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Steve Towers, Founder,
BP Group
Steve.towers@bpgroup.org
www.bpgroup.org
The State of the Industry
The State of the Industry:
Industry highlights and feedback from Six Sigma & Process Excellence IQ‟s global
network & the www.BPGroup.org community
Drawing on 2010 Process Excellence surveys with the Lean Six Sigma and BPM community, Six Sigma IQ and the BP Group… share with you the key global process excellence trends and industry evolutions from the last12 months and the year ahead.
1. Key evolutions in the Process Improvement corporate agenda: What are the market trends for programme development?
2. Emerging Next Practice, Techniques, Tips and Methodologies
3. How has the industry moved on: Onsite polling around your top investment and development areas for the next twelve months
4. Making a new resolution: Looking forward to the „must dos‟ for the next 12 months
5. Outside-In: The Secret of the 21st centuries leading companies – who are they and what are they doing?
Acknowledged Global Sources
Gartner ~ Forrester ~ IBM ~ HBR ~
BP Group ~ Lean Six Sigma ~
Six Sigma IQ ~ BPEX ~ community ~
Millward Brown ~
3 IQPC & BP Group Conferences since January - Florida,
London, Stockholm,
5 More before year end
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Contributors – “The State of the Industry”
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Steve Towers SPECIAL
www.bp2010.com
www.stevetowers.com
www.bpgroup.org
www.bp2010.com
www.towersassociates.com
www.oibpm.com
We are at the very point in time when a 400-year old age is dying and another is struggling to be born, a shifting of culture, science, society, and institutions enormously greater than the world has ever experienced.
Ahead, the possibility of the regeneration of relationships, liberty, community, and ethics such as the world has never known, and a harmony with nature, with one another, and with the divine intelligence such as the world has never dreamed.
Dee Hock, Founder & CEO--Visa
A Global
tipping point
It is the end of our beginnings
Key evolutions in the Process Improvement corporate agenda:
What are the market trends for programme development?
The Always on World of t
Source BBCworld
The Always on World – It has all happened in the last 12 years! Mapping the Growth of the Internet
Source BBCworld
The Always on World of the 21st century Mapping the Growth of the Internet
We believe that within five years, 96 percent of consumers will have access to the Internet, whether it be through a personal computer, a set-top box or a mobile phone. You bet that changes everything. (2010)
Source: Fanzine
Key evolutions in the Process Improvement corporate agenda:
What are the market trends for programme development?
O
bje
ctive
Be
ne
fits
SER
VIC
E
SER
VIC
E &
CO
ST
SER
VIC
E &
CO
ST
& R
EV
EN
UE
11970-80
21980-95
31995-05
4 post 2000
INSIDE-OUT OUTSIDE-IN
Scope of Transformation
Total Quality
Management
Business
Process
Improvement
Business Process
Reengineering
Six Sigma
Lean
Business
Process Management
Outside-In Approaches
e.g. Customer Expectation
Management
PERFORMANCE BENEFITS - PROCESS TRANSFORMATION EVOLUTION
© Towers Associates 2011 – Research 800+companies 2006-2011
Jeff Bezos sums it nicely…
TOOLS
Layer 1:
Who is
the
Customer
?
Layer 2:
What is
the
Customer
s current
Expectatio
n?
Layer 3: What is
the process the
customer thinks
they are involved
with?
Layer 4:
How does
what
We do
impact
Customer
Success?
Layer 5:
The
Successful
Customer
Outcome –
what does
the
customer
really need
from us?
The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CRAFTING THE
SUCCESSFUL CUSTOMER OUTCOME
Understanding the real Customer Need
The One liner
SCO:
One line
statement
that explains
the actual
SCO
Key evolutions in the Process Improvement corporate agenda:
What are the market trends for programme development?
Why should we bother?
Because the answers are
very different !
Inspiration:
Udayan Banerjee, CTO,
NIIT Technology (India)
This is a Copernican Moment
Copernicus - 19 February 1473 – 24 May 1543
He died 467 years ago
Key evolutions in the Process Improvement corporate agenda:
What are the market trends for programme development?
At the programme management level shifting from IT automation with efficiency and effectiveness improvements to managing the Causes of Work
Linking of every task and activity to a Successful Customer Outcome
….this is in line with shifts in responsibility for process at the corporate level
Who has responsibility to drive business process
improvement in your company?
"We can't solve problems
by using the same kind
of thinking we used
when we created them."
Too many managers have become so
specialized that they don’t think in
terms of the company’s big picture.
Philip Kotler
Emerging Next Practice, Techniques, Tips and
Methodologies
Get passed those specialisms – link cause and effect
Use of techniques that provide a line of sight to the primary customer/citizen
“Break through the glass ceiling”
OIL (Germany) / SSOS (Canada) / CEM (USA) / CIPA (UK) /
Emphasis on „stopping the dumb stuff‟ before automation!
How has the industry moved on: Polling around your top
investment and development areas for the next twelve months
IBM‟s latest survey of CIO‟s and CEO‟s (published June) Source: ibm.com/theessentialcio
“….increasingly help their public and private sector organizations cope with complexity by simplifying operations, business processes, products and services.”
According to the IBM CEO 2010 Study, “better performers manage complexity on behalf of their organizations, customers and partners. With an overwhelming 99 percent of CIOs identified initiatives to simplify internal key processes as among those they would lead or support the organisation” What are your plans to simplify the customer experience, products and services to increase functionality, use and satisfaction?
Making a new resolution: Looking forward to the „must
dos‟ for the year ahead – To Do tickbox items
Check your scorecards – Activity v. Outcome
Extend current programmes towards the Enterprise level and ultimately The Customer Experience as the process
Reward folks for achieving Successful Customer Outcomes
Align all process activity to the SCO
Count the things that count – Cost/Revenue/Service
Examples
Tony Hsieh
Listen to the 15 minute interview
Zappos – Seven Ways to Achieve Exceptional Customer
Services (Tony Hsieh)
Make Customer
service a priority
for the whole
company
Empower your
customer service
people. Rarely
should they have to
escalate issues.
Fire customers
who are
insatiable
Don’t measure
call times.. And
don’t use scripts
Don’t hide your
phone number.
You want to
talk to
customers.
View the costs of
handling customer
calls as an investment
in marketing, not an
expense
Celebrate great
service by telling
exception stories to
the entire company
Moving to Lifestyle Management
CUSTOMER LIFESTYLE MANAGEMENT
110+ PRODUCTS
BIRTH MARRIAGE GRADUATION CAREER GRANDEE RETIREMENT DEATH FAMILY
Outside-In: The Secret of the 21st centuries leading
companies – who are they and what are they doing?
Enterprise Business Process Management
A method of managing an organisation
by understanding and delivering
Successful Customer Outcomes (SCO)
also referred to as Outside-In
Some of the critical questions you may wish to ask
Where does your process
start and finish?
What is the Successful Customer
Outcome?
What are the Key Moments
of Truth in this Process?
What business are you (REALLY) in?
Outside-In
Business card/piece of paper
= book (I have 30+ hardcopies with me) = deck
Review the Action slides within this deck
Get tooled up to help your organisation
See some of you tomorrow at the workshop!
www.bpmbox.com for Australia if you wish to
qualify professionally
Steve Towers, Founder,
BP Group
Steve.towers@bpgroup.org
www.bpgroup.org
Thank you!
The State of the Industry