process innovation capabilities diagnostic tool - working draft
TRANSCRIPT
©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
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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
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The Operating Model
Performance
Performers Platforms (hard and soft)
Purpose
Power Process
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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?
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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
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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?
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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?
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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?
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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
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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?
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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?
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Five Types of Processes
Core
Enabling Strategic Sensing
Governing
ST Success
LT Success Sustained
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Process Suites
Core – E2E supply chain
– new product development
– customer acquisition
– demand stimulation
Enabling – IT
– HR
– Legal
– Risk
– Finance
– Safety
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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
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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)?
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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?
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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?
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Enterprise Performance
Actual results vs. plan and vs. strategy
Innovation results
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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?
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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