Getting a Grip on your Stakeholders' Needs and Expectations

Transcription

1 Who Cares? Getting a Grip on your Stakeholders' Needs and Expectations Delivered by Roger T. Burlton, P. Eng., CMC rburlton@bptrendsassociates.com BPTrends Associates. All Rights Reserved

2 Notices COPYRIGHT NOTICE All content and materials included in this presentation, are copyrighted by BPTrends Associates and, unless otherwise indicated, may not be reproduced, copied, stored in a retrieval system or transmitted in any form without the express written consent of BPTrends Associates. FOR MORE INFORMATION CONTACT BPTrends Associates, 88 Waban Park, Newton, MA cwolf@bptrends.com

3 I think that we have been missing something important 3

4 Why do Businesses Exist: Who Cares? To deliver outcomes of value for the core stakeholders of the business to make a difference Product/Service Recipients (aka Customers) Owners Employees Society Involving other stakeholders Regulatory Bodies Suppliers Community Many of our relationships aims may be in conflict 4

5 Successful Stakeholders Relationships are Based on Trust Relationships must work Trust must be established Trust must be sustained A stakeholder is any entity that is involved with, affected by or interested in our organization For the business to succeed we must have effective relationships with all of them Stakeholders outside our organization Stakeholders inside 5

6 Our External Stakeholders define our End Results - Work Backwards I need you to comply I need services as promised I need to pay my mortgage I need to sustain my business I need to realize my dream 6

7 Internal Stakeholders Motivations are often Misaligned with Outside Needs and One-Another I need to increase sales I need to reduce risk I need to keep my job I need to cut costs I need to optimize cash I need to deliver new products 7

8 What we Should Know about our Customers and all Other External Stakeholders Needs and Expectations Performance Indicators and Targets Products and Services Information Relationship Health Processes Lifecycle Customer Critical Success Factors / Capabilities Priorities for Change 8

9 From Stakeholder Relationships to Architectures, Processes and Solutions Their needs and expectations inform Our mission, vision, goals and outcomes Our value proposition 9

10 Defining Stakeholder Needs and Expectations Need = what we must accomplish process outcomes and perceived value if not met we have failed absolutely what satisfies the stakeholder Kano Chart Expectation = an anticipation of how we should deal with the stakeholder if needs are met but expectations are not we will have disappointed if needs are met realizing expectations may delight 10 10

11 Quick Quiz: Need or Expectation? Need or expectation? Plane arrives on time when I have a tight connection The in flight entertainment works I get paid on time I am paid electronically I get a loan decision quickly I do not have to go to the bank 3 times to sign redundant paperwork You fix my computer You show up when you said you would 11

12 Stakeholder Needs and Expectations Drive Business Strategy and Process Goals Stakeholder The set of results that we must deliver to satisfy the needs and expectations of our stakeholders to sustain healthy relationships Synthesized Derived Strategic The 3-7 directional strategic outcomes on the enterprise North Star that articulate our vision Process The outcomes of value from the work we do in our processes for the direct stakeholders and downstream processes affected by them 12 12

13 Business Value Proposition 13

14 Quick Quiz: Pick the Value Proposition 14

15 Balanced Stakeholder Outcomes Establish The Strategic Outcomes North Star Our Vision: We will grow our business profitably and become known as the best gadget producer in the world by 2017 Increase revenue profitability with positive cash flow (30%) Sustain our license agreements (30%) Increase our service reliability (20%) Sustain the quality of our products (15%) Decrease our environmental impact (5%) Note: the percentages in parentheses represent the relative weight we give to each outcome 15

16 From Stakeholder Relationships to Architectures, Processes and Solutions The relationship s performance indicators and targets inform Our performance indicators, scorecard, objectives and performance management system 16

17 A Stakeholder Relationship Scorecard * Quality Consistency Responsiveness Quality Standard Compliance Defects Cost of Non Conformance Adaptability Time to market Time / cost to change Service variability Work force capability Time / cost to handle nonstandard requirements Efficiency Cost / resources per unit of output Cycle time % of value added time Wastage Ratios of resources and time Effectiveness Appropriateness of product or service Customer Satisfaction Net Promoter Score Share of Spend Market Share * Process performance must be directly traceable to strategic performance objectives 17

