Reimagining Management

Reimagining ManagementLeading business excellence

by delivering business-ready BPM

Las Vegas, November 2016

3© Roger Tregear, Leonardo Consulting 2016

I’m Roger Tregear, Consulting Director with Leonardo Consulting. I spend my working life talking, consulting, thinking and writing about analysis, improvement, innovation and management of business processes.

+61 (0)419 220 280 || [email protected]



7Enablersof BPM

2 Virtuous Circles(Tregear Circles)

Looking ahead…


What’s the problem?


“Are we in danger of being disrupted?”“Our social network ratings are dropping.”“Customers are digitizing faster than we are.”“Our valuable advice is now commoditized.”“Customers now buy from anyone, anywhere.”“New regulations are changing our world.”“Costs increased by 12% in the last year.”

Leading business excellence?


Contagiouschange


Relentless change


Problems & opportunities morphing

Check-in queuemanagement

to seat-to-seat

Shopping list to shipping list Check-in to check through Passport check to data check Regular check-up to continual assessment


What’s the problem?really big questionschange is:

o contagiouso relentlesso morphing


What is a business process?Series of related activitiesTriggered by an eventTransforms inputs into outputs

Includes all resources andassets required for process executionDelivers value (products & services)

to customers and other stakeholdersBusiness processes are the only way any organization can deliver value externally

Min

imal

ist

Hol

istic


CHECKIN

BOARDPLANE

COMPLETEFLIGHT

DEPARTAIRPORT

RETRIEVELUGGAGE

Cross-Functional Value


Disrupting management Functional

Organization

Proc

ess

Org

aniz

atio

n

Managing resources

Creating, accumulating, & delivering value


StrategyExecution

ProcessManagement

The Gray Zone

TheGrayZone


Busting some mythsProcess is not about the customer!Outside-in, not inside-out!Forget about processes, we’re automating!We’re too dynamic to define processes!We want innovation, not improvement!Too busy transforming, no time for processes!Process is not strategic!


Makingthebeautifulmusic

The performance of a system dependson how well the parts work together,not how well any of them work alone.

Concert Hall, Sydney Opera House


1.

2. Business process management?


What’s the solution?


Reimagined management parameterscreate focus on value managementprovide line-of-sight to strategyforce a relentless search for problemsdrive systemic search for opportunitiesrealize proven benefitssatisfy the needs of all stakeholdersallow methodological flexibilityembed cultural awareness


7Enablersof

process-basedmanagement


1. Process Architecture2. Process Measurement3. Process Governance4. Process Change5. Process Mindset6. Process Capability7. Process Support


Architect the enterprisekeystone artifactvalue pathwayprioritization controlproject coordinationvisualization portal

1. Process Architecture


ProMeasure® is theLeonardo methodology forprocess measures management

2. Process MeasurementMeasure process performanceIf you aren’t measuringprocess performance, youaren’t doing processmanagement, and can’tknow if you are doingprocess improvementMeasures andmeasurement methods


3. Process GovernanceControl process performanceprocess owners accountable for responding to process performance anomalies & opportunities

Value Chain 1

Process 1.1 Process 1.3Process 1.2

Lead the OrganisationManage risk &

complianceDetermine

market strategyManage capital

Develop Vision

Support the OrganisationDeliver HR

servicesMaintain

physical facilitiesDeliver IT services

Manage finances

Value Chain 2

Process 2.1 Process 2.3Process 2.2

m

EPAMeasuresMMsReportsResponse

Process 1.2

Process 1.2


4. Process ChangeChange processesAs Is / To Be / As IsImprovement-InnovationImplementation chasmPlan for changeUrgency & commitmentProcess Change Management

To Be

As IsTo Do


5. Process Mindset Nurture process thinkingmeasurement-friendlycommunity-focusedquality-motivatedchange-welcomingchallenge-addictedaction-oriented


6. Process CapabilityDevelop BPM skillsconsistent, reusable approacheswide-ranging curriculummust have inhouse capabilityeverybody is a process analyst


7. Process SupportEstablish community supportmanage the “process of process”key role: develop capabilitysupport/coach, not take overcatalyst for changemaintain & mentor



Get the circles turning!

Operationalizing the 7EnablersTregear Circlesthe secret sauce of process-based management


Exercise

Hardest toeasiest?


