Operational Transformation Framework Case Studies Maturity Model
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Tools to support successful organizational transformation initiatives. Includes case studies, maturity assessment, and best practices.
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Operational Transformation Framework Case Studies Maturity Model
- 1. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. OPERATIONAL TRANSFORMATION HYPOTHESIS, FRAMEWORK, CASE STUDIES, AND MATURITY MODEL 4.28.2016
- 2. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. WELCOME AND GETTING STARTED 2 Open and hide your control panel Join audio: • Choose “Mic & Speakers” to use VoIP • Choose “Telephone” and dial using the information provided Submit questions and comments via the Questions panel Your Participation
- 3. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. INTRODUCTIONS TODAY’S SPEAKERS Shannon Adkins VP, Client Engagement & Strategy shannon.adkins@futurestate.com 3
- 4. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. DISCUSSION TOPICS Case Studies 1 4 2 3 5 The Case for Change Maturity Model Operational Transformation Framework Maturity Assessment Exercise 4
- 5. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. LANGUAGE MATTERS CLARITY WITH TERMINOLOGY IS CRITICAL TO UNDERSTANDING 5 Adoption Innovation Process Excellence Operational Transformation Portfolio Management ✓ Organizational Effectiveness
- 6. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. THE CASE FOR CHANGE
- 7. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. CHANGE IS ALL AROUND US WE ALL HAVE EXPERIENCE WITH CHANGE; IT IS THE ONLY CONSTANT CASE FOR CHANGE Internal Drivers External Drivers 7 • Growth • Merger and Acquisition • New Leadership • Talent Gap • Cost Pressure • New Technology • Competition • Industry Shift • Regulation • New Technology
- 8. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. INITIATIVE DISCONNECT + CHANGE FATIGUE PEOPLE OFTEN EXPERIENCE COMPETING, DIVERGENT, DUPLICATIVE EFFORTS CASE FOR CHANGE Internal Drivers External Drivers 8 Can lead to: • Process improvement initiatives • LEAN or Six Sigma projects Can lead to: • Innovation programs • Design thinking initiatives • Novel approaches WHO IS THINKING ABOUT THE PEOPLE?
- 9. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. TAKE AN INTEGRATED APPROACH WITH PEOPLE AT THE CENTER OF FOCUS 9 • Process Excellence • Adoption • Innovation • Portfolio Management • Organizational Effectiveness
- 10. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. OPERATIONAL TRANSFORMATION FRAMEWORK
- 11. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. OPERATIONAL TRANSFORMATION FRAMEWORK INTEGRATED, INTERDISCIPLINARY APPROACH TO LASTING CHANGE ADOPTIONINNOVATION PROCESS EXCELLENCE OPERATIONAL TRANSFORMATION Inputs Outcomes How can we be more efficient with our process? How do we generate novel approaches to solve future demands? Why should I change? Who, what, when, where and how? Do we have clear leadership, vision and a plan to get there? How do we realize return on investment and sustain change over time? How will we align, prioritize and manage risk? 11
- 12. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. MATURITY MODEL
- 13. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. ExpectedReturnon Investment(ROI) PROCESS ADOPTION INNOVATION 0 1 2 3 4 - WORLD-CLASS 13 PORTFOLIO MANAGEMENT ORGANIZATIONAL EFFECTIVENESS Level of Maturity
- 14. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. CASE STUDIES
- 15. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. Good Superior Optimal World Class PROCESS EXCELLENC E ADOPTION INNOVATION Change Management and Communications for an Integration CASE STUDY ADOPTION APPROACH 15
- 16. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. Good Superior Optimal World Class PROCESS EXCELLENC E ADOPTION INNOVATION Current State Clinical Study Management Process Mapping CASE STUDY PROCESS EXCELLENCE APPROACH 16
- 17. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. Good Superior Optimal World Class PROCESS EXCELLENC E ADOPTION INNOVATION NEW PRODUCT DEVELOPMENT Continuous Improvement for Coca-Cola Co. EXTERNAL CASE STUDY 17
- 18. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. Good Superior Optimal World Class PROCESS EXCELLENC E ADOPTION INNOVATION Integrated Approach for an Independent Physician Association (IPA) EXTERNAL CASE STUDY COST OF HEALTH CARE DELIVERY 18
- 19. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. 1 2 3 4 MATURITY ASSESSMENT EXERCISE
