Sanitized Knowledge Transfer Deliverable:Rapid Process Change Tutorial

RAPID PROCESS CHANGE TUTORIAL

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Course Topics

1 Section 1: Introduction & Objectives

2 Section 2: Key Concepts

3 Section 3: Approach Overview

4 Section 4: Mobilize Team

5 Section 5: Assess Processes

6 Section 6: Evaluate Opportunities

7 Section 7: Implement Improvements

8 Section 8: Sustain Improvements

9 Section 9: Wrap-up

RPC Course

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Learn what makes Process Change efforts successful

Familiarize participants with the Rapid Process Change approach to prepare for rapid benefits realization

Learn useful tools and techniques to leverage Rapid Process Change for related WS3 efforts (BPR / OD In a Box)

Discuss how Rapid Process Change can be applied long term in this company

Share any comparable ideas and experiences

Course Objectives Introduction

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Many approaches can be used to improve processes

• Straightforward identification and elimination of low value tasks

• Useful for very rapid task simplification and company buy-in

• Savings are short lived unless supported by process changes

• Similar to GE WorkOut process

• Analysis of work components to determine which tasks are “non-value added” vs. customer requirements

• Combines remaining work into “full jobs”, freeing up people

• Savings are short lived unless supported by process changes

• Similar to AVA

• Rapidly redesign critical processes with users/process managers, guided by facilitated issue identification

• Focuses on key process, system and organization issues

• Targets critical processes rather than complete process or strategy

• e.g. IBM Rapid Process Change (RPC)

• Analysis of key change levers and redesign of broad spectrum of strategy, product, process, organization and technology

• Significant improvement among all key change levers

• Lengthy and costly; organization may not retain focus & will to change

• e.g. any full BPR method, such as IBM’s Change Integration

• Develop future company leadership through in-depth training in process change and leadership behavior change methods

• Ongoing improvement of results

• Requires full commitment of top management

• e.g. GE 6 Sigma

Non-Value Added Analysis

Rapid Process Change

Full Process Redesign

Leadership Development

Task Elimination

Approach

Benefit

Risk

Example

Introduction

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Top- Down, Cost Driven Change(Strategic Profit Improvement)

Long Term, Continuous Process Improvement(Six Sigma)

Issue Driven, Process-Based Change(Rapid Process Change)

Focus resources on critical activities Top-down analysis of revenues, costs, &

operational efficiency End-to-end approach to process review &

operational improvement Position for future growth (strategic) Requires top executive mandate / support

due to the magnitude of change

Focus on reduction of process variance (sigma) Prepare for on-going improvement Top-down cultural shift Links operational improvements to financial drivers

Three different approaches that have each delivered value in different situations. Although one may meet most needs, best practice is to tailor the approach to meet the specific program objectives and organization culture

Focus on achieving tangible operating improvement results in an accelerated timeframe

Encourages continuous improvement by providing training for internal resources

Drives speed-to-benefit of actual change vs. theoretical recommendation

Provides front-to-back evaluation module to estimate value creation

Efficient approach to identify broken or missing processes and analyze corresponding root causes

Requires strong sponsor support and dedicated team

Rapid P

rocess Change

Data driven change Long-term strategic review of revenues, costs and

value chain Requires long-term commitment of executive

management

6 Sigma

SPI RPC

Six Sigma

Operational Improvement

Solutions

Introduction Process Improvement Landscape

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Rapid Process Change Overview

Stakeholder(s) review: Recommended Improvements

RPC Key Outcomes and Deliverables:

Stage 1: Project team formed & plan developed

Stage 2: Process definitions completed & issues with process, root causes and opportunities identified

Stage 3: Opportunities evaluated & prioritized, selected and documented

Stage 4: Develop and implement selected improvement opportunities

Stage 5: Sustain implementation of selected improvement opportunities

Stakeholder(s) review: Issues and Opportunities

SustainImprovements

Implement Improvements

EvaluateOpportunities

AssessProcesses

Mobilize Team

Change & Transition Management

Project Management

Introduction

Rapid Process Change is an issues based approach to rapidly deliver process, organizational and systems improvements.

The RPC approach consists of five stages. Each of the 5 stages has distinct outcomes and deliverables which are reviewed and agreed to by the Client Process Stakeholder(s).

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SustainImprovements

The focus of the first discussion is on identifying the core , or mission critical, process(es) and understanding the issues, root causes and opportunities.

Discussion 1

Discussion 2

Discussion 3

Client Process Owner Discussion 1

Primary Output: Process Issues, Root Causes and Opportunities



AssessProcesses

Mobilize Team

Primary Output: Evaluated Opportunities

Primary Output: Prioritized Implementation Solutions for Development

Assess Processes

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100%

80%

x%

Productive Return

Effort (Resources, $)

Focus resources on value-added

work

Drive up effectiveness

(yield)

Rapid Process Change can significantly increase the productivity of existing resources

Why RPC?

Current performance may be less than it could be because:

‐ Some activities do not support core business objectives

‐ Some efforts don’t yield high returns in core business objective areas

Improving processes to eliminate waste and increase alignment and focus will improve results without adding additional resources

Improvement needs to start with an understanding of the processes

Introduction

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RPC builds enduring, reusable skills

Four generations of projects form the core of RPC’s training cycle:

‐ Generation 1: Proof of concept‐ Generation 2: Perform with guidance‐ Generation 3: Lead with guidance‐ Generation 4: Lead with no guidance

RPC’s training approach is unique in that:

‐ It is highly participative during the project (side-by-side IBM Business Consulting and client resources)

‐ It involves continuous instruction of internal resources to achieve mastery knowledge of the process improvement methodology

The RPC “Generational” Model

RPC Methodology

1st

generation

2nd

generation

3rd

generation

4th

generation

RPC

Training Cycle

Proof of

Concept

Proof of

Concept

LEAD with NO

guidance

LEAD with NO

guidance

Perform with

guidance

LEAD with guidance

RPC builds strong internal skills that are critical to ensuring sustainable change and ongoing business value creation

Introduction

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RPC’s Value Proposition

RPC’s value proposition is multifaceted touching several efficiency and effectiveness dimensions:

- Operational improvement benefits- Financial benefits- Human capital efficiency benefits- Cultural benefits- System improvement identification

Cost

Savings

Revenue

Enhancements

Process

Effectiveness

Savings

Process

Efficiency

Savings

Headcount

Reduction

Improved

Available

Capacity

Improved

Employee Morale

Quality-Conscious

Culture

Financial benefits

Human capital efficiency benefits

Operational improvement benefits

Cultural benefits

RPC’s Value Proposition

Systems improvement benefits

RPC’s

value

proposition

Systems Benefits

Introduction

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The RPC Methodology (Isbank Version) The RPC approach consists of five stages supported by ongoing project and change management activities and

relies on interactive discussion (normally these would be full User Team Workshops)

Discussions are used to ensure alignment and buy-in for the results from each stage. If the processes are extremely complex, or if key information is not readily available, additional workshops may be required.

Effective project, change and transition management ensures the benefits realized from RPC effort are sustainable.

