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6 Principles for Effective Process Management
The document outlines 6 principles for effective process management: 1) Process recognition - identifying key processes and distinguishing value-creation from support processes. 2) Process definition - mapping and documenting key processes. 3) Process infrastructure - defining process owner roles to manage end-to-end processes. 4) Setting process requirements - identifying customer needs and requirements for key processes. 5) Process evaluation - defining measurement systems to assess daily operations and long-term capability. 6) Process improvement - using systematic methods for continuous process improvement.
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6 Principles for Effective Process Management
- 1. 6 PRINCIPLES FOREFFECTIVE PROCESS MANAGEMENT Presented by Er Ralston 2017
- 2. 2 How to think aboutprocess Apple is a very disciplined company, and we have great processes. But that's not what it's about. Process makes you more efficient. Steve Jobs Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC
- 3. Definition of ProcessManagement • Design, Maintenance, and Improvement • Linked work activities • With purpose of producing a product or service for a customer or user Using Process Management, you will achieve improved customer satisfaction and business results. All Rights Reserved J. Er Ralston, LLC Principles of Process Management 3
- 4. Why Manage Processes? Fundamentalsof Process Management • The purpose of a company is to create customer value • Customer value is created through processes • Business success results from superior process performance • Superior process performance is achieved by having: - Superior process design - The right people - The right environment All Rights Reserved J. Er Ralston, LLC Principles of Process Management 4 PROCESSInputs Outputs
- 5. Processes and Tasks STARTTASK 1 TASK 4TASK 2 TASK 3 FINISH Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC 5
- 6. Functional Management Systems Functional objectivesare common in a vertical, hierarchical organization. Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC 6
- 7. Process Management Systems Aprocess typically crosses departments or functions until it reaches the customer. Order Acquisition Production Invoicing Recruiting, Developing Employees Customer Requirements Process Objectives Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC 7
- 8. Six Principles forEffective Process Management All Rights Reserved J. Er Ralston, LLC 8 1. Recognition 2. Definition 3. Infrastructure 4. Requirements 5. Evaluation 6. Improvement Principles of Process Management
- 9. 9 Process Recognition Tasks • IdentifyKey Processes in Your Organization • Distinguish Value-Creation and Support processes • Link processes to sub-processes • Prioritize processes for process management efforts PRINCIPLE 1 When you can name the process, you can manage the process. Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC
- 10. Organizational Processes . Products and Services OrganizationalMission Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC 10 PRINCIPLE 1 Process Recognition
- 11. 11 Key Process Types Value-Creation Processes –Linkedto mission Key Support Services and Processes –Internal support Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 1
- 12. Process Hierarchy Macro Process Sub-Processes Principlesof Process ManagementAll Rights Reserved J. Er Ralston, LLC 12 PRINCIPLE 1
- 13. 13 Process Definition/Documentation Tasks • Mapkey processes • Develop appropriate documentation for key processes Well defined processes are easier to manage to get the desired results. Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 2
- 14. 14 Process Infrastructure Tasks • Definethe roles and competencies of process roles (e.g. process owners) • Identify and name process owners in your organization Process owners achieve performance excellence by managing end-to-end processes. Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 3
- 15. 15 Process Owner’s MajorRoles • Design • Coaching • Advocacy from Beyond Reengineering, 1996, Michael Hammer “The process owner is a linker, a facilitator, an enabler of those who actually do the work. It would be more accurate to say that he reports to the performers – since he is on call, at their disposal – than to say that they work for him.” Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 3
- 16. 16 Identify & SetProcess Requirements Tasks • Identify key customers and customer needs • Determine key process requirements aligned to customer needs • Document the requirements for key processes When you know the target, then you can hit the target. Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 4
- 17. 17 Identify & SetProcess Requirements Customer/Stakeholder Needs Organization Goals Process Aim (purpose) Process Requirements All Rights Reserved J. Er Ralston, LLC Principles of Process Management PRINCIPLE 4
- 18. 18 Process Evaluation Tasks • Definemeasurement systems to assess day-to- day operations • Define measurements systems to assess long- term process capability When you measure the key inputs, you get better outputs. Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 5
- 19. 19 The basis for determininghow well you are meeting requirements Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 5 Select Key Process Measurements
- 20. Process Controls • Developcontrol plans for monitoring day-to-day process performance • Develop response plans for process signals • Engage workforce in process control Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC 20 PRINCIPLE 5
- 21. Process Capability • Relativeto customer & stakeholder requirements • Stable and capable over the long run Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC 21 PRINCIPLE 5
- 22. Process Improvement Tasks • Definesystematic improvement methods for your organization • Train leaders and the workforce to improve processes • Use formal evaluation and improvement methods to achieve better process and organizational results Systematic improvements are sustainable improvements. Principles of Process ManagementAll Rights Reserved J. Er Ralston, LLC 22 PRINCIPLE 6
- 23. 23 Systematic Improvement Methods Principlesof Process ManagementAll Rights Reserved J. Er Ralston, LLC PRINCIPLE 6
- 24. Summary Principles of ProcessManagement 24 • Customer value and company performance is generated through process. • Using Process Management, you will achieve improved customer satisfaction and business results.
- 25. RALSTON EXCELLENCE Contact Information: Er@RalstonExcel.com www.RalstonExcel.com Trusted Advisorsfor Operational Excellence