Establishing Business Process Continuous Improvement Capabilities

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1 Establishing Business Process Continuous Improvement Capabilities Choosing the course & planning the journey Overview August 2009

2 Establishing continuous improvement capabilities requires top-down commitment Experience has taught us that there are TWO keys to success Top-down commitment to preparing the organisational culture to embrace measurement as a valued improvement technique Learners with the aptitude and attitude to acquire and execute new skills, methodologies, and tools to deliver on-going measurable improvement IBM has two variants of continuous improvement enablement, both based on Lean Six Sigma (LSS) techniques Business Process Improvement (BPI) Enablement is for clients who are not ready for full Lean Sigma yet, or who do not have a goal of Lean Sigma certification BPI Enablement can be employed as an entry level phase for LSS Enablement Lean Six Sigma Enablement includes additional LSS techniques, and staged Green Belt and Black Belt certification levels Both have phasing options to support different change pace and budget limits BPI & LSS Enablement both combine training and mentored practical application to achieve a fast and enduring continuous improvement capability 2

3 IBM s BPI Enablement is based on teaming with Clients to deliver services to establish a process improvement competency Team = IBM + Client staff IBM brings methods, tools & skill transfer Team assesses & scopes 1 pilot initiative IBM provides method & tool induction Team completes 1 pilot initiative Subsequent initiative support by IBM as needed by Client X 1 X 2 X n BPI Framework IBM s Methodology BPI Methodology Work Plans & Deliverables Tools A Framework provides rules to define the process modelling approach & standards to ensure consistency across outputs Pilot Project Project Work plans and deliverables provide certainty in activities, inputs, outputs and resources for process improvement projects IBM s BPI Method, Best Practices & Standards Prototype Quick Start Hands-on Training Pilot Uplift We Lead: You Learn Project Project Capability You Lead: We Support A process modelling tool like WBM supports analytical modelling to build business cases and facilitate reuse of model artefacts as inputs into downstream development and integration tools. 3

4 A LSS Enablement is more transformational from an organisation culture perspective LSS deployment can take up to twelve months, although it can be phased at interim capability levels, i.e. Wave 1 Green Belts (GB), Wave 2 Black Belts (BB) Best practice Lean Sigma implementation, takes 1 year on average, as shown here Green Belt Certification Training + Exam Deliver 1 BB Coached improvement > * $100K benefit Black Belt Certification Further training + Exam Lead delivery of 2 Master BB Coached improvement > * $200K benefit As knowledge transfer and culture change take hold, many of these tasks are led and directed by the new Green Belts and Black Belts * $ value of benefits necessary for each level determined during design of each client s Certification Governance 4

5 To complement process changes, IBM also incorporates change management into each step of the method Change Readiness Assessment Identify and prioritise change risks and opportunities Assess leadership commitment, history of change, clarity of vision, etc. Provide the foundation for a comprehensive communications & change management program Communications Management Define the project brand to help maintain focus Develop a communications strategy and tactical plan to keep stakeholders involved and current Create and distribute messages that define changes and influence the audience to accept change Organisational Environment Assessment Assess current organisational culture and alignment Analyse leadership styles & organisational efficiency Assess effectiveness of current communications Organisational Change Plan Develop detailed plan for realigning departments and individuals into new organisational structure Create training strategy for developing new skills 22 Business Consulting Services Change History, Change Readiness, Organizational Maturity, and other important organizational issues can be tested by survey, providing highly valuable input to the migration and communication plans A 32 Sample Change Readiness Survey Responses IBM Business Consulting Services Critical to ensuring effective change management is a well Copyright IBM Corporation conceived, orchestrated and executed communications 2002 plan Communications Planning Specific communications Management Unit Managers Functional Managers A B C A B C Department Managers A B C All Employees A B C Business Consulting Services Proposed Approach Time Illustrative The communications planning process we will follow has two defining characteristics: One, that it is phased, with key messages cascaded through the levels of the organization; and two, it is networked, with each management team functioning as key communicators to the next Sample Deliverable: Strategic Alignment Matrix 55 Strategic Goals Economies of scale Differentiation Speed and innovation Globalization Customerdriven Processdriven Elements Aligned Elements Not Aligned CheckFree ITO Org and Process Assessment Confidential 1-Oct-03 Copyright IBM Corporation 2003 Structure Behaviors Enablers Structure Behaviors Enablers Shared services Little reuse Shadow systems of redundant data Wide range of direct customer channels Global lines of business Leaders espouse need for unique market position Leaders say it will happen Rewards innovation Enterprise IT strategy in place Bureaucracy has too many authority levels Customer-facing resources inadequate Different functions and jobs across regions No process owner roles in place "Play it safe" Regional execs exercise local control ILLUSTRATIVE Ignore marketrate pay; losing good people to competition Communication slow via unlinked systems Measurement system focused on financials Information systems report by geographies Performance management system driven by functions Copyright IBM Corporation