Sustain Improvements


Evaluate Opportunities

AssessProcesses

Mobilize Team


Project Management

Discussion 1 Primary Output: Process Issues, Root Causes and Opportunities

Discussion 2 Primary Output: Evaluated Opportunities

Discussion 3Primary Output: Prioritized implementation solutions for development

Introduction

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For an RPC engagement to be successful, the initial Stakeholder(s) discussion must consider all of the components of the operating context

Return on Investment

Project Management & Scope Sustainability

Will the focus be on cost reduction, revenue enhancement, or efficiency & effectiveness improvement (or combination of all)?

What level of ROI is expected and over what period of time?

How rapidly do results need to be delivered to keep stakeholders engaged?

How will alignment on focus areas and measurement methods be achieved?

How important is developing an ongoing operational improvement capability and competency within Intel?

How important is operational improvement to the long term success of Intel?

How important is the ability to measure success on an ongoing basis?

Is this operational improvement project part of a larger improvement program? Is it important that the programs be linked?

How many different processes are under consideration (what is the scope)?

How many of the processes under review are manual vs. system supported?

Is this program building on existing efforts? What are the existing or potential boundary

conditions for this program?

Implementation / Change Management What level of commitment (time, effort) is available

from project participants? What conditions exist that may put this program at

risk? How much executive buy-in and sponsorship is

available for this program? What is client’s experience with programs that

require change adoption?

Components of the Operating Context

Introduction

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Rapid Process Change – Summary

Key Points Outputs

Structured & proven approach

Rethinking operations

Step change vs. incremental change

Performance increase in focus area

Benefits Measurement & Validation

Set Training Program

Compatible with TQM and other management techniques

Rapid Process Change is an overarching framework intended to drive increased business performance in a compressed timeframe.

Rationale for Change (process gaps, best practices / benchmarks)

Key Benefits for the Organization

Risk Analysis

Resource Requirements

Implementation & Sustainability Approaches (where possible)

Introduction

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Course Topics










RPC Course

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Stakeholder RequirementsKey Concepts

Visible and frequent support for the Rapid Process Change effort in their Department

Active involvement in setting the direction and priorities

“Clears the Path” to eliminate obstacles, resolve issues, minimize risks

Participation at some level in the details of the effort

Support in granting resources (e.g., people, capital, time)

Assistance with overcoming organizational barriers

Successful Rapid Process Change efforts begin with key Stakeholder leadership:

Leadership implies an involvement that requires communication and visible commitment more than it requires major blocks of time.

Leadership implies an involvement that requires communication and visible commitment more than it requires major blocks of time.

Key Point

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Stage 1 Stage 2 Stage 3

Manufacturing

Marketing

R & D

Manufacturing

Marketing

Order Management

Resource Planning

New Product Development

R & D

Process View

Functions drive thebusiness

Processes areacknowledged butfunctions dominate

A process view drives Rapid Process Change

Successful Rapid Process Change requires cross-functional process views.

Key Concepts

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External Focus

The value provided by each business process is driven by customer and supplier needs.

The key is to determine what is critical to provide to customers/suppliers.

Effective customer segmentation can dramatically change the focus of the business.

Successful Rapid Process Change efforts focus on the external environment, both with customers / suppliers and best practices.

Customers / Suppliers Best Practices

Best practices / benchmarking is a tool to help understand how other companies achieve superior performance.

Best practices help identify gaps in performance.

Benchmarking assists with forecasting the impact of improvement on overall performance.

Key Concepts

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Factors in Successful Process Change

Leadership driven- Clearly articulate and communicate vision and

requirements- Sense of urgency- Commitment- Assignment of appropriate people to team

Structured approach- Cross-functional process views- Effective project management

Externally focused- Improve customer (Receiver) and supplier (Input)

relationships- Best practices

Defined success factors

Re-skill employees

Key Concepts

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Course Topics










RPC Course

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Rapid Process Change – Isbank WS3 Approach Overview

SustainImprovements



AssessProcesses

Mobilize Team


Project Management

Discussion 1 Primary Output: Process Issues, Root Causes and Opportunities

Discussion 2

Discussion 3

Approach Overview

The RPC Method follows a structured 5 stage approach that identifies issues and root causes. Next, improvement opportunities are evaluated, prioritized and selected. Three discussions are used to ensure alignment and buy-in for the results from each step. Supporting the approach are effective project and transition management.



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Stage 1: Mobilize Team

The Mobilize Team stage identifies current processes and activities. This makes tangible “what people do” and how they use resources.

Establish process team roles & train team on

Rapid Process Change approach

Obtain background on processes

- Process owner

- How process is managed

- People / departments involved

- Key activities

- Performance measures

SustainImprovements

ImplementImprovements


AssessProcesses

Mobilize Team

Approach Overview

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Stage 2: Assess Processes

The Assess Processes stage focuses on assessing processes to identify improvement opportunities. Employee involvement ensures realism and buy-in.

Evaluate processes (suppliers, inputs, customers,

outputs) with select employees through RPC

Discussions

Identify select best practices / benchmarks

Identify issues with process and improvement

opportunities

- Gaps between current process and customer / supplier

requirements

- Other opportunities

SustainImprovements



AssessProcesses

Mobilize Team

Approach Overview

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Stage 3: Evaluate Opportunities

In this stage, each opportunity is evaluated and prioritized based upon supporting rationales, financial & qualitative benefits, and risks & resources required to implement.

Evaluate improvement opportunities- Develop supporting rationale - process gaps, proven practices- Develop cost / benefit analysis for improvement opportunities

requiring an investment- Assess risks (difficulty to implement)- Identify resources required (people, organization, systems)

Prioritize improvement opportunities- Identify prioritization criteria- Select Opportunities to recommend

Document improvement opportunities and identify high-level implementation approaches- Present findings to Process Owner / Stakeholder

Systems

People

Organization

LEVEL OFPERFORMANCE

WorldClass

Performance

Gap

Actual

Over Time

Quality

Cost

Time

SustainImprovements



AssessProcesses

Mobilize Team

Opportunities

Approach Overview

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Stage 4: Implement Improvements

Develop implementation plans for improvements selected for implementation

Design new processes as needed

Develop performance measures to track results

Develop a Communications Plan and share organizational changes to employees

Develop a Training Plan

Recognize Stakeholder and employees

SustainImprovements



AssessProcesses

Mobilize Team

DeliverImplementation PlanStep Tasks Resp. Start End Status

In this stage, each chosen opportunity has a detailed plan which serves as a guide and a tracking mechanism to monitor implementation progress and results.

Approach Overview

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Stage 5: Sustain Improvements

The final stage of the approach entails sustaining the priority improvements.

Plan Develop a Sustainability Plan, Service Level

Agreements, & iterative RPC cycles for process improvements

Clarify accountability and on-going sponsorship of key processes

Develop and document how key metrics will be established, collected and reported

Develop and document how the organization will manage ongoing education and communication methods

Assist Stakeholders in developing “checkpoint” process

SustainImprovements



AssessProcesses

Mobilize Team

Check-point

Approach Overview

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RPC project lengths vary

RPC Stages:

Minimum: Participants already trained in RPC

Background information readily available

Minimal best practices / benchmarking research

Process owners, suppliers, and customers accessible

Easy to prioritize Quick hits Simple task

elimination

Maximum: Participants require RPC training

Background information not documented / updated

Difficult to prioritize

Full process redesign

Leadership development

Some best practices / benchmarking research

Process owners, suppliers, and customers difficult to coordinate

Rigorous, extensive cost / benefit analyses, risks and resources required

Many opportunities

Back of the envelope cost / benefit analyses, risks and resources required

Few opportunities

Minimal need to develop ongoing skills and capability

Already have robust measurement system

Critical to develop: ongoing operational improvement capability & skills AND ability to measure success on a ‘going basis’

SustainImprovements



AssessProcesses

Mobilize Team

The length of RPC projects depends on complexity of the processes in scope, previous work done, and implementation.

