Module 1 focused operation v3.0

Copyright © 2009 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

BPO Operational ExcellenceOperational Maturity Fundamentals

Module 1: Focus the Service Operation

2Copyright © 2009 Accenture All Rights Reserved.

Usage Restrictions

Copyright © 2009 Accenture

All Rights Reserved.

For internal use only.

This material is proprietary to Accenture and should not

be reproduced or used outside Accenture.

Failure to follow these usage restrictions may result in

legal action.


Agenda

• Introductions 30 min

• Module 1 - Focus the Service Operation 3 hr

• Module 2 – Standardize the Service Operation 3 hr

• Recap and wrap up for the day 30 min

• Module 3 – Plan Service Operations Work 2 hr

• Module 4 – Organize the Service Operation 1 hr

• Module 5 – Make the Service Operation Visual 1 hr

• Module 6 – Improve the Service Operations 2 hr

• Conduct Baseline Maturity Assessment 1 hr

Day 1 Duration

Day 2

We will break up the day with breakout activities and

scheduled breaks


Executive Summary

• The Operational Maturity Fundamentals are based on 6 categories that define the key components for managing an effective service delivery operation.

• The 6 categories are:

– Focus the Service Operation

– Standardize the Service Operation

– Plan Service Operations Work

– Organize the Service Operation

– Make the Service Operation Visual

– Improve the Service Operation

• In order for us to take our BPO business to the next level it is important for us to establish STABLE, CAPABLE and OPTIMIZED operations through the application of the Operational Maturity Fundamentals

• This training focuses on the key questions for service delivery teams to ask themselves and outlines how the Operational Maturity Fundamentals can help teams address these questions to drive superior execution and improved business performance.

Using Operational Maturity Fundamentals to drive STABLE, CAPABLE and OPTIMIZED operations


BPO Service Operation Case Study - Overview

Mike Brown is the service delivery lead in Prague for a medium sized UK based financial services client called

UK Bank who have operations throughout the UK and Western Europe. The scope of services provided for UK

Bank is Accounts Payable (AP) and Customer Service Desk (CSD) services from the Prague Delivery Centre,

with these services supporting the bank’s operations throughout the UK and Western Europe.

When the deal was first signed, the original deal economics was 120 FTE’s in AP at a cost of $4.8m; 30

FTE’s in CSD at a cost of $1.2m; PMO + Travel at a cost of $500k. These costs combined represent $6.5m in

operating cost, against a planned revenue of $9m per year which would result in $2.5m in CCI at a CCI % of

28%.

Since first going live with the full scope of services about 18 months ago, there has continued to be a large

amount of client noise surrounding the account. Poor SLA performance during the initial 3 months of operation

from both the AP and CSD teams resulted in the Account Leadership adding additional headcount to address

the service issues (150 FTE in AP @ $6.0m, 40 FTE in CSD @ $1.6m).

The additional headcount was successful in getting all SLA’s to green and they have remained green ever

since. At the same time the amount of client noise has decreased significantly, however there are still a

number of client escalations occurring, even with the SLA performance being all green. The continued

escalations have resulted in additional PMO cost associated with increased client stakeholder management

and unplanned travel (PMO Cost = $1.0m).

Lets introduce the case study of a mid-sized account that has been live for 18 months and is experiencing both service and cost issues

Mike BrownSDL - Prague


Case Study – Today vs. ODE

Original Deal

EconomicsCurrent Situation

# FTE’sCost

(USD)# FTE’s

Cost

(USD)

Accounts Payable 120 $4.8m 150 $6.0m

Customer Service

Desk30 $1.2m 40 $1.6m

PMO (Inc Travel) NA $0.5m NA $1.0m

Totals 150 FTE’s $6.5m 190 FTE’s $8.6m

Before Mike attempts to improve the account he must first understand the current situation compared with the original deal economics

Original Deal

EconomicsCurrent Situation

Annual Revenue $9.0m $9.0m

Annual Costs $6.5m $8.6m

CCI ($) $2.5m $0.4m

CCI (%) 28% 4.4%

• The current set of 20 contract SLA’s are consistently green from

month to month, however the client feels there is a large variation

in service performance from day to day within a given month.

• In addition to variation in performance, the client also feels that the

current set of SLA’s do not accurately reflect their performance

expectations for the contract.

• The client would like to see more consistent service delivery from

day to day while also having a set of SLA’s that accurately measure

performance against their service expectations

• While the SLA’s are consistently reported as Green there is still are

large amount of client noise in the form of escalations on the

account.

• The current CCI % of 4.4% on the account is well below the target

CCI% of 25% for all BPO accounts, and the ODE CCI% of 28%.

• There is a need to reduce cost while also improving service to get

the account back in line with CCI targets and service expectations

CCI Performance Summary

Cost Performance Summary

What is the BPO Leadership Saying?

What is the Client Saying?

7

Operational Maturity Fundamentals

• Understand who the customer is and what they value

• Understand performance against customer requirements

• Understand which inputs have the largest impact on customer outputs

Categories Expected Outcomes OE Methods

• Understand your process and who is responsible for what activities

• Perform work activities consistently to deliver predictable outcomes

• Integrated MOS in place to manage inputs and monitor outputs

• Understand the amount of work that is expected to be done

• Understand the number of resources required to complete the work

• Workload balancing to manage capacity during peaks and troughs

• Teams are organized around the process to reduce inefficiencies

• Understand where things are, and what is needed to complete the work

• Visual Controls in place to proactively respond to potential service issues

• Performance data displayed over time to identify and react to trends

• Visual Information is up to date and integrated with the overall MOS

• First pass yield implemented as a key measure to help identify rework

• Ability to identify root cause and corrective actions to address issues

• Lean basics understood to help identify improvement opportunities

• SIPOC

• High Level E2E Process Flow

• 3x3 Scorecard / Metrics

• Control Charts

• Detailed Process Flow

• Standard Work Instructions

• Control Plan and MOS

• Volume, Productivity, and

Capacity metrics

• Resources Planning Tool

• Cross Training Skills Matrix

• Resource & Workflow Alignment

• Office Layout

• 5 S

• Visual Controls

• VM / MOS integration

• Visual Management Plan

• First Pass Yield

• Fishbone Diagram and 5 Whys

• Lean Basics

Objective

Understand what

your customer

wants

Define what the

process is and

how to perform it

consistently

Organize teams

around the

process

Visual information

displayed to

manage

performance

Focus the Service

Operation

Plan Service

Operations Work

Standardize the

Service Operation

Make the Service

Operation Visual

Organize the

Service Operation

Improve the

Service Operation

Balance workload

by matching

available capacity

to demand

Teams drive

continuous

improvement

Copyright © 2009 Accenture All Rights Reserved.


