigma  Lean  BPR/DFSS  4DX  IT  Etc. 9
  11. 11. 10©2014 FCB Partners. All rights reserved. But What About IT?  If IT is a strategic enabler = co. outperforms competition.  IT gains value if it embraces “process” discussions.  IT gains value if it focuses on what’s possible.  IT is often the only function that see across the co.  IT value increases when it supports cross-functional teams rather than just functions.  Danger: IT Must quickly enable BT – Business Technology – as well as traditional IT.  Danger: Many IT departments are “too busy” for high yield BT 10
  12. 12. 11©2014 FCB Partners. All rights reserved. BT & IT Futureview Emphasis Cloud Mobility Analytics & Information Social Business Process Management BUSINESS SYSTEMS CORE (e.g., ERP) BT SYSTEMS OF ENGAGEMENT IT SYSTEMS OF RECORD
  13. 13. 12©2014 FCB Partners. All rights reserved. Strategy Map Financial Value Proposition Customer Value Proposition Process BT & IT Capability Human Capability Financial Capability Financial Perspective “To sustain our mission, on what must we focus?” Customer Perspective “To achieve our vision, how should we appear to our customers?” Process Perspective “To satisfy our customers, which processes must we excel?” Resource Perspective “How will we sustain our ability to change and improve?” (Simplified) Core Ideology & Business Imperatives Value Delivery
  14. 14. 13©2014 FCB Partners. All rights reserved. BT (IT) Strategy Map Example Breakthrough Service ValueProp Customer Experience Management High Value Customer Processes Capability Develop Call Center Capabilities Develop Call Center Metrics Reorganize & Relocate Sales & Tech Support Train & Implement ADKAR Chg. Mgt. HR/CM Manage Customer Service Talent Implement SAP CRM Interaction Center Implement IP Phone System Implement SAP C4S (Sales Force Automation) Implement BAM (Business Activity Monitors) BT/IT Business Intelligence Analytics on Business Objects BT/IT Technologies: Mobility Cloud Big Data/BI Social Traditional ITCustomer Support Demand Generation Cost/ROI VOC Enablement Strategic Value ROI
  15. 15. Methodology German Apple Cake Directions  Preheat oven to 350 degrees F (175 degrees C). Grease and flour one 9x13 inch cake pan.  In a mixing bowl; beat oil and eggs with an electric mixer until creamy. Add the sugar and vanilla and beat well.  Combine the flour salt, baking soda, and ground cinnamon together in a bowl. Slowly add this mixture to the egg mixture and mix until combined. The batter will be very thick. Fold in the apples by hand using a wooden spoon. Spread batter into the prepared pan.  Bake at 350 degrees F (175 degrees C) for 45 minutes or until cake tests done. Let cake cool on a wire rack. Once cake is cool serve with a dusting of confectioners' sugar or with a Cream Cheese Frosting. 14 Human Capability Management Knowing BPM isn’t enough…
  16. 16. 15©2014 FCB Partners. All rights reserved. What About HR?  Benefits, onboarding, functional OD, etc. will do little to help with transformation  An HR organization can gain high credibility by linking HCM (e.g., Talent Mgt.) to process work  HR is usually knowledgeable about what’s possible regarding human capability  Often HR and IT are the only functions that see operationally across the entire enterprise  The true value of HR is proportional to how they enable human beings and process teams to support the value proposition  Danger: Many HR departments are “too busy” for high yield HCM 15
  17. 17. 16©2014 FCB Partners. All rights reserved. Conclusion  Corporate strategy is an end-to-end governance process  The corporate strategy process integrates everything: HR, IT, functions, culture, and other processes  The corporate strategy process drives action and follow-through  Real BPM is a way of thinking / holistic toolkit  Danger: People deliver change and decide whether to change 16

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