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Data Driven Org DesignMeasuring Impact Before, During and After Design

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About OTM and OrgVue

Rupert Morrison Mark LaScola

OTM Managing Principal, a global organisation design & business transformation consultancy. Delivered 370+ re-designsEvery business function.Most industries.Owners of one of the most integrated & comprehensive methodologies.OTM has trained close to 5000 internal change agents and leaders in our solutions.

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Managing Director of OrgVue, an integrated software platform for organisation design, HR analytics and strategic workforce planning. He is currently writing a book on data driven organisation design.

Overview

http://www.orgvue.com/

What is Org Design and What is it Not?

• Organisation Design is:Aligning all parts of a business to win in the marketplace -- delivering its strategic intents and competitive advantage. It’s the deliberate process of aligning and fitting the formal and informal work system and operating model ensuring a business can achieve its purpose [ value stream, structure, management mechanisms, systems and technologies, rewards, and people processes with people, culture and ways of working]…

• Organisation Design is NOT:Moving names on an org chart, just about structure, restructuring, Lean, Six-sigma, RIF.

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…The definition does not define “HOW” to conduct re-design.

Overview

Different Types of Data

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• Process – Measurement along a process. Did we do what we were going to do…?

• Outcome – Measurement at the end. Did we make an impact? Make a difference?

• Qualitative - Data expressed in terms a natural language description from a particular perspective. May be anecdotal.

• Quantitative – Numerical info about quantities; that is, information that can be measured and written down with numbers.

• Performance, Kirkpatrick’s L4, Experience

• v Big Data - Extremely large data sets stored in data warehouses that may be analysed computationally to reveal meta-level patterns, trends, and associations, especially relating to human behaviour and interactions. WE ARE NOT TALKING ABOUT THIS

Dimensions Characteristics

Subsystem focus Technical and social [human]

Point of measure Input-transformational-output

Evaluative content Descriptive, evaluative, prescriptive

Structure Individual, group, whole

Time orientation Past-present-future

Structure of collection Unstructured to structured

Frequency of collection One time to point in time to continuous

Sampling of variables Narrow to broad

Validity Invalid to valid

Access Unlimited to limited to targeted

Anthropological Intersection of technical, human and cultural, formal & informal

Narrative Tells a story

Overview

Data for Organisation Design

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Overview

Is an accurate, qualitative and quantitative visual depiction at pre-determined points in time of all the key organisational metrics and relationships including technical and social dimensions from which insights and conclusions can be drawn, decisions can be made and progress measured against.

Types of Data by STAR

STAR Element Examples

Business Direction

Revenue, Margins, Customer Experience, Market shareDemographics, Product or Service QualityRevenue, Productivity, Agility/Responsiveness,

Value Stream Demand, Customer touch points, Cycle timeProcess costs, FTE of work, waste/value

Structure Work in boundaries, decision location, departmentalisation, work and roles, FTE of jobs, Specialisation v Generalists, skills/competencies

ManagementMechanisms

Goals and objectives, info flow, governance, risk, FTE of mgmt roles,Reporting relationships, organisation charts, glue

Reward & Recognition

Pay grades, job families, leadership style, performance reviews, development plans

People Processes

Engagement, Enablement, EE lifecycle [recruitment, onboarding, performance review, development plans, retention, etc.]

Organisational Renewal

Culture, ways of working, engagement

People Headcount, demographics, locations, etc. [excel, SAP, PeopleSoft]

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Overview

Understand data in the context of the organisational system (Value Stream + Structure + Management Mechanisms + People)

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Overview

A Design Cycle– Measuring at each Phase

Current State (Baseline)

Setting Business Direction

Design

Transition and Implementation

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Overview

Current State Phase (Baseline)

Gathering data and establishing a baseline picture of the current organisation

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Design


An accurate, qualitative and quantitative visual depiction at a point in time of all the key organisational metrics and relationships including technical and social dimensions from which insights and conclusions can be drawn, decisions made and progress measured against.

Challenges1. The willingness to review data and evidence beyond cost data

[Leadership/Sponsorship issue]• Importance of understanding of effort required and patience.

• See the organisation differently.

2. Clarifying headcount reduction [cost] and/or optimisation…

3. Building a reliable and valid baseline dataset with clean data.

4. Need for meaningful, sustained engagement of key stakeholders

5. Fight for transparency [ technical/political barriers]

6. Setting up sustainable data collection for the long term

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Build a Better Set of Baseline Data

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Value Stream and Process Structure MM + R/R + Jobs + People

Product & Service Demand Work in boundaries Reporting lines

Quality Departmentalisation Salary costs

Waste v Necessary Waste v Value ShapeDemographic statistics (gender, tenure, age)

New work v changed work v stopped work

Roles v jobs Function & Geographic locations

FTE of work FTE of roles and FTE of jobs Organisational Processes

People, roles, jobs…


OrgVue Case Study

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The challenge: Organisations struggle with data quality

• The average large organization has 8 different databases.1)

• >90% of companies have chronic problems with their data, e.g. missing, outdated, inaccurate, typos…1)

• In 2/3 of organisations, the majority of time is wasted on consolidating, repairing and manipulating data instead of analysing them2)

Source: 1) Experian, White paper: the state of data quality, 2013

2) Ventana, CIOs need to make information management a real priority, 2012


Overcome the data collection and cleansing challenge

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Deal with the politics of data through communication, sharing and driving transparency

