process outcomes vs outputs
DESCRIPTION
Maybe I'm being pedantic, but if you don't understand the difference between a process output and an outcome, how can you manage and continuously improve performance?TRANSCRIPT
Process Outputs vs. Outcomes
Does it matter and...
Who gives a ****?
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It’s very clear to me...
There is no process that produces Customer Satisfaction as an Output
However… There are (many) processes that deliver Outputs
that have an impact on whether, or not, Customers are satisfied
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What is a Process?
3
INPUT OUTPUTPROCESS
A process is an activity, or series of activities,that converts an input, to an output,
by doing work.Processes only exist to add value, achieve outcomes andmeet the requirements of customers (and stakeholders)
Purpose:CustomerOutcome
Purpose:CustomerOutcome
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An example
What’s wrong with this?
4
DissatisfiedCustomer
SatisfiedCustomer
ResolveComplaints
Input Process Output
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Have you got it?
5
DissatisfiedCustomer
SatisfiedCustomer
ResolveComplaints
Input = Process Output =A Complaint An Apology, A Complaint Report
Actually =An Outcomeof a previous
process
Actually =An Outcome
of a well-handled
complaint
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Basic Principles
Outcomes are about “Desired Performance” Outcomes can therefore have “Measurements”
associated with them (e.g. Corporate-level Indicators) Processes deliver “Outputs” (to “Customers”) The Quality, Timeliness and Quantity of Outputs
contribute to Outcomes The Quality, Timeliness and Performance of Processes
contribute to Outcomes There may be “one-to-many” or “many-to-one”
relationships between Processes and Outcomes
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Processes, Outputs, Outcomes
7
Customer &ExternalFacing
Processes
Output
Output
Output
Outcome
Outcome
Outcome
Outcome
Process Level(Measured byProcess KPIs)
OrganisationLevel
(Measured byCorporate Headline
Indicators)
Customersreceiveoutputs
Customersreceiveoutputs
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Processes, Outputs, Outcomes
8
Customer &ExternalFacing
Processes
Widget
Invoice
Brochure
RFT Widget
On-time Invoice
CorrectAddressee
HappyCustomers
Process Level(RFT, OTIFA etc.)
OrganisationLevel
(Customer Sat.)
Customersreceiveoutputs
Customersreceiveoutputs
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Improvement Approach
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Define the Desired
Outcome
Define the Measurements associated with
the Outcome
Identify the Processes
that contribute to those
Outcomes
Define the Process Outputs
Identify the Process Owners
Prioritise the Processes
- Control- Impact- Influence- Resource
- Control- Impact- Influence- Resource
Improvethe Processes
Measure the Process &
Outcome(s)
Compare with the desired Outcome
Assess “As Is” Process situation
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Organisation Outcomes: examples Crime Reduced & Community Safety Improved Employment & Prosperity for all (from a vibrant local economy) Lifelong Learning & Personal Development Promoted Health & Welfare Promoted Improved Environment Improved Access to Services Motivated/Satisfied Staff Loyal Customers Profitable & Cash-positive
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Reasons why it matters
Organisations need to …. Identify their key processes Know whether/how key processes contribute to achieving the
Corporate Strategic Objectives (expressed as outcomes) Identify owners for each of the key processes Ensure clarity and ownership within the organisation in order
to drive process and performance improvement
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© Copyright Improvement Skills Consulting Ltd.(September 2011)
M: 07850 728506
W: www.improvement-skills.co.uk
T: @ianjseath
12 © 2011 Copyright ISC Ltd.