Prepared for the Fairfield/Westchester Society for Information Mgmt. By Andrew Spanyi. September, 2011

Transcription

1 Prepared for the Fairfield/Westchester Society for Information Mgmt. By Andrew Spanyi September, 2011

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3 The Mindset Study Explore the role of Executive Mindsets in enabling a company wide business process management focus. Formed the basis for More for Less: The Power of Process Management The Sample/Approach 18 respondents USA, Europe VP level Finance, Operations, IT Qualitative research Research 3

4 A dedicated champion A focus on performing for customers A real or perceived threat Receptive culture Supportive, vocal CEO Research 4

5 What Models Metrics Accountability Integrated Methods Incentives How! A subtle shift of power & authority Research 5

6 Lead the transformational change to achieve the benefits of the Deliver the Difference work process initiative across all global processes (13), businesses, and regions. Concurrent with major ERP implementation Develop, deploy, and sustain the critical capabilities required to be processfocused: Process Leadership (includes process/function/business role clarity) Process Design & Documentation Process Measurement Process Improvement Research 6

7 Source: Air Products Research 7

8 BUSINESSES [Business Unit, Region, focused on P&L s & markets) Businesses determine where we work FUNCTIONS [Departments, Centers of Excellence) Functions describe what we do Source: Air Products PROCESSES [Source, Make, Fulfill, etc.) Processes focus on how we do our work Research 8

9 Caterpillar: Giant Steps Voice of the Customer Process Measurement Process Improvement Research 9

10 Customer Relationship Management Customer Acquisition Customer Retention Sales Execution Product/ Service Development Other KBA s Product /Service Support Parts Support Continuous Product Improvement Service Support Order Fulfillment Product Stewardship New Product Introduction Technology Commercialization Product Innovation Supplier Design Collaboration Order Management Procurement Manufacturing & Assembly Demand Management Transportation Financial Products Human Resources Treasury Social Responsibility Corporate Governance Strategic Business Planning Information Management Accounting & Reporting 10 Research

11 Customer Focus Governance Models Culture Methods Metrics Incentives 2011 Andrew Spanyi 11

12 Getting Ready Measuring performance: The Customer View - Outside-In Case for change Collaboration Taking Improvement Action Thinking at the right level Pacing Collaboration Sustaining and extending gains Discipline Collaboration Infrastructure 2010 Andrew Spanyi 12

13 #1 Recruiting Insurance #2 Leads Management Office Products #3 Enterprise level Automotive 13

14 The Recruiting Process: Insurance company example The Challenge: We need to recruit agents faster/better Identify Requirements Seek Applicants Make Selection Background Checks Hire Candidates Conduct Orientation 42 days to 26 days 14

15 #2 - Leads Management Customer Inquiry Lead Qualification Lead Distribution Lead Acceptance Customer Contact Discovery Order Findings from a customer survey indicated opportunities in the Lead Acceptance and the Customer Contact steps - Over 50% of the leads not being officially accepted by the Field in 8 hours - Over 20% of Customers not being contacted even if the Lead has been accepted by the Field 15

16 Manufacturing company automotive sector Rapid expansion internationally Needed to replace legacy systems with ERP Decided to embrace business process excellence on a company wide basis 16

17 Business Process Management IT Systems Business Transformation Process-centric Management Process Governance Process Ownership Process Metrics Process Assets Process-enabling IT Common Look & Feel Automated & Collaborative Analytics & Decision Support Modeling & Simulation Business Process Excellence Business Value 17

18 Perfect NPI Perfect Order Fill Perfect Order Receipt 18

19 Details Process Manage Master Data Manage Pricing Process Orders Manage Credit Process Delivery / Transport ation Process Billing Manage Accounts Receivable Manage Collections Manage OTC master data Pricing negotiation Manage prices on orders, deliveries, billing Quotations Qty contracts Sales order Validate orders Release accounting (JIT/JIS) Delivery date & timing ATP (Avail to Promise) Transfer of requirements (forecasting) Credit check for new customers Manage credit for customer Check credit on orders and shipping Manage outbound delivery creation Manage shipment Invoice customer Post invoice to general ledger Debit and credit memos Manage A/R Processing incoming payments Collections - Dunning 19

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21 ERP system implementation behind schedule and over budget RICEF s (Reports, Interfaces, Conversions, Enhancements and Forms) take out the many meaningful process metrics Minimal progress on end-to-end process improvements 21

22 Fragile case for change Bolt on technology solutions Structure before process Wrong Pacing Inconsistent management attention 2011 Andrew Spanyi 22

23 The Black Hole Spiraling down As-is To be As was 2011 Andrew Spanyi 23

24 A process leader has willing followers who are wholeheartedly committed to a common course of action. Adapted from The PAR Skills Cracking the Code to Leadership 2010 Andrew Spanyi 24

25 Getting Ready Look at the business from the outside-in, from the customer s perspective, as well as from the inside-out Link to strategic issues (e.g. market share, growth, customer satisfaction, cost reduction, etc.) Use simple, visually gripping support materials Specify the risks of not taking action now 2011 Andrew Spanyi 25

26 Taking Action End-to-end view Urgency throughout Understand typical points of leverage Iterative improvement IT involved at the outset Champion AND Steering Team 2011 Andrew Spanyi 26

27 Sustainability Accountability for continuous improvement Customer facing metrics Standing (part-time) process management team Enduring emphasis on continuous improvement 2011 Andrew Spanyi 27

28 You can t lead something you don t understand! You can t PowerPoint and road map your way to success! You can t assign this to middle managers to deploy! 2010 Andrew Spanyi 28

29 No one single successful process improvement, innovation, or transformation effort is likely to convey lasting competitive advantage. Process management, across the enterprise, might! 2010 Andrew Spanyi 29

30 Andrew Spanyi Cell: Research Assessment Coaching 30