18 The Process Hierarchy Provides KPIs Traceable to Strategic Outcomes Note: Towards the top (VC and L1-2) expect to find mostly Effectiveness and Adaptability measures Towards the bottom (L3-4) expect to find mostly Efficiency and Quality measures 18

19 From Stakeholder Relationships to Architectures, Processes and Solutions Products and services provided and received informs Our product and service catalog Our supply requirements Information exchanged /Knowledge shared informs Our vocabulary and concept / information model 19

20 Our External Stakeholders Define our End Results - Work Backwards Regulations Certification Product Invoice Reports Penalties Order Request Payment Supplies Invoice Job Pay Job Appl. Time P. O. Payment Investment Ideas $ Reports 20

21 From Stakeholder Relationships to Architectures, Processes and Solutions The current health of the relationships and exchanges versus their needs and expectations informs Our performance and capability gaps 21

22 The Health of External Interactions Inform our Processes and Capabilities Regulations Certification Product Invoice Reports Penalties Order Request Payment Supplies Invoice Job Pay Job Appl. Time P. O. Payment Investment Ideas $ Reports 22

23 Quick Quiz: Rate the Health of your Relationship Interactions Green and Red 23

24 From Stakeholder Relationships to Architectures, Processes and Solutions The end-to-end interconnections that involve or affect them informs Our process architecture and process designs 24

25 External Stakeholders Relationships Progress Through a Lifecycle of Processes SLCP 1 SLC P 2 SLCP 3 SLCP n All Supplier Lifecycle Processes All Customer Lifecycle Processes CLCP 1 CLCP 2 CLCP 3 CLCP n 25

26 A Stakeholder Process Defines What Work we Must do and How we do it Input A Business Process Output A business process describes the work of an organization The work performed in a business process takes physical or informational inputs and produces outputs The work performed must create value by satisfying stakeholder needs and expectations NEW Business Process Manifesto! Edited by Roger Burlton, P.Eng, CMC Copyright BPTrends, LLC -Edited by Roger Burlton -Permission is granted for unlimited reproduction and distribution of this document under the following conditions: (a) The copyright and this permission notice are clearly included. (b) The work is clearly credited to BPTrends, LLC, (c) No part of this document, including title, content, copyright, and permission notice, is altered, abridged, or extended in any manner. Commercial use of this document, in whole or in part, is strictly prohibited

27 External Stakeholders Lifecycles Build up the Process and Capability Architectures 27

28 External Stakeholders Must Always be Traceably Connected to Every Process 28

29 From Stakeholder Relationships to Processes and Capabilities The critical factors that must be in place to be successful with them inform The capabilities required to realize the mission and North Star 29

30 Business Capabilities Require Process Alignment and Enable Measurable Outcomes Organization Structure: Formal Roles and Responsibilities Incentives Intent & Strategy: Enterprise Stakeholder Process Policy & Rules: Regulations Policies Business Rules Supporting Infrastructure: Facilities Equipment Locations Enabling Technology: Software Services Applications Datastores Human Capital: Competency Capacity Motivation * Burlton Hexagon 30

31 From Stakeholder Relationships to Transformation The priorities for changes inform Our change portfolio 31

32 Stakeholder Performance Pain Based on Gaps in Needs, Expectations and Objectives Current Future gap Current Future gap Current Future gap 32

33 Stakeholder Gain Contribution Based on Needs and Expectations 33

34 Quick Quiz: Connect the dots - level of Gain? Type of Process Gain? Develop product Value Proposition? Operational Excellence Deliver order Sell new services Customer Intimacy Maintain customer profile Gain market insights Manufacture widgets Product Innovation 34

35 Pain-Gain Triage: The Nine Block Approach 1. Gain? World Class - set us apart from others Best Practice - no value in being better than others Competent - doing it the hard way is OK 2. Pain? the bottom third? the middle? the top third? 35

36 In Conclusion: Our External Stakeholders are with us all the way. Get to know them! 36

37 Architecture, Analysis and Design Based on Stakeholder Relationships Just Makes Sense 37