Operational Maturity Fundamentals

Focus the Service Operation

Plan Service Operations Work

Standardize the Service Operation

Make the Service Operation Visual

Organize the Service Operation

Improve the Service Operation

Objective

• Understand what your customer wants

Expected Outcomes

• Understand who the customer is and what they value

• Understand performance against customer requirements

• Understand which inputs have the largest impact on customer outputs

OE Methods

• SIPOC

• High Level E2E Process Flow

• 3x3 Scorecard / Metrics

• Control Charts

Module 1 - Focus the Service Operation


Becoming a Focused Service Operation

• Teams can not clearly explain what outcomes are delivered to the customer

• Teams are not clear on what the customer expects and are only using the SLA metrics

to assess their service performance

• While SLA performance is currently all green, there continues to be frequent client

escalations

• The team can not explain the main end to end activities that deliver outcomes to the

customer

• Team members do not understand which operational inputs have the largest impact on

service performance, and as a result are not sure what they should be focused on

While Mike’s team is currently green across all SLA’s he is still experiencing frequent escalations from the client

What is Mike’s Team Experiencing Today?


How do you know if the outcomes delivered to customer are consistently meeting their service expectations today and will continue to do so in the future?

Who are your customers and what are the outcomes that are delivered to them?

What are the customer’s service expectations in terms of Delivery, Quality and Cost and how is performance against these expectations measured (both SLA and non-SLA)?

What do you measure today to proactively ensure you deliver to customer expectations

What are the main activities performed end to end to deliver expected outcomes to the customer and what are the critical inputs that have the largest impact on these outcomes?

Which operations activities are clearly tied to delivering the contractually agreed outcomes?

What you need to know to be a Focused

Service Operation

What are the Critical Questions you should be asking yourself to drive focus

1.

4.

5.

2.

3.

6.


Step 1







1.

4.

5.

2.

3.

6.


OE Method 1 - SIPOC

What Does the Tool Deliver?

How do we get focused on what the customer wants?

• SIPOC stands for Supplier, Inputs, Process, Outputs, and Customer

• Provides context and scope of process being analyzed

• Defines the customers of the process and how they measure

process performance

• Defines the suppliers of the process and requirements of what they

provide to the process

What tool is available to help?

SIPOC


SIPOC: Stands for Supplier, Inputs, Process, Outputs, and Customer- Provides context and scope of process being analyzed- Defines the customers of the process and how they measure process performance- Defines the suppliers of the process and requirements of what they provide to the process

Supplier CustomerProcess

Input Requirements

Inputs

• Inputs

• Requirements

Output Requirements

Outputs

• Outputs

• Requirements

OE Method 1 - SIPOC

The Template:



Input Requirements

Inputs

• Inputs

• Requirements

Output Requirements

Outputs

• Outputs

• Requirements

WHAT is required to

execute the process

Inputs and Outputs are

often thought of as nouns

Requirements are often

thought of as adjectivesRequirements of the

Supplier Input -. Eg.

98% of inputs received

within agreed time

WHO Provides

The INPUTS

Required. For

the Process

Who receives

the OUTPUTS

of the process

WHAT does the Process

Deliver. Eg. Processed

Invoice

Requirements of Customer

Output Eg. Invoices

processed with 3 days

OE Method 1 - SIPOC

SIPOC: Stands for Supplier, Inputs, Process, Outputs, and Customer- Provides context and scope of process being analyzed- Defines the customers of the process and how they measure process performance- Defines the suppliers of the process and requirements of what they provide to the process


Key Outputs: SPEED, QUALITY & COST

For Any Operations Process There Are 3 Critical Output Categories

What is critical is to balance all three so that performance is on target for each. There is no point in

improving speed by increasing Cost, or by reducing Quality

Customer Client Client Internal

DefinitionEnd to End Cycle Time to process a

transaction

Error Rate – Percentage of Output

units that are defective

Productivity – Number of Outputs

per FTE per day

Additional

Notes

This represents the end to end cycle

time for processing a transaction

The cycle time started when a

transaction enters our factory and

ends once it is processes and leaves

This represents the end quality that

the Client feels.

Units that have been process and

rejected by the customer are

deemed defective

Productivity is the operational

measure of cost

In order to set productivity targets

inline with ODE, use the daily volume

that must be processes / # FTE in

ODE

Speed CostQuality


OE Method 1 - SIPOC

Lets look at the example produced by Mike and his Leadership team:

Mikes team created a SIPOC for their accounts payable team to help understand the key output requirements and the inputs received to generate this output


Mike and his team also conducted an assessment to determine what activities the team were currently

performing that was not part of the contract scope (ie where is the team over delivering)

The contract scope assessment identified 7 FTE’s worth of work that was being performed by the team which was not part of the original contract scope

Contract Scope Assessment

Activity In Scope

(Y/N)

Performed

Today

(Y/N)

FTE

Impact

Generate additional metric report for non SLA metrics for

client and submit on a daily basis N Y 0.5 FTE

Conduct daily reviews with client of additional metrics

report N Y 0.5 FTE

Additional time spent managing escalations from clients

caused by client having additional metrics report N Y 2 FTE

Continue to follow up with client for invoices requiring

approval until client approves, however the contract states

that we should only send email notification every 2 days

and reject invoice after 3rd notification if no response

N Y 4 FTE

Total: 7 FTE


OE Method 1 – SIPOC - Summary

What has producing the SIPOC enabled Mike to Realize?

• Mike and his team are able to clearly articulate who their customer is and what

outcomes are delivered to the customer

• The team understands the customers service expectations in terms of Delivery,

Quality and Cost

• Mike can compare the activities of his team against the core objective of the

operation – Are we the team focussed on core activities.



1.

2.


Background:

Module 1 – Focus

Introduction to Breakout Activities

In each of the training modules that follow we will show how Mike is able to apply the OE

Operations Management Fundamentals to help address both the service and cost issues.

• The challenges Mike is experience on his account apply equally across both the Customer Service Desk

and Accounts Payable teams. The training content shows examples of how Mike’s team has applied the

OE methods for their Accounts Payable team. Once you have walked through the Accounts Payable

example you will be asked to split into separate teams to work through a series of breakout activities

focused on improving performance of the Customer Service Desk through application of the OE methods.

• The Customer Service Desk has a current headcount of 40 FTE’s which is 10 FTE’s above the ODE which

equates to an additional cost of $400k per year. In addition to these cost issues, the client is often

complaining that they experience high variability in performance from day to day, and there are still a large

number of escalations occurring even when the SLA’s are all green.

• Please spend some time now to form into your groups. These are the groups you will remain with for all

breakout activities in the training. We recommend a maximum of 4-5 groups, with each group having a

minimum of 4 members.


