Estrategia y procesos
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1 THIERRY TAVERSON Estrategia y procesos 1 WORKSHOP PARTS Processes : Principles Links between Strategy and es Sum up 2 1
2 Scope Why is it so important to design and manage es? Flow charts define little or no «horizontal» links or interactions Leadership Development logistics Manufacturing Sales G G G G G=Goals 3 Scope Why is it so important to design and manage es? Flow charts define little or no «horizontal» links or interactions Leadership Developement Logistics Manufacturing Sales Customer complains G 4 2
3 Features What is a? An activity using resources and managed in order to enable transformation of inputs into outputs can be considered as a Often the output from one directly forms the ( 9001 input to the next (ISO 5 Features 6 3
4 Typology Processes Outputs Management es Decisions Core, Primary business es Products/Services Support es Resources 7 Typology ZOOM on «SUPPORT PROCESSES» Internal es support core es (Recruitment, accounting, facilities, IT ). ACTIVITIES 2 2 Hiring Hiring 4 4 Resources Resources 5 5 ending ending contracts contracts 1 1 Anticipating Anticipating needs needs Outputs (Retirement, resignation, short term contracts, temporary ( contracts Outputs (Recruitment and training plans) 3 3 Career Career (competencies, (competencies, Empowerment, Empowerment, ( recognition rewards, ( recognition rewards, ( career Outputs (Training and 8 4
5 Typology 9 Typology ZOOM on «PRIMARY, CORE, BUSINESS PROCESSES» They directly create and deliver the value to the end-user An industrial company A service company A Public administration Designing a product Developping a product Manufacturing a product Delivering a product a bank account Ensuring training Collecting taxes Delivering a document 10 5
6 Stakes Why is it so important to design and manage es? The higher the number of interfaces, the higher the risks Few people have a bird s s eyes view of any given ( Process is a good way to be in tune with «The Voice of Customers» 11 Stakes What is a good? ->The outputs are well identified, ->The brings added value for company, ->The gets an owner (with real responsabilities), -> The interfaces are well specified, -> The is monitored (appropriate measurement), ->The is regulary improved. 12 6
7 Stakes Process Owner Resources X Customer Needs Process Activity AV1 AVX Y Outputs Improvement AV4 ( Y=f(X Adding Value of a Customer satisfaction 13 WORKSHOP PARTS Processes : Principles Links between Strategy and es Sum up 14 7
8 STEPS Defining Adapting organization and assigning owners Defining strategic vision Leading the Top role improving the mangement Measuring if the results are reached Process n Process 2 Process 1 Assessing and improving each : review Monitoring and measuring each each Process owner role Documenting and defining operationnal goals for each Defining indicators and board for each 15 STEPS Defining Adapting organization and assigning owners Defining strategic vision Leading the Top role improving the mangement Measuring if the results are reached Process n Process 2 Process 1 Assessing and improving each : review Monitoring and measuring each each Process owner role Documenting and defining operationnal goals for each Defining indicators and board for each 16 8
9 Defining strategic Vision Financial Mission Vision Values Strategy Customers Learning and growth Processes Plans Programs Actions Projects 17 Defining strategic Vision Mission For what Mission are we living? ( segmentation (markets, products, services, customer Ex : AVE «Developing and operating with efficiency the whole high-speed network, providing customers the maximal quality of service» 18 9
10 Defining strategic Vision Vision Vision What do we want to be within? Ex : Sollac SA VISION STATEMENT «To be the worldwide reference in Steel Business. Throughout the company, we will improve performance and competencies for customers, shareholders, and workforce» 19 Defining strategic Vision Plan stratégique Strategic Plan What is our plan? According to opportunities and threats (Economic Environment) and strengths and weaknesses (companies), what is the roadmap to follow for our business plan, our es and organization, our resources and competencies. After the vision, company has to define SMART objectives, targets and action plans (Long run, Medium plan,, ) 1. Specific Objectives should specify what they want to achieve. 2. Measurable You should be able to measure whether you are meeting the objectives or not. 3. Achievable - Are the objectives you set, achievable and attainable? 4. Realistic Can you realistically achieve the objectives with the resources you have? 5. Time When do you want to achieve the set objectives? 20 10
