Process Performance Cer-fica-on. How Is Your Process Performing?

Transcription

1 Performance Cer-fica-on How Is Your Performing?

2 Introduc)on

3 Ques)ons to Be Answered by the PPC: How healthy is my process today? is our process Hghtly linked to our strategy? is our process performance meehng customer needs and expectahons? where are we vulnerable? Will we be able to sustain our performance into the future? how well do we understand how our processes create value? Do we know what is most important about each of our processes? what are our constraints? Where should we best focus to improve our results? how can we best grow revenue and profit thru our processes? are we focusing the right resources on the right processes? 2

4 PPC Benefits and Beneficiaries Owners - an objechve scorecard on current performance - a roadmap for improvement - a vehicle for acknowledging accomplishments - fewer and beqer audits Performers - a beqer and more aligned process for execuhon - improved morale and retenhon The Enterprise - improved efficiencies and profit - improved customer sahsfachon - beqer process alignment 3

5 Why Do We Need Another Tool Now? TradiHonally, it s organizahons or people that get cerhfied, here it s the process itself. It s Hme to acknowledge the work as well as the workers In the past few years, we ve seen a major evoluhon in both the costs and capabilihes of informahon technology. This has dramahcally increased emerging technology s importance to process performance, which has oxen been minimized in other assessment tools The past has been primarily dominated by transachonal processes. The future will see the growth of knowledge- intensive work Most older diagnoshc tools were maturity models that didn t explicitly include process performance as a focal point, and were designed with an operahng assumphon that if the assessed elements were mature, the results would be good. That has not always been the case The escalahng intensity of compehhon makes process outcomes ever more crucial to business success Finally, we now have many more years of experience with process both good and bad to draw upon 4

6 Defini)ons

7 Four Levels of Performance Chaos: No confidence in performance, high volahlity not understood unmanaged and unmeasured unclear performance, limited understanding of how value is created ad hoc and inconsistent elements Control: Uncertain confidence, moderate risk consistent performance, repeatable across transachons Competence: Moderate confidence, low risk documented superior performance structured management of change Compe))ve Advantage: High level of confidence in future performance hits stretch goals and outperforms compehtors dynamically self- correchng by performers or algorithms Note: Not all processes need to aspire to the highest level of performance, but all need to move toward improvement, but at different speeds 6

8 Six Performance Drivers at the Individual Level Purpose link to strategy and how to track performance Design the specificahons for execuhon Evolu)on how the process improves Accountability leadership role clarity and decision rights Performers the people who execute the process Technology the plaborms that support the process 7

9 The Seven Enterprise Enablers Enterprise Governing es 1. Strategy FormulaHon crea-ng strategic and metric clarity and focus 2. Management ensuring overarching process governance 3. Project Management ensuring the right balanced por?olio of ini-a-ves Enterprise Enabling es 4. Enterprise People es guaranteeing short- and long- term execu-on capabili-es 5. Enterprise Technology es providing leverage Enterprise Context 6. Culture defining and delivering the right behaviors 7. Leadership driving the en-re system 8

10 Performance Drivers: Individual

11 Purpose Chaos Control Competence Compe))ve Advantage Value CreaHon Weak and implicit connechon to strategy design and vision logically linked to strategy design and vision qualitahvely and quanhtahvely linked to strategy Design embodies and helps shape strategy (capability driven) Metric Design Many funchonal metrics, mostly cost and process measures undefined Clear, high- level E2E outcome measures defined Outcome measures, performance targets, and baselines all defined complete with leading and lagging indicators Complete, balanced, and dynamic process scorecard linked to incenhves is in use Metric Use Primarily retrospechve reporhng ReporHng and improvement, with episodic diagnosis yielding occasional gap insight ReporHng, improving, and predichng uses with conhnuous gap measurement, trend analysis ReporHng, improving, predichng, and mohvahng uses with all key metrics automated for evoluhon and instant feedback, correlahon analysis 10

12 Design IdenHty Chaos Control Competence Compe))ve Advantage is a collechon of renamed funchonal tasks E2E process intenhonally designed and SIPOC elements defined and documented at some levels E2E process completely defined and documented at all levels E2E process completely defined and documented electronically to facilitate frequent changes Flexibility Frozen in Hme Slow evoluhonary design change Consistency No defined standards Standards defined, but with many excephons and non- conformance, and no compliance mechanisms Frequent change and some experimentahon, some experience with mulhple simultaneous versions Standards defined with high conformance with designed excephon procedures ConHnuous redesign and innovahon, and old and new versions comfortably co- exist Standards defined with high conformance and achve experimentahon ConnecHvity Fragmented and unmanaged interfaces Well integrated within this process, but boundary management issues Well integrated within this process and across all other internal processes Well integrated internally and externally, up- and down- the value stream 11