Crowd source & gamifydata collection process

Collect and structure data from Excel islands

Get the business to review & improve the single

source of truth

Locate and bring together relevant databases

OrgVue Case Study: 7,500 employee hospital with 9 major data sources


9 Data sources

Staff list with demographic data

Training in Infection Control

Absence

Overtime

Agency staff usage

Hierarchy of approvers Incidents and complaints

Matrix mapping specialities to budget

codes

HR Structure

OrgVue case study: Quantify and track data quality for all key measures and dimensions

DA

TA

SU

MM

AR

Y

Dimensions: 3

3 text dimensions

0 dates

0 images

Measures: 3

3 measures

0 Yes/No collections

Hierarchy:

1,505 records

1,480 in main structure

Maximum depth 9

1 orphan

3 orphan groups

Hierarchy checks:

4 tree roots

0 duplicates

0 blank IDs

4 blank parent IDs

74 %complete

Data key

complete

bad values

blank

TE

XT

DIM

EN

SIO

NS

47groups

22 %complete property

Bradford Index

15groups


Absence Detail

14groups


Area

ME

AS

UR

ES

7groups


Age

10groups


Grade

6groups


Current Salary


OrgVue Case Study: Gamifying and crowd sourcing data completion

& cleansing


Example 1: Conducting an IAA* through

surveys & interviews

Example 2: Self-building org structure

Example 3: Interdepartmental data

quality competition

*IAA = Individual Activity Analysis

OrgVue Case Study: Visualising and analysing the data to get an understanding of the as-is


Issue: Cost codes, structured by division and coloured by division

OrgVue Case Study: Finding data anomalies and finding areas for further investigation

Is the data right? If so does this data identify a risk to the hopital?

12

day

per

iod

of

con

cern


Individual records show someone worked a 12-day

stretch incl. 2 x 24 hour shifts. Cause for concern?

OrgVue Case Study: We found that certain departments had an alarmingly high proportion of agency staff in clinical settings

Agency Staff as percentage of overall workforce by specialty


Accident & emergency, Trauma and Orthopaedics,

general surgery, Neurorehaband Gastroenterology all

have high % of agency staff

OrgVue Case Study:…but the hypothesis that the proportion of agency staff on clinical incidents was disproved

Clinical incidents vs. staff WTE by cost code


Site 1 Pathology services have the highest rate of

clinical incidents per staff. Are agency staff higher

performers?

OTM STAR Model - Baseline

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Building a Baseline Set of Data: Value Stream + Structure + Management Mechanisms + People

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B. Work

C. Work

D. Work

E. Work

A. Work

F. WorkV

alu

e St

ream

Peo

ple

O

rgan

ise

d

Aro

un

d W

ork

Rep

ort

ing

Rel

atio

nsh

ips

Outputs (Products &

Services)

Glue

Inputs

In some organisations people spend up to 45% of their work

time in meetings


OTM Case Studies

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OTM Case Study: Demand Analysis [calls into helpdesk]

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Represents 4,855 Children at an average 2.7 Children per case

‘Other’ Contacts derived from Total Contacts into Hotline minus unanswered calls, contacts requiring follow up, Communications not taken as a report and communications taken as a report

Calls9,915

Total Communi-

cations into Hotline

11,187

Unanswered Calls1,010

‘Other’ Contacts*2,259

Contacts Requiring Follow up

2,725

Communications not taken as a report

2,152

Communications taken as a report

3,041

Reports Investigated & closed1,751

Reports Not Closed in Month1,113

285 Cases still open from prior 6 month period

Children Removed from Home853

New In Home Cases1,798

Reports “open & Shut” with no further action

Not Available

This information is not collected and reported – but represents non core demand

Mail, Fax & Court Order1,272

Safety issues indentifiedand addressed at

investigations

Not Available

This information is not collected and reported – but represents core demand

9%

13%

8%

19%24%

27%

Demand into ABC Core

Demand 11,187 Total Incoming Contacts to Hotline

/ Unanswered callsCommunications Reported to Investigations

Key Definitions

CORE DEMAND

Is defined as demands placed on an organization related to its purpose. In the chart above this includes the Communications reported to Investigations, we have also included reports to other jurisdictions and Orders.

NON- CORE DEMAND

Is generically defined as all demands that are either not related to purpose or are a result of not doing things right first time causing rework.

HELPDESK INVESTIGATIONS ONGOING


OTM Case Study: Tracking Cost Across the Value Stream

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Of the total spend of $363M, 42% - representing $153.5M is on non-value activity.

KEY DEFINITIONS: Value and Non-Value Activities OTM analysis of work included breaking down work activity into three types: 1. Value activities are defined as those that directly contribute to Safety, Permanency or Well-being from the perspective of the patient; 2. Supporting activities are defined as activities that are required to support value activities3. Non-value activities are defined as everything else that, from a patient's perspective does not directly contribute to safety, permanency or well being. They include record keeping and administration that the organization chooses or is mandated to do.


