Process Innovation Capabilities Diagnostic Tool - Working Draft

©2014 FCB Partners. All rights reserved.
Webinar Roundtable
Discussion
July 9, 2014
Process Innovation Capabilities
Diagnostic
Steve Stanton

1©2014 FCB Partners. All rights reserved.
Today’s Purpose
 To learn from you while sharing our current hypotheses
 To better understand the market’s needs and uses of process
diagnostics
 To get feedback on PICD’s:
– overall structure
– basic elements
– sub-elements
 To improve the tool
 And, to do all of this within one hour!

Why a New Tool? What’s Different Now?
 In the past few years, we’ve seen an enormous technology
evolution in costs and capabilities
 There are major demographic changes, i.e. the rise of
knowledge workers
 The battle between today and tomorrow is intensifying
 There’s growing disenfranchisement of performers (next page)
 Meanwhile, the intensity of competition makes process
outcomes even more crucial
 And, we now have years of experience with ‘process’—both
good and bad

White Collar Salt Mine?
 70% don’t have regular time for creative or strategic thinking
 66% don’t have the ability to focus on one thing at a time
 50% don’t have a connection to their employer’s mission
 49% don’t have a sense of community at work
 46% don’t have the ability to prioritize their work
 40% don’t have the ability to disengage from work
Source: A 2013 survey by the Energy Project of 12,115 workers worldwide

What Would a Perfect Process Diagnostic
Tool Look Like?

What Would a Perfect Process Diagnostic
Tool Look Like?
 Help link process activity and process improvement to improved
business performance
 Facilitate quick and simple self-administration
 Focus only on key leverage issues, no attempt to be
comprehensive
 Help bridge the gap between process and ‘all other’
 Reflect contemporary issues--both problems and solutions
 Identify solutions clearly

Therefore, our PICD Purpose Is:
 Identify and diagnose, simply and quickly, the primary drivers of
Process Performance, focusing on the key, control-able levers of
change
 Provide clear direction for corrective action
 Ensure alignment around all aspects of the business model
 Provision process re-designers with the complete set of
integrated factors than need to be changed and kept in
alignment

The Operating Model
Performance
Performers Platforms
(hard and soft)
Purpose
Power
Process

Individual Process

Process-ness
 Design
– is there a complete, explicit, and integrated E2E design?
– have all SIPOC elements been identified?
– is the VOC (external) loudly heard?
 Improvement
– has the E2E design been significantly improved recently?
– is there active BM/BP?
– is the ‘Toolkit’ complete?
– is data-driven diagnosis ongoing?
 Linkages
– how well have the interfaces with other internal processes been identified, designed, and
improved?
– how well have the interfaces with other external processes been identified, designed, and
improved?
 Documentation
– is the process documented completely?
– are process standards in place, and how complete is conformance to stated standards?

Individual Process Example
Competitive
Disadvantage
Competitive
Parity
Best in Class World Class
Design What design? All process
completed
Improvement Not recently Ongoing with
standard tools
Innovative and
competitive
advantage
Linkages Unmanaged All internal
interconnections
explicit and clear
All internal and
external connections
explicit and
managed
Documentation What
documentation?
• L1
• Standards
identified
• All levels
documented
• Standards
enforced
• Variations as
purposeful
experiments

Process: Purpose
 Is the vision for the future-state clear?
 How clear is the linkage to strategy?
 What is the quality of the metric architecture?
 How clear is the level of performance expectations?
 Are the customers (internal and external) well
understood?

Process: Power
 Is there explicit and aligned role clarity (between
process and other axes)?
 Do process leaders have time to think?
 Are there explicit and aligned decision rules and rights
that are in use and have compliance mechanisms?
 Do process forums exist and are they in operation?
 Do process leaders have or have access to traditional
sources of organizational clout?

Process: People
 Are the performer role definitions explicit and clear?
 Are the performers equipped to execute the process with
excellence?
 Do the performers have the right levels of skills, knowledge,
and capabilities?
– business understanding
– process knowledge
 Do the performers exhibit the appropriate behaviors?
– outcome orientation?
– collaboration and teaming?
– discipline and creativity?
– analytics and customer empathy?
– are they appropriately engaged?
– do they have time to think?

Process: Platforms
 Do the management systems fit the process?
– compensation, incentives, etc.
 Is the physical environment appropriate?
 Does the process leverage new technologies well?
 Does the process exploit traditional technologies?

Process: Performance
 What are the actual outcomes?
– results/products/numbers
– product service evolution
 Is the baseline established?
 Current performance
– vs. peers
– vs. LY
– vs. target

Enterprise

Enterprise Purpose
 Is there a clear and differentiated enterprise mission
and vision?
 Is there a clear, differentiated and well understood
business strategy?
 Is there a clear stakeholder preference scheme in
place?
 Does the metric architecture support the strategy?
 Are there sufficient innovation-funding mechanisms
and platforms in place?
 Is the day-to-day whirlwind under control?

Enterprise: Process
 Is there a well defined and tested process model?
 Are all process suites complete?
 Is there a high functioning strategic planning process
in operation?
 Is there an active project optimization process?
 Is there an active process management process?
 Do process standards have compliance, adjudication,
and escalation mechanisms?
 Are there defined sensing and responding processes
or sub-processes?

Five Types of Processes
Core
Enabling Strategic Sensing
Governing
ST Success
LT Success
Sustained

Process Suites
 Core
– E2E supply chain
– new product development
– customer acquisition
– demand stimulation
 Enabling
– IT
– HR
– Legal
– Risk
– Finance
– Safety

Process Suites …continued
 Strategic–Strategic Planning Process
 Governing
– process management process
– project optimization process
– budgeting process
– talent management process
• Sensing Sub-processes
– customer
– competitor
– technology
– demographic, geopolitical
– self assessment

Enterprise Level Power
 Are there active and senior process leaders?
 Is there a clear process accountability?
 Are there sufficiently empowered process forums?
 Is there clear, active, and effective dimensional
coordination (RACI)?

Enterprise: People
 Are there sufficient positive cultural behaviors?
– ambition, striving, humility, collaboration, data-driven,
empirical
 Are the organization’s values realized and lived?
 Is there long-term capability planning for critical skills
and capabilities?
 Is there change ‘agentry’ available in appropriate
quality and quantity?
 How engaged is the workforce?

Enterprise: Platforms
 How excellent is the organization’s data
management?
 How well does the organization exploit new
technologies?
 Are all incentives aligned with strategy?
 Do the management systems support the strategy?

Enterprise Performance
 Actual results vs. plan and vs. strategy
 Innovation results

Would an Updated Process Innovation
Diagnostic Be Useful?
 What’s been your experience with process maturity
models?
– positive?
– less positive?
 Are today’s best practices captured in the maturity
model?
 Are your burning issues addressed in the maturity
model?
 How might a process diagnostic provide value to you
and your organization?

Continue the Dialogue
Host Date Subject
October 15 Institutionalizing Operational
Excellence: Continuously
Improving the Customer
Experience Roundtable Discussion
October 16 Process Innovation Research
Report and Discussion
October 17 Sustaining Process Thinking
Roundtable Discussion
1. Chicago Meetings October 15-17
2. LinkedIn Discussion Group
Continuous Innovation
We’d love to talk with you about this topic. Let us know and thanks!
3. Research Interview

Process Innovation Capabilities Diagnostic Tool - Working Draft

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