Activity 1.1 – Focus

The large number of metrics being reported is making it hard for Mike and his team to

understand what the customer expects. It often seems the customer is not even sure...

• The Customer Service Desk team currently has a set of 10 contractual SLA’s that are measured and

reported each month. In addition to the SLA’s the client has also requested a monthly report with an

additional 12 KPI’s that they would like to see reported. Armed with this additional information the client

often escalates performance issues based on the 12 additional metrics, even when the SLA metrics are all

Green. While the team recognizes UK Bank is their main customer, the large number of performance

metrics and frequent client escalations has made the team unclear about what the customer expects.

• Mike Brown decides to hold a meeting with his Customer Service Desk leads to get a better picture of what

they are currently delivering to the customer, and to understand if this aligns with the customer’s

expectations and with the what is written in the service contract. During the meeting the team makes the

following key observations:

– There are 10 different SLA’s listed for CSD, however the main output delivered to the customer is a

resolved ticket with the customer expecting that all tickets be closed within 3 business days. The

customer also has the option to complete a customer satisfaction survey once each ticket is closed

to provide feedback on the service. There is an SLA stating that this survey score (CSAT) should be

> 80%. The team agrees that this is the number one measure of quality

Activity 1.1 – Who is the main customer and what do they expect?


…it also feels like we are sometimes a little to responsive to the customers request. This

results in the team spending time on additional work that is not part of the original contract.

• Key Observations (Continued)

– The current volume of 600 tickets received by the team is inline with the original deal assumptions,

however the team size is currently 40 rather than the ODE of 30. In order to get to the ODE of 30 the

team would need to close 20 tickets per person per day.

– When looking at the contract it is clear that the additional 12 metrics produced each month are not

part of the original contract scope. This additional reporting is consuming about 0.5 FTE to complete

each month, while the additional visibility this provides the client has also lead to increased

escalations

– About 10% of the call volume are suppliers who are calling to get a status on their invoice status.

This equates to about 4 FTE’s worth of work. The original contract stated that UK Bank would have a

Invoice Status portal available for suppliers to check this status, however delays caused on the client

side have resulted in this functionality not being available.

– The contract lists a minimum set of information that must be provided by the client in order for a ticket

to be created, however the help desk agents are creating tickets even when the client does not

provide the necessary information for about 10% of the volume resulting in additional effort of 10 min

being required to close the ticket.



Breakout Activity (30 min):

Module 1 – Focus

Introduction to Breakout Activities

In the next 20 minutes, work with your team to complete the activity below. Please use flip

charts to capture your work and be ready to report out to the group

• Create a SIPOC to help the team get clarity on the key outputs delivered to the customer. What are the

customers expectation in terms of speed, cost and quality? Also what are the input requirements for

Mikes team to successfully deliver service?

• Please list all activities performed by Mikes team that are not part of the contract scope. What is the

approximate FTE impact of performing these activities and what do you recommend Mike does to

address this?


Step 2







1.

4.

5.

2.

3.

6.


OE Method 2 – High Level Process Flow


What are the main activities performed end to end to deliver outcomes, and which inputs have the largest impact on performance

• This tool flows down from the SIPOC and starts to break down the

process by the individual steps.

• Identifies Inputs (Xs) and Outputs (Ys) for each process step

• Identifies Critical Process Inputs (Xs) that drive process performance

(Y’s) allowing Mike to focus on managing the right inputs

High Level

Process Flow



Process Documentation Overview:

Process Hierarchy

SIPOC

• Stands for Supplier, Inputs, Process, Outputs, and Customer

• Provides context and scope of process being analyzed

• Captures the Voice of the Customer (Output requirements)

Inputs

Outputs

Step 1 Step 2 Step 4 Step 5 Step 6

• Outputs • Outputs • Outputs • Outputs • Outputs

• Inputs • Inputs • Inputs • Inputs • Inputs

Inputs

Outputs

Step 1 Step 2 Step 4 Step 5 Step 6

• Outputs • Outputs • Outputs • Outputs • Outputs

• Inputs • Inputs • Inputs • Inputs • Inputs

High-level Process Map

• Defines major steps (sub-processes) of the end-to-end

process

• Identifies Inputs (X’s) and Outputs (Y’s) for each process step

• Identifies Critical Process Inputs (X’s) that drive process

performance (Y’s)

Process

StepDecision

Process

Step

Process

Step

Process

Step

Decision

Process

Step

Process

Step

Terminate

Process

Step

Process

StepDecision

Process

Step

TerminateProcess

StepDecision

Process

Step

Process

Step

Process

Step

Decision

Process

Step

Process

Step

Terminate

Process

Step

Process

StepDecision

Process

Step

Terminate Detailed Process Map

• Define the how-to level of steps and decisions within a

process

• Provides for operator training and the occasional reference

How do all these Process Tools fit together?

Mike Brown


Input Requirements

Inputs

Output Requirements

Outputs


High-level Process Map Example

Sort and

Scan Invoices

Enter

Invoice

Resolve

Invoice

Exceptions

Post Invoice

for Payment

High-level Process Map

• Defines major steps (sub-processes) of the end-to-end process

• Identifies Inputs (X’s) and Outputs (Y’s) for each process step

• Identifies Critical Process Inputs (X’s) that drive process performance (Y’s)

Invoice

Processing

Ah, I can see how the

Process box from the SIPOC

expands to show the high

level process steps...

Mike Brown


High-level Process Map – Defining Outputs

Input

s

Output

s• Approved & Validated

invoice

• Unapproved or

Rejected invoices

• Invoice entered on

system

• Invoice not entered due

to lack of data

• Flagged exceptions

• Resolved invoice

exception

• Rejected Invoice

• Processed invoice

posted for payment

• Rejected invoices

notification to Client

Identify Outputs from each step of the Process

OUTPUTS:

What are the

key outputs

produced at

each step

For all Items it is important to be as

specific as possible

Sort and

Scan Invoices

Enter

Invoice

Resolve

Invoice

Exceptions

Post Invoice

for Payment

Should match the ultimate

process outputs within the

SIPOC


Input

s

Output

s

• Agreed volumes of

invoices

• Backlog of invoices

received

• Functioning system

• Trained, Skilled

resources

• Approved & Validated

invoice

• Documented

procedures

• System

• Invoices in data

repository

• Processed invoice with

Flagged exceptions

• Resolution Procedures

• Suitably trained staff

• Entered invoices and

Invoices with resolved

invoice exceptions

• Postal services

Highlight Inputs needed to drive those outputs

INPUTS:

What are

the Inputs

for each

process

step

required to

deliver the

output at

each step?