- 20. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. MATURITY IMPROVEMENTS PROCESS EXCELLENCE Create process clarity, known steps, roles, owners and KPI metrics End-to-end process mapped with handoffs, metrics used to improve performance Alignment of enterprise-wide process with governance; process linked to IT Process integrated with adoption, innovation, customer, supplier process ADOPTION Establish touchpoints, give a reason to change and clear vision of future Deliver routinely on support and leverage resistance as opportunity Create full-circle, end-to-end consistency, recognize change champions Integrate process, change and innovation efforts in holistic approach INNOVATION Cross-functional ideation and application to business needs Development of regular innovation process, pilots funded through testing Operationalize innovation competencies and create positive impact Develop enterprise-wide leadership innovation and design thinking capability PORTFOLIO MANAGEMENT Standardize process within a select project management methodology and build program- level tools Integrate into enterprise process, optimize resourcing and decisions with portfolio analytics and learning Focus on continuous improvement and integrated enterprise schedules, resources and risks Transparent decision-making based on accurate, proactive data and consistently measured over time ORGANIZATIONAL EFFECTIVENESS Leaders define and share foundational story (vision, mission, values, origins and focus) Organization designs alignment to strategy with skill-enabled workforce, tools and processes Process and systems exhibit philosophy, with diverse talent, learning and growth strategies integrated Focus on leadership development, employee engagement, feedback loops, solid rewards, growth opportunities WHAT TO FOCUS ON TO GET TO THE NEXT LEVEL 20 LEVEL ONE: GOOD LEVEL TWO: SUPERIOR LEVEL FOUR: WORLD-CLASS LEVEL THREE: OPTIMAL
- 21. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. OPERATIONAL TRANSFORMATION MATURITY MATRIX WORKSHEET 21 LEVEL 1: GOOD OPERATIONAL TRANSFORMATION MATURITY MATRIX Basic elements of strategic planning, HR, onboarding and talent in place New hire onboarding program in place Incidental training for mentoring and ap- prenticeship exist that are SME-based and manually tracked Talent management workstream exists within human resources Company vision, mission and values are readily accessible to all employees HRenables and drives the change leadership capability for the organization HRfunctions as an effective cultural steward of the organization HRinvests in and develops its own HRtalent pool to ensure best practices and latest learning is in place Leadership offsite takes place annually PORTFOLIO MANAGEMENT ORGANIZATIONAL EFFECTIVENESS LEVEL 2: SUPERIOR LEVEL 3: OPTIMAL LEVEL 4: WORLD CLASS Emerging program management Common defin i tions of pr oject types and core characteristics are established Methodology being developed Co-ordination of overlapping projects Process for updating project list/ database Basic processes used on some projects Skeleton methodology in place Basic project data is collected consistently Performance is stabilized Some standard processes Initial portfolio controls Project and project data tracked in single system/ database Experimentation with project management methodology(ies) Standardizing program management All processes standardized and repeatable Aproject management methodology is chosen/ developed, approved and used Project participants are informed about project management standards Resource forecasting occurs sporadically Strategic projects recognized Projects can be prioritized Projects can be scored in the prioritization phase Project, program and portfolio reports can be generated Initial integration across portfolio Awareness of status Risks managed across a program Program level status and reporting Initiating enterprise portfolio management Project management processes integrated with corporate processes Most projects managed in portfolio Resource allocation occurs across multiple business units Transparent decision making based on resource information and priorities Knowledge base created Business intelligence and reporting provide leadership with accurate portfolio, program, and project data Multi-level data enables visibility of bottom-up and top-down analysis Projects support the strategic plan Project benefit s ar e track ed Portfolios of projects or programs initiated easily to meet strategic business objectives Lessons learned a routine process Performance improvement experimentation Optimized enterprise portfolio management Focus on continuous improvement PM is a Center of Excellence Knowledge base expanded Project management system fully integrated with other core systems Enterprise level scheduling Checks and balances ensure utilization rates Regular analysis and renewal of the existing PM methodology Lessons learned are easily shared and accessed across the enterprise Resources optimized enterprise-wide Resource requirements accurately forecasted Project prioritization aligned to objectives / funded at enterprise level Portfolio strategy influ e nced b y the vision and long-range goals Key metrics integrated to measure delivery by program/ project team HR functioning effectively as strategic business partner, supporting growth Learning and development program exists for all levels of employees LMS in place with program-focused instruction Company vision, mission and values are understood by all employees Ability to create business cases and governance structures for LOBs Workforce planning and forecasting capabilities across the enterprise Effort to create an environment of innovation and collaboration HRBPs are consultative partners to the LOBs (not only HRadministration) Operational measures to assess HRfunctions and strategic people measures to support LOB