Presented by: Todd Lunsford Solution Engineer Syntex Management Systems, Inc. March 4-5, 2010

Transcription

1 Reducing operational loss via business process automation Presented by: Todd Lunsford Solution Engineer Syntex Management Systems, Inc. March 4-5, 2010

2 Todd s background M.B.A.: Strategic mgt. & information systems consulting CSC: 5 years mgt. consulting with focus on business process design & implementation Syntex: 4 years as an Implementation Consultant Syntex: 3 years as a pre-sales Solution Engineer Slide # 2

3 Reducing operational loss via business process automation: Introduction to Syntex Management Systems, Inc. The case for automation The mechanics of automation Leading indicators naturally collected via automation How to begin the process improvement journey Conclusion Slide # 3

4 Introduction to Syntex Management Systems, Inc. Slide # 4

5 The roots of Syntex Syntex Management Systems, Inc. Founded First 5 years developed ~100 software apps in Energy industry IMPACT born from Risk Reduction Cycle process pattern QHSE Incidents, inspections, assessments, observations fit a common pattern Syntex commits entire business exclusively to IMPACT The Risk Reduction Cycle Process Pattern H i Med Low No Loss Exposure to Loss QHSE Reporting Culture Reported Discovery Event 1. Discover the exposure. Reactive via Incident-based Events Proactive via Assessment-based based Events Risk Exposure Risk Reduction Cycle QHSE Work Practice Steps Risk Control Framework 2. Process for treatment. Risk Matrix, Hazards, Controls, Recommendations Reactive = Risk Matrix, Investigations, Mgmt Systems Proactive = Risk Matrix, Findings, Checklist Items Iterate Where Applicable Verify closure and risk reduction Reduced Action Items to Improve Controls 3. Execute reduction tasks. Risk Reduction Action Items Slide # 5

6 IMPACT Enables Existing Risk-Related Related Events.Designed to centralize data for ALL events that result in risk reduction actions. Over 1MM incident / near-misses Service / Product Quality Injuries / Illnesses Releases / Spill Reliability / Equipment Failure Asset Damage Transportation Incident Reputation Damage Other kinds of loss events.. H i Med Low No Loss Exposure to Loss Millions of findings / deviations Behavioral Safety Observations QHSE Management System Audits Meetings Financial Assurance (Audits) Site-level Walk-through Audits ISO 9000 Certification Assessment Hazard Identification Programs Hundreds of other processes. IMPACT ERM Millions of Action Items Action Items Resulting in Risk Reduction [Slide # 6 [

7 6 of the Fortune Global 10 Companies Use IMPACT for Continuous Process Improvement Over 900,000 users Used in over 140 countries Supports more than 24 languages Millions of rows of leading and lagging risk event data! Slide # 7

8 The case for automation Slide # 8

9 Most operational risk programs focus solely on data collection and reports Collect data Hi Med Low Severe Incidents / Corporate Reportables: TRIR (total recordable incident rate) LTI (lost time injuries) Significant Quality Issue Significant Property Damage Etc. Run reports Scorecard of Lagging Events No Loss Exposure to Loss Results of Proactive Activities: # times led Meeting # Employee Observations # Peer-to-peer Inspections Positive vs. Negative audit results Etc. Scorecard of Leading Events Sources of Exposure Slide # 9

10 A risk reduction cycle process pattern Collect data Run reports Hi Me d Low No loss Exposure to loss Sources of exposure Slide # 10

11 A risk reduction cycle process pattern Identify Report Treat Resolve Analyze & Improve Hi Me d Low No loss Exposure to loss Sources of exposure Risks are Reported Reported by Front-line Leadership Verification & Feedback Work Practice Steps Event Data / Business Process Next Steps Measure Potential Risk Investigate / Identify Failed Controls Scorecard of Lagging Events Scorecard of Leading Events + Scorecard of Leading Factors Drawn From the Organization s Execution of Work Practices = Iterate Where Applicable Risks are Reduced Implement / Repair Controls Tools to MEASURE & IMPROVE work practices that identify, manage, and reduce risks Slide # 11

