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Kristine A. Hayes Munson, PMP, CIA, Vice President presented at our SCQAA- San Fernando Valley chapter.
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Kristine A. Hayes Munson, MBA, PMP, CIA
State Street
Photos of Attendees on December 11 2013 at Intuit Office
www.scqaa.net
You will be able to apply systems thinking to business process improvement projects after:
◦ Selecting key performance indicators (KPI)
◦ Knowing when to implement change or when to leave a process “as is”
◦ Determining whether or not proposed changes will positively or negatively impact the project
Managed an user acceptance testing project to onboard a client to a major system within firm
Project went from greenish-amber to red in less than a week with no major fires
SVP comment on the project: ◦ The team is working frantically ◦ The team is not working hard enough
“There is no such thing as a fact concerning an empirical observation. Any two people may have different ideas about what is important to know about any event. Get the facts!” —W. Edward Deming
Process Improvement Projects Revisited
Key Performance Indicators
Why Change?
◦ Special Cause and Common Cause Variation
◦ The Plan-Do-Check-Act Cycle
Seeing is Understanding
◦ Deming’s Red Bead Experiment
◦ Deming’s Funnel Experiment
Understanding My Project
Change Agent
◦ Identify and articulate the need for a business process change
◦ Document and vet requirements for the proposed change
◦ Facilitate the proposed change
◦ Help businesses do their business better.
Acceptance & Evaluation Criteria Definition
Brainstorming
Interviews
Document Analysis
Focus Groups
Observation
Organization Modeling
Process Modeling
Prototyping
Requirements Workshops
Risk Analysis
Root Cause Analysis
Scenarios & Use Cases
Scope Modeling
Survey/Questionnaire
What are our results?
Translate collected data and information into knowledge
Make the right management decisions and take the right action
◦ Implement appropriate, planned changes
◦ Allow the process to function “as is”
Select 3-5 key performance indicators (KPI)
◦ Understand the overall business objectives
◦ Ask stakeholders what is most important
◦ Identify the impact of not completing the project
Make KPIs “SMART”
Remember may need to be “bad” at some things in order to be “good”
• Ensure stakeholders including the project team know
and understand the KPIs
Think about a process improvement project on which you are currently working.
◦ Identify what are the 3-5 KPIs?
◦ What are you going to be intentionally bad at?
We observe variation from our expectations
How do we decide whether or not to “change,” “fix” or “improve” something?
How do we determine if a change will positively and/or negatively impact a project?
Common Cause
◦ Fall inside the control limits
Special Cause
◦ Something that is special, not part of the system of common causes
◦ Fall outside the control limits
Mistake 1
◦ To react to an outcome as if it came from a special cause, when actually it came from common causes of variation.
Mistake 2
◦ To treat an outcome as if it came from common causes of variation, when actually it came from a special cause
When you discover that you are riding a dead horse, the best strategy is to dismount. In many companies more advanced strategies are often employed, such as:
Changing riders Arranging to visit other countries to see how others ride dead horses
Appointing a committee to study the horse Lowering the standards so that dead horses can be included
Reclassifying the dead horse as ‘living impaired’ Hiring outside contractors to ride the dead horse Harnessing several dead horses together to increase the speed
Providing additional funding and/or training to increase the dead horse’s performance
Doing a productivity study to see if lighter riders would improve the dead horse’s performance
Declaring that as the dead horse does not have to be fed, it is less costly, carries lower
overhead, and therefore contributes substantially more to the mission of the organization than do some other horses
Rewriting the expected performance requirements for all horses…
A
B
C
D
Perception of
Cause and Effect
Experience
Plan
Do Check
Act
Plan a change or
a test, aimed at
improvement –Which option
to test?
– What is
anticipated
result?
Carry out the change
or test (preferably
on a small scale)
Study the results.
What did we learn?
What went wrong?
Adopt the change, or
abandon it or
run through
the cycle again
Beware of
Unintended Consequences
Help Wanted
◦ 3 willing project team members (must be brave)
◦ 2 team leads (must be able to count)
◦ 1 business analyst (must be able to count)
◦ 1 project manager (must be able to add & use PowerPoint)
◦ 1 senior manager (sets the rules – me)
Wrong to rank people ◦ Demoralizing ◦ Really ranking the effect of the process on
people
Futility of pay for performance; rewarding and punishing the process
Display of bad management; procedures were rigid
No basis to assume that best team member would be the best in the future
Help Wanted
◦ 1 will project team member (must be able to hold funnel)
◦ 1 business analyst (must be able to use a marker)
◦ 1 senior manager (sets the rules – me)
No one gets fired in this experiment.
Avoid management tampering
◦ Taking action based on the belief that a common cause is a special cause
◦ Overreacting
◦ Causes losses – management by results
◦ Increases variation
Sometimes the process should just be left alone
What is the most important decision I face right
now because of observed variation?
◦ What long-term consequence do the short-term
issues have?
◦ How does this decision relate to the project’s
3-5 KPIs?
How will we determine if this variation is a special
cause or a common cause variation?
How does this knowledge impact your decision?
How will you test your decision?
You will be able to apply systems thinking to monitoring and controlling after:
◦ Selecting key performance indicators (KPI)
◦ Knowing when to implement change or when to leave a project “as is”
◦ Determining whether or not proposed changes will positively or negatively impact the project
“The truth is often buried deeper than where your intuition can reach. Uncovering it starts with the willingness to stop treating your beliefs as facts.” — Frances Frei and Anne Morriss
“Learning the word ‘no’ is the hardest lesson for
many project managers.”
— Jim Johnson
Kristine A. Hayes Munson, MBA, PMP, CIA
+949-932-1476
For SCQAA- San Fernando Valley Chapter
Sujit Ghosh [email protected]
818-878-0834
