fcb partners course preview: process owners in action
TRANSCRIPT
Process Owners in Ac-on Walter Popper
Miami, FL
February 3-‐5, 2016
1 ©2015 FCB Partners. All rights reserved.
Who Should Take this Course Process Owners Customer-‐facing (sales, distribuIon, and service) OperaIons (development, engineering, supply chain, producIon) Back Office (contracIng, purchasing, planning, billing) Support (quality, audit, talent management, informaIon systems) Process Professionals Lean coaches Six Sigma black belts Other Staff Specialists Business Analysts IT Project Leaders HR Change Managers
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Course Overview
Day 1: Role and Responsibili=es Strategies for OperaIonal Excellence Process Design, OrganizaIon, and Infrastructure Process Measurement and Improvement Challenges of Process Ownership Day 2: Time and A@en=on Assessing and PrioriIzing OpportuniIes Sponsoring Projects and IniIaIves Making Process Councils Work Sustaining Process Performance Day 3: Impact through Influence Ge\ng Top Team Buy-‐In Influence without Authority AcceleraIng AdopIon
3 ©2015 FCB Partners. All rights reserved.
The Power of Process
Defines tasks for overall efficiency and effecIveness
Puts work into context – serving customers, execuIng strategy
Converts inputs into outputs of greater value
Establishes enterprise standards – one way of doing business
Enhances transparency and provides audit trail
Enables learning – individual and collecIve
End-‐to-‐end work flow a group of related tasks that together create customer value structured, purposeful work in context
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Process Owner Role and Responsibili<es Design End-‐to-‐End Work Flow
Inputs Customers Suppliers Steps Outputs
Process steps are just the beginning
The Value Chain
Also known as SIPOC
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Role and Responsibili<es Measure What Ma@ers Outcome measures lagging indicators to highlight what mabers to customers validate using customer measures and experiences line of sight to internal strategic and operaIonal objecIves
Process measures leading indicators to predict and improve outcomes validate by observing cause-‐and-‐effect or analyzing correlaIon highlight the few metrics with greatest leverage
Trends benchmarks highlighIng gaps and momentum, either posiIve or negaIve use period to period comparison to understand and minimize variaIon
Targets goals to establish expectaIons and inspire extra effort
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Role and Responsibili<es Invest in Informa=on Technology
Devices system access point including mobile, desktop, embedded Applica=ons socware funcIonality, templates, tools, screens, navigaIon structures capabiliIes and procedures associated with the process Content qualitaIve and quanItaIve informaIon and associated data structures Services technical and business soluIons accessible over the network Network connecIons and communicaIon capabiliIes across devices
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Role and Responsibili<es Advise on Organiza=on, Sourcing, and Staffing
Front-‐line employees working on the process engaged most or all of their Ime on process work
Subject and func=onal experts contribu=ng to the process bringing their experIse to process work as required
External staff performing the process contract hires or third-‐party work force in an outsourcing arrangement Supervisors and managers overseeing structuring, prioriIzing, guiding, and assessing process performance
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Role and Responsibili<es Engage Key Stakeholders
My Team
Top Team
Process Customers*
Process Suppliers* My Process
Who are the key players in each stakeholder group?
What do I need from them?
What do they need from me?
