Establishing Business Process Continuous Improvement Capabilities

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Establishing Business Process

Continuous Improvement Capabilities

Choosing the course & planning the journey

Overview

August 2009

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Establishing continuous improvement capabilities requires top-down commitment

Experience has taught us that there are TWO keys to success

Top-down commitment to preparing the organisational culture to embrace measurement as a valued improvement technique

Learners with the aptitude and attitude to acquire and execute new skills, methodologies, and tools to deliver on-going measurable improvement

IBM has two variants of continuous improvement enablement, both based on Lean Six Sigma (LSS) techniques

Business Process Improvement (BPI) Enablement is for clients who are not ready for full Lean Sigma yet, or who do not have a goal of Lean Sigma certification

• BPI Enablement can be employed as an ‘entry level’ phase for LSS Enablement Lean Six Sigma Enablement includes additional LSS techniques, and staged Green Belt and Black Belt certification levels

Both have phasing options to support different change pace and budget limits

BPI & LSS Enablement both combine training and mentored practical

application to achieve a fast and enduring continuous improvement capability

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IBM’s Methodology

IBM’s BPI Enablement is based on teaming with Clients to deliver services to establish a process improvement competency

Team = IBM + Client staff

IBM brings methods, tools & skill transfer Team assesses & scopes 1 pilot initiative IBM provides method & tool induction Team completes 1 pilot initiative

Subsequent initiative support by IBM as needed by Client

MethodologyBPI

FrameworkBPI Work Plans &

Deliverables Tools

A Framework provides rules to define the process modelling approach & standards to ensure consistency across outputs

Work plans and deliverables provide certainty in activities, inputs, outputs and resources for process improvement projects A process modelling tool like WBM supports analytical modelling to build business cases and facilitate reuse of model artefacts as inputs into downstream development and integration tools.

Prototype

Pilot

Project Project Project Project

IBM’s BPI Method, Best

Practices &

Standards

Quick Start

“Hands-on Training”

Uplift

“We Lead:

You Learn”

Capability

“You Lead:

We Support”

X 1 X 2 X n

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A LSS Enablement is more transformational from an organisation culture perspective

LSS deployment can take up to twelve months, although it can be phased at interim capability levels, i.e. Wave 1 Green Belts (GB), Wave 2 Black Belts (BB)

Best practice Lean Sigma implementation, takes 1 year on average, as shown here

Green Belt Certification

• Training + Exam

• Deliver 1 BB Coached improvement > * $100K benefit

Black Belt Certification

• Further training + Exam

• Lead delivery of 2 Master BB Coached improvement

> * $200K benefit

As knowledge transfer and culture change take hold, many of these tasks are led and directed by the new

Green Belts and Black Belts *$ value of benefits necessary for each level determined during design of each client’s Certification Governance

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To complement process changes, IBM also incorporates change management into each step of the method

Change Readiness Assessment

Identify and prioritise change risks and opportunities Assess leadership commitment, history of change, clarity of vision, etc.

Provide the foundation for a comprehensive communications & change management program Communications Management

Define the project “brand” to help maintain focus Develop a communications strategy and tactical plan to keep stakeholders involved and current

Create and distribute messages that define changes and influence the audience to accept change

Organisational Environment Assessment

Assess current organisational culture and alignment Analyse leadership styles & organisational efficiency Assess effectiveness of current communications Organisational Change Plan

Develop detailed plan for realigning departments and individuals into new organisational structure

Create training strategy for developing new skills

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Business Consulting Services

Change History, Change Readiness, Organizational Maturity, and other important organizational issues can be tested by survey, providing highly valuable input to the migration and communication plans

Sample Change Readiness Survey

Responses

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IBM Business Consulting Services

Critical to ensuring effective change management is a well conceived, orchestrated and executed communications plan

Management Unit Managers Functional Managers

All Employees A Specific

communications

Illustrative

A B C

Time Department

Managers A B C

The communications planning process we will follow has two defining characteristics: One, that it is phased, with key messages cascaded through the levels of the organization; and two, it is networked, with each management team functioning as key communicators to the next Communications Planning

