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6 Drivers of Process Performance: The Process Performance Diagnos1c
Steve Stanton, Managing Director
Webinar February 24, 2016
1 ©2016 FCB Partners. All rights reserved.
Ques%ons to Be Answered by the PPD:
How healthy is my process today? will current performance meet stakeholder requirements?
Will we be able to sustain our performance into the future? are the condiHons for success in place?
Where should we best focus to improve our results? where are our leverage points?
2 ©2016 FCB Partners. All rights reserved.
PPC Benefits and Beneficiaries
Process Owners an objecHve scorecard on current performance a roadmap for improvement fewer and beJer audits
Process Performers a beJer and more aligned process for execuHon improved morale and retenHon
The Enterprise improved efficiencies and profit improved customer saHsfacHon beJer process alignment
3 ©2016 FCB Partners. All rights reserved.
Six Leading Indicators of Process Performance Process Purpose linking to strategy and how to track performance
Process Profile providing the specificaHons for execuHon
Process Progress improving the process’s design and execuHon
Process Power ensuring governance role clarity and decision rights
Process Performers focusing on the people who execute the process
Process PlaJorm leveraging the plaPorms that support the process
4 ©2016 FCB Partners. All rights reserved.
Four Levels of Process Performance Chaos: No confidence in performance, high vola9lity, not understood unmanaged and unmeasured 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 do need to move toward improvement, but at different speeds
5 ©2016 FCB Partners. All rights reserved.
Process Purpose
Chaos Control Competence Compe%%ve Advantage
Value CreaHon
Weak and implicit connecHon to strategy
Process design and vision logically linked to strategy
Process 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
6 ©2016 FCB Partners. All rights reserved.
Process Profile Chaos Control Competence Compe%%ve
Advantage IdenHty Process 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
Frequent change and some experimentaHon, some experience with mulHple simultaneous versions
ConHnuous redesign and innovaHon, and old and new versions comfortably co-‐exist
Consistency No defined standards
Standards defined, but with many excepHons and non-‐conformance, and no compliance mechanisms
Standards defined with high conformance with designed excepHon procedures
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
7 ©2016 FCB Partners. All rights reserved.
Process Progress 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 PorPolio
“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
8 ©2016 FCB Partners. All rights reserved.
Process Power
Chaos Control Competence Compe%%ve Advantage
Process 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
Process Leader AcHons
Project sponsorship Sponsorship and developing process vision and goals
Sponsorship and advocacy about process within and across the organizaHon
Leader
Process Forums
None Occasional ad hoc discussions
RouHne and well aJended sessions with all important stakeholders
Empowered councils that lead design, improvement, and prioriHzaHon decisions
9 ©2016 FCB Partners. All rights reserved.
Process 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
10 ©2016 FCB Partners. All rights reserved.
Process PlaJorms
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
11 ©2016 FCB Partners. All rights reserved.
FCB 2016 Public Courses
Event Dates and Loca%ons
Change Leaders and Catalysts Advanced Cer1fica1on Course Arlington, VA, April 4-‐5
Implementa%on and Execu%on Advanced Cer1fica1on Course Arlington, VA, April 6-‐7
Process Redesign Hammer Cer1fica1on Course Arlington, VA, April 5-‐8
Power of Process Hammer Cer1fica1on Course New Orleans, LA, October 24-‐25
Leading Transforma%on Hammer Cer1fica1on Course New Orleans, LA, October 26-‐28
12 ©2016 FCB Partners. All rights reserved.
For More Informa%on FCB Partners
Lindsay Field, Program Director
617 245 0265 [email protected]