For all Items it is important to be as

specific as possible


invoice

• Sorted Invoices

Scanned

• Unapproved or

Rejected invoices


system


to lack of data



exception



posted for payment



Sort and

Scan Invoices

Enter

Invoice

Resolve

Invoice

Exceptions

Post Invoice

for Payment

High-level Process Map – Defining Inputs

29Copyright © 2009 Accenture All Rights Reserved.© 2006 Accenture. All rights reserved.29

Classifying Inputs

How do you classify process inputs?

Criticality

Controllability

Critical: Inputs that have largest impact on Output performance.

Non Critical: Inputs that impact output performance, but to a lesser extent

Controllable: Inputs that fall within the control of the operations team (e.g. Training level)

Uncontrollable: Inputs outside the teams control (e.g. Volumes)

Critical

Non Critical

Non Controllable Controllable

Critical Operational

Levers

Key Factors to Monitor

Additional Potential Levers

The easiest way to classify process inputs through discussion with SME and team members

Criticality

Controllability


Output

s

Mike met with his team leads to classify the process inputs as either controllable (C) or

uncontrollable (U), and he also identified which inputs were critical (X)

Input

s


invoices UX

• Backlog of invoices C

• Functioning system U


resources CX


invoice U

• Documented

procedures CX

• System U


repository U


Flagged exceptions U


CX

• Suitably trained staff C



invoice exceptions UX

• Postal services U


invoice

• Sorted Invoices

Scanned

• Unapproved or

Rejected invoices


system


to lack of data



exception



posted for payment



Sort and

Scan Invoices

Enter

Invoice

Resolve

Invoice

Exceptions

Post Invoice

for Payment

High-level Process Map – Defining Inputs


OE Method 2 – High level Process Flow Summary

What has producing the High level Process Flow enabled Mike to Realize?

• Mike and his team now understand the high level process steps that delivery

outputs to the key customer

• Mike and his team understands the critical inputs that have the largest impact on

outputs delivered so they are now able to focus on the managing the right things

• The team understands which inputs they can control and which they can not. This

helps them understand what they can actively manage, and what they need to

monitor


3.



It often seems the team isn’t sure what steps or inputs are required to complete the

delivery process, or how many people it takes to complete the process.

• While Mike and his team are now focused on delivering outcomes that meet customer expectations (ie

resolving tickets within 3 days, and CSAT > 80%), the team members are still not able to clearly explain

the end to end activities required to close a ticket. In addition Mike is finding that the team is not really sure

what operational inputs they should be focused on managing to ensure service expectations are met.

• Mike decides to hold a meeting with his CSD team leads to identify the main end to end activities that are

performed by the team to resolve customer queries. The team walks through the main end to end activities

performed by the team.

– The first step is for the team to receive a query from the customer that requires resolution. Queries

may be received either view email or telephone.

– When a query is resolved via telephone the CSD agent opens a new ticket in the system and

documents the new customer query.

– If the CSD agent is not able to resolve the query during the phone call, the call will end with the ticket

being logged and transferred to the tier 2 support team who focus on investigating and resolving

open tickets.

– Once an open ticket is resolved either by the tier 2 team, or on the original call by the tier 1 CSD

agent, the resolutions is documented and communicated to the customer and the ticket is closed.

Activity 1.2 – What are the main activities performed end to end



Module 1 – Focus

Breakout Activity



• Create the high level process flow from the point that a query is received to the point that the ticket is

closed based on what the team discussed



The team isn’t sure which of the many inputs are within the group’s control...

• The team agreed the high level process flow as:

– Receive Query and Open Ticket

– Resolve or Escalate Ticket (Tier 1)

– Investigate and Resolve Ticket (Tier 2)

– Communicate Solution and Close Ticket

• With the end to end activities required to resolve a ticket, the team can focus their attention on identifying the key

operational inputs that have the largest impact on service performance. The team first walked through each of the high

level process steps and identified the key operational inputs required to perform each step

– Receive Query and Open Ticket – Key inputs include: Accurate Customer Query; Trained Tier 1 CSD Agent;

Available Tier 1 CSD Agent; Available Comms Channels (email & phone); Available CSD Scripts & Job Aids

– Resolve or Escalate Ticket – Key inputs include: Open Ticket; Trained Tier 1 CSD Agent; Available Tier 1 CSD

Agent; Available Comms Channels (email & phone); Available CSD Scripts & Job Aids

– Investigate and Resolve Ticket – Key inputs include: Escalated Ticket; Trained Tier 2 CSD Agent; Available Tier 2

CSD Agent; Right access to Accounts Payable System; Timely Response from Customer for information requests

– Communicate Solution and Resolve Ticket – Key inputs include: Accurate resolution to Ticket; Timely resolution of

Ticket; Trained CSD Agent; Available CSD Agent; Available Communication Channels (email & phone); Available

Ticket System; Available CSD Scripts and Job Aids

Activity 1.2 (Continued) – Which inputs have the biggest impact on service performance



...and aren’t sure which inputs are critical to manage vs. others.

• Once the main inputs for each step were identified the team discussed and agreed on the top 5 inputs

having the largest impact on service performance. The team listed the following inputs in order of impact

to service delivery

– Volume of Customer Queries

– Accuracy of Customer Queries

– Trained Staff (First 2 process steps)

– Available CSD Agents (All steps)

– Timely Response from Customer for Information Requests

Activity 1.2 (Continued) – Which inputs have the biggest impact on service performance



Module 1 – Focus

Breakout Activity



• List the inputs and outputs for each process step on your high level process flow.

• Classify each process input as controllable vs non-controllable, and identify the critical inputs that have

the largest impact on service performance in the process


Step 3







1.

4.

5.

2.

3.

6.


OE Method 3 – 3x3


3x3 Thinking – Managing critical few inputs to deliver Outputs

• Enables a comprehensive understanding of our process

performance

• Enables teams to focus on key operational levers that drive

performance

• Equips teams to proactively manage operations using data to

facilitate improved decision making

• Enables identification and prioritization of improvement

opportunities using data

3x3



The thinking is simple – You Manage the Process Inputs in order to successfully deliver the outputs

OE Method 3 – 3x3

What is a 3x3?

• A matrix for displaying the vital metrics for a process

• Includes the three most vital metrics for our customer Outputs on one side (SPEED, COST & QUALITY)

• For each it shows the three most critical inputs that can be managed to ensure delivery of those outputs.

• Lets look at this from Mike’s perspective

• Mike Currently has 20 SLA metrics – probably based on a monthly average and showing Green or Red

• Does this help Mike manage his operation?

• Will he know if an SLA is missed before it happens?

• Will Mike know why the SLA was missed, and what was the cause?

The answer is no! In order to make the performance predictable Mike needs to accept he cannot directly influence the

SLA’s (Outputs) – what he can influence or track are the resources, processes, training, work scheduling, volumes, etc.

