Overview of Cochlear s Process Architecture
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1 Overview of Cochlear s Process Architecture Stephen Klineberg Building Business Capability Conference September 10 th, 2012
2 About Cochlear Video Channel 7 s recent segment on Sunday night first 3 mins (Cooper s switch-on and Prof Graeme Clark) < 2
3 Today s Agenda 1. Overview of Cochlear s Process Architecture Why we need it What is it 2. Main challenges Making the Process Architecture real How it is used (today versus future) 3. Measuring success 4. Q&A 3
4 We ve built a great business and helped many people rapid growth for 25 years 180, ,000 Cumulative CI ears - global 140, , ,000 80,000 60,000 40,000 20,000
5 Cochlear s growth is increasing complexity Countries Cochlear sold to in 2002 Number of countries: 65 5
6 Countries Cochlear sells to in 2012 Number of countries: 102 6
7 Why a Process Architecture at Cochlear? 1. Better understand what we do 2. Know how do all the parts of our business fit together and the interdependencies 3. Be clear on how our processes and teams are linked across functions 4. Know what the impacts of a process change will be. For example, will the change impact systems, people, policies, customers? 5. Measure to ensure processes are fit for purpose 6. Know who to contact when making a process change 7. Provide clarity on process accountabilities To execute Cochlear s business strategy and scale our business effectively 7
8 Cochlear s Process Architecture MANAGE: Planning, monitoring and managing strategy execution for sustainable growth RESEARCH: Researching and developing insights into consumers, channels, markets, and medical technology DEVELOP: Bringing innovative and reliable products and services to market quickly and economically MARKET: Planning and driving market growth, and managing customer and channel relationships MAKE: Efficiently sourcing materials and services and manufacturing end products SELL: Taking and pricing customer orders accurately, and collecting cash MOVE: Fulfilling and delivering through a lean supply chain SERVICE: Being Hear now. And always, with a customerfriendly aftersales service model Customer Value Creation ENABLE: Supporting the business with customer-focused, efficient and scalable processes Quality in everything we do 8
9 Cochlear s Value Chain with key Inputs and Outputs Business Human Operational Financial Plans Risks identified Objectives Capital plans Plans and Controls & managed MANAGE: Planning, monitoring and managing strategy execution for sustainable growth RESEARCH: Improvement Researching and Opportunities developing Customer insights Insights into (ODI) consumers, channels, markets, and medical technology Technology Technology Ideas plan MARKET: Product or technology Planning and driving market growth, and Motivated needs Customer managing customer and channel identified (intent to buy) relationships Product Plan Demand Forecast SELL: Taking and Registered pricing customer recipient orders Customer accurately, Sales and collecting Order cash DEVELOP: Bringing innovative and reliable MAKE: Efficiently sourcing materials and MOVE: Fulfilling and delivering products and services and through a lean Transferred Manufactured Delivered services to market manufacturing end supply chain Design Product Product quickly and products economically Product Enhancements SERVICE: Being Hear now. And always, with a customerfriendly aftersales service model Customer feedback Customer Value Creation Employee Quality Stable, Financial Business Regulatory & ENABLE: Performance, Supporting the assurance business & with customer-focused, trusted IT efficient Transactions and scalable Process processes Legal Development & audits conducted systems and posted, cash Standards & compliance Learning infrastructure banked & reported Documentation Quality in everything 9 we do
10 Challenges Making the Process Architecture real the WIIFM Silo mentality, people not thinking end to end Innovation being stifled by process Regional differences verses global standardisation An Org structure based on Regions, Functions not Process 10
11 Responses to the Challenges 1. Training a) Process Game b) Induction and the initial Learning pathway for new employees (Process Basics elearning module) c) Process improvement training courses (levels 1 & 2 and certification) 2. Communication a) Project communications to scope the project see next slide b) Case studies that demonstrate PI delivering better business outcomes published in Newsletters eg. European quarterly newsletter c) Process Architecture branding eg. hand-out (working with Marketing) d) Videos... currently under development describing the full product lifecycle through the Process Architecture 3. Collaboration I spend a considerable amount of time aligning various 11 projects and change initiatives
12 Extract from a communications pack for a large ERP implementation at Cochlear 12
13 Current focus: Capture and communicate the process architecture in a central repository 13
14 Store process documentation in a central repository System being used from July
15 12DC9FF5D335BDEECA25759F001D2945 Additional information on our intranet Access via Compass / Process Management
16 Process Architecture at Cochlear Today Development of the PA Communication about the PA Training and awareness of the PA Limited use in scoping projects or managing interdependencies Process ownership unclear in many areas of the PA Change priorities not directly driven off the performance of key process metrics QMS isolated from PA Metrics not always consistent and sometime too internally-focused and not always visible enough Future (3-5 years) The Process Architecture is a way of doing business (not something people need awareness of) All projects are scoped and interdependencies managed using the PA Process accountability is clear for all functional and end to end processes Project priorities based on process metrics highlighting which end to end processes within the PA need to be addressed Full integration between QMS and PA Process control points identified and managed via the PA Global process standardisation where practical Pervasive End to end process thinking 16 Process metrics always from a Customer perspective
17 How is success measured? Process Management Metrics the facts We are implementing these during F13 1. # of business processes using metrics actively for management and improvement 2. % of total Process Group definitions, processes and procedures defined 3. # of process-certified employees (by level) against target (per year) 4. Process Management Customer Satisfaction survey (per quarter) 5. # of process improvements (and value) delivered per year case studies documented and published 17
18 How is success measured? Process Management Metrics the vibe 1. The Process Architecture is a way of doing business and a valued asset for our staff 2. All projects are scoped and interdependencies managed using the Process Architecture 3. Process accountability is clear for all processes 4. Project priorities based on process metrics tied to the Process Architecture 5. Global process standardisation where practical 6. End to end process thinking is commonplace 18
19 Questions 19
20 ...what will this look like in 2022? Number of countries:
21 Some Recipient stories (quotes) Faye Yarroll - Location: Australia Hearing Loss Type: Hereditary sensorineural hearing loss Faye's only regret in life was that she had to wait so long to hear. If only someone had said years ago, why don't you find out about getting a Cochlear Implant she would not have had to struggle so long with profound deafness. Now a Bilateral Cochlear Implant user Faye is living a full life and says it has been a truly amazing experience. < faye-yarroll/faye-yarroll> 21
22 Some Recipient stories (quotes) Bob s story My Cochlear implant has given me back my life and it's freed up a lot of my wife's time because she used to have to do everything for me. But nothing, nothing that I read or heard after I was told I was a candidate, nothing on the Internet, people I talked with, nothing prepared me for how good this thing really is, nothing. < 22
23 Thank you for your participation today! 23
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