Approach Overview

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Course Topics










RPC Course

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Stage 1: Mobilize TeamMobilize Team

The Mobilize Team stage identifies current processes and activities. This makes tangible “what people do” and how they use resources.

Establish process team roles & train team on

Rapid Process Change approach

Obtain background on processes

- Process owner

- How process is managed

- People / departments involved

- Key activities

- Performance measures

SustainImprovements



AssessProcesses

Mobilize Team

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Interview with Process Change Champion

Obtain perspective on process issues and assumptions

Set project scope and schedule

Set objectives

Select team

Identify stakeholder expectations

Develop communication strategy

Determine “kick-off” approach

Conduct interview with the Process Change Champion to:

Mobilize Team

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Target areas for evaluation/prioritization

RPC targets areas that are characterized by “waste”

Seven key wastes have been identified as high value add candidates for RPC:- Processing time- Overproduction- Inventory- Defects- Waiting time- Motion(1) - Transportation(2)

A case in point:Client requested an RPC initiative to achieve improved diagnosis of user errors and minimize defect-free product returns

IBM BCS was hired to remove low-value-added work, enhance operational performance, streamline end-to-end processes and reduce costs related to erroneous product returns

All waste cannot be eliminated by using only one RPC project – many projects coordinated at the program level address multiple forms of waste

All waste cannot be eliminated by using only one RPC project – many projects coordinated at the program level address multiple forms of waste

(1) Refers to movement of people

(2) Refers to movement of goods

NOTES

Key Point

Mobilize Team

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Processes that are not delivering the desired results (e.g., high Cost of

Quality, sub-par performance)

Good processes that have not been implemented well

Processes which may no longer be aligned with strategies or customer

requirements

Scope Determination

Candidates for Rapid Process

Change

There are four types of processes that may be good candidates for Rapid Process Change:

Mission-critical processes (high importance relative to other processes)

Mobilize Team

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Identify and remove the inefficiencies delaying product launches

Evaluate the issues related to knowledge transfer and develop a process that provides training to the right people at the right time

Eliminate duplicate efforts between groups and develop efficient work processes and knowledge/work sharing

Reduce by 20% Increase by 10-20%

100% salespeople within 3 weeks of product launch

Reduce costs in each by 10%. <1 in the first quarter 0 in the second quarter

Set ObjectivesOnce the scope has been determined, the Team Lead should develop a statement that summarizes the objective of the RPC effort. The objective:

- Serves as a goal and guides the team throughout the project- Is not fixed and may evolve during the early phases of the project- Requires defining both measures and targets for judging the progress and

success of the project. Sample Project Objectives Sample Project

Targets

Gathering hard data allows the team to measure the impact and success of recommendations, however set time/resource limits on data collection

Gathering hard data allows the team to measure the impact and success of recommendations, however set time/resource limits on data collection

Key Points

Set metrics based on the business issues – how will you measure the success of the project? What will the benefits be?

Set metrics based on the business issues – how will you measure the success of the project? What will the benefits be?

Launch timeline Incremental revenues (price , time in

market)

Percent salespeople trained on new product Average time between training and launch

Operating costs for each group # of duplicated processes

Sample Project Measures

Mobilize Team

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Project Request Form (as required)

Problem Statement

Objectives

Approach

Scope

Broad impact to company/Leverage

Capabilities required

Project deliverables

Project timingCheckpoint

When a RPC Program is operating across an organization, the Project Request form should be completed by the sponsor and/or the team lead and approved by the Program Office

When a RPC Program is operating across an organization, the Project Request form should be completed by the sponsor and/or the team lead and approved by the Program Office

Resources proposed

Consulting plan

Expected benefits (financial and operational)

Expected costs

Project assumptions and risks

Leadership and escalation

Project Plan

Checkpoints

Required Information

The Project Request Form gives the team lead a structured way to perform rigorous planning before actually diving too deeply into an actual RPC project. It also serves as a vehicle to synchronize the team lead and the project sponsor’s thinking as well as to eliminate wasted effort on projects that won’t deliver significant returns.

Mobilize Team

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Setting Expectations with Team Members Establishing expectations among the RPC team members has proven to

be a critical issue for RPC teams: Time

- Set meeting dates, times, durations – hold team meetings at a regularly scheduled time and days every week to minimize confusion

- Approximate non-meeting time that will be expected of each team member through the course of the project – team members ~5-10hrs/week

- Duration of involvement – team membership extends beyond the 8-10 week project length

Champion, team leads and process owners will continue to be involved indefinitely in sustainability evaluations and ongoing improvement of the target process

Contribution- What types of information will each member be responsible for providing?- Ownership of the team’s results and ongoing championing of the process- Development of both interim deliverables for use by the team and potentially final

deliverables for presentation to the executive sponsors- Use of 360 evaluations among team members

Mobilize Team

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Objective Gain an understanding of the current state of the process Define the objectives of the process

Key Tasks Conduct interview with process owner How process is performing / managed How was process designed to perform / be managed People / departments involved Key activities Performance measures

Key Deliverables Process owner interview output

Obtain Background on Processes Mobilize Team

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Discussion 1 – Issues and Opportunities

SustainImprovements



AssessProcesses

Mobilize Team

At this point the team is ready to hold the 1st discussion. The goals of this workshop are to: Finalize the objectives of the project Understand and gain agreement to process issues and root causes Identify opportunities

Discussion 1

Discussion 2

Discussion 3




Mobilize Team

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Prior to entering the Assess stage, ensure that project fundamentals have been set-up:

A Process Lead role is assigned

Team members from all relevant groups across the process’ span of influence are assigned

Crisp definition of the high-level issue and a bounded scope

A summary project plan with key phases (e.g., Mobilize, Assess Process…), activities (e.g., interview customer service representatives, collect secondary data), and identified responsibilities

A scope that allows for completion of the first 4 phases in 6-10 weeks

An understanding of the roles and responsibilities of all team members

Communications to the Stakeholders about the project (through a meeting and / or memos)

Team Mobilization Final Checklist Mobilize Team

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Course Topics










RPC Course

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Stage 2: Assess ProcessesAssess Processes

Evaluate processes (suppliers, inputs, customers,

outputs) with select employees through RPC workshops


Identify issues with process and improvement

opportunities

- Gaps between current process and customer / supplier

requirements

- Other opportunities

SustainImprovements



AssessProcesses

Mobilize Team

The Assess Processes stage focuses on assessing processes to identify improvement opportunities. Employee involvement ensures realism and buy-in

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Objective Understand and document the process Identify issues, root causes and improvement opportunities

Key Tasks Conduct RPC discussions with owners, customers and suppliers

- Identify process suppliers, inputs, customers and outputs- Identify the process steps which convert inputs to outputs- Identify performance measures for each process- Assess cycle time and transaction volumes

Summarize process information in Process Template (see BPR “In a Box”) Develop process map (as necessary) Capture issues and root causes

Key Deliverables Process template Process map (as necessary) Issue and root cause analysis Improvement opportunities

Evaluate Processes through RPC Discussions Assess Processes

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Guide to Conducting RPC Discussions

The following three steps can be used as a guide to facilitate workshops.

