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©2014 FCB Partners. All rights reserved. Webinar Roundtable Discussion July 9, 2014 Process Innovation Capabilities Diagnostic Steve Stanton

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©2014 FCB Partners. All rights reserved.

Webinar Roundtable Discussion

July 9, 2014

Process Innovation Capabilities

Diagnostic

Steve Stanton

1 ©2014 FCB Partners. All rights reserved.

Today’s Purpose

To learn from you while sharing our current hypotheses

To better understand the market’s needs and uses of process

diagnostics

To get feedback on PICD’s:

– overall structure

– basic elements

– sub-elements

To improve the tool

And, to do all of this within one hour!

2 ©2014 FCB Partners. All rights reserved.

Why a New Tool? What’s Different Now?

In the past few years, we’ve seen an enormous technology

evolution in costs and capabilities

There are major demographic changes, i.e. the rise of

knowledge workers

The battle between today and tomorrow is intensifying

There’s growing disenfranchisement of performers (next page)

Meanwhile, the intensity of competition makes process

outcomes even more crucial

And, we now have years of experience with ‘process’—both

good and bad

3 ©2014 FCB Partners. All rights reserved.

White Collar Salt Mine?

70% don’t have regular time for creative or strategic thinking

66% don’t have the ability to focus on one thing at a time

50% don’t have a connection to their employer’s mission

49% don’t have a sense of community at work

46% don’t have the ability to prioritize their work

40% don’t have the ability to disengage from work

Source: A 2013 survey by the Energy Project of 12,115 workers worldwide

4 ©2014 FCB Partners. All rights reserved.

What Would a Perfect Process Diagnostic Tool Look Like?

5 ©2014 FCB Partners. All rights reserved.

What Would a Perfect Process Diagnostic Tool Look Like?

Help link process activity and process improvement to improved

business performance

Facilitate quick and simple self-administration

Focus only on key leverage issues, no attempt to be

comprehensive

Help bridge the gap between process and ‘all other’

Reflect contemporary issues--both problems and solutions

Identify solutions clearly

6 ©2014 FCB Partners. All rights reserved.

Therefore, our PICD Purpose Is:

Identify and diagnose, simply and quickly, the primary drivers of

Process Performance, focusing on the key, control-able levers of

change

Provide clear direction for corrective action

Ensure alignment around all aspects of the business model

Provision process re-designers with the complete set of

integrated factors than need to be changed and kept in

alignment

7 ©2014 FCB Partners. All rights reserved.

The Operating Model

Performance

Performers Platforms (hard and soft)

Purpose

Power Process

©2014 FCB Partners. All rights reserved.

Individual Process

9 ©2014 FCB Partners. All rights reserved.

Process-ness Design

– is there a complete, explicit, and integrated E2E design?

– have all SIPOC elements been identified?

– is the VOC (external) loudly heard?

Improvement – has the E2E design been significantly improved recently?

– is there active BM/BP?

– is the ‘Toolkit’ complete?

– is data-driven diagnosis ongoing?

Linkages – how well have the interfaces with other internal processes been identified, designed, and

improved?

– how well have the interfaces with other external processes been identified, designed, and improved?

Documentation – is the process documented completely?

– are process standards in place, and how complete is conformance to stated standards?

10 ©2014 FCB Partners. All rights reserved.

Individual Process Example

Competitive Disadvantage

Competitive Parity

Best in Class World Class

Design What design? All process completed

Improvement Not recently Ongoing with standard tools

Innovative and competitive advantage

Linkages Unmanaged All internal interconnections explicit and clear

All internal and external connections explicit and managed

Documentation What documentation?

• L1 • Standards

identified

• All levels documented

• Standards enforced

• Variations as purposeful experiments

11 ©2014 FCB Partners. All rights reserved.

Process: Purpose

Is the vision for the future-state clear?

How clear is the linkage to strategy?

What is the quality of the metric architecture?

How clear is the level of performance expectations?

Are the customers (internal and external) well

understood?

12 ©2014 FCB Partners. All rights reserved.

Process: Power

Is there explicit and aligned role clarity (between

process and other axes)?

Do process leaders have time to think?

Are there explicit and aligned decision rules and rights

that are in use and have compliance mechanisms?

Do process forums exist and are they in operation?

