Post on 10-Aug-2020
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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
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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Current State (Baseline)
Current State (Baseline)
Setting Business Direction
Design
Transition and Implementation
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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Current State (Baseline)
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…
Current State (Baseline)
OrgVue Case Study
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Current State (Baseline)
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
Current State (Baseline)
Overcome the data collection and cleansing challenge
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Current State (Baseline)
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
Current State (Baseline)
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
20 %complete property
Absence Detail
14groups
100 %complete property
Area
ME
AS
UR
ES
7groups
100 %complete property
Age
10groups
100 %complete property
Grade
6groups
100 %complete property
Current Salary
Current State (Baseline)
OrgVue Case Study: Gamifying and crowd sourcing data completion
& cleansing
Current State (Baseline)
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
Current State (Baseline)
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
Current State (Baseline)
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
Current State (Baseline)
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
Current State (Baseline)
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
Current State (Baseline)
OTM Case Studies
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Current State (Baseline)
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
Current State (Baseline)
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.
Current State (Baseline)
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 (Baseline)
Current State Phase(Baseline)
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Current State (Baseline)
Current State (Baseline)
Setting Business Direction
Design
Transition and Implementation
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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Current State (Baseline)
Setting BusinessDirectionTo establish requirements, parameters and constraints for potential re-design
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Current State (Baseline)
Setting Business Direction
Design
Transition and Implementation
Setting Business Direction
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
Current State (Baseline)
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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Setting Business Direction
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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Setting Business Direction
OTM Case Study: Stakeholder and Customer Feedback
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Setting Business Direction
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.
Setting Business Direction
Establishing Future Performance Assumptions and Targets
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Setting Business Direction
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
Setting Business 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
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- 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.
Setting Business Direction
OTM Case Study: Anticipated Change Impact Analysis
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0
10
20
30
40
50
60
Products and Services
Cost/Revenue
Structure
ManagementMechanisms
People Processes
Value Stream
Customer Experience
People Processes5
Setting Business Direction
Setting BusinessDirection
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Current State (Baseline)
Setting Business Direction
Design
Transition and Implementation
Setting Business Direction
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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Setting Business Direction
Design PhaseDevelop your future design.
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Current State (Baseline)
Setting Business Direction
Design
Transition and Implementation
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
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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)
Customer Services (Brand 2)
Client Services (Brand 2)
Account Management (Brand 2)
Business Support (Brand 2)
Brand Management (Brand 2)
Brand 3
New Business (Brand 3)
New Business I-Team (Brand 3)
Contracts (Brand 3)
Purchasing (Brand 3)
Account Development (Brand 3)
Client Services (Brand 3)
Operations (Brand 3)
Brand Management (Brand 3)
Brand 4
Sales Support (Brand 4)
Franchisee Services (Brand 4)
Customer Services (Brand 4)
End of Contracts and Renewals
Brand Management (Brand 4)
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
Customer Services (Brand 1)
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
Client Queries and Complaints
Customer Strategy
Management
Account Management (Brand 1)
Proposals
Customer Pricing
Implementation
Customer Meetings
Client Queries and Complaints
Event Management
Manufacturer Meetings
Management
Brand Management (Brand 1)
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
Customer Services (Brand 2)
Renewal to Delivery
Invoicing and Payroll
Reporting
Client and Customer Queries and Complaints
Team Management
SalaryMatch
Client Services (Brand 2)
Equipment Support
Server Support
Management
Projects
Commissions
Account Management (Brand 2)
Customer Meetings (Brand 2)
