accenture tm nillezen sustainable performance improvement v1 [compatibility mode]

Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Sustainable Performance Improvement

“Creating a breakthrough performance with Lean Six Sigma as a vehicle for process excellence”

Amsterdam, August 2010

Management Summary

� Execution is identified as the key area of CEO attention, since execution issues directly impact business performance.

� Traditional improvement initiatives, aimed at overcoming execution issues, are generally incremental and not sustainable.

� Our proven approach focuses on creating sustainable performance improvement, by developing a continuous improvement capability.

� A Continuous Improvement Capability must be fully integrated with your operating model.

� Accenture supports capability development through a combination of leadership workshops, training &

© Accenture 2010 All Rights Reserved. 1

� Accenture supports capability development through a combination of leadership workshops, training & coaching, project delivery and organization transformation. This combination is tailored to meet specific client’s needs.

� We have a significant track record and assets to bring to our clients. Continuous improvement projects are self funding, and generally have a payback period of less than one year.

� Accenture uses a four step methodology towards developing a sustainable continuous improvement capability. Depending on level of process-orientation, the lead-time of one or more steps of the framework can be adjusted, in order to meet client’s needs and constraints.

Content

� Introduction

� Continuous Improvement Capability



� Continuous Improvement Methodology

� Contacts

Research Identifies execution as the key area of CEO attention.

Today’s CEO Challenge

� Execution is getting more difficult as a result of speed of change, globalization and specialization

� Execution is getting more important as a result of more demanding customers, commoditization, and the economic downturn

Challenges of greatest concern

Excellence in execution

Sustained and steady top-line growth

Consistent execution of strategy by top management

Profit growth

Finding qualified managerial talent


Finding qualified managerial talent

Customer loyalty/retention

Speed, flexibility, adaptability to change

Corporate reputation

Stimulating innovation / creativity / enabling entrepreneurship

Speed to market

• High volumes of work in progress combined with typical ‘batch & queue’ processing

• Rework, expediting, and large amount of troubleshooting

• Operational planning & prioritization highly variable in nature, often

Performance Impact

Typical Execution Issues

• High operating costs

• High Working capital

Business Performance Impact

Execution issues directly impact business performance and thereby customer- and shareholder value.

Execution and Performance Issues


• Operational planning & prioritization highly variable in nature, often driven by ad-hoc decision making based on opinions and circumstance

• Long learning curves and limited standardization in processes and required skills

• Complex organizations that are composed of multiple units/levels, deeply siloed, geographically diverse, and in which there is no clear line of accountability

• Proliferation of products and services straining process execution with limited insight in customer added value

• High Working capital

• Slow to market

• Low success rates

• Low customer satisfaction

• Inflexibility

• Do my people really know and act upon what drives cost in our business and creates value for our customers?

• How much complexity do I need to be competitive and what are the real (hidden) costs of complexity?

• How do I get better collaboration between functional departments?

Key Questions

By asking key questions executives set a first step in overcoming the issues and becoming excellent in execution.


• How do I get better collaboration between functional departments?

• How can I manage quality delivered and drive continuous improvement in the workplace without building more bureaucracy and without burdening management?

• How much of the time it takes to get something done in my company, somebody is actually working on it (and how much is just waiting time)?

• How do I reduce the errors we make and the re-work they generate?

Simplicity

Execution drivers

• Eliminate duplication • Eliminate low value activities• Eliminate re-work• Reduce work in progress• Clarify decision making authority

Execution improvements

Low operating costs

Low working capital

Business Performance Impact

High Performing Executors

Excellent executors beat competition on simplicity, flow and discipline.


Flow

Discipline

• Clarify decision making authority

• Work fact based• Manage for results• Build an execution culture

• Standardize work• Focus on delivering value to

customers• Reduce waiting time• Reduce errors

Low working capital

Fast to market

High customer satisfaction

High flexibility

Traditional Incremental Interventions Our sustainable approach, focused on capability development

Sustainable Performance Improvement

We see that many traditional interventions on process, systems and people are incremental and not sustainable. Our proven approach focuses on creating sustainable performance improvement, by developing a continuous improvement capability.

Leadership and Process

Ownership


Time

Pe

rfo

rman

ce Glass ceiling

Traditional Interventions

Time

Process Ownership

Project Implementation

and Training

Project Project prioritization and

quick win implementation

Process assessment

Co

ntin

uous Im

pro

ve

me

nt

Ca

pa

bili

ty D

eve

lop

me

nt

Content

� Introduction





� Contacts

• Provide control mechanism for systematically identifying which processes to standardize across structural /functional boundaries

� A framework for building globally reusable

• Establish a clear consistent method for identifying, controlling and improving processes, ensuring robust, sustainable management of process performance

Relationship between an Operating Model and a Continuous Improvement Capability

A Continuous Improvement Capability must be fully integrated with your operating model.