Plan the RPC

Discussion

Conduct the Discussion

Summarize the

Discussion

Gather data- Review available background information, including any current process

documentation Provide advance notice to participants

- Topics to be covered and documents / reports to be collected- Time needed for the meeting

Identify objectives

Use standard format (key points, potential opportunities, follow-up items) to document results

Identify issues and potential root causes

Introduce the topic- Explain purpose of meeting- Explain how the information will be used

Sequence events (e.g., easy to difficult, neutral to sensitive) Manage the conversations

Assess Processes

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RPC Discussion 1 – Defining the Process (SIPOC)

Suppliers Customers

Inputs Outputs

Major Process Steps

1.2.3.

1.2.3.

1.2.3.

1.2.3.

Cycle Time:

Performance Measures:

Transaction Volumes:

Process Name: Purpose:

Systems & Info

Resources

Assess Processes

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Process Owner Interview Guide- Jung Pyo

BASELINING THE ASSESSMENT AND IMPROVEMENT PLANNING EFFORT WITHIN A SIPOC CONTEXT

Mobilize Team

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Key Deliverable: BPR In a Box Process Template

Later, the process template, the firstArtifact in the BPR In a Box kit will be used to document critical process information and help identify potential process gaps.

Process Description:

Process Owner(s):

Suppliers: 1.2.3.

Inputs: 1.2.3.

Major Process Steps: 1.1

Customers: 1.2.3.

Outputs: 1.2.3.

Systems and Resources:


Cycle Time:

Transaction Volume (description,count, period):

Assess Processes

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Identify Issues, Root Causes and Improvement Opportunities

Objective Identify contributing issues, root causes and improvement opportunities to

simplify, streamline and eliminate work Supplement processes with additional recommendations to improve

performance

Key Tasks Hold discussions to brainstorm issues, assess gaps between current

processes and customer / supplier requirements, and identify improvement opportunities

Hypothesize root causes and develop new approaches to address key issues

Key Deliverables Summary of issues, root causes and opportunities

Assess Processes

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Key Deliverable: Issues, Root Causes and Opportunities Summary

This template from the BPR in an Box can be used to document issues and improvement opportunities.

Discussion 1 Focus

Issues Root Cause(s) Opportunities Benefits Costs Resources Required Risks

Assess Processes

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Tool: Drilling Down via Questioning

Probing: Further investigating the contributing issues involves understanding the relationships between the symptoms and the likely root causes.

When we hear...…and focus on potential root causes

Something always goes wrong

Process variability is high

Process is not capable of meeting goals

The inputs are not right, on-time

Inputs are not consistent

Inputs are not well managed

We need more training

Lack of specific skills are impacting performance

On the job training may be substituting for process controls

My people are busy, but nothing gets done

Non value-added handoffs and rework exist

We should ask additional questions...

What are the types of problems?

Why do you think they occur?

What types of errors are occurring?

What do you believe is the cause of these problems?

What skill do you train for?

How do people learn the processes that they perform?

What are people doing?

Illustrative

Assess Processes

48

Preliminary Baseline Metrics Targets

Once issues are identified, a preliminary baseline is needed. This will allow the project team to measure the magnitude of improvement for new solutions.

Targets for the Metrics

Can we leverage external benchmarks?

What should our reach targets be?

What is the time frame for hitting the targets?

Baseline Metrics (for key processes)

Key Points

The purpose is to establish the relative magnitude of the issues and to allow for evaluation of the magnitude and direction of improvements attributable to the

implemented solutions

The purpose is to establish the relative magnitude of the issues and to allow for evaluation of the magnitude and direction of improvements attributable to the

implemented solutions

A consistent method of estimation should be used to establish the baseline, to evaluate implemented solutions and to measure progress against targets

A consistent method of estimation should be used to establish the baseline, to evaluate implemented solutions and to measure progress against targets

Checkpoint

The Baselines and Targets must be vetted by the project sponsor. Are they based on the right measures? Are the targets too easy to meet? Do they match with the goals of the

project?

The Baselines and Targets must be vetted by the project sponsor. Are they based on the right measures? Are the targets too easy to meet? Do they match with the goals of the

project?

Assess Processes

Is it currently measured?

Can we quickly establish a baseline of current performance?

Can we make high-level estimates?

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Tool: Generation of Improvement Opportunities

Objective:Improve

functional performance

Reduction of services / outputs

More rational generation of services outputs

Reduce content

Reduce quality

Reduce frequency

Eliminate

Substitute / combine

Defer

More efficient organizational allocation

More streamlined work processes

Fulfillment of necessary preconditions

Centralize

Decentralize to business units

Contract out/bring in-house

Standardize

Balance workload / combine activities

Improve data processing support

Modify inputs

Automate / de-automate

Develop organizational aids

Increase / decrease skill level of staff

Increase incentives

Change process flow

Improvement opportunities can be generated by systematically thinking through the options for each activity that must be performed in a process.

Illustrative

Assess Processes

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Improvement Opportunities from Process Redesign Principles

Improvement ideas can also come from comparing current processes to the Process Redesign Principles:

Demand - Pull Flow- Pull Signals- Small Batches- Set-up Reduction

Visual Controls Customer / Supplier Integration

- Redundancy Elimination- Internal & External Integration

Waste Elimination- Motion- Waiting Time- Overproduction- Processing Time- Inventory- Defects- Material Handling

Organize Around Outcomes- Concept of Flow - Multi-functional Workers- Process Complete Teams

Assess Processes

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Identify Select Proven Practices / Benchmarks

Objective Identify proven practices employed by leading companies or internally which can be

implemented to improve processes

Key Tasks Conduct secondary research to identify external proven practices Identify internal proven practices Utilize ideas generated from proven practices / benchmarks to add to opportunities

Key Deliverables Document proven practices

Assess Processes

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SustainImprovements

Discussion 1

Discussion 2

Discussion 2




AssessProcesses

Mobilize Team

Discussion 3



Assess Processes

The The focus of the first half of the Discussion 2 is on generating additional opportunities. From this list, opportunities can be compared and evaluated.

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Course Topics










RPC Course

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Stage 3: Evaluate Opportunities

In this stage, each opportunity is evaluated and prioritized based upon supporting rationales, financial & qualitative benefits, and risks & resources required to implement.

