Process Managers' Workshop

Process Managers’ Workshop

Facilitated by Ian J Seath:

Improvement Skills Consulting Ltd.

Objectives

As a result of this workshop you will be able to: Describe an approach to Process Management

and its expected benefits Explain your role as a Process Manager Use some process management tools and

techniques to improve your process(es) Develop a process management plan for your

process(es)

© 2011 Copyright ISC Ltd.2

Agenda

Process Management Principles The role of the Process Manager

The Day-to-day Process Management model Manage Define Quantitatively Manage Optimise

Next steps


People + Process = Performance “We get brilliant results from average people

managing brilliant processes, while our competitors get average results, or worse, from brilliant people managing broken processes.” [Toyota Chairman: Fujio Cho]


People + Process = Performance 100% of your organisation’s performance is a

result of how well your people design, operate and continuously improve its processes

© 2011 Copyright ISC Ltd.

KeyPerformance

Results

PeopleResults

CustomerResults

SocietyResults

RESULTS

Processes

People

Policy &Strategy

Partnerships& Resources

Leadership

ENABLERS

INNOVATION AND LEARNING

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What is a Process?

Processes take INPUTS, do WORK to them, and produce OUTPUTS for CUSTOMERS

They exist to achieve performance OUTCOMES and meet the requirements of STAKEHOLDERS

ProcessInput Output

6 © 2011 Copyright ISC Ltd.

Process

Today’s challenge?

More

Faster

Cheaper

Better

HappierCustomers

Input Output


ProcessInput Output

Throw more resource at it…

More?

More?

More?


More?

ProcessInput Output

Possibly not…

More?

More?

XX

X


ProcessInput Output

So, you will have to…

More

Faster

Cheaper

Better

IMPROVE

IMPROVE

HappierCustomers


Two typical starting points…

We need to get our processes “in order”

We need to be able to demonstrate a consistent, professional approach to managing the organisation

Process Management

We need to fix some problems

We need to make a step-change in performance in a few key areas

Process Improvement


Process Management: 3 Elements


Management by Process

Process Improvement

Projects

Management of Processes

• Business Process Model• Process Owners• Process Maturity Model

• Define• Measure• Analyse• Improve• Control

• Day-to-day Process Management

• Process Managers

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Process Improvement

Projects






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Business Process Model


Text

Input Output

Procedure Policy ProcedureStandardProcedure

Policy Standard

ProcessMaps

Generic High-level Process Model


Develop Policy & Strategy

Chief Exec

Develop Products & Services

Development Manager

Win Business

Marketing Manager

RegulationLegal

Framework

Fulfil Customer Orders

Ops Mgr

Market & Competitor

Data

Performance Data

Business Plans

Products AvailableProduct Ideas

Customer/Prospect Needs Customer

Orders

Delivered Orders & Invoices

Support and Enabling Processes

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Telecoms Process Model (example)


Addresscustomerneeds &

requirements

Designbuild &operate

thenetwork

Sell to& servicecustomers

Provideservice

Repair &maintainservice

Billcustomers& collectpayment

Operator Service

Provide support & Manage people

Provide information management

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Probation Process Model (example)


• Assess• Sentence Plan• Implement• Review• Evaluate

Manage

Offenders

• Programmes• Unpaid Work• Approved Premises

Deliver

Intervent-ions

Lead the business

Support the businessHR – IT – Info – Finance – Partnerships – Property – Legal - Comms

IT Solutions Provider (example)


Enabler Processes: Manage & Improve Human

Resources Manage & Improve Information

Systems Manage & Improve Technology Manage & Improve Financial &

Physical Resources Manage & Improve External

Relations & Partners Manage Improvement &

Change

EnablerProcesses

DevelopStrategy

DeliverSolutions

WinBusiness

Design &ImplementSolutions

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Example Process Owner Role

Process Owners have end-to-end responsibility for high-level processes.

Process owners will “champion” the improvement of the process. Process Owners are members of the Process Control Board. Process Owners are practically responsible for the high-level

process to which they are assigned (see above). For key, activity and task level processes Process Owners may

appoint Process Managers (sub-process owners). Process Owners are theoretically responsible for changes in any

process including and below the high-level process which they own. Process Owners can rely on the Process Manager’s judgement as

they see fit if an appointed Process Manager identifies a change in a process as simple and low impact.