(Inputs) and by measuring and managing these he can identify risks to the SLA’s early and proactively react

Mike BrownSDL - Prague


Building a Meaningful 3x3

Building an effective 3x3 scorecard is an iterative process

Understand what the Customer Wants

(VoC)

Identify a measurable way of tracking delivery

against VoC (Output Metrics)

Identify measurable inputs and targets

which drive the Output metric performance

(Input Metrics)

Validate and Calibrate Input Metrics – Are we

measuring the right things and reacting at

the right time?

STEP 1

STEP 2

STEP 4

STEP 3

Data Collection

The 3x3 should be assessed on an

ongoing basis to ensure we are

measuring the correct input and output

metrics, and that the targets are set at

the right level.



Lets continue to look at Mikes Invoice Processing operation

We have already identified that the key customer requirements fit into the following Key Area’s

What is the real Feedback from the customer that defines in real terms what the customer wants?

Understand what the Customer Wants (VoC)STEP 1

Speed

Cost

Quality

UK Bank: We want to have all invoices processed within 3 Days

UK Bank: We expect < 0.5% of invoices to have errors

BPO Leadership: We should be processing 35 invoices per person per day to be within ODE

Speed

Cost

QualityQuestion: What is the main Output we provide to the

Customer, and what is their expectation around

speed and Quality?



Identify a measurable way of tracking delivery the VoC (Output Metric)STEP 2

UK Bank: We want to have all invoices

processed within 3 Days

UK Bank: We expect < 0.5% of invoices to have

errors

Accenture: We should be processing 35 invoices per

person per day

What is the key metric we can use to Operationally measure the VoC

requirement?

Output from STEP 1

CycletimeDays to complete process from

[START] to [STOP]

Error Rate% Errors on Output Units

ProductivityVolume per day / #FTE’s

Target 3 Days

Target 0.5 %

Target 35

Cycletime (Days) Invoice

Receipt to Processing

CompleteR/A/G

Target Actual Trend

3 Days 2.51 Days

Metric Title

Summary Performance

against Target

Red: Outside Target

Amber: Within 10% of

Target level

Target

Performance

Actual

Operational

Performance

Overall Trend Shape

Note: This is NOT

simply an indication of

the metric movement

since the previous

period, but a summary

trend from the Control

Chart (Covered Later)

VOC Output Metric 3x3 Format



UK Bank: We want to have all

invoices processed within

3 Days

UK Bank: We expect 0.5% of processes to be

error free

Accenture: We should be

processing 31.25 invoices per

person per day

Output from STEP 1

Cycletime (Days) Invoice

Receipt to Processing

CompleteR/A/G

Target Actual Trend

3 Days 2.51 Days

% Errors on Output Units R/A/G

Target Actual Trend

0.5% 0.5%

Volume per day / #FTE’s R/A/G

Target Actual Trend

31.25 25

Output from STEP 2

Identify a measurable way of tracking delivery the VoC (Output Metric)STEP 2


Output

Leading Metrics Lagging Metrics

Speed

Cost

Quality


Identify measurable inputs and targets which drive the Output metric performance (Input Metrics)STEP 3

Inputs


invoices UX




resources CX


invoice U

• Documented

procedures CX

• System U


repository U




CX







invoice

• Sorted Invoices

Scanned

• Unapproved or

Rejected invoices


system


to lack of data



exception



posted for payment



Sort and

Scan Invoices

Enter

Invoice

Resolve

Invoice

Exceptions

Post Invoice

for Payment

Inputs


invoices UX




resources CX


invoice U

• Documented

procedures CX

• System U


repository U




CX







invoice

• Sorted Invoices

Scanned

• Unapproved or

Rejected invoices


system


to lack of data



exception



posted for payment



Sort and

Scan Invoices

Enter

Invoice

Resolve

Invoice

Exceptions

Post Invoice

for Payment

Sort and

Scan Invoices

Enter

Invoice

Resolve

Invoice

Exceptions

Post Invoice

for Payment




CycletimeDays to complete

process from [START] to [STOP]

Error Rate% Errors on

Output Units

ProductivityVolume per day /

#FTE’s

Identified OutputsInitial Cut of Potential Inputs to Measure, and ranking based on perceived impact on output

Based on inputs from Subject Matter Experts and what has previously been identified within the High Level Process Map

BacklogVolumes Received

% Invoices with

Exceptions

% Non PO Matches

Average Experience of Agents (Months)

% Internal Quality Errors

Average Experience

of Agent (Months)

Absenteeism% Scanned

Invoice Rejections

Average Experience of Agents (Months)

Total Headcount

% Non PO Matches

% Invoices with

ExceptionsAbsenteeism

% Non PO Matches

14 3 5 2

21 3 5 4

13 4 5 2

Represents SME’s subjective ranking of impact that input has on driving the output


OE Method 3 – 3x3 Thinking


invoices processed

within 3 Days


errors

BPO: We should be processing 35

invoices per person per day

Cycletime (Days) R/A/G

Target Actual Trend

<3 Days 2.51

% Errors on

Output UnitsR/A/G

Target Actual Trend

<0.5% 0.5%

Productivity:

Volume per day /

#FTE’s

R/A/G

Target Actual Trend

>32 25

VoC Output Metrics Input Metrics

Volumes (Daily) R/A/G

Target Actual Trend

<3750 3200

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths

% Invoices with

ExceptionsR/A/G

Target Actual Trend

<25% 23%

% Internal Quality

ErrorsR/A/G

Target Actual Trend

<0.2% 0.2%

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths

% Non PO

MatchesR/A/G

Target Actual Trend

<5% 8%

Total Headcount R/A/G

Target Actual Trend

<120 150

Absenteeism R/A/G

Target Actual Trend

5% 10%


1st Draft 3x3 created based on SME recommendations.

Note that data will be collected for all potential inputs to validate correlation between inputs and outputs

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths



Validate and Calibrate Input Metrics – Are we measuring the right things and reacting at the right time?STEP 4

Mike has been using his 3x3 for a few months now. If Mike has selected the correct Input

metrics with the correct targets there should be a correlation between Inputs and Outputs

Mike Brown


Target Actual Trend

<3 Days 2.51

% Errors on

Output UnitsR/A/G

Target Actual Trend

<0.5% 0.5%

Productivity:

Volume per day /

#FTE’s

R/A/G

Target Actual Trend

>35 25



Target Actual Trend

<3750 3200

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths

% Invoices with

ExceptionsR/A/G

Target Actual Trend

<25% 23%

% Validation

ErrorsR/A/G

Target Actual Trend

<0.2% 0.2%

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths

% Non PO

MatchesR/A/G

Target Actual Trend

<5% 8%

Total Headcount R/A/G

Target Actual Trend

<120 150

Absenteeism R/A/G

Target Actual Trend

5% 10%

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths


invoices processed

within 3 Days


errors






Understanding Correlation

Ou

tpu

t

Input

By plotting input Performance against Output performance you can get an initial feel for the

correlation between an Input and the Output you are trying to drive.