Evaluate improvement opportunities- Develop supporting rationale - process gaps, proven practices- Develop cost / benefit analysis for improvement opportunities

requiring an investment- Assess risks (difficulty to implement)- Identify resources required (people, organization, systems)

Prioritize improvement opportunities- Identify prioritization criteria- Select Opportunities to recommend

Document improvement opportunities and identify high-level implementation approaches- Present findings to Process Stakeholders

Systems

People

Organization

LEVEL OFPERFORMANCE

WorldClass

Performance

Gap

Actual

Over Time

Quality

Cost

Time

SustainImprovements



AssessProcesses

Mobilize Team

Opportunities


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Objective Assess each opportunity for expected return, risks and resources required

Key Tasks Estimate qualitative & quantitative benefits, payback and costs Estimate resources required (people, organization, systems) Determine potential risks (difficulty to implement)

Key Deliverables Opportunity Evaluation template

Evaluate Improvement OpportunitiesEvaluate

Opportunities

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SustainImprovements

The focus of the second half of Workshop 2 is on comparing and evaluating opportunities to be implemented.

Discussion 1

Discussion 2




AssessProcesses

Mobilize Team

Discussion 2

Discussion 3




57

Key Deliverable: Opportunity Evaluation Template

The other half of this template from the BPR in an Box can be used to capture benefits, risks and resources required for each issue and associated opportunity.

Discussion 2 Focus

Issues Root Cause(s) Opportunities Benefits Costs Resources Required Risks


58

Opportunity Evaluation Criteria

The following are examples of the potential evaluation criteria.

Criteria

Financial benefits Quality improvement Time savings Increased customer satisfaction

Set-up cost Training Administration / maintenance

People Organization Systems

Benefits

Costs

Resources Required

Types

Risks Project Failure Future Problems/Impacts Organizational Concerns


59

Review Various Drivers of Criteria

If a “Financial Benefit” is being used, think about what drives this benefit

Types ofFinancial Benefits

Incremental FTEs Pricing Travel expenses Employee overtime

Network availability

Productivity due to network availability Productivity reduces need to hire new

managers

Cost Savings

Revenue Enhancement

Cost Avoidance

Examples - Potential Drivers

Illustrative


60

Evaluate Opportunities – Key Takeaways Develop evaluation criteria that is most closely aligned with your overall

project objective

As solutions are evaluated, document the amount of time and the costs that potentially can be saved

Taking short-cuts in this step will lead to confusion and misunderstandings later

Don’t let the team get stalled by focusing only on tools – instead focus primarily on the opportunities while using the tools to help develop and document them


61


At the end of the Evaluate Step, the findings are presented to the Stakeholder(s)

Stakeholder(s) review: Recommended Improvements

Stakeholder(s) review: Issues and Opportunities



AssessProcesses

Mobilize Team

RPC Key Outcomes and Deliverables:

Stage 1: Project team formed & plan developed

Stage 2: Process definitions completed & issues with process, root causes and opportunities identified

Stage 3: Opportunities evaluated & prioritized, selected and documented

Stage 4: Develop and implement selected improvement opportunities

Stage 5: Sustain implementation of selected improvement opportunities

Evaluate OpportunitiesRapid Process Change Overview

62

Objective Focus resources on a select set of initiatives that are of highest

priority to the organization

Key Tasks Agree upon prioritization criteria (i.e., benefit, risks) Conduct RPC workshop to review comprehensive list of

opportunities Prioritize the opportunities according to the criteria Select opportunities to recommend for action based on priority,

resources and organization objectives

Key Deliverables Opportunities prioritized & recommended actions identified

Prioritize Improvement OpportunitiesEvaluate

Opportunities

63

SustainImprovements

The focus of the third discussion is on prioritizing and selecting opportunities to pursue. From the prioritized list, solutions are selected for implementation.

Discussion 1

Discussion 3




AssessProcesses

Mobilize Team

Discussion 2

Discussion 3




64

Prioritization Framework

Opportunities with service improvements and quantifiable financial benefits are plotted proportionally

Return Increased

Efficiency and Effectiveness

High

Low

Low

HighRisk

Take Action Quickly

Capture Opportunityas Resources Allow

Do not Pursue, or Pursue Last

Rigorous Focus of Attention

And Resources To Ensure Success

All opportunities are plotted based on the project team’s assessment

Improvement opportunities can be evaluated in terms of expected returns and risks. This evaluation, highlights the challenges which drive risk management and implementation planning.


65

Considering the Solutions

Before making final choices, consider if solutions can be moved on the matrix.

High

High

LowLow

High impact, high risk

Low impact, high riskLow impact, low risk

High impact, low risk

Are there ways to move some of these solutions to the right? What barriers can be removed? Can the sponsor or other stakeholders help?

Are there ways to make these low impact solutions have more impact? Can they be leveraged by multiple organizations? Can the solutions be bigger than originally planned?

Solution A

Solution B

Bubble size can be used as a third variable. In this case, it represents “Level of Effort Required”.

Key Point

The two axes and the bubble sizes can be changed to other variables if they are more relevant for the project

The two axes and the bubble sizes can be changed to other variables if they are more relevant for the project

(Take Action Quickly) (Focus of Attention)

(Do not Pursue)(Capture Opportunity)

Return Increased Efficiency and Effectiveness

Risk


66

Document Improvement Opportunities and Identify Implementation Approach

Objective Build case for gaining commitment and resources to pursue opportunities Identify high-level implementation approaches

Key Tasks Document improvement opportunities and rationale for change For each recommendation, identify:

- Major tasks- Completion dates

Key Deliverables Improvement Opportunity Templates Recommendation Template


67

Possible Implementation Approaches

This framework divides improvement opportunities into four categories which drive the implementation approach.

Use decision-making authority to quickly implement improvement opportunities

Obtain buy-in for improvement opportunity from leadership of all affected functional areas

Secure additional resources if necessary Consider organizational and operational impacts of

implementing improvement opportunity

Do not pursue, investigate further or pursue in a limited fashion

Use management discretion to determine whether implementing the improvement opportunity will yield sufficient value to justify allocation of resources

Take Action Quickly

Capture Opportunity

as Resources

Allow

Do Not Pursue, or

Pursue Last

Rigorous Focus of Attention &

Resources To Ensure Success

Take Action Quickly

Capture Opportunity

as Resources

Allow

Do Not Pursue, or

Pursue Last

Take Action Quickly

Do Not Pursue, or

Pursue Last



Take Action Quickly

Capture Opportunity

as Resources

Allow

Do Not Pursue, or

Pursue Last



Rigorous Focus of Attention & Resources

To Ensure Success

Capture Opportunity

as Resources Allow

Evaluate OpportunitiesHigh-Level Implementation Approach

68

Deliverable – Improvement Opportunity Case Template 1

Improvement Opportunity:

Key Issues:

Expected Benefits:

Design Factors / Best Practices:




Key Issues:

Expected Benefits:





The first opportunity template provides qualitative support for the recommended opportunity. This includes benefits, best practices and performance measures.


69

Total Costs

$

Sources of Benefit

Cash Flow Increase

Total: $

Revenue Enhancement Cost Avoidance

Total: $ Total: $

Net Return

$

Total Benefits

$

Total: $ Total: $ Total: $

Sources of Costs

Incremental FTEs Expenses Capital

One-time• • On-going

Financial Benefits: Anticipated Risks:Of Implementing:

Of Not Implementing:

Implementation Approach:

One-time• • On-going• •

One-time• • On-going• •

• • • •

• • • •

Cost Savings (P&L)• • • • Working Capital• •


The second opportunity template provides quantitative support for the recommended opportunity. This includes total cost and benefit breakdown. Use only if applicable

Deliverable –Improvement Opportunity Case Template 2


70

Deliverable –Recommendation Template

For a recommended solution, the Recommendation Template is another way of aggregating key information in order to communicate it to the sponsor and the team.

