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Build the foundation for process improvement
The document outlines a structured approach to process improvement led by James Noll from Satori Consulting, emphasizing the importance of analyzing current processes and designing target states. Key tools and methodologies discussed include business process decomp (BPD), process maps, and scan worksheets aimed at improving efficiency, reducing costs, and aligning with organizational objectives. The document stresses that process improvement is a non-linear, continuous journey requiring the involvement of all stakeholders and regular updates to ensure adaptability and ongoing effectiveness.
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Build the foundation for process improvement
- 1. Build the foundation for process improvement. JamesNoll, Senior Manager at Satori Consulting.
- 2. 30-NOVEMBER-2017 James Noll, SatoriConsulting
- 3. AGENDA 2 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions 01What is process improvement and what are the standard phases of process improvement 02 How a project’s catalyst for change defines your approach 03 The tools to use for effective current-state process analysis 04 Target-state and beyond – Laying the groundwork for process improvement 05 Questions
- 4. 3 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions 01Overview 02 Catalyst for change 03 Process analysis toolkit 04 Target-state and beyond 05 Questions
- 5. WHAT IS PROCESSIMPROVEMENT Structured analysis to support changes to an organization’s processes / structure / supporting technology with the goal of improvement 4 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Allofthethese Someorallof thethese Increase accuracy / lower error rate Lower cycle time Lower operating cost Increase efficiency People Process Technology Analysis of an organization’s… With the goal of supporting changes that…
- 6. SATORI PROCESS DEFINITIONROADMAP A VIEW OF THE BIG PICTURE FIRST 5 Define scope Complete process scan Create process maps Document procedures Document testing and training scenarios CurrentStateTargetState Complete process analysis Map process to target system To CM Fully documented target-state process Steps per sub-process Design strategies, corrective actions, goals Strengths, weaknesses, objectives, constraints Role and Org mapping Measures and metrics Degree of change Dependencies, roles & Responsibilities, gaps To CM To CM To CM (Training) To CM (Training) Business Process Decomp Process Analysis Worksheet Process Analysis Worksheet Process Maps SOPs Process Analysis Worksheet Process Maps Catalyst for change Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions
- 7. 6 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions 02Catalyst for change 03 Process analysis toolkit 04 Target-state and beyond 05 Questions 01 Overview
- 8. CATALYST FOR CHANGE Youranalysis should go into just enough detail to support need you want to do next on your roadmap WHAT YOU WANT TO DO NEXT DETERMINES THE RIGHT LEVEL OF DETAIL 7 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Deep Dive • Pure process improvement initiatives Order cycle time reduction Lowering call center volume / time per call • Cost-reduction • Regulatory compliance remediation Just Enough • Vendor or system selection • System implementation • Post-merger integration
- 9. 8 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions 02Catalyst for change 03 Process analysis toolkit 04 Target-state and beyond 05 Questions 01 Overview
- 10. PROCESS ANALYSIS TOOLKIT USETHE RIGHT TOOLS TO ORGANIZE HOW YOU ANALYZE YOUR CURRENT STATE 9 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Analyze how a process is executed Process Scan Show how a process happens Process Maps Show the organization of a company and its processes Business Process Design (BPD)Purchasing and Replenishment (MRP) Planning Long- Term Replenishment Planning Weekly Replenishment MRP System Maintenance Updating Order Quantities Managing Purchased Items Determing Replenishments and Placing Orders Addressing Daily or Weekly Replenishment Issues MRP Planning Identifying Short- Term Requirements Calculating Safety Stock Updating Safety Stock Establishing and Maintaining Order Rules Establishing Item Planning Parameters Communicating Requirements to Vendors 1 2 3
- 11. A BPD DIAGRAMIS A TOOL THAT... SHOWS MAJOR BUSINESS AREAS, BY THE BUILDING-BLOCK SUB-PROCESSES, WORKFLOWS, AND THEIR PROCEDURES COMMUNICATES THE SCOPE OF A PROCESS (WHAT IS VS. WHAT IS NOT) and the scope for our analysis SHOWS WHAT WE ORGANIZE OUR ACTIVITIES AGAINST Anatomy of a BPD Diagram Business Process – Major business unit (AP, AR, Order Management) Functional Area – Core activities of the business unit – Process – Activities of each business unit and the roles executing them Procedure – Discreet step-by-step procedures within a process Each is a One-to-Many Relationship Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions
- 12. CREATING A BPD– GUIDANCE 11 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Capture content first and organize second • Get people talking • Start unstructured and then group Start with the right resource for laying out the BPD • Start higher up the org chart, rather than lower • Get the lower-level subject matter experts to help fill in the sub-processes Capture the “right” amount of granularity • Too Much Detail – you get bogged down or build something that can’t communicate clearly • Too Little Detail – it won’t be usable, what it communicates will be trivial or non-substantive What are the responsibilities of each person in the department • Lists of sub-processes and workflows Are there any special calendar-driven processes: week-ending, month-ending activities? Keep the BPD at a consistent level of granularity • Create summary-level or more detailed diagrams as needed As you update, use color-coding to show changes • New processes, retired or consolidated processes, scope changes, status-tracking
- 13. PROCESS SCAN WORKSHEET PROVIDESSTRUCTURED APPROACH TO CAPTURE INFORMATION AND GUIDE CURRENT-STATE ANALYSIS Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Who participated in the analysis activities Attributes of the process Strengths Weaknesses Objectives, Requirements & Constraints Inputs to the process / outputs from the process Steps of the major activities along with roles and supporting technology
- 14. PROCESS SCAN WORKSHEET Overview Catalystfor Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Process Scan Worksheet Process Information Process Name - Record the process owner and the names of anyone who participated in the process scan sessions • Important to have a record of who the information is from (who participated / who did not) • Makes follow-up conversations easier Define Scope of Current Process Scan Current Process Strengths - List what works in the current world in order to maintain it going forward • Ex: We can easily see clients that we have sold in multiple countries, and where the client is located (location of use). Weaknesses – List what doesn’t work • Ex: Reports require manual cleanup (to eliminate duplicate records) before they can be sent to management Objectives, Requirements & Constraints - List high-level goals, objectives, requirements, constraints that must be accounted for • Ex: (Requirement): All contracts are in local currency • Ex: (Goal): Automate order validation from receipt, to drop to warehouse, to invoicing - Manual intervention only required for orders with exceptions • Ex: (Constraint): Overall staffing must decrease 2.5 FTE’s Functional Area Description Record Process Steps Define the high-level processes that make up each functional area • Ask what starts an activity? Ask how you know when an activity has been completed successfully (what outputs does it produce or what conditions are now true?) • Ask what works, what doesn’t work • Add any notes that are relevant to the step. Notes may include strengths / weaknesses, desired outcomes, requirements, constraints, and dependencies • Ask for any sample documents (order forms, reports, etc) that help to illustrate the process
- 15. Process Maps helppeople understand processes they own or play a part in, facilitate communication about the process and its steps, decision points, key inputs and outputs PROCESS MAPS BUILD ON THE PROCESS SCAN WORKSHEETS TO MAP THE CURRENT PROCESSES 14 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Purchasing and Replenishment (MRP) Planning Long- Term Replenishment Planning Weekly Replenishment MRP System Maintenance Updating Order Quantities Managing Purchased Items Determing Replenishments and Placing Orders Addressing Daily or Weekly Replenishment Issues MRP Planning Identifying Short- Term Requirements Calculating Safety Stock Updating Safety Stock Establishing and Maintaining Order Rules Establishing Item Planning Parameters Communicating Requirements to Vendors BPDs show the what of an organization’s processes Process maps (workflows) add the who, when, how • Who does what (Roles & Hand- offs) • Chronological flow • Decision points • Inputs and value-added outputs Annotated Process Role2NotesRole1 Start Step (verb+noun) Decision Step (verb+noun) Step (verb+noun) Label the decision output Label the other option Capture how the transfer from one role to the next happens Reference to an External Process process feedback loop End Notes · Dashed line · No arrows
- 16. CREATING PROCESS MODELS– GUIDANCE ON GETTING STARTED 15 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Involve those who participate in the process, not just the process owner Map the current process as it exists today Have a clear starting point and ending point that you’re going to document– Define the scope and focus for any meeting with process owners and subject matter experts No right tool to document with, just be consistent in your approach • Use a white-board, Post-it notes, Visio – whatever tools you are comfortable in • It’s best to use a big surface, and map in person Start by defining the normal process • Document what normally happens and use notes to handle variations • Document ‘Yes” first. Don’t get bogged down in every exception Use your BPD diagram to define and track the processes that you need to capture. Update your decomp as needed throughout the process
