TALES FROM ESTABLISHING A PORTFOLIO AND PROJECT GOVERNANCE POLICIES. Chao-Yee Watson October 6, 2014
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1 TALES FROM ESTABLISHING A PORTFOLIO AND PROJECT GOVERNANCE POLICIES Chao-Yee Watson October 6, 2014
2 Agenda Introduction Speaker Biography 2012: Disorganized Labor 2013: Laying the Foundations 2014: Execution of Strategy Summary Key Best Practices
3 Introduction Projects of lesser scale are critical to maximize the business value gained from successful completion of the large initiatives. Establishment of business process governance framework to enable the Xilinx Customer Operations department Organize their strategic initiatives into a project portfolio Enforce project managers accountability Provide visibility of the projects statuses to senior management Xilinx, Inc. Semi-conductor company headquartered in San Jose, CA $2.3B in revenues in fiscal year 2014 Over 3500 employees and 20,000 customers Longmont, CO; Dublin, Ireland; Singapore and Hyderabad, India Smaller R&D and sales locations throughout the world.
4 Speaker Background Chao-Yee Watson Over 19 years managing business process and system change in High Technology Extensive experience driving international change management and enterprise-wide roll-outs with a focus on process design, key performance metrics design and resource optimization Thought leader in design and re-engineering of processes in the areas of supply chain management, demand management, forecasting, inventory management, logistics, outsourced manufacturing / logistics and product lifecycle management PMP certified MBA from Santa Clara University BS in Mechanical Engineering from UC Berkeley
5 2012: Resetting After Major Global Change Corporate Enterprise Systems unfrozen after two year lockdown Upgrade to Oracle E-Business Suite to R12 All departments had lists of desired projects Required evaluation, prioritization and resourcing IT was ready for the Business to prioritize the workload IT wouldn t assign resources without explicit prioritization Business was not as ready
6 2012: Customer Operations VP Customer Operations Director of NA COAM Director of APAC COAM Director of EMEA COAM Director of Global Cust Ops Director of GTC Manager 1 Manager 2 Manager 3 Manager 1 Manager 2 Manager 3 Manager 4 Manager 1 Manager 2 Manager 3 Manager 1 Manager 2 PMO PM Manager 1 Team 1 Team 2 Team 3 Team 4 Team 1 Team 2 Team 3 Team 1 Team 2 Team 3 Team 1 Team 2 Team 3 Team 1
7 2012: Project Free-For-All Project Prioritization Process Lists of projects that individuals wanted to do Managers gave their Directors the lists of projects Vice President and Directors decided on which projects to keep on the list and which to strike off the list No explicit connection between proposed projects and business processes No direction towards business process improvement
8 2012: Non-Optimal Results No visibility of status or progress of projects No regular forum for project updates No common format for project metrics Last minute scramble at the end of each quarter Lack of alignment with Department goals Projects were late or not completed Strategic goals were not met
9 2013: Identifying the Gap Vice President was not satisfied with the 2012 results Vice President wanted to understand the current state of business processes Without an understanding the As-Is business process globally, management can not make educated decisions on which projects to green light Top down request for the establishment of business process governance