12 The benefits of automation Local adoption of standardized work practices Consistent business process execution Actionable measures of how processes are being performed Increased reporting of events and issues Increased visibility and accountability Elimination of redundant data entry Efficient reporting and analysis Slide # 12

13 The mechanics of automation An example for incident management Slide # 13

14 Common objectives for managing events: Standardize the process for managing g events Ensure the process is adopted and consistently executed in the field Increase reporting of minor events and near misses Improve leadership responsiveness to reported events Ensure all events are risk-rated rated for potential risk Ensure high-risk events are investigated with approved methods Improve the quality of recommendations and action items Share and ensure accountability for lessons-learned Slide # 14

15 Example of an event management process without automation Incident or Near Miss Common issues and concerns Other Issues: Manual step Report incident to supervisor Employees do not immediately report incidents. E.g., they wait until they have a lost work case Manual step Determine general information and witness statements No way ensure leaders are responding quickly to events that are reported Manual step Meet to determine the root causes of the incident No way to ensure investigations are performed consistently and in a lost work case. reported. timely manner. Events are not consistently evaluated for potential risk. Manual step Assign the action items Unable to manage action items based on risk. Unable to send reminders. Difficult to analyze aging of action items. Under-reporting due to inflexible, ibl one-size-fits-all forms Lack of consistency in the way the process is performed Limited visibility into involvement Limited accountability for follow up Lack of leading performance measures Enter into system Enter General Incident Information Enter Consequences Enter Root Causes Enter Action Items User enters all information into the system at once. Incident immediately affects statistics, with no approval in the system. Difficult to determine who did what. Slide # 15

16 Tools for automating an event management process Example Incident Process Flow Incident or Near Miss Incident: Submit Report Investigate Review Close Consequences: Open Closed Investigation: Draft Open Closed Action Item: Open Communicate Anyone incident per local procedures s: Steps Document On assignment performed Reporter incident Feedback End (First Report) to Reporter Cannot progress without On in the Business Risk Matrix removal system No Review incident information, modify if Open necessary. Report? Yes Statuses, Business with multiple Process record Automation On types creation Only the working Tools Rules owner can edit Auto-assignments, together. Validate Owner. & Yes On status change Auto-assigned from Sitemanaged role Consequences, Add Investigation Owner Responsibilities Filtered Add/edit assignments Add Consequences Incident Workflow- Investigation, Manual assignments Action Items Add Action Items Used with Business Enabled Rules Review and Approve Approve? Incident Security Report No Progress workflow This symbol represents automated s within the Responsible Business Process Automation Tools Supervisor Approvers Management Slide # 16

17 Benefits of an automated event management process Ensure Example the right people are Incident: involved, Submit Report Investigate Review Close based Incident on business Process rules / event criteria. Flow Consequences: Open Closed Enable leaders to show their responses in Investigation: a timely Draft Open Closed Incident or Near Miss manner. Progress workflow within . Action Item: Open Anyone Other Systems Reporter Responsible Supervisor Incident Owner Report incident Detect event Auto-assigned from Sitemanaged role 1 Submit incident (Web First Report, Hand-Held, Offline Forms) Provide feedback to the workforce. 2 Review incident information, modify if necessary. Validate Owner. 3 Process / treat higher-risk items more rigorously. Feedback to Reporter No Open Report? Increased reporting of events and issues: Easy-to-use Approvers tools (wizard, offline forms, connectors) Wizard is profiled/tailored for the site and the type of event Visibility and feedback provided Management 4 5 Yes Add/edit Consequences, Investigation, Action Items Cannot progress without t Risk Matrix Apply security to control who should Closed do what, and avoid confusion. 10 Only the owner can edit 6 Add Consequences Add Investigation Add Action Items No 7 Review and Approve Incident Report 8 Yes Approve? 9 Slide # 17