An operating model will: A continuous improvement capability will:


A framework for building globally reusable components

� Provide guidance to unblock the barriers to acting in the right way

� Establish context for initiatives that deliver key components of the operating model (Organization Design, Information, Flows, Support Systems, etc) and sets standards for what should be achieved

� Comprise a defined list of key corporate End-to-End processes (add process layer)

� Deliver processes that can be deployed globally and operated locally, or as required

� Embed continuous process improvement thinking and rigor in “Business as Usual" activity

� Use pilot initiatives in key areas to build skills and prove the methodology while delivering real value

Continuous Improvement Capability Development

Our sustainable approach, focused on capability development

Leadership and Process

Ownership

Accenture supports capability development through a combination of leadership workshops, training & coaching, project delivery and organization transformation. This combination is tailored to meet specific client’s needs.


Time

Process Ownership

Project Implementation

and Training

Project Project prioritization and

quick win implementation

Process assessment

Co

ntin

uous Im

pro

ve

me

nt

Ca

pa

bili

ty D

eve

lop

me

nt

Typical Benefits

We have a significant track record and assets to bring to our clients. Continuous improvement projects are self funding, and generally have a payback period of less than one year.

• We have served over 200 clients world wide with process improvement initiatives

• Every engagement up to now has a pay back period of one year

Quick Overview

• Operating costs decreased by 20%

• Working capital decreased by 30%

Typical Sustainable results


Accenture Lean ClientsAccenture Lean ClientsAccenture Lean ClientsAccenture Lean Clients

• Time to market decreased by 40%

• Customer satisfaction increased by 25%

• Increased overall flexibility

• Increased employee satisfaction

Content

� Introduction





� Contacts

4.

SustainContinuous

Improvement

3.

Implement Project Charters(Using DMAIC)

2.

Define Project Charters

1.

AssessProcess model

Accenture uses a four step approach towards developing a sustainable continuous improvement capability. Depending on level of process-orientation, the lead-time of one or more steps of the framework can be adjusted, in order to meet client’s needs and constraints.

8 – 10 wks 10 - 12 wks 2 – 6 months 8 – 12 wks

A comprehensive framework


Advantages:

1. Start with short assessment phase & process awareness workshops

2. Use a bottom-up approach for defining project charters

3. Proven methodology & tools for implementing project charters

4. Focus on sustainable continuous improvement by organization development and training of employees

1. Early identification & prioritization of improvement opportunities based on key business processes

2. Definition of well-defined project charters, supported by strong business case. Bottom-up approach leads to enthusiasm and ownership

3. Effective implementation of project charters, leading to measurable bottom-line benefits

4. Self-funding continuous improvement

Approach:

1.Assess

Process model

8 – 10 wks

Main output:

• High-level process model

This phase assesses the current process model, and defines a roadmap towards sustainable continuous improvement. Quick win process improvements are implemented immediately.

1. Assess process modeloverview

Main activities:


• Define high level process model - using Accenture’s industry process models

• Organize process-workshops to validate process model, define detailed processes (level 2 & 3), and identify area’s for improvement – using Lean process modeling techniques

• Analyze applications supporting key business processes (optional) – using Accenture’s application portfolio assessment tools

• Prioritize improvement opportunities and define roadmap

• Implement quick wins

• High-level process model

• Process dashboards containing overview of: level 2 process definition, functional involvement, improvement opportunities and supporting applications

• Level 3 process definitions

• Application heatmap (optional)

• Roadmap towards sustainable continuous improvement

• Business case for quick win process improvements

• Implemented quick win process improvements

Main output:

This phase uses a bottom-up approach for defining project charters. By using a phased approach, with predefined gate criteria, most effort is spent on improvement initiatives with the highest potential benefits.

2.Define

Project Charters

10 - 12 wks

Main activities:

2. Define project chartersOverview


• Generate improvement ideas using process dashboards, workshops, expert interviews and, process observations

• Document ideas, using standard templates, in process improvement database (SharePoint, lotus notes, etc.)

• Define KPI’s per improvement idea, set up measurement systems and collect baseline data

• Analyze process improvement idea using process-flows and -metrics by applying lean techniques

• Quantify potential benefits & complete project charters

• Prioritize implementation of project charters based on

benefits and efforts

• Customized ‘funnel’ approach for project selection

• Identified value levers in the business and translated into Opportunity Areas

• Detailed calculation of potential benefits per improvement initiative

• Translated opportunities into potential savings (best case – worst case) using detailed “value tree”

• Complete Draft Project Charters

• Scheduled project launches based on resource availability

Main output:

Implemented process improvement initiatives, leading to:

During this phase, cross-functional teams implement project charters in order to achieve sustainable solutions and benefits. Team members are managed and coached by black belts.