OTM Case Study: Resource effort distribution across the E2E value stream

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33%

33%

17%

17%

Value Creating Work

Coordination

Re-work Coord

Re-work

1.0Start study planning

2.0Select vendor

29%

34%

20%

17%

5.0Labelling & packaging

and release

6.0Distribution & Returns

35%

47%

11% 8%

7.0Deviation

management

4.0Implement distribution

concept

8.0Final IMP

Reconciliation

3.0Order study materials

General Admin - infrastructure, administrative work, SME for certain general tasks e.g. SAP expert, label translation, quality

---------------FTE of Work Across all Roles by Value Stream Step------------

16.24% 6.47% 10.18% 13.29% 17.17% 15.65% 8.24% 3.82%

= 8.94%

23%

13%

23%

41%

26%

36%

22%

16%

36%

17%15%

32% 34%

37%

15%

14%

25%

64%

8% 3%

21%

11%23%

45%

Re-work upstream is driven by inaccurate planning assumptions and lack of timely info


Current State Phase(Baseline)

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Design


1. Do we have good,

clean baseline data that tells the whole story?

2. Do we have

meaningful stakeholder

support?

3. Do we progress to the setting business direction phase?

Q&A

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Setting BusinessDirectionTo establish requirements, parameters and constraints for potential re-design

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Design



Using the key learnings and wisdom from the current state, create a stakeholder supported, inspired, qualitative and quantitative statements of business strategy, competitive advantage, customer experience, products & service offering, ranked design criteria & principles, scope of work, an agreed upon, resourced plan forward and change impact analysis.

Foundation (Setting

Direction)Findings


Challenges

• No coherent business case for change beyond financials.

• Define and agree on an integrated work and data system.

• Skipping the work in the current state phase is a mistake.

• Weak sponsorship (Functional).

• 10 to 40% leader turnover.

• Ongoing or planned improvement projects.

• What do you include in the design– scope of design e.g. decisions, competencies, objectives, development plans, projects.

• No perfect answer. Understanding trade-offs.

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Big Decision: Business Direction

• Are we changing our competitive advantage?

• Do we have a new product or service offering coming?

• Do we want to provide a different customer experience tomorrow than we do today? (e.g. are we adding channels?)

• What are there external drivers causing us to change beyond financials/cost? E.g., competitors, government legislation, changing customer requirements.

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OTM Case Study: Stakeholder and Customer Feedback

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OTM Case Study: A Global Corporate Credit Card Company

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Products & Services Today Tomorrow

Client setup – Account approval and entry into the system

Acquisition – “Selling” to low volume/divested accounts

Servicing – Processing of requests

Servicing – “Proactive identification of servicing needs”

Support – Infrastructure management

Back-end support –“Infrastructure management”

NEW Consulting – “Personalised recommendations regarding products and services”

Customer Experience Today Tomorrow

Difficult for the customer to get the service they want. Reactive to customer requests. No knowledge of what services different customers want

Pro-active selling of specific services to specific customers. Pro-active support for customers. Easy for customers to get the service they want.


Establishing Future Performance Assumptions and Targets

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OrgVue Case Study: Choose Design Criteria to Help Guide Programme Decisions on Trade-offs

• Support innovation agenda – faster, quicker

• Focus on customers with close linkage to local management teams

• Ensure clear and effective governance with legal clarity

• Drive Supply Chain Excellence

• Low risk transition plan

• Support acquisition agenda - plug and play

• Support tax optimisation of the business

• Centralise to capture gain from functional excellence and avoid duplication

• Centre decides with local execution

• Align accountabilities with processes and key performance indicators

• New organisation to drive performance

• Design optimum model, then consider tax implications

EXAMPLE CRITERIA GUIDING PRINCIPLES

In the design stage these are turned into

activity dimensions, so that activities can be

clustered and roles created that make sense

Use the principles to further steer the debate

and give clear direction


OTM Case Study: Design Criteria

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Statement[The ABC design must…]

Rating Rationale

1. Ensure compliance to product specifications and regulatory requirements

5 - If we don’t do this, we’re out of business.

2. Deliver device on time. 5 - To meet market demand3. Develop simple, cost effective and flexible processes

4- Respond to variable demand; sell product, adapt to unforeseen variables of the market, address customer needs and be agile.

4. Integrate manufacturing and process development

3

- Speed to market

- Improve process reliability

- Improve industrialization process

5. Promotes accountability3

- Enable the immediate “worker” to take decision

- Distribute leadership and delegation

- Speed of progress

- Problem solving capabilities

- Trust and recognition

6. Drive operational excellence through progress

2

- Continuous improvement is key

- Challenge the status quo and promote innovation

- Stay competitive

7. Encourage collaboration thru teamwork 2- Remove barriers for success and overcome functional boundaries- Inclusion

8. Stimulate people to learn 1

- Have a flexible workforce

- Employability – keep with the pace of change, solid knowledge base

- Improvement effectiveness in-house

DESIGN CRITERIADesign criterion is intended to guide and direct all future ABC design decisions from concept to operational details. Design criteria are made up of 5 to 7 [+/-2] statements directly supporting the Business Direction Strategy and Value Proposition. Each statement is rated highlighting the importance of each statement in relation to the other. While all are important – some are more than others. This subtly is essential in establishing “trade-off” decisions at the concept and detail design Phases.


OTM Case Study: Anticipated Change Impact Analysis

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0

10

20

30

40

50

60

Products and Services

Cost/Revenue

Structure


People Processes

Value Stream

Customer Experience

People Processes5


Setting BusinessDirection

39



Design



1. Do we have complete

alignment and support with sponsors and

stakeholders to move forward

2. Do we have a compelling

clear business direction and plan forward?

3. How well does our

current design fit with our

new strategy

4. Do we progress to

doing design work?