decisions Organizational design optimized to support vision and strategic objectives Five-year strategy is in place for the organization HR / OD consistency and reuse enterprise-wide and desired employer Benefit s and compensation are very competitive within the industry High potential employees recognized and proactively developed Succession planning expected with process and implementation rigor Effective diversity strategy in place Skip-level meetings are part of the normal check-in process Company vision, mission and values are supported by all employees Ahealthy culture of feedback exists Knowledge sharing portals, recruiting tools, management dashboards used Strategic outsourcing capabilities exist to optimize organizational effic i enci es and economies of scale Learning and development is integrated with talent strategy and process and technology focused Exhibits high degree of change ability Evolves industry best practice, supporting strategic growth of the business and ‘great place to work’ Employees engaged, valued and actively contributing in a ‘fit ’ r ole Recruiting top talent is organic because the culture draws them Leadership development program prepares leaders to adapt to volatile, uncertain, complex and ambiguous world with positive influ e nce, sci ence of change and emo tional intelligence, diversity and generational leadership Executive leaders are visible, available and function as a cohesive, aligned and publicly engaged leadership team Employees actively ‘live’ the vision, mission and values in daily behavior and decision-making Culture of learning agility established with a systemic focus www.futurestate.com | 877.614.0222 Transparent decision-making based on accurate, proactive data and consistently measured over time Focus on continuous improvement and integrated enterprise schedules, resources and risks Integrate into enterprise process, optimize resourcing and decisions with portfolio analytics and learning Standardize process within a select project management methodology and build program-level tools Focus on leadership development, employee engagement, feedback loops, solid rewards, growth opportunities Process and systems exhibit philosophy, with diverse talent, learning and growth strategies integrated Organization designs alignment to strategy with skill-enabled workforce, tools and processes Leaders defin e and share foundational story (vision, mission, values, origins and focus) © 2015 Future State | CONFIDENTIAL AND PROPRIETARY. Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. page 2 NOTES LEVEL 1: GOOD OPERATIONAL TRANSFORMATION MATURITY MATRIX To create lasting change for an operational transformation, take an interdisciplinary approach including process excellence, adoption and innovation. Use this worksheet to identify your project or organization’s current level of maturity in each of the three areas. Entry-level experimentation and applications with low consistency Stakeholders often functionally, regionally or hierarchically grouped No or little visible sponsorship Most groups using communications to inform stakeholders Largely tactic driven, trying various vehicles Change management applied to some projects with a few successes Scattered, standardized training opportunities Generic support or help desk / help lines Basic level of design for humans / user interface Change integration into project management PROCESS EXCELLENCE ADOPTION INNOVATION Creation of innovation standards and centers of excellence Ideation, iteration, design process developed and formalized (repeatable) End-to-end touchpoints for innovation known Dedicated group or leadership team for innovation established Application of innovation principles or design thinking to multiple projects in various business units across the organization Reward mechanisms and recognition more meaningful and automatic Innovation metrics measured, tracked and shared / reported LEVEL 2: SUPERIOR LEVEL 3: OPTIMAL LEVEL 4: WORLD CLASS Process designed functionally, performs consistently with good performance Leaders recognize need to improve Small group appreciates power of process Performers can name process they implement Process documentation is in place and primarily functional, and it identifie s the interconnections between the functions Metrics are used to track performance, identify root causes and drive improvement Process designed for end-to-end, delivering consistent superior performance Leaders understand process can improve performance Process owners accountable for individual processes Process governance established Process documentation is end-to-end Process metrics are compared to industry benchmarks Performers understand end-to-end processes and key metrics Access to process excellence, change management and communications experts Enterprise-wide process model established Process integrated with other enterprise processes and strategy, delivering optimal performance Leaders have future state vision for enter- prise-wide process Process owners share accountability for enterprise performance Access to large-scale operational transformation experts Enterprise process model documented and linked to technology and data architecture Performers understand