Process Improvement from a Consultant and Client Perspective. Eric Hicks / Mike Monroe Koa Hills Consulting October 2nd, 2017
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1 Process Improvement from a Consultant and Client Perspective Eric Hicks / Mike Monroe Koa Hills Consulting October 2nd, 2017
2 Introduction Mike Monroe Founder and CEO, Koa Hills Consulting 20+ years ERP implementation experience Managed numerous projects 15 years process improvement experience
3 Introduction Eric Hicks Head of IT for Sanford Burnham Prebys for 10 years Experience in technical leadership in the San Diego area Finds satisfaction in delivering benefit to the Institute and to medical research
4 Agenda Introductions Why change? How to change Who s going to write the - Executive Sponsorship Managing the people side of change Cycle of change Making a workable plan Business Process Re-engineering (BPR) and how we use it to ensure project success Tracking success Project challenges Conclusion
5 Don t pull your new technology with your old processes
6 Why Change Technology Customer Needs Economy Growth Opportunities Challenge the Status Quo- Observer Effect
7 But first, a history lesson 7
8
9 Some Historical Facts Original implementation was in 2004 Rumor has it that the implementation was done with very little involvement by internal staff, with little knowledge transfer. Upgrades didn t take into account changing process needs and ultimately just became feature upgrades/bug fixes. Little documentation of process, coupled with staff turnover, created a reduced understanding of the system, it s capabilities, and increased reliance on other, silo ed systems. These systems were often created for single purposes, and then often abandoned when the job was done, or the employee left. BPR was never prioritized due to funding, time pressures, resource pressures, choose your reason. 9
10 What have we learned? A successful BPR which implements appropriate process changes is one of the single most important thing you can do for your Institute as administrators. This needs to be repeated, it s not one and done. Part of the BPR is about general optimizations, but some is specific to whatever suite of business systems you use A successful BPR is also about documentation. There will be staff turnover, and you want that to be as painless as possible. IT guiding principles are: Data is entered only once. Automate data transfer and work wherever possible See, Data is entered only once. Eliminate systems wherever possible Customization is a sometimes necessary evil 10
11 How to Change Who s going to write the ? The importance of sponsorship Managing the people side of change
12 Change management is: The process, tools and techniques to manage the people side of change to achieve the required business results.
13 Organizational change can be represented as three s of change States of change Current How things are done today Transition How to move from current to future Future How things will be done tomorrow
14 Examples of changes organizations are currently taking on Current Transition Future Ad hoc processes Documented and managed processes Multiple, legacy systems One integrated database Generalists in the call center Specialists in the call center No web interface for suppliers Supplier website integrated into supply chain Two different companies Merged organization
15 In reality, there are both organizational and individual future s Organization Current Transition How I will do my job after the change is implemented How I do my job today Individual Current Future Transition Future
16 The organization s future is actually the collection of many individual future s Individuals Organization Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Current Transition Future Future Documented and managed processes One integrated database Specialists in the call center Supplier website integrated into supply chain Merged organization
17 There are consequences of not managing the people side of change Lower productivity Passive resistance Active resistance Turnover of valued employees Disinterest in the current or future Arguing about the need for change More people taking sick days or not showing up Changes not fully implemented People finding work-arounds People revert to the old way of doing things The change being totally scrapped Divides are created between us and them
18
19 What is BPR? BPR = Business Process Re-engineering Understand how the organization does things now Implementing changes that will help the organization do things better, faster and/or cheaper in the future A technology project presents an ideal opportunity for an organization to improve processes and leverage new functionality Don t cement outdated processes into the new system
20 QI - Quantifiable Improvement As-Is Map To-Be Map Recommended Changes Quantify the Outcome Make the Change Track the Results
21 As Is Process Mapping As Is Mapping Understanding of roles and responsibilities Process Mapping Flowcharts or swimming lanes We ask you once and then we ask again Gather Data Determine costs to the organization
22 To Be Process Mapping Review As Is flowchart cumbersome processes overly complex manual Content Expertise identify business rules understand the process Develop To Be Maps content experts work with key stakeholders maps graphically represent recommendations and requirements can be used as basis for RFP or scope of work
23 Process Mapping
24
25
26
27 QI - Example Paper check request process 6 days to process reduced to 2 30 minutes of work reduced to 15 minutes Paper eliminated Filing and retrieval of information improved $15 per transaction reduced to $7.50
28 The Outcome At the end of the QI project, the organization will have a complete set of: as is process maps to be process maps Recommendations/Requirements Scope Of Work Improvement Quantified Improvements tracked
29 The Outcome There are lots of ways to spend process improvement dollars; this process helps make sure dollars are spent in best possible way Some examples of measurable values/goals: Reduce Reduce Reduce Reduce Reduce process cost process time new hire cost number of errors time to correct errors Define values which align with organizational mission Tie savings to spending on new project
30 Challenges Analysis Paralysis Engaged Stakeholders Internal Politics F.U.D.
31 Questions & Answers
32 Thank you!
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