1. Strategic Intent and Communication Tools
To Meet Customer Performance Requirements
Joseph R. Hudson
jrhudson@hudgroup.com
2. Strategic Action Planning
Agreeing to the projects and initiatives needed to
achieve the strategic objectives
Making the link between those projects and
initiatives and corresponding processes
Analyzing the processes to be improved to
achieve the strategic objectives
Improved results requires changing a process.
It’s all about results…
Hudson Strategic Group
3. Implementing the Strategic Plan
Strategic planning calls for different and
improved results with respect to the
organization’s core work.
Strategic outcomes demand strategic process
changes.
Effecting organizational change requires process
change.
Cross-functional process change requires cross-
functional project teams.
Hudson Strategic Group
4. The Time is Right for Cross-
Functional Process Improvement
Implementing a Balanced Scorecard
Documenting departmental procedures and
processes
Utilizing other assessments as a organizational
change catalyst
Changing external requirements
Hudson Strategic Group
5. What is a Process?
Process
Input Completion
Requirements Criteria
Outputs
Inputs Processes (Results)
Meeting Requirements Value Creation Steps With Valuable
Attributes
Satisfaction
Criteria
Deliverable
Usability
Reoccurrence
Prevention Feedback Criteria
Criteria Usability & Problem Solving
New Requirements
External Internal
Feedback Feedback
Any ACT of Creating Value
Hudson Strategic Group
6. Processes are EVERYWHERE
Functions are about “Being”
Processes are about “Doing”
“ To tell a manager about processes is
like telling a fish about water. ”
“ There is no product and/or service
without a process. Likewise, there is no
process without a product or service.”
Hudson Strategic Group
7. Which BCS outcome measures are the
most predictable and why ?
Hudson Strategic Group
8. Why is it important to focus on
Cross-Functional Processes?
All work results are produced by the
processes used.
Processes are functional and cross-
functional.
A focus on processes will permit better
analysis and control.
Hudson Strategic Group
9. A Focus on Cross-Functional
Processes can be a Powerful Tool
Strategic Benefits
Ability to execute strategies to achieve student success.
Higher customer retention.
Realize the customer value proposition.
Stakeholder Benefits
Greater customer satisfaction.
Differentiated services.
Lower service delivery cost.
Operational Benefits
Lower direct costs.
Better use of assets.
Faster cycle time.
Increased accuracy.
More added value.
Hudson Strategic Group
10. Identifying and Understanding
Cross-Functional Process
Begins outside a department and ends outside the
department with the customer.
Utilizes customer requirements.
Uses inputs and specific steps to convert inputs into
outputs.
Evaluates if outputs of the process are usable as
determined by the customer.
Evaluates overall process effectiveness and usability
for employees and end users.
Utilizes feedback for continuous process
improvement .
Hudson Strategic Group
11. Identifying Objective and Process
Ownership
Begin with a Balanced Scorecard objective.
Identify cross-functional process(es) that are
used to produce that objective.
Determine the attributes that make the
objective strategic.
Determine the key functions that are involved
in the process in order to achieve the
objective.
Select an owner from the key functions
involved.
Hudson Strategic Group
12. Process vs. Function Owners
The Process Owner is Responsible for Doing
The Right Thing: Results for Customers
The Function Owner is Responsible for Doing
the Thing Right: Resources and Rules
Senior Leaders are Usually BOTH
Process Owners and Function Owners
Hudson Strategic Group
13. The Good, the Bad & the Ugly
“Good” Transactions are PROCESSED ROUTINELY by
the existing process with minimum outside intervention and
shortest cycle time.
“Bad” Transactions are those which are NORMALLY BAD.
They require exception processing, but only suffer from
known problems which can be addressed by known
solutions - longer than normal cycle times.
“Ugly” Transactions are those which are NOT HANDLED
within the existing process and require outside intervention
or assistance. They have very long cycle times - often not
tracked or monitored.