Ou

tpu

t

Input

Ou

tpu

t

Input

Example

A

Example

B

Example

C

Positive Correlation

As the input value increases so does the Output value

Negative Correlation

As the input value decreases the Output value Increases

No Correlation

Changes in the input value seem to have no impact on

the Output value – Probably not a critical input




Lets focus on Productivity and look at the data for ALL the identified inputs:

Understanding Correlation

Productivity

Volume per day / #FTE’s

Average Experience of

Agents (Months)

Total Headcount

% Non PO Matches

% Invoices with

ExceptionsAbsenteeism

Pro

du

cti

vit

y

Average Experience

Mike has created scatter plots of Input Performance against Productivity

Pro

du

cti

vit

y

Number FTE’s

Pro

du

cti

vit

y

% Non PO

Matches

Pro

du

cti

vit

y

% Absenteeism

Pro

du

cti

vit

y

% Invoices With

Exceptions

What does the data tell us? – Which Inputs would you suggest Mike puts in the 3x3?

Currently in 3x3

Currently in 3x3

Currently in 3x3




Setting Targets

Ou

tpu

t

Input

In addition to Subject Matter input recommendation, Scatter plots can also be used to assess

suitable targets. Note that targets should be continuously validated to ensure their suitability

Target Output Performance

Approximate Relationship between

Input and Output

(Line of best fit)

Established Target Input Performance





Target Actual Trend

<3 Days 3.2

% Errors on

Output UnitsR/A/G

Target Actual Trend

<0.5% 0.5%

Productivity:

Volume per day /

#FTE’s

R/A/G

Target Actual Trend

>35 25



Target Actual Trend

<3750 3200

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths

% Invoices with

ExceptionsR/A/G

Target Actual Trend

<25% 24%

% Internal Quality

ErrorsR/A/G

Target Actual Trend

<0.2% 0.2%

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths

Average

Experience of

Agents (Months)

R/A/G

Target Actual Trend

4 mths 5 mths

% Non PO

MatchesR/A/G

Target Actual Trend

<5% 8%

% Invoices with

ExceptionsR/A/G

Target Actual Trend

<25% 24%

% of Non-PO

MatchesR/A/G

Target Actual Trend

5% 8%


invoices processed

within 3 Days


errors





Data Collection

Data Collection Plan

Collection

Data Source(s) Sample Size Frequency Responsibility Process Data Quality

Control

Collection Form

Mike is going to be making business decisions based on the metrics within the 3x3. It is critical

that Mike is therefore reacting to real changes in the data and not shifts in the way the data is

collected or data errors. A data collection plan for the key metrics will provide consistency.

Data sources

can be

extracts from

source

systems

such as

SAP, existing

reports, or

manually

collected

data

How many

data points

need to be

collected?

How often

will data be

collected?

Who should

be collecting

data?

What is the exact process for

collecting data (What point in the

process, method used etc)

How do we

know the

data is

accurately

reflecting

the real

situation?

How has

the data

been

validated?

TBC



Understand what the Customer Wants

(VoC)

Identify a measurable way of tracking delivery

the VoC (Output Metric)

Identify measurable inputs and targets

which drive the Output metric performance

(Input Metrics)

Validate and Calibrate Input Metrics – Are we

measuring the right things and reacting at

the right time?

STEP 1

STEP 2

STEP 4

STEP 3

Data Collection

Building an effective 3x3 scorecard is an iterative process

The 3x3 should be assessed on an

ongoing basis to ensure we are

measuring the correct input and output

metrics, and that the targets are set at

the right level.


OE Method 3 – 3x3 Summary

What has producing the 3x3 enabled Mike to Realize?

• Mike and his team are turning their process knowledge into something that helps

them really manage the operation by using the Leading Metrics to predict process

performance for the customer

• Mike is now focused only on the key operational levers and as such has

improved decision making and prioritization

• Mike is focused on what is really important for driving the operation to meet true

customer outputs, rather than trying to manage to a complex SLA sheet

What are the customer’s service expectations in terms of Delivery, Quality and Cost and how are is performance against these expectations measured (both SLA and non-SLA)?


4.

5.



Module 1 – Focus

Breakout Activity



• Using your SIPOC and HLP as input discuss and complete a 3x3 scorecard for the CSD team

• What is the difference between leading and lagging metrics in the 3x3, and how should Mikes Team use

these metrics?

• What do you recommend Mike and his team does to better manage the clients expectations?


What you need to know to be a

Standardized Service Operation







1.

4.

5.

2.

3.

6.


OE Method 4 – Control Charts


How do we get understanding the ongoing performance of key metrics

• Separates problems with process execution (people) from problems

with process design (process)

• Offers early warning signs before problems occur and Pre-defines

action plans around process signals

• Prevents over-adjustment (often called “tampering”) of a process

operating within normal parameters - which leads to additional

problems.

• Supports a stable operation that will result in predictable results

• Providing data vs. anecdotal feedback

Control Charts


58Copyright © 2009 Accenture All Rights Reserved.© 2008 Accenture All Rights Reserved.

Performance Measurement:

Three – Understand Service Capability



Target Actual Trend

3 Days 2.95

Mike uses the 3x3 to manage process performance. His trend arrow is based on a

comparison to the previous months data point.

Mike Brown

The Importance of plotting data over time to identify trends

Mike takes no action, the

cycletime is within target and has

improved since the previous

period.






Target Actual Trend

3 Days 2.95

Mike uses the 3x3 to manage process performance. His trend arrow is based on a

comparison to the previous months data point.

Mike Brown

The Importance of plotting data over time to identify trends

Mike takes no action, the

cycletime is within target and has

improved since the previous

period.

Now lets look at the

same data plotted as a

run chart

Cycletime (Days)

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3

3.1

Week

-10

Week

-9

Week

-8

Week

-7

Week

-6

Week

-5

Week

-4

Week

-3

Week

-2

Week

-1

Today

Target

Actual

Now do we think Mike should be taking

some action?Is Mikes 3x3 showing

a true trend?





Understanding Variation and Stability

Does it take you exactly the same time to get to work each day?

• Why not? Minor changes in the process cause ‘common cause variation’ and impact

the journey time – (e.g. Traffic Lights on Red, changes in traffic level etc)

• Some processes will have less variation than others – walking a short distance to the

office, or those using Japanese public transport will have more predictable

performance.