18 Benefits of an automated event management process Example Incident Process Flow Incident or Near Miss Anyone Report incident Incident: Actionable Field-level Increased Consistent Submit visibility adoption measures execution Report and of of the accountability: how the process: the process Investigate is being performed: Review Close Total Easy Who Automate is event involved, use key reporting tools elements when, what they are doing Consequences: Open Closed Response Business Common rules platform timesthat and to support reminders manage the key that process elements push the process Investigation Visibility Good Business performance into rules follow and to risk support / poor rating and performance the resolutions consistency process Investigation: of the Draft process Open is visible Closed Review Feedback Steps, statuses, and provided sponsorship responsibilities, measures notifications Action Item: Open Actionable Item measures execution to measures use for improvements Other Systems Reporter Responsible Supervisor Incident Owner Detect event Auto-assigned from Sitemanaged role 1 Submit incident (Web First Report, Hand-Held, Offline Forms) 2 Review incident information, modify if necessary. Validate Owner. 3 Feedback to Reporter No Open Report? 4 5 Yes Add/edit Consequences, Investigation, Action Items Cannot progress without t Risk Matrix Only the owner can edit 6 Add Consequences Add Investigation Add Action Items 7 Closed Yes 10 Approvers Review and Approve Incident Report 8 Approve? 9 Management No Slide # 18

19 Leading indicators naturally collected via automation Slide # 19

20 Actionable measures from an automated event management process Example Incident Process Flow Incident or Near Miss Anyone Report incident Incident: Leadership Effectiveness Total Front-line Action event item Submit management reporting commitment execution: of Report event (balanced processing : responsiveness: / follow-up: pyramid): Investigate Review Close -Responsiveness: -Rate -Volume -Percent of events review of low actions severity / that approval who complete are is events, investigated responding, of causal on-time near factors, with misses, who approved findings not and issues methods Consequences: Open Closed -Timeliness -Rate -Risk-weighted of participation events lower of responses severity on-time that are in events completion non-mandatory risk-rated by person vs. total rate / occupation events -Responsiveness -Completeness -Distribution -Rate of and review timeliness of reporting / of approval / event timeliness of past information across of due action by Investigation: sites action items / department items Draft Open Closed -Timeliness -Distribution of approvals reporting among front-line employees Action Item: Open -Timeliness of reporting vs. occurrence Other Systems Reporter Responsible Supervisor Incident Owner Detect event Auto-assigned from Sitemanaged role 1 Submit incident (Web First Report, Hand-Held, Offline Forms) 2 Review incident information, modify if necessary. Validate Owner. 3 Feedback to Reporter No Open Report? 4 5 Yes Add/edit Consequences, Investigation, Action Items Cannot progress without t Risk Matrix Only the owner can edit 6 Add Consequences Add Investigation Add Action Items 7 Closed Yes 10 Approvers Review and Approve Incident Report 8 Approve? 9 Management No Slide # 20

21 How to begin the process improvement journey Slide # 21

22 Cross-functional team The solution assessment Conceptual design Establish Workshop format objectives Design for the Use swim lane format on large organization whiteboard Take ownership of Map current the process process and issues Build enthusiasm Establish design Provide input to guidelines project plan Map future process Team continues collaboratively when project is approved Case for action Explain why change is needed Expose current issues Highlight future benefits Establish success measures Use as communication tool to approve / promote project Slide # 22 Develop project plan / statement of work

23 Conclusion / next steps Slide # 23

24 Conclusion: The automation of key elements of existing work practices improves the execution of those practices, which in turn improves an organization s overall performance. Leading indicators are naturally collected when processes are automated. Successful change begins with a solution assessment, and di is sold ld internally as a business process improvement initiative -- not as a software project. Slide # 24

25 End Slide # 25