11 Defining strategic Vision Financial Our shareholders assess us thanks to some key indicators : What are they? Customers Our customers assess us thanks to some key indicators : What are they? Vision Learning and growth What do we have to do to improve resources, knowledge,? Processes To succeed what are the es we are supposed to be excellent? 21 Defining strategic Vision 22 11
12 Defining strategic Vision 23 Defining strategic Vision 24 12
13 Defining strategic Vision Strategic Objective Measure Reporter Target Principal Initiative Ow ner Status Growth in Turnover Percentage of non copier revenue CL FFR 3M Services and Solutions Chart EK Development in Turnover and Market Share EK 10% growth VAR's, Key Accounts SG Development of active MIF CL / EK 5% grow th Farming, Deployment of teleprospection SG Profitability Trading Profit CL FFR 6M Cost (and structure) reduction plan CG Customer Delight Percentage of satisfied and very satisfied customers GC 90% Satisfaction Surveys GC Customer loss rates CL / EK 10% Creation of Claims Dept. CL Win-Win with Partners Grow th & Profitability by partner SG/PM/EK FFR 210 M Co-op programme EK /SG New Mkts/Max Value-AdConnectivity rate by model EK 40% Campus IT training / Payplan change EK / SG Turnover achieved through partnerships EK / SG FFR 1M Launch of 3 packaged solutions EK Operational Excellence Percentage of calls closed within the targetted delay RD 100% Palm Pilot / Helpdesk Optimisation RD Development and benchmarking of DSO CL 45 Days Subcontracting direct debt recov CL Percentage of sales achieved in bundles/direct delivery SG/EK 10% units Payplan and Promotion changes SG/EK Total order ing time 2.5 Days Reorganisation Sales Order Processing RD Sales Productivity 60KF/M/M VAPO CL /SG Average technician productivity 4 calls /day Palm Pilot / Helpdesk Optimisation RD Environment and Social Points in EFQM model for Community impact GC 25/60 Community Participation Project CG Motivation/CompetenceEmployee satisfaction level GC / LL 80% satisfied Employee Survey follow -up project CG Percentage staff Turnover (sales) LL 25% PDP programme / Remuneration review LL/SG Evaluations and PDP s up to date LL 100% PDP programme LL Number of support staff per salesman RD 01:15 Reorganisation of ITC / DTR population RD/SG Optimisation of ResourcTrend in number of client calls being treated RD 5% Call-centre improvement project RD Correlation betw een manpow er and w orkload CG 1.1MF/person New Business Partner search EK Information Systems Advances made in the key projects CG Six/Six Follow -up of six strategic goals for 2001 CG Number of sales achieved via Internet CL/SG/EK FFR 1M Dedicated resource experiment SG 25 STEPS Defining the Adapting organization and assigning owners Assessing and improving each : review Monitoring and measuring each Process 2 Process 1 Process n Defining strategic vision Leading the Top role Setting up tjhe each Process owner role each Assessing and improving the mangement Monitoring and measuring if the results are reached Documenting and defining operationnal goals for each Defining indicators and board for each 26 13
14 Defining the Define vital (Key) es Added value, importance for customer satisfaction, etc.) Aligned with company s vision and mission. On the basis of the strategy, company defines es which directly contribute to current goals and strategic objectives (key objectives/actions) key es indicators which directly contribute to strategic objectives are also defined Documented Strategic objective «To deliver to customer only standardized products» Key objective (action) «to reduce the number of similar product from 12 to 5 Key es «preparing Marketing and sales plan» and «Develop new common product/technologies» 27 Defining the KEY PROCESS MATRIX Criteria Processes Impact on customers Contribution to strategy Financial Impact Total Develop software solutions Processes Develop hardware mainframe Integrate soft and hardware Customize the platform Deliver the product Service the product
15 Defining the 29 Defining the All the es Key es must be reengineered Breakthrough Key success factors Key es Key es must be continuously improved K Kaizen Select from list the key ones. Allow focusing on PDCA or re engineering efforts Only performance key for future Allow action plans set up 30 15