Q&A

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Design PhaseDevelop your future design.

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Design


Design

Concept before detail. Run various scenarios, understand trade-offs of various design options. Establish demand for future world, new/changed/stopped work, location of work, FTE of work, FTE of jobs, capacity release.

Challenges During the Design Phase

• Concept then detail

• Balance design trade-offs

• What is the process and method for doing right sizing

• Degree of granularity

• Intensity of the manual effort

• Balance of doing the work and taking the stakeholders with you

• Self-interest vs collective business good. Political wrangling over vested interests focused on increasing power base rather than defining the optimal design

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Design

OrgVue Case Study: How to right-size your organisation

43

Design

Four mistakes commonly made regarding right-sizing…

It just evolves

Magic Number

Who shouts loudest

Cuts across the board cut

Design

…and four generic methods to determine how many people are required

1 Ratio analysis

The comparison of the number of FTEs in one area to another measure, e.g. Total: HR; Sales: Sales people cost

Always used

2 Activity analysis

Survey how much time people spend on each of their key activities

In large changes when what each person does is unclear

3 Driver analysis

Powerful analytics deliver rapid insights and help the business address drivers of performance

When demand for effort is unclear and needs to be tested

4Mathematical modelling and simulation

Used in non-deterministic and complex settings, e.g. when there are flows or demand; uncertainty of effort; system dynamics

Rarely and in the most complex situations

Increasing frequency

Increasing sophistication

Design

Calculating ratios and using internal benchmarks is far more effective than relying on external ones

Example Ratio Analysis

Process Type

Value Stream

Process

Activity

Company Processes

Commercial

Brand 1

New Business Process

International New Business Process

Client Development

Customer Sign-up

Customer Services (Brand 1)

Client Services

Account Direction (Brand 1)

Account Management (Brand 1)

Brand Management (Brand 1)

Consultancy

Brand 2

Client Development (Brand 2)


Client Services (Brand 2)


Business Support (Brand 2)


Brand 3

New Business (Brand 3)

New Business I-Team (Brand 3)

Contracts (Brand 3)

Purchasing (Brand 3)

Account Development (Brand 3)


Operations (Brand 3)


Brand 4

Sales Support (Brand 4)

Franchisee Services (Brand 4)


End of Contracts and Renewals


Tactical Sales (Brand 3)

Account Management

Stock and Ancillary Services

Tactical Sales (Brand 4)

Ancillary Services and Marketing

Product Services

Marketing

Server Support

Management

Projects

ITSupply Charges

Operations

Server Farm Management

Equipment Supply

Server Farm Administration

Equipment Quotations and Data

Management

Projects

Customer Experience

Query Resolution

Customer Data Services

Customer Experience

Management

Projects

Procurement & Supplier Management

Procurement and Supplier Management

Remarketing

Remarketing Operations

Remarketing Direct Channels

Remarketing Auction Sales

Facilities

Finance

Risk

Market Risk

Portfolio Management

Corporate Credit (Brand 1)

Pricing Operations

SME Credit (Brand 4)

SME Credit (Brand 3)

Pricing

Corporate Credit (Brand 2)

Treasury and Cash Management

Treasury

Cash Management

Operational Finance

Accounts Payable

Debt Management

Asset Valuation

Asset Recovery

Temp Staff for Operational Finance

Management

Shared SecuritisationFinancial Control and

Taxation

Outsourced Services

Temp Staff for Financial Control and Tax

Legal

Corporate Governance

Legal Council

Management

Outsourced Legal Services

Temp Staff for Legal

Finance Reporting

Outsourced Services

ICT

IT Support Business Change Solution Delivery

HR

Human Resources

Recruitment

Business Partners

Training

Internal Communications

HR Advisors

Outsourced Services

Group Management

Group Management Projects

Product Development

Strategic Projects

Customer Projects

Other Professional ServicesTemp Staff for Group

ManagementClient 13 External Support Costs

Strategy

Pricing Strategy Product Development Business Development Project Management

OrgVue Case Study: Example of activity and driver analysis. Start by defining the processes

Design

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Process Type

Value Stream

Process

Activity

Company Processes

Commercial

Brand 1

New Business Process

Generate Lead

Qualify Lead

First Visit

Define Opportunity

First Proposal

Final Proposal

Close the Sale

Implementation

Report on new business performance

Management

International New Business Process

Seek prospects

Manage client communications

Liaise with internal teams

Administration

Client Development

Implementation

Quoting

Manual Invoicing

Customer Meetings

Client Queries and Complaints

Customer Reporting

Management

Customer Sign-up

Quoting, Ordering and Set up

Invitations and Reminder

Chase and Follow-up

Management


Order Management

Equipment Management

Customer and Client Support

Customer Services Management

Client Services

Quoting

Order Management

Customer Queries and Complaints

Administration

Management

Tactical Deals

Reporting

Projects

Account Direction (Brand 1)

Customer Pricing

Customer Meetings


Customer Strategy

Management


Proposals

Customer Pricing

Implementation

Customer Meetings


Event Management

Manufacturer Meetings

Management


Strategic Projects

Management

Temp Staff for Brand 1

Management (Brand 1)

Strategic Projects (Brand 1)

Consultancy

External Consultancy

Internal Consultancy

External Consultancy (Brand 1)

External Consultancy (Brand 2)

Brand 2

Client Development (Brand 2)

