Process Improvement and Change Management Thursday 29th October 2015 APM Thames Valley branch and APM Enabling Change SIG by Carl Halford and Elisabeth Goodman

1. Process
Improvement
and
Change
Management
Carl
Halford
&
Elisabeth
Goodman
Thames
Valley
Branch
29th
October
2015
The
Enabling
Change
SIG

2. Our
theme
for
today
and
how
we
will
explore
it..
§ Organisational, cultural and other strategic change programmes are
the ones that most often attract attention when talking about change.
However, incremental process improvement can also significantly
affect the way people work.
§ Agenda for today
1. Introduction to the Enabling Change SIG
2. Process improvement methodologies in relation to change
3. Case Study
4. Discussion /concluding messages

3. Speaker
Profile:
Carl
Halford
•
21
yrs
IT,
Office
Solu3ons
and
Prin3ng
•
Now
Process
Improvement
leader,
coach,
mentor
and
trainer
•
Process
Improvement,
Lean,
Six
Sigma,
Change
and
Project
Management.
Process
Improvement
–
a
way
of
life
APM
Enabling
Change
SIG
–
suppor3ng
M&S
theme

4. Speaker
Profile:
Elisabeth
Goodman
•
25
yrs
Pharma
R&D
(Informa3on
Management
plus..)
•
Now
trainer,
coach,
facilitator,
consultant
and
author
•
Crea3ng
excep3onal
managers
and
teams
•
Change
management,
lean
and
six
sigma,
knowledge
management,
personality
tools
“porSolio”
Giving
people
the
resources
to
be
and
to
create
navigators
rather
than
vic;ms
of
change
APM
Enabling
Change
SIG
–
Internal
Collabora3on
(SIGs
&
branches)

5. The
SIG’s
mission
is
to‘improve
the
change
capability
of
organisa3ons,
teams
and
individuals’
Enabling Change SIG

6. Themes
PracOOoner
Groups
Events,
Membership
&
Communica3ons
Methods
&
Standards
Collabora3on
–
External
(OU,
UCISA,
ACMP)
Innova3on
(Research,
L&D,
SoWware)
Collabora3on
–
Internal
(SIG’s,
Branches)
Transport
Financial
Services
Public
Services
Change
Community

7. A show of hands….
v How many of you have led or are leading:
v change programmes
v process improvement activities

8. 1. Process improvement methodologies
in relation to change (Carl Halford)
Lean Six Sigma - A Process Improvement Toolset

9. Process improvement
Is a structured and disciplined approach in
which a series of actions are carried out by
a process owner in order to identify, analyse
and improve a business processes within
an organisation in order to meet new goals
and objectives.
Having these actions follow a specific
methodology or strategy increases the
likelihood of successful results.
What is Process Improvement
9
Some examples of Process
Improvement Methodologies
Ø Six-Sigma (3.4 defects per million opportunities)
Ø Lean (Waste elimination / streamlining etc.)
Ø Lean Six Sigma (Blend of Six Sigma and Lean)
Ø Kaizen (“change for better”)
Ø Design for Six Sigma (DFSS / DMADV)
Ø Plan Do Check Act (PDCA) Methodology
Ø Total Quality Management (TQM)
Ø Control Charts
Ø Plus many others
Lean Six Sigma (LSS) drives change in an organisation by inspiring people to look at
their processes differently by focusing on data / data based decision making and waste
awareness / elimination.
However LSS itself is also change management tool that facilitates the changes that it
requires, as well as those of other change initiatives in an organisation.

10. Process
Improvement
Project
Management
Change
management
Can you deliver Process Improvement without Change and
Project management?
10
Change Management and Project
Management are essential to
successful Process Improvement
initiatives

11. 5 phases to project success applied to existing processes
LSS DMAIC Methodology
Define Measure Analyse Improve Control
Set project goals and
boundaries based on
the needs of the
business, the
customer, and the
process. Select and
begin defining the
project value stream
Key is Voice of the
customer (VOC) – 4
types of customers -
• External
customers,
• Internal customers,
• Organisation
• Employees
Build a factual
understanding of
existing
conditions and
establish a
baseline
capability level.
Complete a
current state
value stream map
to establish a
process baseline
for the value
stream.
Develop the theories
of root causes,
confirm the theories
with data and identify
the root cause (s) of
the problem.
Analyse the value
stream to design a
value stream with the
shortest lead time,
the highest quality
and the lowest
possible cost.
Develop, implement
and evaluate
solutions targeted
at the verified root
cause. Design,
implement and
debug a cell with
the shortest lead
time, the highest
quality and the
lowest cost possible
Ensure the new
value stream
meets / exceeds
goals, that the
problem stays
solved, and that the
methods can be
further improved.
11