Process Capability & MaturityContinuous process improvement (incremental and innovation)

Common causes of variation are identified and improvedProcesses are agile and “best in class”

Optimising

Targets, standards and measures are usedSpecial causes of variation are identified and

corrected

Quantitatively Managed

Performance is predictable

Organisation-wide focusValue chains are identified Defined

All processes are documentedMeasurements are defined

Departmental & Team focus Managed

Some organised processesPerformance is repeatable

InitialNo organised processesAd hoc and reliant on “heroics”Performance is not repeatable


Process Improvement Projects



Process Improvement

Projects






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DMAIC Process Improvement


Define

Measure

Analyse

Improve

Control

• Agree the problem/opportunity for the Process Improvement Project• Identify the process customers and what they want• Define the “As Is” process map

• Agree what data is needed to quantify the performance of the process• Identify how the data will be collected• Collect the data

• Analyse the performance of the process using the data• Assess the process using qualitative information• Identify the root causes of the performance of the process

• Identify, select and test possible “To Be” process improvement ideas• Develop plans to implement the selected improvements• Implement the new process

• Assess the performance of the new process• Ensure the required performance can be sustained• Review the project and apply learning for the future

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Process Improvement

Projects






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Day-to-day Process Management


• Benchmark Externally• Establish Statistical Process Control• Establish DMAIC Improvement Projects

Optimising

• Review Performance• Implement Corrective Actions• Measure Performance


• Define Performance Targets• Define Process Measurements• Define Systems Standards

Defined

• Map the Process• Define Customers and their Requirements• Identify the Process and its Owner

Managed

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Example Process Manager Role Process Managers have end-to-end responsibility for the key,

activity and task level processes which they are appointed to manage.

Process Managers must report back all changes to processes to the Process Owner.

Process Managers must highlight all changes that could affect other processes.

Process Managers must highlight all changes that cannot be resolved within the process.

Process Managers must highlight all changes that have a medium/high impact on the process.





Optimising




Defined


Managed

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Process Name (Verb + Noun)

Input Output

Process Purpose

Suppliers Customers

Sub-processsteps

SIPOC Process Definition

Boundaries include: Boundaries exclude:



Process: Recruit Staff

Purpose: To ensure the right staff are available with the right skills, at the right time.

Owner: HR DirectorSuppliers Inputs Process Outputs CustomersLine Manager Request to fill

a vacancy1. Specify needs2. Authorise

recruitment3. Place adverts4. Assess

applicants5. Offer

appointment6. Confirm start

New member of staff

Line Manager

Boundaries:Start-point: End-point:Includes:Full & part-time staffAll Grades except SMT

Excludes:Budgeting for recruitmentHR Workforce Planning

Example only


Process:

Purpose:

Owner:

Suppliers Inputs Process Steps Outputs Customers

Boundaries:

Start-point: End-point:

Includes: Excludes:

Customers and Requirements Customer: anyone who requires the output(s) of

your process Requirements: those things that are needed by

the customer in order for them to be satisfied Expectations: customers often have

expectations, either about the output or the performance of the process - they may not be expressed explicitly, but are worth knowing as they can significantly affect perceptions of your performance


Tools and techniques to identify and agree customer requirements Interviews Questionnaires Focus Groups Customer Requirements Analysis Service Level Agreements Customer Charters


Input Activity

(Verb & Noun)

Resource

Output

Process mapping with Control 2007


Sequence Map


Swimlane Map





Optimising




Defined


Managed

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Define Systems Standards

Your process might be adequately documented simply by drawing an up-to-date process map However, in many cases you will need more than a

map Systems Standards provide information on the

level of performance that must be achieved Standards may be quantified (in which case they are

no different to Targets), or they may be qualitative, such as "compliance with National Standard ABC"


What could you measure?


Process Measurement


Internal Measures Output Measures Satisfaction Measures

Processing time (work time in process steps)

Error Rate or Accuracy (Right First Time)

Perceptions of reliability, assurance, tangibles, empathy, responsiveness

Cycle-time (end-to-end, elapsed time)

Timeliness (delivery vs. deadline/requirement)

Delay or Waiting time (e.g. between steps)

Completeness Any “objective” measures gathered by customer(s) or stakeholder(s) Volume (input) Conformance to

Standard Cost (direct cost

per transaction) Success

Rate/Attrition Rate/Output Volume

Compliments

Overhead cost Complaints Awards

Stratification examples…

Who Customer Supplier Individual, Grade, LoS Group/Team/Dept. Gender/Age/Ethnicity

When Year, Month, Week, Day Hour, Minute, Second Point in cycle

Where Region, Area, Town Office, Hostel, Court In the process

What Order, Sentence, Crime Risk Category Reason


Define Performance Targets

Targets should ideally be expressed in SMART format:

Specific Measurable Achievable Relevant Time-bound


Se-ries1

0

5

10

15

20

25

30

Chart TitleError Rate (%)

Target

Possible sources of Targets

Past performance (e.g. +x%) Competitors’ known performance Customer requirements Externally imposed standards Internal comparators (benchmarks) External comparators (benchmarks)





Optimising




Defined


Managed

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Data Presentation Tools

Series1

0

20

40

60

80

Histogram

Response Time

Freq. (#)

A B C D E F G H0

50

100

150

Pareto Diagram

Error Type

Cost (£)

Se-ries1

0

5

10

15

20

25

30

Line GraphError

Rate (%)


Corrective Action Process

Define

Measure

AnalyseImprove

Control

Has it worked?