* Includes adjacent process teams
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Role and Responsibili<es Iden=fy Gaps and Pursue Opportuni=es 2012 Spend: $816 M 2012 Top 8 categories: 78% 2012 MRO spend: $33 M
13,776 Material Masters; 53% unused in 2012
$61M on hand inventory, demand based target >$30M
Available onsite storage area: 509,744 ft²
Services vs. Materials Spend
78%-22%
Average lead time/line 12 days Average lead time/MM 21 days Baker Hughes
Daily Avg Consumption: 8,211L Daily Avg Deliveries: 9,027 L
Over-Deliveries: 297,772 L
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Role and Responsibili<es Communicate in A Networked World
Cul=vate key opinion leaders inside and outside your process
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Time and A?en<on Establish Goals for Customer Experience
1. Earn my trust
2. Inspire me
3. Make it easy
4. Put me in charge
5. Guide me
Source: 10 Demandments: Rules to Live by in the Age of the Demanding Customer, by Kelly Mooney
6. Be there for me 24/7
7. Get to know me
8. Exceed my expecta-ons
9. Reward me
10. Stay with me
Today’s customer was trained by Amazon and Starbucks
Today’s customers expect an easy-to-use process
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Time and A?en<on Develop Targets of Opportunity
Enablers Typical Accomplishments
Commonly Observed Gaps
Targets of Opportunity
Owners Process point of view Focus on improvement Common terminology Process-function dialogue
Time on projects & staff work Tomorrow vs. today Seen as ‘bureaucracy’ Function trumps process
• Increase presence with front-line teams • Make difference every quarter and report it • Perception or reality? Find out and respond • Strengthen PO’s functional alliances • Structure part-time PO role for greater impact
Design and Measures
Partial documentation Opportunities identified Measures proposed
Mainly transaction back office Op Ex more than customer Efficiency, compliance focus
• Add one knowledge work process • Add to customer measures and feedback • Introduce stretch goals
Performers and Systems
ERP’s implemented Front-line trained Potential for collaboration Local improvements
Internal data, limited analysis Primarily internal systems Individual goals & incentives Ad hoc, not continual
• Introduce extended data, analysis, trending • Explore online applications and services • Try team or group goals and incentives • Identify, replicate, and extend ad hoc efforts
Leaders and Governance
Executive champion Process Model Process Council Portfolio of initiatives
Ad hoc, limited back up One-time effort, limited use Disconnect from Op Mgmt. Loose link to Strategy, IT
• Structure champion role and add leverage • Establish EPM renewal cycles • Connect PC to PMO, Ops or other governance • Link process, IT, and strategy programs
Culture and Expertise
Center of Excellence Lean, Six Sigma skills Process values discussed
Limited reach beyond HQ Narrow, stand-alone skill sets Unwritten rules unchallenged
• Explore distributed or hybrid COE • Integrate strategy, project, process, change • Challenge at least one ‘business as usual’ rule
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Time and A?en<on Implement Measurement Systems
The Right Measures Used in the Right Ways 1. Connect to the big picture 2. Look at the evidence 3. Select with care 4. Get specific and material 5. Pick a meaningful name 6. Make measures visible 7. Establish real =me feedback
-‐ Balanced Scorecard Collabora<ve
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Time and A?en<on Build Competencies & Capabili=es
• Work Force – posiIon descripIons and requirements – performance goals, objecIves and reviews – new hire orientaIon
• OrganizaIon – direct and dobed line reporIng – operaIng unit performance reviews – merger integraIon teams
• Investment – project, program and porholio management – business requirements and data management – new system implementaIon and adopIon
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Impact through Influence Lead Project Stage Gate Reviews
• Develop enterprise process model
• Appoint process owners and establish governance
• Create Strategic Linkage: process vision and case for ac=on
• Select redesign team members
• Review principles of high-‐performance processes
• Apply pa@erns • Map to I/T capabili=es and constraints
• Build out dimensions and dependencies
• Develop metric architecture
• Develop business case • Gain necessary approvals
• Bound and scope the process
• Understand customer needs
• Understand the current process
• Iden=fy weaknesses in the exis=ng design
• Set targets for the new design
• Develop implementa=on roadmap
• Build ini=al laboratory prototype
• Implement pilot(s)
• Develop suppor=ng infrastructure
• Rollout • Ins=tu=onalize • Re – redesign!
Mobiliza=on Redesign Transi=on Diagnosis
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Impact through Influence Sponsor a Mul=-‐Year Journey
Releases Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q4
Year 1 Year 2
Release 1
Release 2
Release 3
Release 4
Release 5
Lab Pilot Rollout
Lab Pilot 1 Rollout Pilot 2
Rollout Pilot Lab
When 3 6 9 12 15 18 21 24
Lab Pilot Rollout
Lab Pilot Rollout
Wha
t
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Impact through Influence Recruit and Retain ‘A’ Players Know whom you want ambiIon, commitment, creaIvity, as much as experIse open to new ideas; challengers of legacy assumpIons representaIve: primary funcIons, divisions, geographies
Get what you want individual moIvaIon, iniIaIve, and follow-‐through significant level of effort, frequently subject to negoIaIon specified duraIon with opIon to renew, or an alternaIve
Address ‘What’s in it for me?’ broadened perspecIve and increased exposure expanded skills in process and project disciplines high-‐profile business impact delicate quesIons: rank, reporIng relaIonship, career path
The objec=ve -‐ an engaged, commi@ed, high-‐performing team
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Impact through Influence Ins=ll a Process Improvement Discipline
Set performance target
Develop improvement plan Leverage new technology
Understand performance gap
Measure process
performance
1. Understand customer needs 2. Benchmark competitors 3. Translate strategy 4. Assess financial requirements 5. Ensure inter-process linkage 6. Check technology innovations
Perform process
Improve execu=on
Improve design
Modify design Redesign
Diagnosis
Implement change
GAP
Iden=fy key
measures
Outsource