Hudson Strategic Group
14. Use Transaction Cycle Times to
Target Improvements
Number of Transactions
“Good” Transactions
“Bad” Transactions
“Ugly” Transactions
Short Very Long
Actual Cycle Times (ElBCSed Time to Complete)
Hudson Strategic Group
15. Transactions-Empirical Data
THE GOOD, BAD, and UGLY
Number of Transactions
283
300
250
200
150 112
100 67
50
0
1-60 days 61-120 days 120+
Total of 462 unique Quality Ranges
events
Hudson Strategic Group
16. Strategic Action Planning –
Assignments
Example: Cross-Functional Process “A”
Start
Inputs
Follow BCS Rules
Schools
1 2 9
YES
Rule
Staff
C&I
3 4a 7a
Rule NO
Purchase
YES
Rule
YES 4 7
“Swim Lanes”
NO
Legal
5
Rule Departments Own
HR Support Tasks
Mgmt
YES
6
Hr or IT
8
2a
SRT
Assign a Lead for Strategic Actions
Finance
10a 10
Related to Process “A”
END
Outputs
Hudson Strategic Group (Results)
17. Functional vs. Process Focus
Functional Focus Process Focus
• Employees are the problem. • The Process is the problem.
• Doing my job. • Help to get things done.
• Measuring individuals. • Measuring the process.
• Motivate people. • Remove barriers.
• Controlling employees. • Developing people.
• Don’t trust anyone. • We are all in this together.
• Who made the error? • What allowed the error to occur?
• Correct errors. • Reduce variation.
• Bottom-line driven. • Customer driven.
• Inherently values stability. • Inherently values flexibility
Hudson Strategic Group
18. BCS Approach to Process
Improvement
2005
• Create standards,
2006
guidelines and tools
for regulation, policy • Completion of
and procedures. departmental
• Creation of BCS regulation, policy and
procedures. 2007
Methodology for
Process Improvement. • Selection of key • Continue to address
• Establish process improvement District priorities and
prioritization of work projects to be key areas.
based on strategy, executed for the
Deloitte District.
recommendations and • Implement project
District priorities. teams to address
process initiatives and
action plans.
Hudson Strategic Group
19. BCS Process Improvement Methodology
Phases
Planning & Execution &
Initiation Closing
Analysis Monitoring
Create Project Create Project Plan
Project Build Project Solution Present Project
Management Charter and WBS
Solution
Organize for Collect Data and
Process Validate and Continuous
Improvement
Process Document Complete Implementation
Detailed Analysis Redesign Improvement
Improvement
Create Change &
Change
Create Sense of Communications Execute Change Management Plan Monitor Progress
Management
Urgency Strategy
Deliverables
Approved Project Approved Project Approved Project
Implemented Project Solution
Charter Plan & Budget Closure Report
Hudson Strategic Group
20. Process Management – Next Steps
Form a Senior Management Process Owner Steering Committee
(Send a Message)
Assign permanent, middle management, cross functional teams to:
Review data in specific areas, present data (organized &
formatted) to senior leaders.
Make process improvement action recommendations to the senior
council. (no function specific presentations allowed)
Empower cross functional teams to create cross functional action
teams (as needed – short lived) to engage functions in projects to
improve processes.
Integrate implications into operational planning and resource planning
Modify your communications strategy and plan to inform internal and
external customers of their role
Hudson Strategic Group
21. Why a Senior Team should focus
on Process Improvement?
The BCS staff needs to know that process
management matters to you because they already
know that results matter to you.
You need them to believe in process management so
that results can be achieved consistently and
systematically rather than unreliably through heroic
efforts.
You need them to be able to sustain and improve the
results without your direct involvement.
You need them to render the whole system visible –
available to be examined, criticized, and improved (get
it out of people’s heads and down on paper).