12. Process Improvement (DMAIC) / Change Management (ADKAR)
Create Desire to Change amongst those
affected
DEFINE
MEASURE
ANALYSE
IMPROVE
CONTROL
Build Awareness of the change
Train Knowledge for the change
Ensure Ability to change
Reinforcement of the change
12

13. Change Management Activities / Deliverables
under DMAIC framework
Project management / Change management activities and deliverables
DEFINE MEASURE ANALYSE IMPROVE CONTROL
Ø Assess change
Ø Determine
impacted groups
Ø Evaluate group
sponsors
Ø Define the
change as part of
the charter
Ø Assess sampling
of impacted
individuals
Ø Determine
communications
Ø Design the
communications
feedback
processes / tools
Ø Assess sampling
of impacted
individuals
Ø Determine
impacted group
Ø Identify sources
of resistance
Ø Assess sampling
of impacted
individuals
Ø Analyse
communications
Ø Identify new roles,
tasks, tools
Ø Assess behaviour
change
Ø Identify
implementation
issuesCHANGE
MANAGEMENT
ACTIVITIES
CHANGE
MANAGEMENT
DELIVERABLES
Ø Assessment
results
Ø Change definition
Ø Change
management
strategy
Ø Risk management
plan
Ø Communication
plan
Ø Assessment
results
Ø Sponsor plan
Ø Updated
communications
plan
Ø Assessment
results
Ø Sponsor plan
Ø Updated
communication
plan
Ø Assessment
results
Ø Training plan
Ø Training plan and
tools
Ø Recognition and
rewards
programme
Ø Integrate into
performance
management
system
13

14. Define
Understand the
customer
Problem & Goal Statement and
Estimated Business Benefits
Define the
business case
Manage the
Project
Gain Project
Approval
Obtain sign off for
Project Charter
Project Plan &
Stakeholder
Analysis
Define the
Process
SIPOC (Map current Process)
Voice of the customer & Kano Analysis
14

15. KANO Model – Different Types Of Needs And Requirements
Satisfaction
+
-
Dissatisfaction
Service
Dysfunctional
Service
Fully
Functional
One-
Dimensional
Delighters
Must Be
Ø Must Be or Must Haves” (Dis-satisfiers) - Requirement that can dissatisfy but cannot increase satisfaction
Ø More is Better, One-Dimensional (Satisfiers) - The more of these requirements that are met, the more one is
satisfied
Ø Delighters - (Attractive Qualities) - If the requirement is absent it does not cause dissatisfaction, but It will
delight clients if present
Requirements Type - Definition
Not all requirements have the
same priority to all customers –
you must determine what is really
important to yours.
The Kano model helps determine the
priority of the customer needs.
Todays delighter become tomorrows must be !
15

16. Team activity – 10 minutes and 5 minute feedback
Breaking into groups, nominate one spokes person per group.
We would like you to briefly execute a KANO analysis for using a Dry Cleaner called
Spic and Span
As a team, Identify three…
Ø Must Haves (Dis-satisfiers) - Requirement that can dissatisfy but cannot increase
satisfaction
Ø More is Better - One-Dimensional (Satisfiers) - The more of these requirements that
are met, the more one is satisfied
Ø Delighters - If the requirement is absent it does not cause dissatisfaction, but It will
delight clients if present
16

17. KANO – ‘Spic & Span’ Drycleaners
MUST HAVE’S
§
MORE IS BETTER
§
DELIGHTERS
§ What would Satisfy, Please and
Delight the Customer?
Where are we, Where do we want to
be?
Analysis of what would delight the Customer…
17

18. KANO – Spic & Span Drycleaners
MUST HAVE’S
§ No marks / stains left on clothes
§ Clothes returned on hangers & in plastic
§ Correct clothes returned
MORE IS BETTER
§ Price
§ Quick Turnaround Offered
§ Convenient Location
§ Extended opening hours
DELIGHTERS
§ Free Collection & Delivery
§ Same day cleaning as standard
§ Loyalty programme – free / discounted
cleaning after a set number of visits
What would Satisfy, Please and
Delight the Customer?
Where are we, Where do we want to
be?
Analysis of what would delight the Customer…
18

19. The Change Space
Process Improvement, specifically Lean Six Sigma is a catalyst for “Change” in
three areas …
Team
(Influence)
Organisation
(Accept)
Personal
(Control)
Personal
Ø Moving Through Uncertainty
Ø Overcoming Doubt
Ø Teaming
Ø Applying New Methods and Tools
Ø Accepting Accountability
Organisation
Ø Organisational Resistance
Ø Culture of Intuition
Ø Organisational Stress
Ø Layer of Mud
Team
Ø Providing Direction
Ø Advocating LSS
Ø Offering Encouragement
Ø Building Team Equity
19

20. Change Agent Methods
To address the three areas of change, Change Agents frequently leverage …
Ø Proven approaches / methodologies / tools -
successfully deliver the project and transition from
the old way of working to new
Ø Team Building – structuring project teams to
leverage individual strength areas to accomplish the
objectives of the process improvement project
Ø Style Assessment – a technique for understanding
individual approaches to change
Ø Knowledge and understanding – methods for
managing emotions in ourselves and others during
the process of change and transition
Team
(Influence)
Organisation
(Accept)
Personal
(Control)
20

21. Questions

22. 2. A case study
(Elisabeth Goodman)
As you listen… think about:
a) What were the critical success factors?
b) What were the challenges?