Projects

Tender Meetings

Management

Market Analysis, Strategy and Marketing

Tender Development

Business Development

Implementation


Renewal to Delivery

Invoicing and Payroll

Reporting

Client and Customer Queries and Complaints

Team Management

SalaryMatch


Equipment Support

Server Support

Management

Projects

Commissions


Customer Meetings (Brand 2)

Client Queries and Complaints (Brand 2)

Proposals (Brand 2)

Implementation (Brand 2)

Event Management (Brand 2)

Manufacturer Meetings (Brand 2)


Customer Strategy (Brand 2)

Customer Pricing (Brand 2)

Administration

Business Support (Brand 2)

Contract Management and In-Life Quotations



Management

Projects



Brand 3

New Business (Brand 3)

Data Purchase

Customer Contact

Quoting

Credit Application

Order Placement and Contracting

Account Management

Team Management


Customer Strategy

Customer Meetings

Client 1

New Business I-Team (Brand 3)

Customer Contact

Quoting

Credit Applications

Order Placement

Team Management


Customer Strategy

Campaign & Stock Deals

Contracts (Brand 3)

Credit Checks

Contract Set Up

In-Life Contract Management

Team Management

Purchasing (Brand 3)

Pre-Order Queries and Demos

Order Allocation to Dealer

Order to Delivery

Purchasing Queries and Complaints

Team Management

Account Development (Brand 3)

Account Review

Quoting

Client Communications

Outbound Calls

Customer Meetings

Team Management

Customer Strategy




Proactive Calls

Operations (Brand 3)

Change Management

Process Creation and Maintenance

Salesforce Data Governance

Reporting



Management



Brand 4

Sales Support (Brand 4)

Franchisee Sales Support (Brand 4)

Franchisee Queries and Complaints (Brand 4)

Sales Support Reporting (Brand 4)

Team Meetings (Brand 4)

Franchisee Services (Brand 4)

Franchisee Servicing (Brand 4)

Franchisee Queries and Complaints (Brand 4)

Franchisee Reporting (Brand 4)

Team Management (Brand 4)


Customer Data Amendments (Brand 4)

Collections (Brand 4)

Losses Management (Brand 4)

Client Queries and Complaints (Brand 4)

End of Contracts and Renewals

Financing

Refinancing

Ending of Contracts

Client Queries

Internal Reporting

Team Meetings




Team Management (Brand 4)

Quality Assurance and Service Improvement (Brand 4)

Administration (Brand 4)

Projects (Brand 4)


Tactical Sales (Brand 3) Account ManagementStock and Ancillary

ServicesTactical Sales (Brand 4)


Product Services

Short-term equipment rental (Brand 1)

Incident Management

Security Planning

Usage Management


Metering Management

SalaryMatch




Marketing

Data Management

Marketing (Brand 1)

Marketing (Brand 2)

Marketing (Brand 3)

Marketing (Brand 4)

Temp Staff for Marketing

Server Support

User Profile Assessment

Set-up recommendation

Ongoing Advisory and Promotion

Strategic Team Development and Management

Management Projects

ITSupply Charges

OrgVue Case Study: Break the level of detail down

Design

48

Process Type

Process

ActivityCompany Processes

Commercial


Product Services


0... Brian Motes

0... Abbie Gray

0... Scott Jones

0... Jack Cameron

0.6 Imogen Hewitt

0.6 Hayden Bibi

Incident Management

0... Imogen Hewitt

0... Scott Jones

0... Ryan Emrich

0... Hayden Bibi

0... Brian Motes

0... Abbie Gray

0... Jack Cameron

0.8 Michael Robertson

Security Planning

0.1 Ryan Emrich

0.1 Scott Jones

0.1 Brian Motes

0.1 Imogen Hewitt

0.1 Jack Cameron

0.1 Abbie Gray

0.2 Michael Robertson

Usage Management

0... Scott Jones

0... Imogen Hewitt

0... Abbie Gray

0... Brian Motes

0... Ryan Emrich

0... Jack Cameron


0... Abbie Gray

0... Imogen Hewitt

0... Ryan Emrich

0... Brian Motes

0... Scott Jones

0... Jack Cameron

Metering Management

0... Abbie Gray

0... Hayden Bibi

0... Brian Motes

0... Imogen Hewitt

0... Scott Jones

0... Ryan Emrich

0... Jack Cameron

SalaryMatch

1 James Banks


0.6 Ryan Emrich



0... Brian Motes

0... Jack Cameron

0... Abbie Gray

0... Scott Jones

0.2 Hayden Bibi

Marketing

Data Management

Marketing (Brand 1)

Marketing (Brand 2)

Marketing (Brand 3)

Marketing (Brand 4)

Temp Staff for Marketing

1 Rebecca Coughlin

Server Support

User Profile Assessment

0.1 Rosie Bond

0.4 John Reynolds

0.4 Robert Han

0.4 Leonard Wherry

Set-up recommendation

0.2 Rosie Bond

0.4 John Reynolds

0.4 Robert Han

0.4 Leonard Wherry

Ongoing Advisory and Promotion

0... Jeffrey Caldwell

0.2 Leonard Wherry

0.2 Robert Han

0.2 John Reynolds

0.7 Rosie Bond

Strategic Team Development and Management

0... Jeffrey Caldwell

Management

0.5 Amber Weston

Projects

0.5 Amber Weston

OrgVue Case Study: And see and change who is spending what amount of time on each process/activity