10 2013: Creation of a New Process Steps to establishment of the business process governance process Define what is the governance process Explain why the department needs a governance process Define the processes to be managed Define the owners of the processes Establish the timeline and milestones Create the templates for status updates and metrics
11 What is Business Process Governance? Methodology monitoring and optimizing the execution of WW Customer Operations business processes Purpose is to identify areas of potential improvement Policies, methods, documentation, roles, technologies and metrics Business Value: Clearly defined ownership for business processes Develop To-Be business process vision focused on continuous process improvement Disciplined identification, prioritization and execution of process improvements Facilitate management s understanding of the relative value of proposed process changes and set priorities Focus management team on continuous business process improvements
12 High Level Process Definitions and Owners Process Name Process Definition Process Owner Direct Forecast Includes customer forecast and Monster forecast for Direct accounts Global Cust Ops Director Order Management Includes the Order Import, Order Entry, Order Management and Order Fulfillment processes. APAC Manager 1 Expedite Includes the creation and management of expedites EMEA Manager 1 Master Data Processes include the activities to ensure clean data in the Customer Master Hub and the CMF APAC Manager 1 Product Lifecycle (Components) The management of processes from NPI through production to end of life for Component products NA Manager 1 Product Lifecycle (Dev Sys) CVMI The management of processes from NPI through production to end of life for Development Systems products Includes the processes used to manage CVMI customer relationships, service levels and hub inventories Global Cust Ops Manager 3 Global Cust Ops Manager 2 RMA Processes include all Xilinx RMAs for both Components and Development Systems Global Cust Ops Manager 2 Case Management (Dev Sys) Processes for managing customer inquiries regarding Development Systems product orders Global Cust Ops Manager 3 Business Process Automation Processes include B2B, automated communications with any party (Customers, Partners and Internal), web tools, corporate IT project management and testing automation Global Cust Ops Manager 2 E-Commerce Processes include all functions related to the Xilinx Online Storefront Global Cust Ops Manager 3 Software Fulfillment Processes for managing the electronic fulfillment of Development Systems software Global Cust Ops Manager 3 Channel Ops Direct Account Management Case Management (Components) Processes for managing the relationships with Xilinx s Channel Partners, includes revenue forecasting Global Cust Ops Manager 1 Processes for managing direct customer accounts EMEA Manager 2 TBD Global Cust Ops Manager 3
13 WW Customer Operations Business Process Health Dashboard Process Direct Forecast Order Management Expedite Master Data Product Lifecycle (Components) Product Lifecycle (Dev Sys) CVMI RMA Case Management (Dev Sys) Business Process Automation E-Commerce Electronic Fulfillment (XEF) Channel Ops Direct Account Management Component Case Management Metric Number of Subprocesses Identified 2??? 3 3? 9 3? 2 4 4?? % of Subprocesses As-Is Documented 100%???? 30%? 100% 100%? 50% 100%??? As-Is Documentation Quality High Med High? Med High % of Subprocesses with defined To Be state 0%???? 33%? 10% 2? 50% 50%??? % of To-Be with OFI actions in process 2 1 2? 1 1 SMEs Identified & Trained Y/N???? Y/N? No Y/Y Y/N Y/Y Y/N??? Process Metrics Identified 0???? 0? ??? Overall Weighted Score