business drivers and how individual performance impacts enterprise Process documentation shows interfaces and expectations of connected processes Process that transcends the boundaries of the enterprise, extending to suppliers and customers Leaders automatically operate from a process mindset People with skills in process and change management across enterprise Documented structure, learning opportunities for process and change Enterprise process model connects to strategy and customer and supplier process Performers know industry trends and how performance impacts industry Process design and documentation digitally available and connected to performance, management and impact analysis Expanded application of a basic approach with regular, routine consistency Stakeholders grouped by shared concerns with a stakeholder analysis OCMs apply learnings to new change initiatives Two-way feedback loops Regular approach used for communications and change management Some projects design end-to-end change strategy, change agents Global change team Increased visibility and established ‘voice’ Improved support tools that focus on user needs Beginning project management integration Awareness of best practices Establishment of standards to guide a unified approach for repeated success Most projects apply consistent approach with set of standards for end-to-end process Infrastructure in place to support routine change, communication and learning activity Some differentiation based on need/ risk level Stakeholders engaged, sentiment measured, tracked, responsive Change networks or competency teams grow Leadership coached Sponsor embodies change leadership role Connection to business process excellence and aligned with HRprocess Demonstrated competency and sharing of knowledge to grow organizational capacity Change preparedness is second nature Engaged stakeholders are collaborative partners for change Expansion of change expertise and change network among all levels of the organization Increased experience, certifica t ions, best practice applications, industry participation grows organizational capacity for change Centers of Excellence established with contributions from the fiel d, cont inuous improvement Innovative behavior targets identifie d Full innovation capability throughout enterprise Human-focused design thinking second nature Open, collaborative ideation opportunities Immersive, tactile ideation lab or center Innovation approach integrated within various departments Interdisciplinary team Cross-functional leadership team acts as innovation champions Connection routinely made from innovation effort to goal contribution and outcome Organization yields multiple benefit s and grows innovation capacity Ongoing KPIs and improvement Growth of design thinking, establishment of innovation structure and process Ideation is linked to strategic business needs One or a few new ideas are tested successfully Design always occurs with direct user input and full feedback loops Structured improvement processes with formal methods applied Innovation program with budget, clear goals contribution and rewards Consistent approach to innovation emerges Experimentation with innovation projects/programs Some initial innovation efforts yield a new product, process or idea Some ad hoc or isolated improvements deliver better cycle time, cost, agility, precision, value, performance, satisfaction Ideation or innovations untracked, recorded or measured It can be challenging to come up with a few viable possibilities from ideation Design attempts user focus but can occur without direct user input Many pilots - ideas form but never get developed or launched www.futurestate.com | 877.614.0222 Process integrated with adoption, innovation, customer, supplier process Alignment of enterprise-wide process with governance, process is linked to IT End-to-end process mapped with handoffs, metrics used to improve performance Create process clarity known steps, roles, owners and KPI metrics Integrate process, change and innovation efforts in holistic approach Create full-circle, end-to-end consistency, recognize change champions Deliver routinely on support and leverage resistance as opportunity Establish touchpoints, give a reason to change and clear vision of future Develop enterprise-wide leadership innovation and design thinking capability Operationalize innovation competencies and create positive impact Development of regular innovation process, pilots funded through testing Cross-functional ideation and application to business needs © 2015 Future State | CONFIDENTIAL AND PROPRIETARY. Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. page 1
- 22. © 2015 Future State | CONFIDENTIAL AND PROPRIETARY Copying, distributing, re-creating or any other non-authorized use of the content in these slides without express written consent is strictly prohibited. Please Contact: THANK YOU QUESTIONS TO ASK, INPUT OR IDEAS TO SHARE? Shannon Adkins VP, Client Engagement & Strategy shannon.adkins@futurestate.com Phone: 925.956.4203 Cell: 415.385.5430 22
Editor's Notes
- HALEY Thank you for joining us today. Welcome to Future State’s webinar about Operational Transformation!
- HALEY [Introduce housekeeping items.]