The team lead must communicate different aspects of the solution to the sponsor and can use the Recommendation Template as an aid

The team lead must communicate different aspects of the solution to the sponsor and can use the Recommendation Template as an aid

Check-point

Recommendation A brief, descriptive statement

Benefits/Results What are the measurable benefits/results? How do they tie into the organization’s objectives?

Risks What are the potential negative impacts?

Critical Success Factors

What has to happen for the plan to be successful?

Barriers What is preventing us from accomplishing these changes and meeting the objective?:

Enablers How do we break down the barrier impeding us from meeting the objective?

Resources Requirements

What are the resource requirements needed to implement the recommendation?

Action Plan What steps must be taken in order to implement the plan?

Metrics What are the performance and sustainability metrics that will be used to measure success and longevity

Internal Controls What is the potential adverse affect on the internal control environment?:

Team: Recommendation #:


71

Course Topics










RPC Course

72

Stage 4: Implement Improvements

Develop implementation plans for improvements selected for implementation

Design new processes as needed

Develop performance measures to track results

Develop a Communications Plan and share organizational changes to employees

Develop a Training Plan

Recognize and reward employees

SustainImprovements



AssessProcesses

Mobilize Team

DeliverImplementation PlanStep Tasks Resp. Start End Status

In this stage, each chosen opportunity has a detailed plan which serves as a guide and a tracking mechanism to monitor implementation progress and results.


73

Develop Detailed Implementation Plan

Objective Provide a detailed plan which serves as a guide and a tracking mechanism for

recommendation implementation

Key Tasks For each recommendation, identify:

- Major tasks: What, To Whom, When, By Whom - The person responsible for that task- Task start and completion dates- Status- Deliverable for each task

Key Deliverables include Detailed plan outlining the prioritized steps, responsibility, timing and status Checkpoints & reporting process for implementation phase

You’ve put a lot of work into the project by this phase—maintain your momentum and implement the solution to realize benefits!

You’ve put a lot of work into the project by this phase—maintain your momentum and implement the solution to realize benefits!

Key Point


74

Are improvements carried out at the right level, with staff personnel acting as coaches and counselors?

Are personnel from other functional areas included in the process?

Does the plan ensure continuity from one year to the next, or is it focused on the current situation and the development of goals and actions for the immediate future?

Has senior management adequately communicated its vision of corporate goals to the business areas responsible for actually implementing the improvements?

Is leadership sufficiently committed to the process to free up the personnel needed to implement the improvements?

Does the plan facilitate and encourage sharing of insights between participants?

Does the plan allow for revision of the improvements prior to adoption?

Has a logical, hierarchical outline been established for the completed improvements, such that participants have a clear picture of the end product? Has a format for the necessary analyses been established and communicated to participants?

Do procedures exist to track progress and resource consumption of improvements?

Role Definition:

Company-Wide Involvement:

Continuity:

Goal-Setting:

Commitment:

Participant Interaction:

Opportunity for Revision:

Structure and Format:

Post-Auditing:

Change Elements In An Implementation Plan

Implementation plans should address these change management best practices


75

Status

CompleteCompleteComplete

Underway

UnderwayUnderway

CompleteUnderwayOngoing

Ongoing

Ongoing

Provide ongoing expert billing assistance

Follow-up as necessary Transition to “billing hotline” status Develop advanced training

T. LewisT. LewisT. Lewis

Deliverable - Implementation Plan (BPR in a Box)

The plan should also include steps, tasks, responsibilities, timing and deliverables.Sample Plan - Fix Billing Errors

Step

Develop basic training for consistent and correct procedures

Tasks

Identify billing expert to be training coordinator Obtain draft procedure manual from S. Pass Estimate time required to complete manual and

develop billing training material Conduct one-on-one sessions with each billing person

to determine training needs Revise billing procedures manual Develop billing training program Distribute manual for study by all billing personnel Develop contracts training for billing personnel Hold session to train personnel

Responsible

P. BarryT. LewisT. Lewis

T. Lewis

T. LewisT. LewisT. Lewis

K. SchaferT. Lewis

Start

1-Jun1-Jun1-Jun

28-Jun

30-Jun30-Jun14-Jul1-Aug2-Sep

End

5-Jun8-Jun16-Jun

9-Jul

14-Jul21-Jul14-Jul21-Aug2-Sep

Track performance Generate daily audit reports to T. Lewis Balance accounts to go forward Use daily audit reports on an ongoing basis Define department measures, establish baselines &

targets Notify account managers to forward all billing

complaints to Billing Supervisors Document each error, responsibility, and action to

address Follow-up as necessary

D. KingD. KingD. King

M. Wood

P. Harris

T. Lewis

T. Lewis

14-Jun21-Jun

10-Jun

28-Jun

19-Jul

18-Jun16-Jul

Ongoing16-Jul

9-Jul

Ongoing

Ongoing

Deliverable

Individual selectedManual on hand

Estimate to complete

Sessions conducted

Manual completedProgram developedManual distributed

Program developedSessions conducted

Report to T. LewisAccounts balancedAccounts balancedMeasures by region

Communications sent

Completed form

Ongoing

OngoingOngoingOngoing Training program

OngoingOngoingOngoing


76

Key Questions – Implementation Plan

Review your project plan and answer the following questions:- Which phases or tasks do you think are too short? Are there any that seem

too long?- Is anything missing from the plan? What would you add?- Which tasks and milestones do you think will be the most contentious within

the project team?- Where do you think the sponsor’s help will be needed?- What could derail the timing of the project? What effects would this have on

the final results?- What could go wrong with this plan?

Review the Rollout and Sustainability plans with the project sponsor—the team lead and sponsor should test for any holes in the plan, risks to implementation, or barriers to rollout

Review the Rollout and Sustainability plans with the project sponsor—the team lead and sponsor should test for any holes in the plan, risks to implementation, or barriers to rollout

Check-point


77

Design of New Processes - Redesign may be a First Step in Implementation

One of the typical outcomes from the Prioritize Improvements step is the need to redesign a particular process. During the documentation of opportunities, specific issues to be “designed out” and specific other

features to be “designed in” will have been identified Other factors to consider when redesigning the process are:

Process Redesign Steps

Process Definition StandardsNew Process Design:

Process Decomposition

Process Map

Procedures

Roles & Responsibilities (RACI)

Policies

Best Practices

Benchmarking

Process Owner Inputs

Process Redesign Principles

Issues & Opportunities with Current Process


78

Design of New Processes –RACI Charts

RACI: Responsible, Accountable, Consulted, Informed- What benefits will RACI charts provide?