16 Defining the 31 Steps Defining the Adapting organisation and assigning owner Assessing and improving each : review Monitoring and measuring each Process 2 Process 1 Process n Defining strategic vision Leading the Top role Setting up tjhe each Process owner role each Assessing and improving the mangement Monitoring and measuring if the results are reached Documenting and defining operationnal goals for each Defining indicators and board for each 32 16
17 Assigning owners Who and how to lead the? Process owner. Process team : actors who are empowered Objectives Results Process Team Resources Improvement 33 Assigning owners Process owner Who is he? High hierarchical power to arbiter conflictual relationships among interfaces, Acknowledged to be the best person by actors, Top support (responsabilities), Good knowledge of the, Able to manage a multi-disciplinary team, Role model (listening actors, analysis, making decisions)
18 Assigning owners Process owner What is his job? Defining the scope Identify the scope and its contribution to strategic goals of the company Identify activities and main actors Select objectives and indicators to measure contribution to strategic goals Set up the dashboard and reporting rules (frequency, ( up responsabilities in collecting information, indicators follow Lead the diagnostic realization and its action plan 35 Assigning owners Process owner What is his job? following performance and improvement actions. Roadmap with top about annual objectives Plan, organize and lead reviews ( results Make sure that information are available (indicator Ensure risk analysis deployment on Ensure audits ( rules Ensure review (scope and Make sure that improvement actions are set up and followed up
19 Steps Defining Strategic vision Defining the Adapting organization and assigning owners Process 2 Process 1 Process n Assessing and improving each : review Monitoring and measuring each Leading the Top role Setting up tjhe each Process owner role each Assessing and improving the mangement Monitoring and measuring if the results are reached Documenting and defining operationnal goals for each Defining indicators and board for each 37 Documenting es SIPOC Method 38 19
20 Documenting es 39 Documenting es 40 20
21 Steps Defining strategic vision Defining the Adapting organization and assigning owners Assessing and improving each : review Monitoring and measuring each Process 2 Process 1 Process n Leading the Top role Setting up tjhe each Process owner role Assessing and improving the mangement Monitoring and measuring if the results are reached Documenting and defining operationnal goals for each Defining indicators and board for each 41 Defining performance for each Performance : purpose of the approach Measuring performance. What are the different elements to say «We are effective and efficient»?? Objectives Results Products Customers 42 21
22 Defining performance for each Measuring performance. What are the different elements to say «We are effective and efficient»?? Objectives Strategy indicators ( KPI ) Daily Life indicators 43 Measuring each Metrics : Volume Cost Cycle time ( rework Quality (failure rate, External perception (customers satisfaction, supplier and ( performance partnership Environmental and societal impacts ( actions Risks (level of Risk covered by corective/preventive ( efficiency ) Cost of resources ( capitalization,patents Level of innovation (knowledge 44 22
23 Steps Defining strategic vision Defining the Adapting organization and assigning owners Process 2 Process 1 Process n Assessing and improving each : review Monitoring and measuring each Leading the Top role Setting up tjhe each Process owner role each Assessing and improving the mangement Monitoring and measuring if the results are reached Documenting and defining operationnal goals for each Defining indicators and board for each 45 Assessing, reviewing, improving each Process review Ensuring continuous customer satisfaction Identifying deviations and defining corrective actions Identifying improvement opportunities of effectiveness or efficiency ( scoring ) Identifying the maturity level 46 23
24 Assessing, reviewing, improving each Process objectives Following if improvement actions are implemented Examining results : Process review ( life Performance indicators (kpi and daily Product indicators Resources Daily feedback Customer complaints Process Audit results Actions on Risk analysis Change in and social environment (Stakeholder requirements, (, review es in interfaces, metrics 47 Assessing, reviewing, improving each 48 24