- HALEY Let’s get started with some introductions from our two speakers today: Shannon Adkins and Sylvia Stephenson [SHANNON and SYLVIA introduce themselves]
- SHANNON Today, we will focus on five topics: The case for change Framework for operational transformation Maturity model for operational transformation Case studies that led us to our hypothesis Exercise to assess maturity
- SHANNON Language is important when moving large numbers of people in the same direction. Let’s go over a few terms we’ll use throughout our presentation. Operational Transformation – change of business operations that creates a significant, long-lasting change of behavior over time vs. only a short-term impact Process Excellence – achieving high performance with existing modes of operation, most likely by reducing waste and eliminating non-value added work, with a standardized approach and well-communicated process maps Adoption – applying a structured approach to manage the people side of change, with infrastructure, communication, engagement, tools and change management to drive full adoption of behaviors, process, technology or innovations Innovation – creating something original, novel or new, that serves an unmet need in business, markets or society (products, processes, etc.) Portfolio Management – process and activity of planning, organizing and driving procedures, protocols and reporting to achieve project objectives, including resources, timeline, budget, risk management, prioritization and resourcing at the portfolio level across multiple projects Organizational Effectiveness – how effective an organization is in achieving its goals, including talent management, HR strategy, leadership development, organization design, measurements and scorecards, all integrating with business process, technology and adoption of new ways of working
- SHANNON Let’s move on now to the Case for Change. Why does operational transformation matter to an organization?
- SHANNON I’d like to share with you how we got to this hypothesis. We began with a basic change management and communications approach and observed and learned alongside our client partners. We found there are a variety of trends and drivers forcing a need for operational transformation. Internal drivers typically include things like new leadership, cost pressure, growth or M&A. External drivers can include industry competition or shifts and regulation pressure. New technology can be both an internal and external driver of change.
- SHANNON When we looked at the big picture, what we saw is often a disconnection among initiatives and more and more change fatigue from duplicative initiatives. Internal drivers can lead to process improvements, Lean, Six Sigma type projects External drivers can lead to innovation efforts, design thinking approaches and novel ideation Initiatives crossed paths and intersected, with increasing complexity But who is thinking about the people and what they need? Employee opinion surveys provide an indication of employee satisfaction Organizational Change Managers (OCMs) manage the people side of change Project Managers (PMs) ensure change management gets priority and that risks are managed well HR, organizational effectiveness, leadership development also help support people navigating change We observed that people typically want is: Clarity, vision and benefits – why bother? Information, tools and support – how to do it? Action taken in response to their feedback – did you hear me? Impact, consistency and sanity – don’t waste my time!
- SHANNON This led to our core hypothesis. We learned what it really takes to create a lasting shift. To create a shift that is fully operationalized, it takes an interdisciplinary approach, with process excellence, change adoption, innovation, portfolio management and organizational effectiveness integrated together in a holistic way, keeping people at the center of focus. For instance, fully preparing leadership to effectively lead helps ensure employee engagement in the change. An integrated, interdisciplinary approach helps create a structured, on-time, on-budget engagement, which is imperative to opitmize the transformation.
- SHANNON Now, we’d like to share the components of our operational transformation framework – how the elements fit together, and what the key inquiries are for each domain.
- SHANNON Here’s the framework. It starts with the inputs – get clarity and alignment on vision and values, leadership behaviors and culture, operational challenges and portfolio priorities and opportunities. Next define intended outcomes – such as happier employees, aligned leadership and teams, appreciated SMEs, technology that serves people instead of vice versa, and achievement of growth, efficiencies or optimization. People are of course at the center because we really only have the power to change ourselves, and change grows from there, expanding out through established networks of influence. Process Excellence answers: how can we be more efficient with our process? What can we do better? Who is doing what now and in what sequence? Who owns accountability at which stages? Innovation looks at how we generate novel approaches to solve future demands? What are we solving for and where do we need to go next? What novel ways can deliver a better experience? Adoption examines why should I change? Who, what, when, where and how? Creating clarity, sharing the vision and information, building competency, providing tools and support, managing expectations, and escalating risks with engaged, visible sponsorship. Portfolio Management organizes how we will align, prioritize and manage risk? How do we ensure the right actions are taken at the right time, and manage priorities, expectations and risks? Organizational Effectiveness recognizes change is possible in an environment with vague vision, lack of leadership behaviors that drive positive influence, unknown objectives, unclear values, or a conflicted, unaligned culture. It requires leadership who enable and empower people.
- SHANNON turns it over to SYLVIA Now, let’s take a look at the maturity model for operational transformation. Just what does it take to develop this capability for your organization?