Design

49

Processes linked from Employees

Process Type

Value Stream Process

$5,242,628CompanyProcesses

$2,853,710Commercial

$1,747,889Operations

$641,029Finance

$0

ICT

$0

HR

$0

GroupManagement

$0

Strategy

$543,812

Brand 1

$641,271Brand 2

$417,864

Brand 3

$688,190Brand4

$488,646

AncillaryServices and

Marketing

$73,927

ITSupplyCharges

$481,743

ServerFarm

Management

$524,453

CustomerExperience

$534,450

Procurement& Supplier

Management

$190,777

Remarketing

$16,466

Facilities

$397,155

Risk

$0

Treasuryand Cash

Management

$0

OperationalFinance

$0

SharedSecuritisation

$0

FinancialControl and

Taxation

$0

Legal

$243,874

FinanceReporting

$0

IT Support

$0

BusinessChange

$0

SolutionDelivery

$0

HumanResources

$0

OutsourcedServices

$0

GroupManagement

$0

Projects

$0

OtherProfessional

Services

$0

Temp Stafffor Group

Management

$0

Client 13

$0

ExternalSupportCosts

$0

PricingStrategy

$0

ProductDevelopment

$0

BusinessDevelopment

$0

ProjectManagement

OrgVue Case Study: Sort processes into hierarchy and run calculations, e.g. total cost roll-up

Design

50

Processes linked from EmployeesFiltered by Level 2 (Finance)

Process Type

Value Stream Process

Finance

No Roles Doing Activity 54

Avg Cost Per Role 177K

Target Cost 10M

Process Cost Rollup 4.85M

Target Vs. Actual Cost 5.15M

Direct Or Indirect

Fixed Or Variable

Setup Or Ongoing

Risk



Target Cost 3M

Process Cost Rollup 0

Target Vs. Actual Cost 3M

Direct Or Indirect

Fixed Or Variable

Setup Or Ongoing

Treasury and Cash Management



Target Cost 1.5M

Process Cost Rollup 0


Direct Or Indirect Indirect

Fixed Or Variable

Setup Or Ongoing

Operational Finance



Target Cost 4M



Direct Or Indirect

Fixed Or Variable

Setup Or Ongoing

Shared Securitisation



Target Cost 100K

Process Cost Rollup 245K

Target Vs. Actual Cost -145K


Fixed Or Variable Fixed

Setup Or Ongoing Ongoing

Financial Control and Taxation



Target Cost 2M


Target Vs. Actual Cost 319K




Legal



Target Cost 1M

Process Cost Rollup 599K

Target Vs. Actual Cost 401K


Fixed Or Variable

Setup Or Ongoing

Finance Reporting



Target Cost 1M


-60.3KTarget Vs. Actual Cost




OrgVue Case Study: See all the details of each process including actual vs target cost

Design

51

Fixed Or Variable

Fixed Variable

6Plant Director

2Manf. OpsManager

3Eng Manager

3HR Manager 5

QSE Manager

2MIS Manager

0

Secretary

5Manuf. Operations

0

Scheduling(productionplanners)

2Asset CareManager

1Facilities Manager

0

TechnicalManager

and CapEx

0

HR Wagesand Pay-Roll

Clerk

0

AAs

0

HRAdministrator

0

Quality andEnvironmentImprovement

Manager

1Quality Assurance

Team Leaders2

Quality SystemsTeam Leader

0

Microbiologist 1H&S Manager

0

MISAnalyst

0

AccountingClerk

3Team Leaders

0

TeamLead - C

1Senior Technical

Operators - Type C

0

MaterialsIn & Out

Operators

1Process Coordinator

- Process/MixingRoom

0

Engineers(Asset Care)

0

Storemen

0

SiteServicesSupport

0

QualityAssuranceTechnicalOperators

0

QualitySystems

DocumentController

0

QualitySampler

0

SafetyTechnician

0

Line TypeA Operators

0

Line TypeB Operators

0

Line TypeB Operatorsfor complex

packing

0

Line TypeC Operators

0

Process/MixingRoom

OrgVue Case Study: Designing the To-Be Structure

Size is the Span of Control

Coloured by fixed or variable resource

Design

52

• Is the role fixed or variable?

• Where variable, what is the driver?

• Given the driver (assumption), how many FTEs are needed?

• How does this compare to the baseline?

• This is understood at the role and function level

OrgVue Case Study: Running scenarios based on a range of drivers and assumptions

Design

53

Plant Driver Example

Fixed Or Variable

Fixed

Variable

273Plant Director

211Manf. OpsManager

22

EngManager

7

HRManager

24

QSEManager

7

MISManager

1

Secretary

205Manuf.