Do process leaders have or have access to traditional

sources of organizational clout?

13 ©2014 FCB Partners. All rights reserved.

Process: People

Are the performer role definitions explicit and clear?

Are the performers equipped to execute the process with excellence?

Do the performers have the right levels of skills, knowledge, and capabilities? – business understanding

– process knowledge

Do the performers exhibit the appropriate behaviors? – outcome orientation?

– collaboration and teaming?

– discipline and creativity?

– analytics and customer empathy?

– are they appropriately engaged?

– do they have time to think?

14 ©2014 FCB Partners. All rights reserved.

Process: Platforms

Do the management systems fit the process?

– compensation, incentives, etc.

Is the physical environment appropriate?

Does the process leverage new technologies well?

Does the process exploit traditional technologies?

15 ©2014 FCB Partners. All rights reserved.

Process: Performance

What are the actual outcomes?

– results/products/numbers

– product service evolution

Is the baseline established?

Current performance

– vs. peers

– vs. LY

– vs. target

©2014 FCB Partners. All rights reserved.

Enterprise

17 ©2014 FCB Partners. All rights reserved.

Enterprise Purpose

Is there a clear and differentiated enterprise mission and vision?

Is there a clear, differentiated and well understood business strategy?

Is there a clear stakeholder preference scheme in place?

Does the metric architecture support the strategy?

Are there sufficient innovation-funding mechanisms and platforms in place?

Is the day-to-day whirlwind under control?

18 ©2014 FCB Partners. All rights reserved.

Enterprise: Process

Is there a well defined and tested process model?

Are all process suites complete?

Is there a high functioning strategic planning process in operation?

Is there an active project optimization process?

Is there an active process management process?

Do process standards have compliance, adjudication, and escalation mechanisms?

Are there defined sensing and responding processes or sub-processes?

19 ©2014 FCB Partners. All rights reserved.

Five Types of Processes

Core

Enabling Strategic Sensing

Governing

ST Success

LT Success Sustained

20 ©2014 FCB Partners. All rights reserved.

Process Suites

Core – E2E supply chain

– new product development

– customer acquisition

– demand stimulation

Enabling – IT

– HR

– Legal

– Risk

– Finance

– Safety

21 ©2014 FCB Partners. All rights reserved.

Process Suites …continued

Strategic–Strategic Planning Process

Governing – process management process

– project optimization process

– budgeting process

– talent management process

• Sensing Sub-processes – customer

– competitor

– technology

– demographic, geopolitical

– self assessment

22 ©2014 FCB Partners. All rights reserved.

Enterprise Level Power

Are there active and senior process leaders?

Is there a clear process accountability?

Are there sufficiently empowered process forums?

Is there clear, active, and effective dimensional

coordination (RACI)?

23 ©2014 FCB Partners. All rights reserved.

Enterprise: People

Are there sufficient positive cultural behaviors?

– ambition, striving, humility, collaboration, data-driven,

empirical

Are the organization’s values realized and lived?

Is there long-term capability planning for critical skills

and capabilities?

Is there change ‘agentry’ available in appropriate

quality and quantity?

How engaged is the workforce?

24 ©2014 FCB Partners. All rights reserved.

Enterprise: Platforms

How excellent is the organization’s data

management?

How well does the organization exploit new

technologies?

Are all incentives aligned with strategy?

Do the management systems support the strategy?

25 ©2014 FCB Partners. All rights reserved.

Enterprise Performance

Actual results vs. plan and vs. strategy

Innovation results

26 ©2014 FCB Partners. All rights reserved.

Would an Updated Process Innovation Diagnostic Be Useful?

What’s been your experience with process maturity models?

– positive?

– less positive?

Are today’s best practices captured in the maturity model?

Are your burning issues addressed in the maturity model?

How might a process diagnostic provide value to you and your organization?

27 ©2014 FCB Partners. All rights reserved.

Continue the Dialogue

Host Date Subject

October 15 Institutionalizing Operational Excellence: Continuously Improving the Customer Experience Roundtable Discussion

October 16 Process Innovation Research Report and Discussion

October 17 Sustaining Process Thinking Roundtable Discussion

1. Chicago Meetings October 15-17

2. LinkedIn Discussion Group

Continuous Innovation

We’d love to talk with you about this topic. Let us know and thanks!

3. Research Interview