13 Evolu)on Chaos Control Competence Compe))ve Advantage Voice of the Customer A distant echo, only responding in crisis AcHve listening and usage in ad hoc ways. Customer requirements defined AcHvely listened to and responded to; customer journey reflected in process model Customer achvely involved in product/ service and process design (co- creahon) Voice of the Performer A suggeshon box AcHve idea solicitahon with ad hoc usage AcHve involvement in idenhfying and execuhng improvements Primary driver of improvements Voice of Other OrganizaHons NIH prevails Some best prachce explorahon, mostly with direct peers AcHve search for best prachces and comparahve benchmarks Deep involvement in best- prachce sharing communihes Toolkit No recognized tools Some improvement tools, primarily CI, with limited training Full toolkit with wider training Complete toolkit with all process performers training in use Project Porbolio Project- ihs Visible inventory of many non- priorihzed projects, but no project launch rules Managed inventory of well staffed improvement projects Balanced inventory of projects with high success rates 12

14 Accountability Chaos Control Competence Compe))ve Advantage Leader Role Informal posihon, with no clear definihon; operahng with no levers of power Well- defined formal role as process sponsor operahng primarily thru influence, but unclear decision rights vs. funchonal managers Formal role occupied full- Hme with power derived from control process improvement budget and staff Powerful formal role, supported by execuhve power with explicit decision rights idenhfied for process and other axes Leader AcHons Project sponsorship Sponsorship and developing process vision and goals Sponsorship and advocacy about process within and across the organizahon Leader Forums None Occasional ad hoc discussions RouHne and well aqended sessions with all important stakeholders Empowered councils that lead design, improvement, and priorihzahon decisions 13

15 Performers Chaos Control Competence Compe))ve Advantage Role TradiHonal and funchonally defined Defined in the context of both funchon and process Expanded decision- making parameters Knowledge Limited educahon on organizahon s business and no process educahon Expanded business educahon and some process training. Can name process Significant business and process educahon and training. Can name process and outcomes Intense educahon and training. Understands own process and the customer s processes. Skills FuncHonal discipline FuncHonal and problem solving FuncHonal, problem solving, and analyhc FuncHonal, problem solving, analyhcal, and change management Behaviors Limited collaborahon and results focus IJWH, INMJ Ad hoc collaborahon and teaming Strong teams with clear focus on results 14

16 Technology Chaos Control Competence Compe))ve Advantage Technology Infrastructure FuncHonal legacy systems inhibit process technology ERP enables some process technology focus, but slow change IT and process change in parallel with systems conforming to process definihons IT and process operate in harmony with innovahons in one immediately transferring to the other New Technologies No usage Lagging compehtors in use, Followership AcHve funded experimentahon, Leadership AcHve experimentahon and exploitahon leading to market disruphon Data Poor quality Good data quality with isolated analyhc capabilihes Excellent data with dispersed analyhc capabilihes Real- Hme, accurate, shareable data with widespread analyhc strengths 15

17 Summary/Heat Map Chaos Control Competence Compe))ve Advantage Purpose Value CreaHon Metric Design Metric Use Design IdenHty Flexibility Consistency ConnecHvity EvoluHon Voice of the Customer Voice of the Performer Voice of other OrganizaHons Toolkit Project Porbolio 16

18 Summary/Heat Map Chaos Control Competence Compe))ve Advantage Accountability Performers Leader Role Leader AcHons Forums Role Knowledge Skills Behaviors Technology Infrastructure New Technologies Data 17

19 Enterprise Enablers

20 1. Strategy Formula)on Chaos Control Competence Compe))ve Advantage Strategic Clarity Strategy is unclear at the process level Mission, Vision, and Strategy are clearly funchonal, but at a high level Mission, Vision, and Strategy are clear and they define which processes are most crihcal for the organizahon Mission, Vision, and Strategy are clear; crihcal processes are idenhfied; and strategy provides alignment at all levels of the organizahon Metric Clarity Many disconnected measures Some processes have aligned internal metrics Most processes have balanced metrics All processes have dynamically balanced scorecards Resource Clarity The whirlwind rules Investment in both today and tomorrow, but unmeasured A managed and measured balance A dynamic, flexible, and balanced investment strategy 19

21 2. Management Enterprise Model ExecuHve Leaders and Council Chaos Control Competence Compe))ve Advantage None Nonexistent Primarily renamed funchons Some processes have senior leaders All Level 1 processes and also up- and down- stream partner processes named All processes have execuhve owners who meet for issue resoluhon All levels up- and down- stream, and decomposed All processes have execuhve owners who resolve issues and priorihze improvement resources Center of Excellence None ArHfacts and funchonal achvihes and some process consulhng Management is a process with an owner and measures. COE provides consulhng, training, and toolkit PMP is a well- defined process that provides tools, consulhng, training, facilitahon, change management, and best- prachce brokering 20

