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)

2 © 2011 Copyright ISC Ltd.

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
ENABLERS RESULTS

People
People
Results

Key
Policy & Customer
Leadership Processes Performance
Strategy Results
Results

Partnerships Society
& Resources Results

INNOVATION AND LEARNING


What is a Process?

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

Input Process Output

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

Today’s challenge?

Happier Cheaper
Customers
More


Faster
Better


Throw more resource at it…

More?

More?

More?


Possibly not…

X
More?

Input Output
Process
More?
X
X
More?


So, you will have to…

Happier
Customers
Cheaper

More


Faster
Better


Two typical starting points…

 We need to get our  We need to fix some
processes “in order” problems
 We need to be able to  We need to make a
demonstrate a step-change in
consistent, performance in a few
professional approach key areas
to managing the
organisation
 Process  Process
Management Improvement

Process Management: 3 Elements

• Business Process Model
Management • Process Owners
by Process • Process Maturity Model

• Define
Process • Measure
Improvement • Analyse
• Improve
Projects • Control

Management • Day-to-day Process
Management
of Processes • Process Managers


Management by Process


• Define
Process • Measure
• Improve

Management


Business Process Model

Process
Maps

Input Output

Procedure Procedure Standard Policy Procedure
Text Policy Standard


Generic High-level Process Model
Regulation
Legal
Market & Framework
Competitor Business
Data Plans
Develop Policy &
Strategy
Performance
Chief Exec
Data

Products
Product Ideas Available
Develop Products &
Services
Development Manager

Customer/Prospect
Needs Customer
Win Business Orders

Support and Enabling Processes Marketing Manager

Delivered
Orders &
Fulfil Customer Orders
Invoices
Ops Mgr


Telecoms Process Model (example)

Design
Address Bill
build & Sell to Repair &
customer Provide customers
operate & service maintain
needs & service & collect
the customers service
requirements payment
network Operator Service
Provide support & Manage people

Provide information management


Probation Process Model (example)
Lead the business

• Assess
• Sentence • Programmes
Deliver
Manage Plan • Unpaid Work
Offenders • Implement Intervent- • Approved
• Review ions Premises
• Evaluate

Support the business
HR – IT – Info – Finance – Partnerships – Property – Legal - Comms


IT Solutions Provider (example)
Enabler Processes:
Develop
 Manage & Improve Human
Strategy Resources
 Manage & Improve Information
Systems
 Manage & Improve Technology
 Manage & Improve Financial &
Physical Resources
 Manage & Improve External
Deliver Enabler Win Relations & Partners
Solutions Processes Business  Manage Improvement &
Change

Design &
Implement
Solutions


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 & Maturity
Continuous process improvement (incremental and innovation)
Common causes of variation are identified and improved Optimising
Processes are agile and “best in class”
Targets, standards and measures are used Quantitatively Performance
Special causes of variation are identified and Managed is predictable
corrected
Organisation-wide focus All processes are documented
Value chains are identified Defined Measurements are defined

Departmental Some organised processes
& Team focus Managed Performance is repeatable

No organised processes
Initial Ad hoc and reliant on “heroics”
Performance is not repeatable


Process Improvement Projects


• Define
Process • Measure
• Improve

Management


DMAIC Process Improvement
• Agree the problem/opportunity for the Process Improvement Project
Define • 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
Measure • Identify how the data will be collected
• Collect the data

• Analyse the performance of the process using the data
Analyse • 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
Improve • Develop plans to implement the selected improvements
• Implement the new process

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


Management of Processes


• Define
Process • Measure
• Improve

Management


Day-to-day Process Management
Optimising

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

Quantitatively Managed

• Review Performance
• Implement Corrective Actions
• Measure Performance

Defined

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

Managed

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


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

• Map the Process


SIPOC Process Definition
Sub-process
Process
steps
Purpose

Input Output
Process Name
(Verb + Noun)