3.Implement

Project Charters(Using DMAIC)

2 – 6 months*

Main activities:

3. Implement project chartersOverview


During this phase, project charters are implemented using lean tools and techniques. The five phase that implementations typically go through are: Define, Measure, Analyze, Improve and Control.

Each phase has specific activities, tools & techniques, deliverables and gate review criteria.

For certain improvement initiatives, a Kaizen event is recommended rather than a standard 2-6 month implementation. A kaizen is a 1-week highly intensive implementation where employees are pulled away full time from their regular jobs. Kaizen events are recommended when obvious waste sources have been identified, scope and boundaries are clear and results are needed immediately.

Implemented process improvement initiatives, leading to:

• Streamlined business processes, through fact-based process improvements

• Bottom-line financial benefits

• Engaged workforce, through structured approach and bottom-up idea generation

• Skilled workforce

Main output:

� Define role description of process managers and process

This phase is the final step for the creation of a sustainable continuous improvement capability and contains the embedding in the organization's operating model.

4.Sustain

Continuous Improvement

8 – 12 wks

Main activities:

4. Sustain Continuous ImprovementOverview


� Define role description of process managers and process

consultants.

� Coaching / training of process managers and business consultants

� Add process dimension to organizational model, not just for process improvements but also for: internal audits, prioritization of projects, prioritization of IT change requests, performance appraisals based on process metrics, incentives / bonus structure based on process performance, etc.

� Set in place process KPI’s on Operational Level

� Hand over process improvement framework from project

organization to business owners

• An organizational culture which shows leadership engagement and a communication strategy supportive to ‘Learning & Improving’

• An Infrastructure supportive to independent program management, financial benefit tracking and delivery, and recognition of ongoing successes

• Availability of customized improvement methodology, covering project identification, selection & execution

• Trained workforce with the capability of ongoing development and knowledge management

4. Sustain Continuous ImprovementDependencies

� ‘Handshake” among leadership about a roadmap with defined milestones and clear goals* for the middle and long term (Sponsorship from ‘leadership’ is imperative for sustainability).

� Working with an integrated vision, “continuous improvement will be shown throughout the whole company, of

course leadership, but certainly also ground personnel”.

� Performance management including ‘lagging’ as well as ‘leading’ process performance indicators (e.g. lead-times, cycle times, first-time right, etc.)


times, cycle times, first-time right, etc.)

• Management defines (“flow-down”) process value drivers and success factors, these will be translated into operational KPI’s.

� Inspiring and rewarding of all employees, and stimulating continuous learning!

� Focus on results, supported with generic way of working, methods en techniques.

� Fact-based project selection, prioritizing and execution, herewith also knowing when to ‘kill’, stop a project.

*derived from the desired Process Excellence maturity level (Accenture’s BPM methodology)

Content

� Introduction





� Contacts

Contacts

Paul van Schaik (P&IP)

Accenture

Gustav Mahlerplein 90

Postbus 75797

1082 MA Amsterdam

+31 612824628

In case of any questions or comments, please do not hesitate to contact us.

About Process & Innovation Performance

The Accenture Process & Innovation Performance service line takes an end-

to-end, process-based approach to address key business challenges such as

complexity reduction, lean manufacturing and operations, process innovation,

strategic cost reduction, and growth through innovation, in order to create

competitive advantage for clients globally. We help our clients become high-

performance businesses by enhancing the internal capabilities needed to

continuously improve operational and innovation performance. Accenture

enhanced its long-standing operations and strategy expertise with the 2007


Thomas Rieken (SCM)

Accenture


Postbus 75797

1082 MA Amsterdam

+31622472119

[email protected]

+31 612824628

[email protected]

Toine Nillezen (P&IP)

Accenture


Postbus 75797

1082 MA Amsterdam

+31613755087

[email protected]

acquisition of George Group, a recognized market leader in process,

operational and business transformation, and innovation strategy, whose

capabilities and offerings form the foundation of this new practice.

• We have served over 200 clients world wide with operational excellence initiatives

• Every engagement up to now has a pay

back period of one year

Publications CredentialsQuick Overview

Track record overview

We have a significant track record and assets to bring to our clients


Accenture Lean Clients

back period of one year

accenture tm nillezen sustainable performance improvement v1 [compatibility mode]

Documents