- SYLVIA As you can see here, there are four levels along the maturity scale for developing an organization’s capability, competency and capacity for operational transformation: Level 1 Entry-level experimentation and applications with low consistency Level 2 Expanded application of a basic approach with regular, routine consistency Level 3 Establishment of standards to guide a unified approach for repeated success Level 4 Demonstrated competency and sharing of knowledge to grow organizational capacity And there are five domains to integrate among: Process Excellence Adoption Innovation Portfolio Management Organizational Effectiveness
- SYLVIA hands it back to SHANNON Thank you Sylvia. Now we’d like to share some of our own and an external case study, which demonstrate why it is critical to look at this from an interdisciplinary, integrated perspective.
- SHANNON Let’s take a look at the kinds of process, adoption and innovation challenges we experienced with our collaboration with Roche and Genentech. By way of context, we believe that trying and experimenting is how you learn. Failure can be a path to learning, if you are actively listening to the reasons why. Adoption: Change Management and Communications for an Integration (2010) IT-driven Not based in business process Awareness and engagement high, yet had adoption gaps Process: PDG Profound Current State Study Management Process Mapping (2012) Business process and adoption focus Possible investment in non-value added processes Not integrated to innovation efforts Innovation: PD Innovation (2014) Focused on ideation without being deeply embedded in business process Shallow understanding of stakeholders, can lead to lack of adoption and ROI Experiencing a true partnership with our Roche and Genentech colleagues allowed us opportunities for direct sharing of what worked, what needed improvement and what could have immediate lessons learned applications, after each project completed. This type of thoughtful examination and transparent dialogue helped us form our hypothesis and create a novel approach to operational transformation.
- SHANNON Process: Current State Clinical Study Management Process Mapping (2012) Business process and adoption focus Possible investment in non-value added processes Not integrated to innovation efforts
- SHANNON Continuous Improvement for Beverage Competitive Advantage (Coca-Cola Co.) Goal: Move beyond continuous improvement approach to true operational transformation to develop a larger competitive advantage Approach: Leverage, grow and build innovation capability, with existing strengths in process and adoption, to drive operational transformation Results: The company's largest and most impactful innovation to date, yielding double digit (%) sales growth and fundamentally changing the way products are developed, produced, warehoused, transported, serviced and sold In summary, you can see our effort reflected higher maturity in process and adoption, and we focused on increasing capability and applications in the innovation sphere. Source for more information: http://www.sustainableplant.com/2012/07/process-water-recovery-system-wins-innovation-award-for-coca-cola/
- SHANNON turns it back to SYLVIA Integrated Approach for an Independent Physician Association (IPA) IPA needed an intergrated approach to Regulatory transformation requirements (affordable care act - ACA) Goal: Substantially reduce cost of care while improving quality of care delivery Approach: Accountable Care organizations (ACOs) exponentially complex environment involving multiple organizations outside that aligned on shared risk agreements developed amongst IPA, health plan and hospital partners. The development of common agenda and measurements defined. Interdisciplinary teams of innovation, project management and process formed to realize operational transformation. Outcome: ACOs that achieved savings in excess of 15.5M in first year of operations through cross-organizational coordination of care (data sharing, process alignment, innovative ideation and rapid implementation of tests of change) In summary, you can see our effort had relative balance among process excellence, change adoption and innovation elements, which is what led to our success.
- SYLVIA Now, let’s do an exercise to assess your group or project’s level of operational transformation maturity. You will want to grab a pen and think about whether you want to assess a current project you are part of, or your group / department or a program you may be responsible for – any of those will be fine.
- SYLVIA Look at each domain here and reading from left to right, get a feeling for what it takes to be at each level of maturity. Let’s take a quick poll. Which of these domains is the lowest maturity level for your group or organization? [do the poll, acknowledge which one is lowest on average for everyone, talk about it] Do you notice anything else? Are you in relative balance at a certain stage of maturity across the board? Do you have wildly different levels of maturity in each domain? What do you see that surprises you?
- SYLVIA Thanks for being with us today. We are really interested in your input. We will send out the full Operational Transformation Maturity Matrix to you after the webinar today so you can do a more detailed self-assessment.
- SYLVIA and SHANNON Thanks again for your time and attention today – does anyone have any more questions? We would love to hear from you about what you think helps make operational transformation stick, answer any questions about the case studies, and hear what your experience has been. Here is our contact information if you would like to get in touch.