14 2013: Education of the Masses Rolled out in March 2013 Published and communicated schedule and deliverables Provided training to all directors and managers Selling the idea of governance Met with influential individual contributors Training Many lacked experience in documenting business process Trained process owners on business process mapping Visio and Cross-Functional Flow Diagrams
15 FY14 Business Process Governance Timeline Progress to Organizational Process Maturity Page 15
16 2013: Establishing Protocol Process Area Owner Responsibility Identify sub-processes in Process Area Document and evaluate As-Is sub-processes Associate all projects to sub-processes Document To-Be business process based on changes implemented by projects Provide quarterly status updates of Process Area PMO Responsibility Create and assist process owners in use of standardized template Train process owners in business process mapping and metrics Schedule status updates into the agendas of existing managers meetings Publish and present summary of governance status to all levels of management in WW Operations quarterly
17 WW Customer Operations Business Process Health Metrics Targets Quarter Q1FY14 Targets Q2FY14 Targets Q3FY14 Targets Q4FY14 Targets Metric Number of Sub-processes Identified < 30% 30%- 80% > 80% < 80% 80%- 90% 100% < 85% 85%- 99% 100% < 90% 90%- 99% 100% % of Sub-processes As-Is Documented < 80% 80% - 90% > 90% < 80% 80% - 90% > 90% < 85% 85%- 95% > 95% < 90% 90%- 99% 100% As-Is Documentation Quality Low Med High Low Med High Low Med High Low Med High % of Sub-processes with defined To Be state < 34% 34% - 66% > 66% < 50% 50% - 80% > 80% < 60% 60% - 85% > 85% < 70% 70% - 90% > 90% % of To-Be with OFI actions in process 0% 1% - 33% > 33% < 33% 33% - 66% > 66% < 45% 45%- 75% > 75% < 50% 50%- 80% > 80% SMEs Identified & Trained N/N Y/N Y/Y N/N Y/N Y/Y N/N Y/N Y/Y N/N Y/N Y/Y Process Metrics Identified < 33% 33% - 66% > 67% `< 50 % 50% - 80% > 80% < 75% 75%- 90% > 90% < 80% 80%- 95% > 95% Percentage of Metrics Meeting Targets (Starting Q4FY14) < 50% 50%- 80% > 80% Progress to Organizational Process Maturity Page 17
18 2013: Executing on the Plan Challenges to execution Goals misalignment Cultural misunderstandings Time zone differences Negative impressions Status in December 2013 All process owners reporting quarterly All directors expected standard updates
19 Q4FY14 WW Customer Operations Business Process Health Dashboard as of 4/4/14* Process Metric Direct Forecast (EMEA Mgr 1) Order Management (APAC Mgr 1) Expedite (EMEA Mgr 2) Master Data (APAC Mgr 1) Product Lifecycle Components (NA Mgr 3) Product Lifecycle Dev Sys (Global Cust Ops Mgr3) CVMI (PMO PM) RMA (PMO PM) Case Management Dev Sys (Global Cust Ops Mgr2) Business Process Management (PMO PM) XEF/E-Commerce {Global Cust Ops Mgr 3) Channel Ops (Global Cust Ops Mgr 1) Direct Account Management (EMEA Mgr 3) Number of Sub-processes Identified 100% 100% % 100% 100% 100% 3 100% 100% 100% 6 % of Sub-processes As-Is Documented As-Is Documentation Quality % of Sub-processes with defined To Be state % of To-Be with OFI actions in process SMEs Identified & Trained Process Metrics Identified Percentage of Metrics Meeting Targets 100% 100% 90% 100% 100% 100% 100% 100% 100% 65% 100% 90% 100% High 100% High High High High High Med High Med High High High 100% High 70% 98% 90% 75% 80% 10% 100% 60% 80% 85% 60% 4 30% 70% 94% 50% 100% 80% 10% 66% 60% 80% 75% 50% Y/N 70% Y/Y Y/Y Y/Y Y/Y Y/Y Y/Y Y/Y Y/N Y/Y Y/Y Y/N No 7 100% 100% 85% 100% 80% 10% 100% 60% 100% 100% Y 80.5% 100% 66% 100% 10% NA 86% 50% Overall Weighted Score Merged XEF and E-Commerce into single process area going forward Added Percentage of Metrics Meeting Targets Further consolidation of Process Areas will occur in future quarters Page 19