Clarify roles and responsibilities across each process Highlight the functional groups that are responsible, accountable, consulted and

informed for each of the processes mapped Promote cross-functional collaboration Ensure parties that need to be informed or consulted are clear Prompt constructive discussion and decisions related to roles and responsibilities

Has the duty and the obligation to do the work or otherwise ensure that the work is completed. Also, has a duty to exercise independent judgment to raise appropriate issues

Has the authority to decide (or approve) and is the recipient of any consequences (There can only be one “A” per process step)

Must be given the opportunity to influence plans and decisions prior to finalization by the “Responsible” party

Is informed of progress, key decisions and deliverables by the “Responsible” party

Responsible

Accountable

Consulted

Informed

Make sure these roles are understood and clear before beginning the activity. Make modifications if necessary

Make sure these roles are understood and clear before beginning the activity. Make modifications if necessary

Key Points


79

Develop Performance Measures

Objective Define fact-based measures and monitor them to track progress toward achieving desired

results

Key Tasks include: Define key metrics Collect information to form baseline Establish performance targets

Key Deliverables include: Baseline Measures Targets


80

Develop Performance Measures – Defining Metrics

Establishing baselines

Setting targets for the metrics

Preparing a method of measuring metrics and comparing against baseline and targets

Agreeing on formulas (preferably during process mapping stage)

Keeping in mind that the initial numbers can be rough, but they must be able to measure directional changes (improvement or decline in effectiveness)

Performance Sustainability

What it measures

Considerations

The results the client is achieving due to the redesigned processes

The degree to which the organization is following the redesigned processes


81

Develop Performance Measures –Example Performance Metrics with Targets Performance Metrics (by category)

- Customer/Market: Measure = Errors Target = Reduce number of errors by 50% by next year

Measure = Turnaround time Target = Improve average turnaround time by 50% by Q2

- Financial: Measure = Accuracy of product cost estimate defined at project commitment checkpoint Target = +/- 10% accuracy at each subsequent checkpoint throughout the product lifecycle

Measure = Accuracy of R&D investment estimate defined at project commitment checkpoint Target = +/- 10% accuracy at each subsequent checkpoint throughout the development lifecycle

- Internal: Measure = Reduction of critical issues that need immediate attention Target = Critical errors account for only 1% of all changes made as of Q2

Measure = Number of publishers who subscribe to the notification service Target = 15 subscribers by end of fiscal year and 5 more added per quarter


82

Develop Performance Measures –Example Sustainability Metrics

Sustainability Metrics- The number of groups within the product category that are using the process

regularly- The number of groups within the product category that are using the process as

documented- The number of days after arrival in a relevant position in the product category

before a new individual receives appropriate process training


83

Communicate Organizational Changes

Objective Develop a plan to share changes to the organization and communicate

Key Tasks: Identify, analyze and segment key stakeholders Develop time phased communications strategy Implement communications strategy

Key Deliverables: Communication plan Training Plan Service Level Agreements (SLA’s) Communications about changes and timeframe to the organization


84

Deliverable - Communication Plan

Communication is a critical element to ensure buy-in from the organization and to initiate the RPC project with the entire organization. Consider the following areas when formulating your Communication plan:

Memo

Memos(written, email)

HOW MESSAGE IS DELIVERED

FROM WHOM and STATUSMESSAGE and FREQUENCY

Meetings

Key Stakeholders

Responsibilities

Team Assignments—once

Schedule and Logistics –prior to each event

Issues—as they are identified

Decisions Required—As required

Status—weekly

Results—once

Project Team

Steering Committee

Project Sponsors

TO WHOM and ROLE

The impact of each message can be increased by planning appropriate delivery, e.g., by a top executive or with prominence on the client intranet.

The impact of each message can be increased by planning appropriate delivery, e.g., by a top executive or with prominence on the client intranet.

Key Point


85

Deliverable - Communication Plan, Sample

Stakeholder

Individual(s) or Group Stakeholder Role

Info

rmal

Bri

efin

gs

Ste

er. C

om

m. M

tgs/

Cal

ls

Gen

eral

Lau

nch

Mem

o

Pro

ject

Tea

m M

emo

Em

plo

yee

Mem

o

Pro

ject

Ove

rvie

w

RP

C T

rain

ing

Wo

rksh

op

s/ S

essi

on

s

Pro

ject

Sta

tus

Rep

ort

s

Pro

ject

Tea

m e

-mai

l

Fin

al E

xecu

tive

Bri

efin

g

Ste

erin

g C

om

m. M

inu

tes

Oth

er (P

roje

ct R

esu

lts)

Purpose: see next

slide

Frequency: see next

slide

Responsible for Delivery

Status

John Doe Executive Initiator P X X X Jen Doe

Jane Doe Delegated Executive Initiator P X X X X X X Project Management

Jim Doe Executive Stakeholder P X X X James Doe

Group CEOs & Presidents Executive Stakeholders P X X X X Respective Steering Comm. Exec. Reps

Jill Doe Joint Executive Project Sponsors

P X X X X X X X Project Management

Project Steering Committee Steering Committee P X X X X X X X X Project Management

Sta

keh

old

er Im

po

rtan

ce (P

rim

ary,

S

eco

nd

ary,

Ter

tiary

)

Type of Communication/Contact (X) - Source


86

Training Plan

Key considerations when developing a training plan: What are the different audiences that need training on the solution What types of training does each audience require? Who will deliver the training? How many people will get trained? Who are the attendees? When will it be? How long will it be? What type of delivery method(s) will be used? Where will it be held? What is the cost of the training?

The training program can be informal and small or formal and large, depending on the training needs

The training program can be informal and small or formal and large, depending on the training needs

Key Point


87

Deliverable - Training Plan, SampleNeed Training Type Staff Numbers Attendees Timing Duration Delivery Facilities Cost Comments

Phase 1 Migration – GO LIVE 1 NOV “SUPER-EXPRESS” (AAF, Express, D&I)

Train the

Trainer

Unlocking

PerformanceTM

20 4 Process Mgrs 8 key Team Leader’s (2 from each process) SSC Director Training Mgr 2 Change Consultants 4 Process Consultants

9 Oct 3 days 2 classes x

10

Temporary

staff to

backfill AR,

AP, GAR

roles

Backfill ‘old

process’

30 (25% off job at any

one time)

Temp staff appointed to AAF,

Express and D&I

1 Oct 12 days total

2 days each

Shadow

existing staff

Existing TNT

staff coming

into SSC

New Process & Technology Testing of process & technology (on-the-job)

120

120

Existing TNT staff within AAF, Express D&I who have accepted AR, AP, GAR roles

15 Oct

3 Nov

3 days

5 days

3 classes x

10 rolling

Existing TNT

staff coming

into SSC

Induction 120 Existing TNT staff within AAF, Express D&I who have accepted AR, AP, GAR roles

1 Nov (either all on first day, or roll out over 4 days prior to go live)

1 day 4 days of

3 classes x

10

New SSC staff Induction 50 New SSC staff appointed to AR, AP, GAR roles

26 Oct 1 day 5 classes x

10

New SSC staff New Process & Technology Testing of process & technology (on-the-job)

50 New SSC staff appointed to AR, AP, GAR roles

19 Oct

1 Nov

3 days

5 days

5 classes x

10 rolling


88

Match financial and non-financial incentives to performance measures Determine “weights” of measures for each incentive Reward both individual and team performance (e.g. measures that cross functional areas)

Assess CurrentIncentives / Rewards

Identify Gaps Between Measures

and Incentives / Rewards

Develop Links Between Measures

and Incentives / Rewards

ImplementIncentives / Rewards

Activity Identify the incentives and / or rewards which are used to motivate or reinforce

RPC efforts in the functional areas- Pay increases, bonuses, other variable pay

- Promotions or assignments to more desirable, challenging projects

- Other non-financial rewards

Determine the performance measures that are currently tracked and rewarded Identify gaps where desired behaviors and performance measures are neither tracked nor

rewarded Identify incentives or rewards that are used to reward behaviors that are no longer desirable

Eliminate incentives or rewards that reward undesirable behavior Develop incentives to reward the performance measures Refine and finalize rewards

Recognizing and rewarding employees for RPC efforts can be done by integrating performance measures with reward systems.