What is the problem?

What data do you have?

What are the root causes?How can you solve it?


Problem Definition Questions

Inside the Problem

Outside the Problem

What?

Where?

When?

Who?

How big?


Review performance – where are you?



Optimising




Defined


Managed

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Review performance

SIP 230408: 47

Focus of Review: Qtr 1 Qtr 2 Qtr 3 Qtr 4

Purpose and business outcomes X

Customer & Supplier requirements X X

Process flow, interfaces and documentation

X

Staff capacity and capability X

Measurement system and performance targets

X

Systems standards and conformance/compliance

X

Preventive and corrective action systems

X

DMAIC Improvement projects & changes made

X

Benchmarking & changes made X





Optimising




Defined


Managed

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DMAIC Process Improvement


Define

Measure

Analyse

Improve

Control

• Agree the problem/opportunity for the Process Improvement Project• Identify the process customers and what they want• Define the “As Is” process map

• Agree what data is needed to quantify the performance of the process• Identify how the data will be collected• Collect the data

• Analyse the performance of the process using the data• Assess the process using qualitative information• Identify the root causes of the performance of the process

• Identify, select and test possible “To Be” process improvement ideas• Develop plans to implement the selected improvements• Implement the new process

• Assess the performance of the new process• Ensure the required performance can be sustained• Review the project and apply learning for the future

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DMAIC Tools and Techniques


Define Measure Analyse Improve ControlSIPOC Process Definitions

Customer Surveys

Pareto Analysis

Creative Thinking

Statistical Process Control

Process Maps

Focus Groups

Value-add Analysis

Clean Sheet Design

Visual Management

Improvement Project Definitions

Data Collection Checksheets

Line, Bar & Scatter Charts

Force Field Analysis

DMAIC Problem Solving

Current State Value Stream Maps

Interviews Cost & Cycle-time Analysis

Risk Analysis

Activity Sampling

7 Wastes Future State Value Stream Maps

Cause & Effect Diagrams

Poka Yoke (Mistake-proofing)

Establish Statistical Process Control SPC enables a judgement to be made about

whether or not a process is in statistical control, and therefore determine when to make an adjustment in the process

It is used to improve performance by reducing process variation

There are two types of variation: Common Cause Special Cause


Common and Special Cause VariationCommon Cause Stable, consistent

pattern of variation Repeatable and

predictable Numerous causes Always present “chance”

Special Cause Pattern changes over

time Unstable and

unpredictable “assignable”


Mean

Upper Control Limit

Lower Control Limit

Example: Journeys to work

0

20

40

60

80

100

120

Days: Consecutive Journeys

Mins.


Process Control and Improvement


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 190

20406080

100120140160

Control

Breakthrough

Improvement


Metrics, Process and Organisational Benchmarking Metrics Benchmarking compares your numbers with

somebody else’s It tells you “what” they achieve, but nothing about “how”

Process Benchmarking compares your processes with somebody else’s It tells you “how” they achieve it, but not why

Organisational Benchmarking compares your organisational approach (people, structures, skills, culture etc.) with somebody else’s It tells you “why” they achieve it, as well as “how”


4 Types of Benchmarking

Internal comparing within your Service, between sites and departments

Competitive direct comparisons with competitors offering the same services

as you Functional

comparing with other organisations in a similar field but who are not in competition

Generic comparing similar processes regardless of the nature of the

industry/sector

Benchmarking Process

Define

Measure

Analyse

Improve

Control

• Agree the process/service scope of the Benchmarking Project• Define the “As Is” process and current performance• Identify potential comparator organisations

• Determine data collection methods• Plan data exchange and partner visits• Collect comparator data (desk research and/or visits)

• Analyse the performance of the comparators using the data• Assess the performance of the comparators using qualitative information• Determine the performance gaps in your process/service

• Identify and select possible practices to adapt or adopt• Develop plans to test and implement the selected practices• Gain acceptance and implement the improvements

• Assess the performance of the new process/service• Ensure the required performance can be sustained• Review the project and apply learning for the future


Process Management Plan


No action and nothing planned

Planned, but no action

Underway Complete Reviewed

Process is continuously improving (“Optimising”) Benchmark externallyEstablish Statistical Process ControlEstablish DMAIC projects

Process is “Quantitatively Managed”Review performanceImplement corrective actionsMeasure performance

Process is “Defined”Define performance targets Define process measurementsDefine systems standards

Process is “Managed”Map the processDefine customers and their requirementsIdentify the process and its Owner

Process Managers' Workshop

Business

Transcript of Process Managers' Workshop