Now – has it ever taken you a huge amount of time to get into work?

• Why? Car broken down? Heavy Snow? Accident on the road? This significant change

in process performance is know as ‘special cause variation’

• It is clearly hard to predict the performance of processes with a lot of Special Cause

Variation – as such they are known as unstable.

• Control Limits on a run chart help to identify Special Cause Variation, so that the root

cause can be identified and improvements can be made.





Now lets look at Mike’s real data with Control Limits – Is this process Stable?

Mike Brown

Using control charts to identify common cause and special cause variation and determine

whether a process is stable

The graph now has

Upper and Lower

Control Limits.

There are a variety of

statistical tools that will

calculate these

accurately based on

your data, however a

typical approximation is

to set these at + and – 3

Standard Deviations for

the data collected

Datapoints falling

outside these limits

indicate Special Cause

variation

Mikes Process is not Stable – What is mikes next step?





Special

Cause

Variation

Study

individual

points or

specific

clusters of

points to

determine

reason for

outlier

Make

Changes

To Sustain

Or Prevent

Special

Causes In

The Future

Expected

Result

Expected

Result

Study all

the data –

that would

be a waste

of time

Make

fundamental

changes

to the

process until

the true

cause of

variation is

know

Unexpected

Results

Don’tDoLooks LikeType

Common

Cause

Variation

Study all

data

points

collectively

to better

understand

sources of

variation

Make Basic

Process

Change To

Reduce

Common

Cause

Variation,

Shift The

Average, Or

Both

Look for

differences

between

individual

points

React to

individual

data points

because

that

wouldn’t

impact

future data

points

Unexpected

Results

Mike should focus on understanding the reasons for special cause and implement controls to either sustain or prevent the special cause event





Understanding Capability

Cycletime (Days)

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3

3.1

Week

-10

Week

-9

Week

-8

Week

-7

Week

-6

Week

-5

Week

-4

Week

-3

Week

-2

Week

-1

Today

Target

ActualLooking at this data,

is the process capable?

Capability simply refers to whether a process will predictably perform within the set target

The answer is that we don’t have enough information plotted yet....

Yes the data is currently within the target, but we need control limits to ensure the performance is predictable and without variation that could lead to exceeding the

target.





We can determine whether a process is capable by comparing the process control limits with target performance levels

Cycle Time

Mean -

2.5 Days

Target

< 3 Days

0.0

1.0

2.0

3.0

4.0

5.0

1-J

an

15-J

an

29-J

an

12-F

eb

26-F

eb

11-M

ar

25-M

ar

8-A

pr

22-A

pr

6-M

ay

20-M

ay

3-J

un

17-J

un

Days

Cycle time Mean Target

Now lets look at Mike’s real Cycle time data – Is this process Capable?

Mike Brown

Remember Clients do not feel Averages. On average you can be inside the target, but half of all units can fall outside the

clients requirements. Clients feel the variation

UCL

LCL

A process is capable where the Control Limits fall within the Target.

WHY? Because the control limits indicate the normal operating parameters of the process. If these exceed the

target then the target can be missed despite the process running as expected. IT IS NOT CAPABLE OF

MEETING TARGET



Recap of key factors to identify within a Control Chart

Time

Data

Capability

Is the process able to

consistently meet the

target?

Measure: Control Limits

within the Target

Stability

Is the process

predictable (i.e. No

Special Cause

Variation)

Measure: Data within

Control Limits

Normal Variation

The fluctuations in

performance over time

that are small and occur

due to natural shifts in

the process (Data within

the Control Limits)

Special Cause

Variation

Large Fluctuations in

data caused by a

specific issue that

needs to be investigated

– Leads to

unpredictable

performance

(Data Outside Control

Limits)

STABILITY vs. CAPABILITY

What is the difference? Stability is an indication of the variation and predictability of a process. It is

independent of the performance target. Capability links the process performance back to the target

and asks if the target can be met over the long term. Stability and Capability are independent

factors, although it is hard to be Capable if you are not stable.


Reacting to Control Chart Signals

Process

Stable?

Now

Predictable

Stable, Predictable

Process

Capable?

Find & Fix Special Cause(s)

CapableNot Capable

Unstable, Unpredictable

Interpret Control Chart

Probability of not meeting SLA Will meet SLA!


What have control charts enabled Mike to Realize?

How do you know if the outcomes delivered to customer are consistently meeting their service expectations today and will continue to do so in the future?6.

OE Method 2.6 – Summary

• The team is now able to see data trended over time for key operational metrics

rather than just a single data point

• The team understand the difference between common cause variation verses

special cause variation, so they now know how and when to react using data

• Now that the team have defined targets with upper and lower control limits

defined they are able to determine whether their process is stable and capable



Module 1 – Focus

Breakout Activity

In the next 30 minutes, work with your team to complete the activity below and be ready to

report out to the group

• Using the Data Provided and the Control Chart Basic Template, Plot the Data Mike has

for SPEED, COST and QUALITY

• Analyze your Control Charts:– Is the Process Stable

– Is the Process Capable

– What Action should Mike Take?

• Targets: – Productivity – 32 Unitis Per Day

– Cycletime – 3 Days

– Quality – 0.5% Error Rate


• Teams understand who their customer is and what outcomes are delivered to the

customer

• Teams understand the customers service expectations in terms of Delivery, Quality and

Cost, and have metrics in place to measure performance against these expectations

• Key service metrics are measured and reported internally on a daily basis, rather than

averaged over the month to ensure service variation is understood by the team

• Teams are able to clearly articulate the end to end activities that deliver outcomes to the

customer, and are clear on both their role, and the role of others in the team

• Teams understand which operational inputs have the largest impact on service

performance, and hence should be managed more closely

Now that Mike’s team is focused they are able to understand how they are performing against customer expectations and they understand the critical inputs that drive this

How is Mike’s team now operating?

Benefits – Focus the Service Operation


Benefits – Focus the Service Operation

Measurable Impact to Mike’s Team now they are Focused

Target 0.5%

Comments:

• The team now have control charts that show performance on key

output metrics over the past 12 mths against targets

•The data shows that while the average performance for cycle time

and quality is below the SLA target their has been a large amount of

variation in performance from day to day which is inline with

observations made by the customer

•The team is well below the target productivity of 35 invoices/FTE/day

which is required to get the team within ODE





3.



4.

5.


3x3

6.

Summary – Review of Critical Questions

SIPOC

High Level Process Flow

Control Charts

1.

2.