CheckFree ITO Org and Process Assessment | Confidential | 1-Oct-03 55

Business Consulting Services

Sample Deliverable: Strategic Alignment Matrix

Elements

Aligned Elements Not

Aligned Strategic

Goals Structure Behaviors Enablers Structure Behaviors Enablers Economies of

scale

Shared services Little reuse Shadow systems

of redundant data

Differentiation

Leaders espouse need for unique market position

Ignore market- rate pay; losing good people to competition

Speed and innovation

Rewards innovation Bureaucracy has

too many authority levels

"Play it safe" Communication slow via unlinked systems Customer-

driven

Wide range of direct customer channels

Customer-facing resources inadequate

Measurement system focused on financials Globalization

Global lines of

business Enterprise IT

strategy in place

Different functions and jobs across regions

Regional execs exercise local control

Information systems report by geographies Process-

driven

Leaders say it will happen

No process owner roles in place

Performance management system driven by functions

ILLUSTRATIVE Proposed Approach

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The duration of Enablement engagements is confirmed as an outcome of pilot process selection and scope finalisation

Your Pilot process needs demonstrable benefits available & few costly or time consuming barriers to success.

The Enablement team will include:

Client Team members;

• Minimum 2 full-time CI leaders

• Subject Matter Experts as required

• Client Management to participate in Enablement Program governance

IBM Team members;

• Engagement Manager / Team Lead (full-time)

• Process / Organisation Change Consultant (full-time)

• Process Analyst (full-time)

• Continuous Improvement leadership

& QA review (part-time)

Return Increased Efficiency & Effectiveness High

Low

Low Risk

Take Action Quickly

Capture Opportunity as Resources

Allow

Do not Pursue, or Pursue Last

Pilot Rigorous Focus of Attention

& Resources To Ensure Success

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BPI and LSS Enablement support a more objective way of delivering continuous improvement to…….

Instil a new culture for process development Reinforce a ‘do it right the first time’ mindset

Enable the analysis of the potential effects of process changes

Empower decision making and priority setting via the availability of sound process data

Provide a standardised approach to data collection

Erode subjective / political barriers to change

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Appendix

Continuous improvement techniques delivered by Enablement program type

Process modelling that supports business & IT collaboration, and Software

Development Lifecycle (SDLC) efficiency

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Our BPI and LSS enablement programs are both based on a number of shared Lean Sigma techniques

Enablement program planning may distribute some techniques into smaller phased deployments, or exclude some techniques, as appropriate

Working with Ideas Working with Data/ Numbers Working in Teams

Imagineering Survey Contingency Diagram

Affinity Diagram Checksheet Charter

Brainstorming Data Collection Communication Skills

Cause & Effect Fishbone Diagram Histogram Ending / Moving On

Flowchart Pareto Chart Involvement Matrix

Force Field Analysis Run Chart Reinforcement and Feedback

Multivoting / NGT Team Problem Solving

Tree Diagram / PDPC Valuing Diversity

Activity Network Diagram Control Charts Storyboard

Focused Problem Statement Data Points Interrelationship Diagram Hypothesis Testing

Matrix Diagram Process Capability Prioritisation Matrices Scatter Diagram

Radar Chart

Commitment Scale Design of Experiments (DOE) Communication Plan Critical To Quality (CTQ) Tree Failure Mode & Effects Analysis Process Management Chart

Kano Model Regression

Measurement Systems Analysis Taguchi Loss Function Operational Definitions Voice of Customer

SIPOC

LSS BBLSS GBBPI

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We use WebSphere Business Modeler to support process modelling

& analysis and to develop reusable business model assets

Simple to use business modeling tool

Allows people who know the business to model processes Drag and drop operation

Supports quantified process insight

Understand your business models & make informed decisions before deployment

Model resources, roles, organisation, information, business metrics

Facilitates inclusion and collaboration

Communicate & participate across enterprise

Enables multi-discipline team work

Clean hand-off to I/T

Provides connectivity to other IBM tools

Rapid and accurate deployment of IT solutions

Business modeling is the starting point for I/T deployment

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Contact for further information

Roland Bell, Managing Consultant, Strategy and Change practice IBM Global Business Services

rolandb@nz.ibm.com Ph 04 462 3304