fcb partners course preview: process owners in action

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


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


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


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


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


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


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


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


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


Role and Responsibili<es Communicate in A Networked World

Cul=vate key opinion leaders inside and outside your process


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


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


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


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


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


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


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


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