Hardest easiest

Exercise

Hardest easiest


The 7Enablersin practice


BPM Development Roadmap

Next 3 weeks Following 3 months +12 monthsBPM Working Group

Architecture

> Finalise L0 and L1 ready for publication> Complete Support Customers processes to L4

> Capture complete architecture in new modelling tool> Publish process architecture> Decompose Pillars to L3

> Process architecture used daily for strategic and tactical management> Architecture is in a central repository and is useful as a blueprint for systemisation of management

Measurement

> Design method for "out-of-process" intervention data collection> Review survey logistics developments

> L0 and L1 data collection operational ('circles turning')> Support Customers L3 data collection operational

> All processes are measured and reported as part of standard management practice> Process performance is a key measurement tool used by XXXX leadership

Governance

> Confirm PO role description> Appoint POs for Support Customers> Brief POs on role, discuss support> Create Process Council incl 1st

> Process Council established and meeting monthly> POs operational collecting and reviewing process information

d f

> Decisions on where to invest in process improvement are based on process performance levels> Continuous assessment and evidence-based decisions on where to invest in closing performance gaps

Change

> Review Process Improvement options (Discussion Paper)> Complete two process diagnosis events

> PI methodology agreed> PI methodology training complete> 5 process diagnoses completed

> Ubiquitous continuous improvement driven by process performance analysis> Changes made and benefits realised> Process change management methods operational

Mindset

> Outline Communications Plan> Outline Change Plan> Outline collaboration & team working development program

> Communications Plan approved and active

> All staff know how they contribute to Service success> All know which processes are impacted by their role> Everyone consciously seeks to improve the processes in which they engage

Capabilities

> Develop high level Capability Development Curriculum & Plan> Develop common process langauge

> Detailed development plans approved

> Defined and active learning pathways for all staff about process-based management> No skills or tool gaps handicapping process management and improvement

Support

> Develop high level Office of BPM (OBPM) design & structure> Define modelling & management tool acquisition

> OBPM is operational> Modelling tool acquired> Process modelling conventions and standards documented

> OBPM is effective in designing, building, operating and transferring the knowledge, tools and infrastructure required to enable and support effective process management and improvement across the organisation

OBJECTIVES • Maintain the momentum • Clarify outstanding issues • Prepare for implementation • Continue to build understanding

DELIVERABLES • Architecture (L0 & L1 with Support Customers to L4) • Definition of measurement methods • Process Ownership initiated • Process Council established • Process incidents diagnosed (at least 2) • Process improvements identified (from diagnoses) • PI Methods Discussion Paper • Communications Plan Outline • Change Plan Outline • Capability Development Plan Outline • Office of BPM design/structure • Modelling tool acquisition plan • Forward cost estimates

3-WEEK PLAN


Big BPM Project

Reference model tailored for each project


BPM Maturity & the 7Enablers


University


Processarchitecture(Levels 0 & 1)


Process architecture(Example level 1 & 2)

Progress student

Examine students

Assign grades

Manage discipline, appeals

and sanctions

Confirm study plan

Provide summative assessment

Approve course completion

Graduate students

Assess course completion

Confer students

Assess demand and supply

Determine curriculum need

Confirm course viability

Create Course Proposal

Establish need

Design course

Define content

Develop course outline

Approve course

Deliver learning experiences

Teach students

Encourage student

engagement

Induct students

Provide professional

practice experience

Provide learning services

Undertake formative

assessment

Prod

uce

cour

sew

ork

grad

uate


Global fresh food supply chain


Shared Management Processes

Improveperformance

Resolve crises

Build strategic relationships

Mitigaterisk

Govern the organization

Develop Vision & Values

Secureresources

Allocateresources

Develop & review policies

L1

Shared Support ProcessesAccumulate &

apply knowledgeSupport staff

lifecycleMaintain working

environmentDeliver

ProjectsProtect

IP

Deliver Information Services

Assure legal compliance

Provide financial input

Procure goods& services

L1

L0 Core Process: MARKET PRODUCTS

DEVELOP NEW PRODUCT

SUPPLY PRODUCT

INCREASE DEMAND

L0

L1

Processarchitecture(Levels 0 & 1)


LEVEL 0 CORE: MARKET PRODUCTSSUPPLY PRODUCT

Levels 0-3 Processes

DEVELOP NEW CULTIVARDevelop product

conceptScreen

prototypesConduct

trials

L1

Commercialize product

L2

L0

INCREASE DEMAND

Realize brand valueInfluence

distribution

L1

Prioritize market demand

L2

L1

Estimate supplyCollect growth

parametersCollect supply

estimatesAnalyse supply

changesRecalculate

supply estimate

Plan supplyMaintain supply

& demand modelForecast

shippingSchedule suppliers

Influence supplyDetermine

supply driversSupport supply

strategy executionDevelop

supply strategyAlign

stakeholders

L3

Assure supplyUnderstand

requirementsMaintain QA

InfrastructureMonitor

complianceCommunicate

quality outcomes

Sell product Develop

customerContractcustomer

Receive Order

Create salesplans

Fulfil orderConfirm

orderComplete

orderConfirmsupply

Transportproduct

L2Processarchitecture(Examples level 0-3)