25 Steps Defining strategic vision Defining the Adapting organisation and assigning owner Assessing and improving each : review Monitoring and measuring each Process 2 Process 1 Process n Leading the Top role Setting up tjhe each Process owner role each Assessing and improving the mangement Monitoring and measuring if the results are reached Documenting and defining operationnal goals for each Defining indicators and board for each 49 Monitoring and measuring if results are reached Financial Our shareholders assess us thanks to some key indicators : What are they? Customers Our customers assess us thanks to some key indicators : What are they? Vision Learning and growth What do we have to do to improve resources, knowledge,? Processes To succeed what are the es we are supposed to be excellent? 50 25
26 Defining strategic Vision Strategic Objective Measure Reporter Target Principal Initiative Ow ner Status Growth in Turnover Percentage of non copier revenue CL FFR 3M Services and Solutions Chart EK Development in Turnover and Market Share EK 10% growth VAR's, Key Accounts SG Development of active MIF CL / EK 5% grow th Farming, Deployment of teleprospection SG Profitability Trading Profit CL FFR 6M Cost (and structure) reduction plan CG Customer Delight Percentage of satisfied and very satisfied customers GC 90% Satisfaction Surveys GC Customer loss rates CL / EK 10% Creation of Claims Dept. CL Win-Win with Partners Grow th & Profitability by partner SG/PM/EK FFR 210 M Co-op programme EK /SG New Mkts/Max Value-AdConnectivity rate by model EK 40% Campus IT training / Payplan change EK / SG Turnover achieved through partnerships EK / SG FFR 1M Launch of 3 packaged solutions EK Operational Excellence Percentage of calls closed within the targetted delay RD 100% Palm Pilot / Helpdesk Optimisation RD Development and benchmarking of DSO CL 45 Days Subcontracting direct debt recov CL Percentage of sales achieved in bundles/direct delivery SG/EK 10% units Payplan and Promotion changes SG/EK Total order ing time 2.5 Days Reorganisation Sales Order Processing RD Sales Productivity 60KF/M/M VAPO CL /SG Average technician productivity 4 calls /day Palm Pilot / Helpdesk Optimisation RD Environment and Social Points in EFQM model for Community impact GC 25/60 Community Participation Project CG Motivation/CompetenceEmployee satisfaction level GC / LL 80% satisfied Employee Survey follow -up project CG Percentage staff Turnover (sales) LL 25% PDP programme / Remuneration review LL/SG Evaluations and PDP s up to date LL 100% PDP programme LL Number of support staff per salesman RD 01:15 Reorganisation of ITC / DTR population RD/SG Optimisation of ResourcTrend in number of client calls being treated RD 5% Call-centre improvement project RD Correlation betw een manpow er and w orkload CG 1.1MF/person New Business Partner search EK Information Systems Advances made in the key projects CG Six/Six Follow -up of six strategic goals for 2001 CG Number of sales achieved via Internet CL/SG/EK FFR 1M Dedicated resource experiment SG 51 Monitoring and measuring if results are reached 52 26
27 Steps Defining the Adapting organization and assigning owners Assessing and improving each : review Monitoring and measuring each Process 2 Process 1 Process n Defining strategic vision Leading the Top role Setting up tjhe each Process owner role each Assessing and improving the mangement Monitoring and measuring if the results are reached Documenting and defining operationnal goals for each Defining indicators and board for each 53 Assessing and improving the 54 27
28 Steps Defining the Adapting organization and assigning owners Revising or refining strategic vision Leading the Top role Assessing and improving the mangement Monitoring and measuring if the results are reached Assessing and improving each : review Monitoring and measuring each Process 2 Process 1 Process n Setting up tjhe each Process owner role each Documenting and defining operationnal goals for each Defining indicators and board for each 55 Defining strategic vision Mission Raison d être Review Cycle 3 to 5 years Vision LT Ambition, Project Strategic axes Short Term/MT «Business plan» Processes Review cycle annual Strategic Board Resources 56 28
29 WORKSHOP PARTS Processes : Principles Links between Strategy and es Sum up 57 Sum up 58 29
30 Sum up 59 Sum up 60 30
31 Muchas gracias! 61 31
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