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FCB Partners Course Preview: Process Owners in Action
- 1. Process Owners in Ac-on Walter Popper Miami, FL February 3-‐5, 2016
- 2. 1 ©2015 FCB Partners. All rights reserved. Who Should Take this Course Process Owners Customer-‐facing (sales, distribuIon, and service) OperaIons (development, engineering, supply chain, producIon) Back Office (contracIng, purchasing, planning, billing) Support (quality, audit, talent management, informaIon systems) Process Professionals Lean coaches Six Sigma black belts Other Staff Specialists Business Analysts IT Project Leaders HR Change Managers
- 3. 2 ©2015 FCB Partners. All rights reserved. Course Overview Day 1: Role and Responsibili=es Strategies for OperaIonal Excellence Process Design, OrganizaIon, and Infrastructure Process Measurement and Improvement Challenges of Process Ownership Day 2: Time and A@en=on Assessing and PrioriIzing OpportuniIes Sponsoring Projects and IniIaIves Making Process Councils Work Sustaining Process Performance Day 3: Impact through Influence Geng Top Team Buy-‐In Influence without Authority AcceleraIng AdopIon
- 4. 3 ©2015 FCB Partners. All rights reserved. The Power of Process Defines tasks for overall efficiency and effecIveness Puts work into context – serving customers, execuIng strategy Converts inputs into outputs of greater value Establishes enterprise standards – one way of doing business Enhances transparency and provides audit trail Enables learning – individual and collecIve End-‐to-‐end work flow a group of related tasks that together create customer value structured, purposeful work in context
- 5. 4 ©2015 FCB Partners. All rights reserved. Process Owner Role and Responsibili<es Design End-‐to-‐End Work Flow Inputs Customers Suppliers Steps Outputs Process steps are just the beginning The Value Chain Also known as SIPOC
- 6. 5 ©2015 FCB Partners. All rights reserved. Role and Responsibili<es Measure What Ma@ers Outcome measures lagging indicators to highlight what mabers to customers validate using customer measures and experiences line of sight to internal strategic and operaIonal objecIves Process measures leading indicators to predict and improve outcomes validate by observing cause-‐and-‐effect or analyzing correlaIon highlight the few metrics with greatest leverage Trends benchmarks highlighIng gaps and momentum, either posiIve or negaIve use period to period comparison to understand and minimize variaIon Targets goals to establish expectaIons and inspire extra effort
- 7. 6 ©2015 FCB Partners. All rights reserved. Role and Responsibili<es Invest in Informa=on Technology Devices system access point including mobile, desktop, embedded Applica=ons socware funcIonality, templates, tools, screens, navigaIon structures capabiliIes and procedures associated with the process Content qualitaIve and quanItaIve informaIon and associated data structures Services technical and business soluIons accessible over the network Network connecIons and communicaIon capabiliIes across devices
- 8. 7 ©2015 FCB Partners. All rights reserved. Role and Responsibili<es Advise on Organiza=on, Sourcing, and Staffing Front-‐line employees working on the process engaged most or all of their Ime on process work Subject and func=onal experts contribu=ng to the process bringing their experIse to process work as required External staff performing the process contract hires or third-‐party work force in an outsourcing arrangement Supervisors and managers overseeing structuring, prioriIzing, guiding, and assessing process performance
- 9. 8 ©2015 FCB Partners. All rights reserved. Role and Responsibili<es Engage Key Stakeholders My Team Top Team Process Customers* Process Suppliers* My Process Who are the key players in each stakeholder group? What do I need from them? What do they need from me? * Includes adjacent process teams
- 10. 9 ©2015 FCB Partners. All rights reserved. Role and Responsibili<es Iden=fy Gaps and Pursue Opportuni=es 2012 Spend: $816 M 2012 Top 8 categories: 78% 2012 MRO spend: $33 M 13,776 Material Masters; 53% unused in 2012 $61M on hand inventory, demand based target >$30M Available onsite storage area: 509,744 ft² Services vs. Materials Spend 78%-22% Average lead time/line 12 days Average lead time/MM 21 days Baker Hughes Daily Avg Consumption: 8,211L Daily Avg Deliveries: 9,027 L Over-Deliveries: 297,772 L
- 11. 10 ©2015 FCB Partners. All rights reserved. Role and Responsibili<es Communicate in A Networked World Cul=vate key opinion leaders inside and outside your process
- 12. 11 ©2015 FCB Partners. All rights reserved. Time and A?en<on Establish Goals for Customer Experience 1. Earn my trust 2. Inspire me 3. Make it easy 4. Put me in charge 5. Guide me Source: 10 Demandments: Rules to Live by in the Age of the Demanding Customer, by Kelly Mooney 6. Be there for me 24/7 7. Get to know me 8. Exceed my expecta-ons 9. Reward me 10. Stay with me Today’s customer was trained by Amazon and Starbucks Today’s customers expect an easy-to-use process