6 The duration of Enablement engagements is confirmed as an outcome of pilot process selection and scope finalisation Your Pilot process needs demonstrable benefits available & few costly or time consuming barriers to success. The Enablement team will include: Client Team members; Minimum 2 full-time CI leaders Subject Matter Experts as required Client Management to participate in Enablement Program governance IBM Team members; Engagement Manager / Team Lead (full-time) Process / Organisation Change Consultant (full-time) Process Analyst (full-time) Continuous Improvement leadership & QA review (part-time) High Return Increased Efficiency & Effectiveness Low Low Pilot Take Action Quickly Capture Opportunity as Resources Allow Risk Rigorous Focus of Attention & Resources To Ensure Success Do not Pursue, or Pursue Last 6

7 BPI and LSS Enablement support a more objective way of delivering continuous improvement to. Instil a new culture for process development Reinforce a do it right the first time mindset Enable the analysis of the potential effects of process changes Empower decision making and priority setting via the availability of sound process data Provide a standardised approach to data collection Erode subjective / political barriers to change 7

8 Appendix Continuous improvement techniques delivered by Enablement program type Process modelling that supports business & IT collaboration, and Software Development Lifecycle (SDLC) efficiency 8

9 Our BPI and LSS enablement programs are both based on a number of shared Lean Sigma techniques Enablement program planning may distribute some techniques into smaller phased deployments, or exclude some techniques, as appropriate BPI LSS GB LSS BB Working with Ideas Working with Data/ Numbers Working in Teams Imagineering Survey Contingency Diagram Affinity Diagram Checksheet Charter Brainstorming Data Collection Communication Skills Cause & Effect Fishbone Diagram Histogram Ending / Moving On Flowchart Pareto Chart Involvement Matrix Force Field Analysis Run Chart Reinforcement and Feedback Multivoting / NGT Team Problem Solving Tree Diagram / PDPC Valuing Diversity Activity Network Diagram Control Charts Storyboard Focused Problem Statement Data Points Interrelationship Diagram Hypothesis Testing Matrix Diagram Process Capability Prioritisation Matrices Scatter Diagram Radar Chart Commitment Scale Design of Experiments (DOE) Communication Plan Critical To Quality (CTQ) Tree Failure Mode & Effects Analysis Process Management Chart Kano Model Regression Measurement Systems Analysis Taguchi Loss Function Operational Definitions Voice of Customer SIPOC 9

10 We use WebSphere Business Modeler to support process modelling & analysis and to develop reusable business model assets Simple to use business modeling tool Allows people who know the business to model processes Drag and drop operation Supports quantified process insight Understand your business models & make informed decisions before deployment Model resources, roles, organisation, information, business metrics Facilitates inclusion and collaboration Communicate & participate across enterprise Enables multi-discipline team work Clean hand-off to I/T Provides connectivity to other IBM tools Rapid and accurate deployment of IT solutions Business modeling is the starting point for I/T deployment 10

11 Contact for further information Roland Bell, Managing Consultant, Strategy and Change practice IBM Global Business Services Ph

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