20 Qtr to Qtr WW Customer Operations Business Process Health Comparison Process Direct Forecast (EMEA Mgr 1) Order Management (APAC Mgr 1) Expedite (EMEA Mgr 2) Master Data (APAC Mgr 1) Product Lifecycle Components (NA Mgr 3) Product Lifecycle Dev Sys (Global Cust Ops Mgr3) CVMI (PMO PM) RMA (PMO PM) Case Management Dev Sys (Global Cust Ops Mgr2) Business Process Management (PMO PM) XEF/E-Commerce {Global Cust Ops Mgr 3) Channel Ops (Global Cust Ops Mgr 1) Direct Account Management (EMEA Mgr 3) Quarter Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Progress to Organizational Process Maturity Page 20
21 2013: Tying Past Results to Strategic Planning Vice President was pleased with the results Agreed to tie CY 2014 Strategic Initiative Planning with Business Process Governance All Strategic Initiatives were identified and mapped to a process area
22 2014: Customer Operations VP Customer Operations Director of NA COAM Director of APAC COAM Director of EMEA COAM Director of WW Cust Ops Director of GTC Manager 1 Manager 2 Manager 1 Manager 2 Manager 3 Manager 4 Manager 1 Manager 2 Manager 1 Manager 2 Manager 3 PMO PM Manager 1 Manager 2 Team 1 Team 2 Team 3 Team 4 Team 1 Team 2 Team 3 Team 4 Team 1 Team 2 Team 1 Team 2 Team 1 Team 2
23 2013: Tying Past Results to Strategic Planning VP and Directors PMO PM PMO PM PMO PM Global Cust Ops Mgr 1 APAC Mgr 1 EMEA Mgr 1 EMEA Mgr 3 PMO PM Global Cust Ops Mgr 3 APAC Mgr 1 NA Mgr 2 EMEA Mgr 2
24 2014: Establishing Protocol
25 2014: How are we doing? Vice President and Directors have full visibility to statuses of strategic initiatives Separate monthly governance meetings established Management educated on the difference between projects and ongoing operations Steering members critically assess each of the projects All requests from Customer Operations to IT tracked by PMO Planning for 2015 Strategic Initiatives based on the 2014 statuses
26 VP and Directors PMO PM PMO PM PMO PM Global Cust Ops Mgr 1 APAC Mgr 2 EMEA Mgr 1 PMO PM Global Cust Ops Mgr 3 APAC Mgr 3 NA Mgr 3 EMEA Mgr 2
27 Process Direct Forecast (EMEA Mgr 1) Direct Account Management (EMEA Mgr 3) Order Management (APAC Mgr 1) Expedite (EMEA Mgr 2) Master Data (APAC Mgr 1) Product Lifecycle Components (NA Mgr 3) CVMI (PMO PM) RMA (PMO PM) Case Management Dev Sys (Global Cust Ops Mgr 2) Business Process Management (PMO PM) Electronic Fulfillment XEF (Global CO Mgr 3) E-Commerce (Global CO Mgr 3) Product Lifecycle Dev Sys (Glabal CO Mgr 3) Channel Ops (Global CO Mgr 1) Quarter Q1FY14 Q2FY14 Q3FY14 Q4FY14 Process Direct Forecast (EMEA Mgr 1) Direct Account Management (EMEA Mgr 3) Order Management (APAC Mgr 1) Expedite (EMEA Mgr 2) Master Data (APAC Mgr 1) Product Lifecycle Components (NA Mgr 3) CVMI (PMO PM) RMA \ Case Management Dev Sys (PMO PM) Business Process Management (PMO PM) Electronic Fulfillment XEF / E- Commerce \ Product Lifecycle Dev Sys (Global CO Mgr 3) Channel Ops (Global CO Mgr 1) Quarter Q1FY15 Process Direct Forecast \ Direct Account Management (EMEA Mgr 1) Order Management (APAC Mgr 2) Expedite (EMEA Mgr 2) Master Data (APAC Mgr 3) Product Lifecycle Components (NA Mgr 3) CVMI (PMO PM) RMA \ Case Management Dev Sys (PMO PM) Business Process Management (PMO PM) Electronic Fulfillment XEF / E- Commerce \ Product Lifecycle Dev Sys (Global CO Mgr 3) Channel Ops (Global CO Mgr 1) Qtr to Qtr WW Customer Operations Business Process Health Comparison Quarter Q2FY15 (*) Q3FY15 Q4FY15 Progress to Organizational Process Maturity
28 Summary: Key Best Practices Educate Management Obtain buy-in from all stakeholders Establish common language Establish timetable Enforce consistency Measure results Communicate results frequently
29 QUESTIONS?
30 THANK YOU Chao-Yee Watson
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