Hudson Strategic Group
22. Establish a Process Improvement
Infrastructure
What How Who
(Recommended Management System)
Mission/Vision Market / Data Analysis Leadership
(Purpose) w/ School Board
Strategic Plan Goals & Objectives Sr. Mgmt Team (Cabinet)
(Strategy Map) (w/Lagging Indicators) Management Steering
Committee
Initiatives & Processes for Middle Management
Programs Delivery
(Strategic (Change Management) Permanent Performance
Actions) Improvement Team(s)
Tactics Activities
Line Management
(w/Leading Indicators)
Chartered Project
New Tasks Changed Tasks Teams (Six-Sigma
and Other)
Results Skills & Abilities Associated with Individuals,
(Source of (New or Improved Systems, and Jobs
Measurement Data) Capabilities)
Hudson Strategic Group
23. Implementing the Strategic Plan
Strategic objectives call for different and
improved results.
Improved results demand strategic process
changes.
Cross-functional process change requires cross-
functional project teams.
Leadership and Ownership are required at each
step.
Hudson Strategic Group
24. Strategic Action Planning
Analyzing the strategic objectives to determine
what processes must be improved to achieve the
objectives.
Assigning ownership for the processes and
related objectives.
Agreeing to the projects and initiatives needed to
improve the processes identified.
Hudson Strategic Group
The Process Owner is Responsible for Doing The Right Thing: Responsible for the Quality & Quantity of the Customer Deliverables Responsible for the overall Quality of the Process – And improvements there-to (They Need Strategic Projects / Actions) Supported by the Various Functions involved in creating the Deliverable (w/Service Level Agreements whenever possible or feasible) Responsible for providing Requirements to all of the supporting Functions Responsible for providing feedback on the usability of support services Responsible for reporting on the impact being made on the Organization’s Strategic Objectives The Function Owner is Responsible for Doing the Thing Right: Responsible for their own Functional Excellence & Regulatory Compliance Responsible for Meeting and Reporting on SLAs Managing Resources to optimizing utilization
11 Examine Core Processes based on Contribution to Objectives Usability of Process Overall Quality w/Respect to Customer Requirements and Expectations Examine Core Processes base on Transaction Cycle Times Good transactions = Those which simply work as expected – Normal Cycle Times Bad Transaction = Bad (defective) in the usual ways – Known Problems – Longer Than Normal Ugly Transaction = Bad in various un-usual ways – Un Predictably Long Cycle Times
13
8
Form a Senior Management Process/Project Council to review BCS process performance regularly (1-2 hours per month) and approve improvement actions Assign permanent middle management cross functional teams to review data in specific areas, present data (organized format) to senior leaders, and make process improvement action recommendations to the senior council. (no function specific presentations allowed) Empower cross functional teams to create (as needed – short lived) cross functional action teams to engage functions in projects to improve processes. Integrate implications into strategic planning and resource planning Modify your communications strategy and plan to inform internal and external customers of their role in BCS process management efforts (get buy-in as to how the results are to be sustained and improved). Internal and external customer feedback on errors and usability are key ingredients to sustainable success.
Separate the people from the Processes they manage
18 Anatomy of a Transaction Phase 1 Discussion The Suppliers offer is prepared base on the suppliers view of the customer’s concern - Taking into consideration internal capabilities . The Customer agrees based on their view of the concern only. Ending with some kind of agreement. Phase 2 Execution Begins The conditions of satisfaction are supposed to be negotiated or discussed, very often they are assumed by the people involved, again based on their view of the concern and what is required to address it. Conditions of Satisfaction also exit within each transaction, sometimes communicated sometimes not. Phase 3 Product Delivery Execution of the agreed upon transaction ending with the Deliverable Phase 4 Implementation The customer will always make an assessment of the transaction as to it the deliverable actually addressed the concern. This is without regard to weather the concern was actually communicated. Usually the request or the offer are the only things communicated. - Ending with the development of Feedback. Phase 5 Dealing With Feedback This has an ongoing effect on the relationship - communicated or not. Negative feedback - particularly uncommunicated - can have an extreme negative impact.