Tasks

Integrating RPC Efforts with Reward SystemImplement

Improvements

89

Stage 5: Sustain Improvements

The final stage of the approach entails sustaining the priority improvements.

Plan Develop a Sustainability Plan and Service Level Agreements

for process improvements

Clarify accountability and on-going sponsorship of key processes

Develop and document how key metrics will be established, collected and reported

Develop and document how the organization will manage ongoing education and communication methods

Establish 3 and 6 month ‘Checkpoints’ with Sponsor and Key Stakeholders

SustainImprovements



AssessProcesses

Mobilize Team

Check-point


90

Sustainability plan

Objectives:

Ensure that reinvented processes are used,maintained and having the targeted business impact per established targets

Key Tasks:

Clarify accountability and ongoing sponsorship for the key processes

Describe how metrics will be established, collected and reported

Describe how the organization will create and manage ongoing education and communication vehicles

Key Deliverables

Documented assumptions critical for success

Documented risks to sustainability and risk mitigation strategies

Documented ongoing implementation steps


91

Sustainability evaluation & performance base lining

Sustainability evaluation- Each RPC project has a sustainability

plan that monitors transition to steady state

- The sustainability evaluation measures post-project results using metrics that are organized around outcomes

- Emphasis is placed on measuring waste elimination

The metric selection approach deployed:- Reviews metrics prior to initiation of

measurement to “focus on what matters” and reduce risk / “fire drills”

- Cascades metrics upstream of each process to ensure they provide trail to RPC purpose and consistency

Review &

Cascade

Metrics

Measure &

Compile

Results

Align Metric

w/ Process

Report

Results

REFINE

Review &

Cascade

Metrics

Measure &

Compile

Results

Align Metric

w/ Process

Report

Results

Ongoing performance measurement (2nd, 3rd

& 4th generations)

Base lining: 1st generation

sustainability evaluationSustainability

Evaluation Cycle

Sustainability

Evaluation Cycle

RPC Performance Base Lining


92

3- and 6-month Checkpoints

Using the metrics and targets defined by the project team to measure performance (business impact) and sustainability of the redesigned processes

Comparing results to baselines and targets

Planning for and measuring new processes

Reporting on the results

Making adjustments to the processes based analysis of the metrics

Performance Sustainability

Metrics

Steps

The results client is achieving due to the redesigned processes

The degree to which the organization is following the

redesigned processes

The team lead and sponsor must agree to the metrics used to measure performance and sustainability. They should revisit these metrics at 3 months and 6 months to assess the success of their recommendations.

The team lead and sponsor must agree to the metrics used to measure performance and sustainability. They should revisit these metrics at 3 months and 6 months to assess the success of their recommendations.

Check-point

After the processes are rolled out, Owners should conduct 3- and 6-month checkpoints with appropriate stakeholders. These should evaluate use and impact of the solution developed and rolled out by the team


93

Develop Service Level Agreements (SLAs)

Objective A service level agreement (SLA) is a written document that outlines expected standards of

implementation as well as helps clarify roles and responsibilities across various groups within the client’s organization.

Key Tasks: Skills sets required Processes and procedures Escalation process for conflict resolution SLA review and feedback process Performance metrics

Key Deliverables: Written document agreed to by client’s key stakeholders and those groups involved in the

implementation pf the service level agreement.

Don’t try to create SLAs for everything—only create them for key hand-offs identified by process mapping or RACI charts where service delivery needs to be negotiated

Don’t try to create SLAs for everything—only create them for key hand-offs identified by process mapping or RACI charts where service delivery needs to be negotiated

Potential Pitfall


94

Course Topics





5 Section 5: Assess Process





RPC Course

95

Critical Success Factors for RPC

The following CSFs will need to be met for the team to be successful Work across the functional & organizational silos

- Cooperate across the Back- and Front-ends to achieve results- Develop end-to-end solutions and define tasks and relationships between

organizations to improve operating efficiencies and reduce organizational tension

Promote active transition leadership - Set a strong mandate for change, participate visibly in project kick-off,

maintain awareness of project progress, and act as a role model for Back-end/Front-end participation to motivate team members

- Provide team members with decision-making authority, leadership opportunities, and coaching to develop future change leaders

Require accountability for measurable results - Hold team members responsible for deadlines and project outcomes to

achieve the best results- Incorporate performance metrics, targets, and sustainability measures into

process rollouts to ensure ongoing accountability

Wrap-up

96

Leveraging Other Efforts

Finally, RPC is not about delivering projects in isolation. It is designed to be a program that allows teams to leverage the work of other groups

Look to other RPC projects for sample deliverables, proven practices and new ideas for improvement

Submit your work products to the appropriate repositories for use by future projects

Wrap-up

97

Document business case for recommended improvements




AssessProcesses

Mobilize Team

Stage Checklist Example Templates

Process Template Issues and Opportunities

Opportunity Evaluation Template

Implementation Plan

Determine Schedule Communication to Organization / Dept

Return / Risk Matrix

Return

Risk

Send communication to the organization / department

Establish process team and conduct training

Obtain background information on process

Evaluate processes (complete process template)

Identify issues and improvement opportunities


Memo

Identify benefits, risks, resources required

Develop quantitative cost / benefit analysis

Prioritize opportunities using return / risk matrix

Identify high-level implementation approach

Complete Opportunity Evaluation template

Present improvement opportunities to Steering TeamComplete detailed implementation plan

Allocate resources for implementation

Communicate changes and timeframe to organization

Determine scope and schedule

Process Description:

Process Owner(s):

Suppliers: 1.2.3.

Inputs: 1.2.3.

Major Process Steps: 1.1

Customers: 1.2.3.

Outputs: 1.2.3.


Cycle Time:

Transaction Volume (description,count, period):

Activity 1

Activity 2

Process Step Issue Opportunity

Issue Opport. Benefits Risks Resources

Step Tasks Resp. Start End Deliver Status

Improvement Opportunity Templates


Key Evidence: Qualitative Benefits:

Process Map

RPC ‘Generational’ Model

RPC Methodology

1 st generation

2 nd generation

3 rd generation

4 th generation

RPCTraining Cycle

Proof of ConceptProof of Concept

LEAD with NO guidance


Perform

with guidance

LEAD with guidance

Training Cycle

Proof of ConceptProof of Concept



Perform

with

guidancePerform

with

guidance

LEAD with guidance

LEAD with guidance

Develop a Sustainability Plan

3 month –6 month Check

RPC relies on standardized tools to drive the project

Wrap-up

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