Suppliers Customers

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 Director
Suppliers Inputs Process Outputs Customers
Line Manager Request to fill 1. Specify needs New member Line Manager
a vacancy 2. Authorise of staff
recruitment
3. Place adverts
4. Assess
applicants
5. Offer
appointment
6. Confirm start
Boundaries:
Start-point: End-point:
Includes: Excludes:
Full & part-time staff Budgeting for recruitment
All Grades except SMT HR Workforce Planning


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


Process mapping with Control 2007

Input Activity Output

(Verb & Noun)

Resource


Sequence Map


Swimlane Map


Optimising




Defined


Managed

• Map the Process


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  Error Rate or Accuracy  Perceptions of reliability,
time in process steps) (Right First Time) assurance, tangibles,
 Cycle-time (end-to-end,  Timeliness (delivery vs. empathy, responsiveness
elapsed time) deadline/requirement)
 Delay or Waiting time  Completeness  Any “objective”
(e.g. between steps) measures gathered by
Conformance to customer(s) or
 Volume (input) 

Standard stakeholder(s)
 Cost (direct cost per  Success Rate/Attrition  Compliments
transaction) Rate/Output Volume
 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:
Error Rate (%)
30

 Specific 25

20
 Measurable 15

 Achievable 10

5
 Relevant 0

 Time-bound 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

• Map the Process


Data Presentation Tools
Freq. Histogram
(#) Error
80 Rate (%) Line Graph
30
60 25
20
40
15
20 10
5
0 0
Response Time

Cost
Pareto Diagram
(£)
120
100
80
60
40
20
0
A B C D E F G H Error Type


Corrective Action Process
What is the problem?
Define

Has it worked? What data do you have?
Control Measure

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


Problem Definition Questions

Inside the Outside the
Problem Problem
What?
Where?
When?
Who?
How big?


Review performance – where are you?
Optimising




Defined


Managed

• Map the Process


Review performance
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

SIP 230408: 47 © 2011 Copyright ISC Ltd.

Optimising




Defined


Managed

• Map the Process


DMAIC Process Improvement
• Agree the problem/opportunity for the Process Improvement Project
Define • 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
Measure • Identify how the data will be collected
• Collect the data

• Analyse the performance of the process using the data
Analyse • 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
Improve • Develop plans to implement the selected improvements
• Implement the new process

• Assess the performance of the new process


DMAIC Tools and Techniques
Define Measure Analyse Improve Control
SIPOC Process Customer Pareto Analysis Creative Statistical
Definitions Surveys Thinking Process Control

Process Maps Focus Groups Value-add Clean Sheet Visual
Analysis Design Management
Improvement Data Collection Line, Bar & Force Field DMAIC
Project Checksheets Scatter Charts Analysis Problem Solving
Definitions
Current State Interviews Cost & Cycle- Risk Analysis
Value Stream time Analysis
Maps
Activity 7 Wastes Future State
Sampling Value Stream
Maps
Cause & Effect Poka Yoke
Diagrams (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 Variation

Common Cause Special Cause
 Stable, consistent  Pattern changes over
pattern of variation time
 Repeatable and  Unstable and
predictable unpredictable
 Numerous causes  “assignable”
 Always present
 “chance”


Example: Journeys to work

120

100 Upper Control Limit

80 Mean
Lower Control Limit
Mins. 60

40

20

0
Days: Consecutive Journeys


Process Control and Improvement
Improvement

160
140
120
100
80
60
40
20
0
Control 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Breakthrough


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

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

• Analyse the performance of the comparators using the data
Analyse • 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
Improve • Develop plans to test and implement the selected practices
• Gain acceptance and implement the improvements

• Assess the performance of the new process/service


Process Management Plan
No action and nothing Planned, but no action Underway Complete Reviewed
planned
Process is continuously improving (“Optimising”)
Benchmark
externally
Establish Statistical
Process Control

Establish DMAIC
projects

Process is “Quantitatively Managed”
Review performance

Implement
corrective actions

Measure
performance
Process is “Defined”
Define performance
targets

Define process
measurements
Define systems
standards
Process is “Managed”
Map the process

Define customers
and their
requirements

Identify the process
and its Owner


Process Managers' Workshop

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