Operations

5

Scheduling(productionplanners)

16

Asset CareManager

2

FacilitiesManager

3

TechnicalManager

and CapEx

1

HR Wagesand Pay-Roll

Clerk

3

AAs

2

HRAdministrator

1

Quality andEnvironmentImprovement

Manager

13

QualityAssurance

TeamLeaders

6

QualitySystems

TeamLeader

1

Microbiologist

2

H&SManager

1

MISAnalyst

5

AccountingClerk

130TeamLeaders

0.75

TeamLead - C

15

SeniorTechnicalOperators- TypeC

40MaterialsIn &Out Operators

14

ProcessCoordinator-

Process/MixingRoom

12

Engineers(Asset Care)

3

Storemen

1

SiteServicesSupport 12

QualityAssuranceTechnicalOperators

2

QualitySystems

DocumentController

3

QualitySampler

1

SafetyTechnician

54LineTypeAOperators

40Line TypeBOperators

16

Line TypeB Operatorsfor complex

packing

12

Line TypeC Operators

10

Process/MixingRoom

OrgVue Case Study: And see how the total number of FTEs roll-up

Design

54

Function

Engineering GM Make MIS QESH

AAs

Accounting Clerk

Engineers (Asset Care)

Line Type A Operators

Line Type B Operators

Line Type B Operators for complex packing

Line Type C Operators

Manuf. Operations

Materials In & Out Operators

Process Coordinator - Process/Mixing Room

Process/Mixing Room

Quality Assurance Technical Operators

Scheduling (production planners)

Senior Technical Operators - Type C

Team Lead - C

Team Leaders

-1

2

11

-5

-1

-1

1

6

-2

0.25

-3

FTE Difference by Role Title

OrgVue Case Study: The difference between the To-Be vs As-Is by Role can be reviewed

Design

55

Build a Better Set of Design Data

56

Value Stream Structure MM + R/R + Jobs + People Value Stream + Jobs

P&S Demand Work in boundaries Reporting lines FTE of new work

Quality Departmentalisation Salary costs FTE of changed work

Waste v Necessary Waste v Value

ShapeDemographic statistics (gender, tenure, age)

FTE of stopped work

New work v changed work v stopped work

Roles v jobsFunction & Geographic locations

Capacity release

FTE of workFTE of roles and FTE of jobs

Organisational Processes Productivity

People, roles, jobs…

Design

OTM Case Studies

57

Design

Work, Roles, Jobs

58

Activity 1 Activity 2 Activity 3 Activity 1 Activity 2 Activity 3

Role 1 Role 2

Job

OTM Case Study: FTE of New Work

59

Product or Service IM COE BG/ATG ELT SALES IT OPSTotal New Demand

A - Integrated Marketing Plan 3.70 1.50 0.85 0.23 0.23 - - 6.50

B - Brand Strategy - 4.72 - - - - - 4.72

C - Digital Strategy 0.12 5.93 - - - - - 6.05

D/E - Content Marketing 0.02 13.19 0.04 - - - - 13.26

F - Full Marketing 0.59 2.35 - - - - - 2.94

G - Marketing Assets 0.22 0.24 0.04 - - 0.01 0.02 0.53

H - Creative - 8.00 - - - - - 8.00

I - Industry Marketing 2.00 1.50 6.00 - - - - 9.50

J - Product Marketing - - 25.00 - - - - 25.00

K - Partner Marketing 15.50 - - - - - - 15.50

Total New Demand on Marketing 22.15 37.44 31.93 0.23 0.23 0.01 0.02 92.01

Design

OTM Case Study: FTE of Jobs Footprint

60

Channel AMBP 1.0LM 1.0PM 1.0Total 3.0 FTE

Activation lead1 FTE

Channel BMBP 1.0LM 2.0PM 1.0Total 4.0 FTE

Channel CMBP 1.0LM 1.0PM 1.0Total 3.0 FTE

Innovation

MBP 1.0LM 1.0PM 1.0Total 3.0 FTE

LondonLondon 6.75Paris 1.0

Total 8.75 FTE

NYCNYC 4.0Korea 1.0

Total 5.0 FTE

Middle EastDubai 6.75SE Asia 2.0Delhi 1.0Total 9.75 FTE

TokyoTokyo 3.96

Total 4.0 FTE

Comms

Boss 1.0Doers 8.5PM 0.5Total 10.0 FTE

Insight & research


CreativeBoss 1.0Doers 8.0PM 1.0Total 10.0 FTE

Digital


Experiential


Brand


CMO -1 FTE

1 FTE(1%)

13 FTE(18%)

28.5 FTE(39%)

30 FTE(41%)

72.5FTETOTAL

Design

OTM Case Study: Tracking the ∆ in Roles and Jobs

61

Design

OTM Case Study: Capacity Release Targets

62

To process END-TO-END work requires a minimum of 159,072 hours per month* (based on meeting average monthly new demand and existing case workload) according to state-wide casework standards set by regulation and policy. This is 38,405 hours above the Industry benchmark study.

Service Area Case Volume

Monthly Hours Req'd

ABCIndustry

Benchmark

Intake 10,177 8,446.9 5,486.2

Assessment 2,537 37,547.6 28,309.2

In-home cases 3,709 28,559.3 24,479.4

Children workload 9,088 84,518.4 62,391.7

TOTAL 158,072.2 120,666.5

* This does not include hours associated with general management or administrative tasks and activities.

Design

OTM Case Study: Change Impact Analysis after Design

63

Design

Star AspectChange Impact

Rationale

Strategy 3 MWB remain the same, but the way of presenting them are different.

Products and Services 3 Products won’t change. Services and way of presenting them will be modified.

Core Business Processes 4.5 The entire interdependencies will be modified / new responsibilities.

Structure 4.5 The whole reporting line will be impacted.

FTE of Work 3.5 4% additional FTE (without support).

Management Mechanisms 4 New objectives / roles / system / process / alignment needed.

People 3.75 Specific functions will be more impacted (Sale & care).