Hospital


Discovering theprocessarchitecture


Discovering theprocessarchitecture CARE FOR PATIENTS

DEVELOP HEALTHCARE PROFESSIONALS

CREATE & APPLY KNOWLEDGE

SHARE EXPERTISE & SERVICES

DEVELOP WELLNESS AWARENESS

SHARED MANAGEMENT PROCESSES (Level 1)

Resolve crises

Build strategic relationships

Mitigaterisk

Governthe hospital

Maintain Strategy

Secureresources

Allocateresources

Improveperformance

SHARED SUPPORT PROCESSES (Level 1)Maintain IT

systemsSupport

personnel lifecycleMaintain working

environmentDeliver Projects

Procure goods& services

Assure legal & commercial compliance

Control financial resources

MaintainHospital Image

Minimize infection risk

Assure knowledge management

VALUE CHAIN: CARE FOR PATIENTS L0

Plan patient managementDevelop

management planObtain

informed consent

Register patientIdentify patient

Collectpatient details

Confirm eligibility

Arrangerequired services

L2L1

Discharge patientDesign

aftercarePrepare patient

for dischargeReview discharge

with patient & familyFinalize

Discharge

Educ

ate

patie

nt &

fam

ilyDe

term

ine

educ

atio

n re

quire

men

tsDe

term

ine

educ

atio

n fo

rmat

Deliv

er

info

rmat

ion

Reas

sess

educ

atio

n pl

anCo

nfirm

un

ders

tand

ing

Iden

tify

patie

nt p

athw

ayPr

ovid

epa

tient

supp

ort

Anal

yze

patie

nt fe

edba

ckRe

com

men

d co

unte

rmea

sure

s

Enha

nce

patie

nt e

xper

ienc

eCo

llect

patie

nt fe

edba

ckEvaluate & diagnose patient

Collectmedical history

Examine patient

Request diagnostic tests

Request peer consult

Determine diagnosis

Perform initial assessment

Manage patientExecute

management planMonitor patient

Reassess management plan

Plan Discharge

Explain management plan

Provide aftercareConduct

follow-upAssess patient health status

Inform patient of outcomes

Reassess management plan

Dischargefrom service


Shared Support ProcessesSupport personnel lifecycle

Maintain HR policies Recruit staff Monitor performance Retain staff Redeploy /retire employees Maintain staff information

Assure knowledge managementAcquire knowledge Organize knowledge Disseminate knowledge Apply knowledge

Maintain IT SystemsMaintain IT strategy Maintain IT architecture Implement IT solutions Manage enterprise information Support IT system users

Maintain Working EnvironmentAcquire operations assets Maintain assets Implement H&S Program Monitor environment quality Resolve problems

Assure Legal & Policy ComplianceDocument compliance requirements Assign compliance accountabilities Monitor compliance status Resolve compliance deficits

Deliver projectsInitiate project Control project stages Close project

Procure Goods & ServicesDevelop sourcing strategies Select supplier Order goods & services Appraise & develop suppliers

Control Financial ResourcesPerform management accounting Manage revenue Perform general accounting Manage asset accounting Administer payroll

Control treasury operationsControl accounts payable Maintain financial controlsControl accounts receivable

Minimise infection riskIdentify infection risks Design countermeasures Implement countermeasures Monitor effectiveness

Maintain hospital imageDetermine target image Design communication plan Monitor hospital imageExecute communication plan


Indicative hospital measures


Hospital Process GovernanceBoard of Directors

Chief Executive Officer

Quality & PatientSafety Council

Executive DirectorMedical Affairs

Hospital StandingCommittees

Deputy CEO

Process AlignmentCommittee

ChapterTeams

Strategy Management

OfficeIPSG

Teams

QI&PSDirector


Exercise

The missingenabler

Impact of a missing enabler?ARCHITECTURE GOVERNANCE CHANGE MINDSET CAPABILITY SUPPORTMEASURES =

ARCHITECTURE GOVERNANCE CHANGE MINDSET CAPABILITY SUPPORTMEASURES =







TRANSFORMATION

© Copyright 2016, Leonardo Consulting

DISHARMONY

GUESSWORK

ANARCHY

FUTILITY

DISUNITY

FRUSTRATION

DISENGAGEMENT


Reimagined managementfocused on value managementexecuting strategyrelentlessly searching for problems and opportunitiessystemically deliveringprocess improvementsverifying benefit deliveryenhancing stakeholder managementembedding in culture


Making the beautiful music

Now get out there and make the music happen!

Thanks for being here.