22 3. Project Op)miza)on PMO AcHons Chaos Control Competence Compe))ve Advantage No process project PMO # of Projects Uncounted with no accountability Several Project PMO s Many projects, mulhple priorihes, some visibility; many projects only parhally staffed Single PMO that tracks projects Fewer projects, all visible, with most well staffed; random assignment of project managers Success rate We don t know ~10% ~25% >50% Single PMO that priorihzes, charters, tracks, and conducts post- project reviews Few projects, all well staffed, and all led by appropriate project managers 21

23 4. Enterprise People es Chaos Control Competence Compe))ve Advantage Values Obvious hypocrisy Mostly realized, but limited when in conflict with high- performing employees Capability Management Change Agentry No long- term perspechve None Some discipline; receive some long- term planning Some change agents operate organically AcHve, realized in general for everyone equally Most disciplines receive long- term planning Change agent network in place and operahonal AcHvely used in management systems, hiring, and process redesign OrganizaHon has idenhfied which disciplines are most strategic over Hme and aligns planning and investment to ophmize Large army of change agents Workforce Engagement Unmeasured and don t want to know The data indicates moderate engagement High engagement confirmed by regular data collechon High engagement and high retenhon of high performers Management Systems FuncHonal and financial only Some recognihon of processes Aligned around several axes, including process Aligned and dynamic 22

24 5. Enterprise Technology Chaos Control Competence Compe))ve Advantage SoXware development TradiHonal Mostly waterfall Mostly agile Mostly conhnuous Infrastructure Fragmented and funchonal Integrated thru an ERP, with limited usage ERP plus BOB plus cloud services Dynamic and flexible Data Old and uncertain Limited real Hme and shared, with limited analyhc support New Technologies ScaQered experiments Several defined applicahons Available in real Hme, segmented with significant analyhc support and tools All new technologies achvely inveshgated and tested All available all the Hme with major analyhc capabilihes dispersed throughout the organizahon All relevant technologies achvely exploited 23

25 6. Culture (On a Spectrum) Chaos Control Competence Compe))ve Advantage Open and Evolving Humble and Striving NIH Arrogant AcHve explorahon of everything, massive curiosity in achon We want to be the company that puts us out of business Customer Focus Insular Co- developing products and processes CollaboraHve Everyone for themselves AcHve partnering at all levels 24

26 7. Leadership Chaos Control Competence Compe))ve Advantage Balance Today vs. Tomorrow Invisible Visible, but strong bias to today represented in behavior and rewards Measured and balanced Dynamically balanced with a significant resource allocahon on the future Accountability None Sample audihng axer the fact, not represented in budgehng All achons tracked and measured, including senior team All achons tracked and measured for everyone with consequences ExecuHve Teaming No Some team behaviors visible Team behaviors and decision rules in place High- performing team serves as role model Thinking What s a process? In some areas In most parts of the organizahon Marbled into the way we do things here. Senior team as chief advocates 25

27 Enterprise Enablers Summary Chaos Control Competence Compe))ve Advantage Strategy FormulaHon Strategic Clarity Metric Clarity Resource Clarity Management Project OpHmizaHon Enterprise Model ExecuHve Leaders/Councils Center of Excellence PMO AcHons #of Projects Success Rate 26

28 Enterprise Enablers- Summary Enterprise People es Enterprise Technology Values Capability Management Change Agentry Workforce Engagement Management Systems SoXware Development Infrastructure Data New Technologies Chaos Control Competence Compe))ve Advantage 27

29 Enterprise Enablers- Summary Culture Leadership Open and Evolving Humble and Striving Customer Focused CollaboraHve Balanced Today vs. Tomorrow Accountability ExecuHve Teaming Thinking Chaos Control Competence Compe))ve Advantage 28

30 Upcoming FCB Courses Title Accelerated Cer)fica)on Redesign Descrip)on A four- day, extended hours, Hammer Cer-fica-on class. This immersion program combines course work and individual projects A comprehensive, four- day Hammer Cer-fica-on class on business process redesign Implemen)ng Innova)on Owners in Ac)on Leading Transforma)on Power of A three- day, advanced course on building the key processes that can deliver a steady stream of breakthroughs A three- day Advanced Cer-fica-on class on business process management for process owners and those in similar roles A three- day Hammer Cer-fica-on class on process governance and based on the PEMM process maturity model A two- day Hammer Cer-fica-on class on process frameworks and methods 29

31 Con)nue the Discussion Online LinkedIn Discussion Groups 1. : Business Roundtable 2. Enterprise: ConHnuous InnovaHon 3. Individuals: Change Agents in AcHon 30

32 For More Informa)on FCB Partners Lindsay Field, Program Director Hammer and Company. All rights reserved. 31