Leadership 4 Strong leadership skills needed for this modification (new reporting lines).

Culture 3

No modifications of values/Social attributes.Culture/mind-set might be altered.

Customers/Vendors 4Big positive impact on our consumers.

Customers and Suppliers 3Positive impact on Customers and Suppliers.

Average 3.66

0

1

2

3

4

5Strategy

Products andServices

Core BusinessProcesses

Structure

FTE of Work


People

Leadership

Culture

Customers

Customers andSuppliers

Change Impact: Avg. 3.66

The Change Impact is on a rating is rated on a scale of 1 = low impact to 5 = high impact. While this rating does not correlate with negative or positive impact, it does highlight the level of change to be considered while planning the transition to the new design and operating model

Design Phase

64



Design


Design

1. Do we have complete

alignment and support with sponsors and

stakeholders to move forward

2. Is the design 75% complete?

3. Do we want to implementthis design?

Q&A

65

Design

Transition and ImplementationPlanning

66



Design



Evolution vs revolution, transition and implementation plan (critical pathing), governance, resource support to ensure stabilisation, track and monitor performance against performance assumptions established in the setting business direction phase, calibrate and CPI

Challenges

• Evolution vs revolution.

• Implementation governance.

• Sustained effort and resources to stabilise the new design.

• Make it real and sustainable?

• Implementation is ≠ stabilisation.

• Creating pull/readiness vs compliance.

• Knowing you have achieved the targets and goals you set originally.

67


Transition

• Start with transition

• New Metrics, are we reaching our performance assumptions diagram linking the foundation phase. E.g. measuring customer experience to see if it changes.

• Put in design governance ©. Review and calibrate the design as a process measure.

• Your scorecard should be in place and meeting the foundation decisions.

68

Design Process

Implementation Begins

New Measures in Place

Review

Did we do what we said we were going to and did we make an impact?

Foundation Phase

Design Phases


OTM Case Study: Managing Work in the New Design

• Activities a person carries out in the old world needs to be tracked in the new design.

69


OTM Case Study: A Sales Organisation – From Operational Excellence to Customer IntimacyAs an fundamental part of the plan the following needs to be taken into account to move to the new operating model:

• Skills gaps required to work

• Development plans based on 10/20/70

• Time horizon for upskilling/resources

• Track #’s and amount of effort as related to new jobs, new work and people assigned

70

Case Study available at ON-THE-MARK.com/case-studies

Morrisons & Discounters (Aldi, Netto

Lidl)

Tesco

Domestic &

International

Sainsbury

&

Waitrose

Asda Walmart High Street

(Coop, Somerfield, Iceland, Woolworths,

Boots, Superdrug, Soft Discounters)

Food

Sales

CCSD

Supply Chain

Finance

Confectionery

Sales

CCSD

Supply Chain

Finance

Purina

Sales

CCSD

Supply Chain

Finance

Beverage

Sales

CCSD

Supply Chain

Finance

Internal coordination

From

To

Morrisons & Discounters (Aldi, Netto

Lidl)

Tesco

Domestic & International

Sainsbury

&

Waitrose

Asda Walmart

Food

Beverage

Core Confectionery

Customer Marketing

Customer Finance

Customer Supply Chain

High Street

(Coop, Somerfield, Iceland, Woolworths,

Boots, Superdrug, Soft Discounters)

Food

CCSD

Supply Chain

Finance

Purina

CCSD

Supply Chain

Finance

Confectionery

CCSD

Supply Chain

Finance

Beverage

CCSD

Supply Chain

Finance

Food

Beverage

Core Confectionery

Customer Marketing

Customer Finance


Food

Beverage

Core Confectionery

Customer Marketing

Customer Finance


Food

Beverage

Core Confectionery

Customer Marketing

Customer Finance


Food

Beverage

Core Confectionery

Customer Marketing

Customer Finance



OrgVue Case Study: Without tracking headcount versus the business plan and forecast how do you know you are delivering what you promised

Actual vs Budget vs Forecast Headcount Dashboard

Total headcount by forecast, budget and

actual views

Difference between the

views by month


OrgVue Case Study: Visualising all Objectives & KPI across the organisation enables a quick understand of current progress

Organisation view of KPI RAG status


It isn’t just headcount or

other HR measures you

want to track. It is all the key

business ones

OrgVue Case Study: …and it is crucial to then be able to see how each area is progressing over time

Progress of objective performance score, over the year

BRAG status

Average BRAG status

Target

No. of months above/below

target


Q&A

74


Conclusion

75

Conclusion

Five key takeaways for data driven organisation design

1. Understand the data you are working with, and make it easy to collect and clean on an ongoing basis

2. Create a compelling business case for change; communicating value and engaging all levels of the organisation throughout the design

3. Data driven org-design is on-going consistent with CPI (Continuous Process Improvement) – implementation is not the same as stabilising the new design

4. Organisation design is not a one off. Make sure you track progress, and measure success

5. Technology will never do all the work for you, all phases of design require thought, time, collaboration and hard graft

76

Conclusion

OTM Common Results Footprint

77

Conclusion

Q&A

78

Conclusion

Thanks for Listening!

After the presentation we will post email the slides and will be available to download on our website.

If you have any unanswered questions or want greater explanation:

Rupert Morrison: [email protected]

Mark LaScola: [email protected]

79

mailto:[email protected]

mailto:[email protected]

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