- 17. CREATING PROCESS MODELS– GUIDANCE ON DOCUMENTING THE PROCESS 16 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions One action per box, expressed in verb+noun format • Break this convention to differentiate call-outs to processes captured elsewhere. Use a title format (e.g. Technology Vendor Selection and Sourcing process) Capture the steps and ask what role performs the step to collect the roles. Confirm you’re involving all key participants in the mapping process Record how the hand-offs take place • Any “conditions” that happen when a step crosses from one role to another • How do I know your job is done and my job starts? What is passed off? How? Map the process from left-to-right and top-to bottom • Work upper-left to lower-right to show chronology. • Align unconnected boxes if activities take place simultaneously Capture what has happened when the workflow is completed successfully – and all the places where if something hasn’t happened that it’s failed Get the process down, then clean it up. • Once you have a draft, document the process digitally (if you haven’t done so already) • Distribute for feedback Don’t get too granular. Capture boxes at the procedure title level, not the step-by-step tasks in the procedure
- 18. PROCESS MAPPING –CREATION BEST PRACTICES USE A MINIMUM NUMBER OF SHAPES CONSISTENTLY 17 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Annotated Process Role2NotesRole1 Start Step (verb+noun) Decision Step (verb+noun) Step (verb+noun) Label the decision output Label the other option Capture how the transfer from one role to the next happens Reference to an External Process process feedback loop End Notes · Dashed line · No arrows
- 19. 18 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions 02Catalyst for change 04 Target-state and beyond 05 Questions 01 Overview 03 Process analysis toolkit
- 20. TRANSITIONING FROM ANALYSISTO DESIGN USE YOUR ANALYSIS TO DRIVE DESIGN OF YOUR TARGET-STATE 19 Define scope Complete process scan Create process maps Document procedures Document testing and training scenarios CurrentStateTargetState Complete process analysis Map process to target system To CM Fully documented target-state process Steps per sub-process Design strategies, corrective actions, goals Strengths, weaknesses, objectives, constraints Role and Org mapping Measures and metrics Degree of change Dependencies, roles & Responsibilities, gaps To CM To CM To CM (Training) To CM (Training) Business Process Decomp Process Analysis Worksheet Process Analysis Worksheet Process Maps SOPs Process Analysis Worksheet Process Maps Catalyst for change Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Process Maps SOPs Create process maps Process library created in Promapp
- 21. 20 © SatoriConsulting | Proprietary and Confidential TARGET STATE AND BEYOND BUILD ON AND TRANSFORM THE CONTENT CAPTURED ABOUT THE CURRENT PROCESS Keep your BPD updated • Treat it as a living document that is constantly evolving Use the process scan worksheet to facilitate process design Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Use the updated process scan worksheets and process maps to map target processes • Strengths Design Strategy: Describe how the current process strengths will be preserved • Weaknesses Corrective Action: List corrective actions for each identified weakness • Desired Outcome Measures and Metrics • Requirements How Will It be Implemented? • Constraints How Will these be Mitigated • Shared understanding of the process, supported by a documented processes map, serving as the single source of truth • Capture the end-to-end process with points of accountability, inputs and outputs, hand-offs, and documented procedures to execute process steps • Support continuous process improvement
- 22. SUMMARY 21 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions Letthe scope inform how deep a dive you take into current-state analysis Process Analysis Toolkit • BPD – start listing processes first and group second. Keep the BPD at a consistent level of granularity. Make summary-level and more detailed BPDs as needed • Process Scan Worksheet – Involve process participants and capture what works, what doesn’t, and any constraints • Process Maps – Capture processes as they exist today. Start with the normal process. Don’t get bogged down in details or exceptions Understand your catalyst for change, and confirm your scope Use your structured current-state analysis as a foundation for improvement Process improvement is not linear, it’s a continually evolving journey. Use tools that support continuous improvement. Continuous Improvement Catalyst for change
- 23. 22 Overview Catalyst for Change Process Analysis Tools BPD Process Scan Worksheet Process Maps Target State and Beyond Questions 02Catalyst for change 05 Questions 01 Overview 03 Process analysis toolkit 04 Target-state and beyond
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- 25. 24 © SatoriConsulting | Proprietary and Confidential ABOUT SATORI CONSULTING • A brief overview: – Satori orchestrates change. We deliver insight, add clarity, and align to clients’ business objectives to yield results – We are comprised of highly experienced professionals who are dedicated to demonstrating Satori’s value and commitment to our clients – We provide Business Process Engineering, Portfolio/Program/Project Management, Change Management, Organizational Effectiveness, Strategic Planning and Risk Management services • Satori helps our clients to understand and navigate the complex environments, relationships, and controls that their businesses must master to survive and thrive. We: – Devise strategies that effectively balance objectives and constraints – Design processes, organizations, and supporting structures that bring objectives to life – Manage changes that achieve the strategic intent
- 26. PROCESS SCAN WORKSHEETS SAMPLES 25 ProcessScan Worksheet Samples from Current State>Target State Samples to support a vendor selection