Module 2

Control PlanDetails Process Flow Standard Work Instructions MOS

Identify the key process inputs or outputs to control

Identify an appropriate control subject

List the key process inputs to control to meet output

requirements

Identify responsibility, frequency, sample size,

spec. limits/requirements, and define the Response

Plan

STEP 1

STEP 2

STEP 5

STEP 3

List the key process outputs that to monitor for signals requiring attention

Identify participant functional groups in the process

STEP 1

Walk the process with the subject matter experts

STEP 3

Identify the trigger which initiates the start of the

process

STEP 2

Identify decision points and response plans

STEP 4

Ask the 5 Why's to uncover the hidden factory (process steps we don’t acknowledge

or document)

STEP 5

Define the document function, relevant location,

version and owner

STEP 1

Insert a screen shot of the Detailed Process Map

STEP 2

Insert detailed process requirements like target time

per step and process controls

STEP 3

Include reference documents, customer

requirements and process output requirements.

STEP 4

Determine which functions need to be managed based on metrics identified in the

3x3.

STEP 1

Identify stakeholders and information needs.

STEP 2

Determine accountability for data gathering and

information reporting.

STEP 3

STEP 4

Determine decisions to be made and when or how response or escalation

plans are executed

STEP 5

Determine frequency and type of forum.

STEP 4

Focused operation

Understand what your

customer wants

OE Methods:

• 3x3 Scorecard

• SIPOC

• High Level Process Flow

• Control Charts

Standardized operation

Define what the process is and

how to perform it consistently

OE Methods:

• Detailed Process Flow

• Standard Work Instructions

• Control Plan and MOS

Planned operation

Balance workload by matching

available capacity to demand

OE Methods:•Volume, Productivity, and

Capacity metrics

•Resources Planning Tool

•Cross Training Skills Matrix

Stable Capable OptimizedMaturity categories

• Team understands who there customer is

and the expected outcomes delivered that

are part of the contract scope

• Client success measures in place (3x3’s)

and control charts used to validate stable

performance for at least 6 mths

• Team can articulate the main activities

performed end to end that deliver expected

outcomes to the customer

• Teams use Detailed Process Flows and

SWI’s to ensure work activities are

understood and performed consistently

• Teams use effective MOS and control plan

to manage inputs and monitor outputs

• Teams use issue / risk management and

escalation process as part of their MOS

• Teams understand the volume of work that

is expected to be done and the number of

resources required to complete that work

• Teams use inflow, outflow, and backlog as

key leading metrics to understand when and

how to proactively react to capacity issues

• Teams have clear Productivity and Capacity

Utilization targets to meet both service and

cost objectives

• Teams are able to predict there ability to

meet service expectations using control

charts and understand variation in

customer experience by measuring daily

rather than average performance

• Causal relationships between operational

inputs and outputs are actively managed

and validated with data

• Team is operating at ODE and consistently

meeting service expectations

• Teams use defined standard processing

times that are linked to performance

expectations that are measured and

reported

• Operational reviews at all levels (Process /

Deal / MOR) are done through effective

use of data and a common set of

leading/lagging metrics

• There is clear linkage between leading

metric targets and the control plan

• Load balancing is used to manage daily

work activities and handle variation in

volume without the need for increased

headcount or additional overtime

• Teams use data to understand the

relationship between resources capacity

and service levels

• Capacity is measured across all teams to

understand how and when to flex capacity

• Teams are delivering optimal performance

through consistently meeting performance

objectives and delivering within the scope

of the contract (not over delivering)

• Teams understand which levers to pull as

they spot variation in performance and act

even though SLA’s are green

• Team has been operating at or below ODE

for > 6mths and have continued to

demonstrate year on year productivity

improvements

• Teams measure agent level productivity

and capacity and have demonstrated

improvements by reducing standard

processing times

• Improvements are sustained by keeping

SWI’s and process documentation up to

date with the latest improvements

• Improvement targets are successfully

achieved and validated with data as part of

operational reviews at all levels

• Teams use data to illustrate that the deal

is running at optimal capacity to meet

service expectations

• Teams are staffed below ODE to handle

average volumes and manage volume

fluctuations through flexing capacity of

cross trained resources across both teams

and deals

SDO Maturity Framework

NOTE – If team does not meet minimum requirements for STABLE then rate as UNDER REVIEW

Stable Capable OptimizedMaturity categories

• Teams segment transaction types to better

understand processing volumes and

variation in processing times

• Office appears well organized with no sign

of clutter on desks or in the work space

• Teams understand where things are, and

what is needed to complete their work

effectively

• Performance data is clearly displayed over

time using control charts to identify and

react to trends and understand performance

against service expectations

• Visual displays are used as and integral part

of daily huddles and MOS allowing all

resources to know how the team is

performing on work allocation and key

leading metrics for the day

• The end to end process is clearly displayed

in a central location for the teams to use,

along with SWI’s at each agents desk

• Teams know the current baseline

performance of the process and have

targets in place to improve performance

• Teams have the ability to identify root cause

and take corrective actions to address

issues

• Teams understand the work breakdown and

are increasing total available processing

time to drive improved productivity

• Resources are aligned to workflow based

on volume and variability of transactions to

improve efficiency (eg. product families)

• Teams are able to demonstrate how their

office layout is organized around the

process to improve efficiency

• Teams are consistently practicing 5 S as a

means to drive an organized office

• Teams use visual controls to trigger when

to proactively react to avoid potential

service and/or capacity issues

• Process & leadership teams are able to

gauge the health of the process through

the visual representation seen when

walking the floor

• Teams measure Rolled Throughput Yield

and use this as a means to identify and

implement improvement opportunities

• Teams understand and use the 7 forms of

waste as a tool to identify and implement

improvement opportunities

• Teams have a mechanism to identify and

prioritize improvement opportunities as

part of their MOS

• Teams are able to demonstrate with data

how aligning resources to workflow has

improved productivity

• Teams are able to demonstrate with data

how application of 5S has resulted in

improved business performance

• Improvement actions result in improved

performance as seen on the teams visual

display of performance

• Teams have demonstrated continued

improvement in performance driven

through visual displays of rewards and

recognition and improved performance on

the floor

• Teams use data to validate improvements

in the Rolled Throughput Yield and how

this relates to cost

• Teams validate that improvements are

both achieved and sustained using data as

part of their Visual Management and MOS

NOTE – If team does not meet minimum requirements for STABLE then rate as UNDER REVIEW

Organized operation

Organize teams around the

process

OE Methods:

Resource & Workflow

Alignment

Office Layout, 5S

Visual operation

Visual information displayed to

manage performance

OE Methods:

• Visual Controls

• VM / MOS integration

• Visual Management Plan

Improving operation

How to continually improve

performance

OE Methods:• Rolled Throughput Yield

• Fishbone Diagram / 5 Whys

• Work Breakdown Analysis

• 7 Forms Waste

SDO Maturity Framework

Recruiting & HR

Module 1 focused operation v3.0