Uploaded byRene Alvarez
Process improvement and change management
1) The document discusses issues with dealing with "real world" problems and resistance to change. It advocates using a logical methodology to identify root causes and achieve agreement on problems and solutions. 2) A key part of the methodology is using cause-effect diagrams to achieve agreement on the problem by identifying root causes. Another part is brainstorming to achieve agreement on the direction of the solution. 3) With agreements in place, a detailed solution can be designed through approaches like analyzing current processes, considering new process models, and evaluating alternative solutions. The goal is an improved process that reduces waste.
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Process improvement and change management
- 1. Change Management andProcess Improvement Rene Alvarez Rene Alvarez, 2010
- 2. Issues It is not easy to deal with “real world” problems People tend to “resist changes” Managers tend to jump to solutions pressed by the need of obtain results, thinking that the analysis “is a waste of time” These solutions (usually called “low hanging fruits”) do not address the root causes of the problem Therefore, the problem appears again and again . . . Rene Alvarez, 2010
- 3. So . .. we need a methodology Intuitively, most people know how to solve problems, but are unable to, because they have no method of focusing their intuition. Without a means to focus, people will do the opposite of what they really believe and will play a lot of games with numbers and words. Eli Goldratt. It’s not luck. Rene Alvarez, 2010
- 4. How do weuse to deal with problems? Causes and effects are not ‘close in time and space’ Where to apply changes to get significant improvements is usually non obvious to most participants in the system Our non systemic ways of thinking are so damaging specifically because they consistently lead us to focus on low- leverage changes: we focus on symptoms where the stress is greatest. We frequently repair the symptoms not the problem Senge, P. M., (1990) The fifth discipline: the art and practice of the learning organization. Such efforts only make matters better in the short run, at best, and worse in the long run Rene Alvarez, 2010
- 5. Why do weresist to change? Disagreement on the problem Disagreement on the direction of the solution Disagreement as to whether the solution will result in the desired effects “Yes, but . . .” the solution has negative outcomes (side effects) It’s not exactly clear how to implement the solution Raising doubts about the collaboration of others (un- verbalized fear) Theory of Constraints, Eli Goldratt Theory of Constraints, Eli Goldratt Rene Alvarez, 2010
- 6. The problem isus . . . Rene Alvarez, 2010
- 7. The solution: Touse a methodology Whether it is in medicine or engineering, continuous improvement processes should be conducted following a logical methodology that allows the team to achieve its goals, without spending time in futile discussions Rene Alvarez, 2010
- 8. The strategy: breakthe layers of resistance !! 1. Achieve an agreement on the problem 2. Achieve an agreement on the direction of the solution 3. Design the detailed solution based on those agreements Rene Alvarez, 2010
- 9. To solve theproblem . . . We need to define the problem We need to achieve “an agreement on the problem” We need to eliminate the root causes of the problem 'Okay, Houston, we've had a problem here.‘ 'Okay, Houston, we've had a problem here.‘ John Swigert, Jr. US’s Apollo 13 Moon flight John Swigert, Jr. US’s Apollo 13 Moon flight Rene Alvarez, 2010
- 10. What are theroot causes of the problem? We need to find them using a “logic methodology” Rene Alvarez, 2010
- 11. Cause-effect diagrams willhelp us in finding the root causes . . . Rene Alvarez, 2010
- 12. The Good news!! After a collective process of building the cause-effect diagram, we have broken the first layer of resistance to the change . . . We have an agreement on the problem ! Rene Alvarez, 2010
- 13. Improving stages 1. Achievean agreement on the “Direction of the solution” to remove the root causes 2. Design the “detailed solution” 3. Evaluate the alternatives 4. Probe the effectiveness of the solution 5. Implement the solution Rene Alvarez, 2010
- 14. Solution Once the team has identified the root causes of a problem, it is necessary to eliminate them through developing a “solution” Rene Alvarez, 2010
- 15. The direction ofthe solution The direction of the solution is the “Strategic guideline for the detailed solution” Teams must concentrate on the desired future state Teams must avoid going into details in this phase (“Yes, but . . . ” will be welcome in later steps, not now) Rene Alvarez, 2010
- 16. Types of changes New written procedures Additional training for the staff New equipments and technology Changes in the responsibilities Staff empowerment Rene Alvarez, 2010
- 17. Successful brain storm Judging is not permitting Far-out ideas are encouraged The emphasis is on quantity of ideas Participants should expand and elaborate other ideas to produce new ideas by association There are not “silly ideas” Make contributions in turn Do not provide explanations on your ideas “Yes but . . . ”are not allowed Rene Alvarez, 2010
- 18. Agreement We have broken the second layer of resistance to the change ! Now we have an agreement on the direction of the solution ! Rene Alvarez, 2010
- 19. Now . .. Having an agreement on the direction of the solution, we can design a detailed solution for the problem Rene Alvarez, 2010
- 20. Change design The goal is to obtain a new “well designed process” The new process must reduce waste and add value from the customer’s perspective We need to understand the current process first through a process map exercise Rene Alvarez, 2010
- 21. Three different approaches Break down old Future assumptions State New Technology Current State New Process Model Rene Alvarez, 2010
- 22. Breaking down oldassumptions W hy? W hy? W hy? W hy? W hy? Rene Alvarez, 2010
- 23. What to analyze? What are the customer’s needs? Who does the work? Where the work is done? When the work is done? What resources are needed? Why do we do this work? What are the constraints for the work? How do we control the process? What are the “contact points” with the customer? Rene Alvarez, 2010
- 24. New process models 1. Re-localize the work 2. Minimize the hand-offs 3. Reconfigure and reorder steps 4. Create new mixed teams 5. Integrate tasks 6. Eliminate intermediates 7. Reduce the amount of decisions 8. Relocate the decision points 9. Share information to allow staff to see “beyond the walls” 10. Improve process cycle efficiency by eliminating stages that do not add value from the customer’s point of view 11. Make visible those invisible parts of the process (“Staple to and follow the customer in his/her journey” to see the whole process through his/her eyes) 12. Focus on those aspects of the process that cause the 80% of the undesirable effect 13. Standardization 14. Minimize variation Rene Alvarez, 2010
- 25. How to evaluatedifferent alternatives Total cost Impact in the problem Cost/Benefit Relationship Impact in the culture Time to implement Risks Impact in the staff Impact in the customer Rene Alvarez, 2010
- 26. Effectiveness of thesolution Pilot tests Dry runs Simulation Rene Alvarez, 2010
- 27. Implementation 1. Design aplan 2. Describe the change 3. Describe why the change is necessary 4. Implement written procedures 5. Involve in the implementation process all those who are affected by the new procedure Rene Alvarez, 2010
- 28. The beginning .. . Rene Alvarez Rene Alvarez, 2010