Client Queries and Complaints (Brand 2)
Proposals (Brand 2)
Implementation (Brand 2)
Event Management (Brand 2)
Manufacturer Meetings (Brand 2)
Management (Brand 2)
Customer Strategy (Brand 2)
Customer Pricing (Brand 2)
Administration
Business Support (Brand 2)
Contract Management and In-Life Quotations
Brand Management (Brand 2)
Management (Brand 2)
Management
Projects
Temp Staff for Brand 2
Strategic Projects (Brand 2)
Brand 3
New Business (Brand 3)
Data Purchase
Customer Contact
Quoting
Credit Application
Order Placement and Contracting
Account Management
Team Management
Client Queries and Complaints
Customer Strategy
Customer Meetings
Client 1
New Business I-Team (Brand 3)
Customer Contact
Quoting
Credit Applications
Order Placement
Team Management
Client Queries and Complaints
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
Client Queries and Complaints
Client Services (Brand 3)
Client Queries and Complaints
Proactive Calls
Operations (Brand 3)
Change Management
Process Creation and Maintenance
Salesforce Data Governance
Reporting
Brand Management (Brand 3)
Management (Brand 3)
Management
Temp Staff for Brand 3
Strategic Projects (Brand 3)
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 Services (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
Brand Management (Brand 4)
Temp Staff for Brand 4
Management (Brand 4)
Team Management (Brand 4)
Quality Assurance and Service Improvement (Brand 4)
Administration (Brand 4)
Projects (Brand 4)
Strategic Projects (Brand 4)
Tactical Sales (Brand 3) Account ManagementStock and Ancillary
ServicesTactical Sales (Brand 4)
Ancillary Services and Marketing
Product Services
Short-term equipment rental (Brand 1)
Incident Management
Security Planning
Usage Management
Server Farm Management
Metering Management
SalaryMatch
Short-term equipment rental (Brand 2)
Short-term equipment rental (Brand 3)
Short-term equipment rental (Brand 4)
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
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Process Type
Process
ActivityCompany Processes
Commercial
Ancillary Services and Marketing
Product Services
Short-term equipment rental (Brand 1)
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
Server Farm Management
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
Short-term equipment rental (Brand 2)
0.6 Ryan Emrich
Short-term equipment rental (Brand 3)
Short-term equipment rental (Brand 4)
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
No Roles Doing Activity 0
Avg Cost Per Role 184K
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
No Roles Doing Activity 0
Avg Cost Per Role 150K
Target Cost 1.5M
Process Cost Rollup 0
Target Vs. Actual Cost 1.5M
Direct Or Indirect Indirect
Fixed Or Variable
Setup Or Ongoing
Operational Finance
No Roles Doing Activity 20
Avg Cost Per Role 203K
Target Cost 4M
Process Cost Rollup 1.26M
Target Vs. Actual Cost 2.74M
Direct Or Indirect
Fixed Or Variable
Setup Or Ongoing
Shared Securitisation
No Roles Doing Activity 2
Avg Cost Per Role 310K
Target Cost 100K
Process Cost Rollup 245K
Target Vs. Actual Cost -145K
Direct Or Indirect Indirect
Fixed Or Variable Fixed
Setup Or Ongoing Ongoing
Financial Control and Taxation
No Roles Doing Activity 11
Avg Cost Per Role 150K
Target Cost 2M
Process Cost Rollup 1.68M
Target Vs. Actual Cost 319K
Direct Or Indirect Indirect
Fixed Or Variable Fixed
Setup Or Ongoing Ongoing
Legal
No Roles Doing Activity 7
Avg Cost Per Role 184K
Target Cost 1M
Process Cost Rollup 599K
Target Vs. Actual Cost 401K
Direct Or Indirect Indirect
Fixed Or Variable
Setup Or Ongoing
Finance Reporting
No Roles Doing Activity 11
Avg Cost Per Role 94K
Target Cost 1M
Process Cost Rollup 1.06M
-60.3KTarget Vs. Actual Cost
Direct Or Indirect Indirect
Fixed Or Variable Fixed
Setup Or Ongoing Ongoing
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
Boss 0.0Doers 1.5PM 0.5Total 2.0 FTE
CreativeBoss 1.0Doers 8.0PM 1.0Total 10.0 FTE
Digital
Boss 0.5Doers 2.0PM 0.5Total 3.0 FTE
Experiential
Boss 0.5Doers 3.0PM 0.5Total 4.0 FTE
Brand
Boss 0.5Doers 0.5PM 0.0Total 1.0 FTE
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
ManagementMechanisms
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
Current State (Baseline)
Setting Business Direction
Design
Transition and Implementation
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
Current State (Baseline)
Setting Business Direction
Design
Transition and Implementation
Transition and Implementation
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 and Implementation
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
Transition and Implementation
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
Transition and Implementation
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
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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
Customer Supply Chain
Food
Beverage
Core Confectionery
Customer Marketing
Customer Finance
Customer Supply Chain
Food
Beverage
Core Confectionery
Customer Marketing
Customer Finance
Customer Supply Chain
Food
Beverage
Core Confectionery
Customer Marketing
Customer Finance
Customer Supply Chain
Transition and Implementation
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
Transition and Implementation
OrgVue Case Study: Visualising all Objectives & KPI across the organisation enables a quick understand of current progress
Organisation view of KPI RAG status
Transition and Implementation
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
Transition and Implementation
Q&A
74
Transition and Implementation
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: rupert.Morrison@concentra.co.uk
Mark LaScola: mlascola@on-the-mark.com
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