- 13. 12 ©2015 FCB Partners. All rights reserved. Time and A?en<on Develop Targets of Opportunity Enablers Typical Accomplishments Commonly Observed Gaps Targets of Opportunity Owners Process point of view Focus on improvement Common terminology Process-function dialogue Time on projects & staff work Tomorrow vs. today Seen as ‘bureaucracy’ Function trumps process • Increase presence with front-line teams • Make difference every quarter and report it • Perception or reality? Find out and respond • Strengthen PO’s functional alliances • Structure part-time PO role for greater impact Design and Measures Partial documentation Opportunities identified Measures proposed Mainly transaction back office Op Ex more than customer Efficiency, compliance focus • Add one knowledge work process • Add to customer measures and feedback • Introduce stretch goals Performers and Systems ERP’s implemented Front-line trained Potential for collaboration Local improvements Internal data, limited analysis Primarily internal systems Individual goals & incentives Ad hoc, not continual • Introduce extended data, analysis, trending • Explore online applications and services • Try team or group goals and incentives • Identify, replicate, and extend ad hoc efforts Leaders and Governance Executive champion Process Model Process Council Portfolio of initiatives Ad hoc, limited back up One-time effort, limited use Disconnect from Op Mgmt. Loose link to Strategy, IT • Structure champion role and add leverage • Establish EPM renewal cycles • Connect PC to PMO, Ops or other governance • Link process, IT, and strategy programs Culture and Expertise Center of Excellence Lean, Six Sigma skills Process values discussed Limited reach beyond HQ Narrow, stand-alone skill sets Unwritten rules unchallenged • Explore distributed or hybrid COE • Integrate strategy, project, process, change • Challenge at least one ‘business as usual’ rule
- 14. 13 ©2015 FCB Partners. All rights reserved. Time and A?en<on Implement Measurement Systems The Right Measures Used in the Right Ways 1. Connect to the big picture 2. Look at the evidence 3. Select with care 4. Get specific and material 5. Pick a meaningful name 6. Make measures visible 7. Establish real =me feedback -‐ Balanced Scorecard Collabora<ve
- 15. 14 ©2015 FCB Partners. All rights reserved. Time and A?en<on Build Competencies & Capabili=es • Work Force – posiIon descripIons and requirements – performance goals, objecIves and reviews – new hire orientaIon • OrganizaIon – direct and dobed line reporIng – operaIng unit performance reviews – merger integraIon teams • Investment – project, program and porholio management – business requirements and data management – new system implementaIon and adopIon
- 16. 15 ©2015 FCB Partners. All rights reserved. Impact through Influence Lead Project Stage Gate Reviews • Develop enterprise process model • Appoint process owners and establish governance • Create Strategic Linkage: process vision and case for ac=on • Select redesign team members • Review principles of high-‐performance processes • Apply pa@erns • Map to I/T capabili=es and constraints • Build out dimensions and dependencies • Develop metric architecture • Develop business case • Gain necessary approvals • Bound and scope the process • Understand customer needs • Understand the current process • Iden=fy weaknesses in the exis=ng design • Set targets for the new design • Develop implementa=on roadmap • Build ini=al laboratory prototype • Implement pilot(s) • Develop suppor=ng infrastructure • Rollout • Ins=tu=onalize • Re – redesign! Mobiliza=on Redesign Transi=on Diagnosis
- 17. 16 ©2015 FCB Partners. All rights reserved. Impact through Influence Sponsor a Mul=-‐Year Journey Releases Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q4 Year 1 Year 2 Release 1 Release 2 Release 3 Release 4 Release 5 Lab Pilot Rollout Lab Pilot 1 Rollout Pilot 2 Rollout Pilot Lab When 3 6 9 12 15 18 21 24 Lab Pilot Rollout Lab Pilot Rollout What
- 18. 17 ©2015 FCB Partners. All rights reserved. Impact through Influence Recruit and Retain ‘A’ Players Know whom you want ambiIon, commitment, creaIvity, as much as experIse open to new ideas; challengers of legacy assumpIons representaIve: primary funcIons, divisions, geographies Get what you want individual moIvaIon, iniIaIve, and follow-‐through significant level of effort, frequently subject to negoIaIon specified duraIon with opIon to renew, or an alternaIve Address ‘What’s in it for me?’ broadened perspecIve and increased exposure expanded skills in process and project disciplines high-‐profile business impact delicate quesIons: rank, reporIng relaIonship, career path The objec=ve -‐ an engaged, commi@ed, high-‐performing team
- 19. 18 ©2015 FCB Partners. All rights reserved. Impact through Influence Ins=ll a Process Improvement Discipline Set performance target Develop improvement plan Leverage new technology Understand performance gap Measure process performance 1. Understand customer needs 2. Benchmark competitors 3. Translate strategy 4. Assess financial requirements 5. Ensure inter-process linkage 6. Check technology innovations Perform process Improve execu=on Improve design Modify design Redesign Diagnosis Implement change GAP Iden=fy key measures Outsource