23. Case
Study
Developing
an
OperaOonal
Excellence
Programme
for
a
CRO
-­‐
1
The context
1. 70 staff – 2 locations: Lab and Offices (France)
2. Several coincident changes:
1. Building and transitioning to a new laboratory facility
2. Responding to new GLP requirements
3. Accreditation of the Animal Laboratories
4. Developing a new HR performance culture.
3. Hierarchical organisational structure

24. Case
Study
Developing
an
OperaOonal
Excellence
Programme
for
a
CRO
-­‐
2
Activities carried out over 18 months
1. Project management guidance, coaching and support for Lab Transfer
2. Assisted with design and analysis of ‘Voice of the Customer’ survey
3. Developed / facilitated Lean and Six Sigma ‘operational-excellence’
workshops with representatives from all areas of the business
4. Coached sub-teams to implement improvements
5. Worked with external consultant to explore how on-going ‘operational
excellence’ could be incorporated in the HR performance process
6. Took sub-set of staff through advanced training to attain Green Belt
accreditation in Lean and Six Sigma.
7. Guided the team in how to embed ‘operational excellence’ as a way of
working.

25. Case
Study
Developing
an
OperaOonal
Excellence
Programme
for
a
CRO
-­‐
3
Outcomes
1. Lab Transfer completed on schedule
2. Voice of the Customer survey had a 60% response rate and significantly
enhanced the quality of interactions with clients.
3. More than 20 improvement opportunities were identified and implemented,
involving staff across all scientific and business areas
4. New competencies for on-going ‘operational excellence’ incorporated in HR
performance process
5. 4 staff completed Green Belt accreditation
6. Responsibilities and a framework for on-going ‘operational excellence’
incorporated in the organisation’s management programme

26. Case
Study
Developing
an
OperaOonal
Excellence
Programme
for
a
CRO
-­‐
4
Factors contributing to success
1. Single point of contact plus regular access to CEO
2. Development (and implementation) of change plan
3. Use of reps in each department
4. Focus on tangible and ‘important’ improvements
5. Context of end-to-end process
6. Engagement with external customers
7. Regular communication with all staff – with visible information in common
area
Challenges
1. Full engagement of executive team
2. Embedding of ‘operational excellence’ framework

27. 3. Discussion / concluding messages

28. § Each
other
§ Events
§ Micro-­‐site
§ Newsle[er
§ Spark
Collabora3on
§ Contact
us!
cghalford@googlemail.com
elisabeth@riverrhee.com
Resources available to help you
take this further

29. Appendix

30. Phase I
Discovery
Define
Phase II
Requirements
Define
Phase III
Validation
Measure/Analyse
Improve/Control
Phase IV
Implementation
Planning
Improve/Control
Phase V
Implementation
Improve/Control
Phase VI
Post
Implementation
Control
> VOC -statement of
work
> Pareto diagrams
> Fishbone diagram
> FMEA
> Process flow
> Control plan
> Scope definition,
objectives
> Assumptions
> Risk process
> Project deliverable
checklist
> Requirements writing
> Criteria for project
completion
> Communication plan
> Responsibility
assignment matrix
> Risk process
> Change management
> Lessons learned
> Weekly team meeting
> Cost estimating
> Work breakdown
structure
– Cost budget
– Schedule
> Gauge R&R
> Pareto analysis
> FMEA
> DOE
> Risk process
> Change management
> Earned value analysis
> Lessons learned
> Weekly team meeting
> Recommend solutions
> Recommend controls
of solutions
> Design recommended
solution
> Design controls
> Risk process
> Change management
> Earned value analysis
> Lessons learned
> Weekly team meeting
> Implement process
improvements
> Project process
monitoring with
countermeasures
and controls
> Purchase capital
> Test solution
> Risk process
> Change management
> Earned value analysis
> Lessons learned
> Weekly team meeting
> Measure for
completion of objectives
> Repeat at 3 months
then again at 6 months
> Controls review
> Close project
> Project book archive
> Risk process
> Change management
> Lessons learned
> Weekly team meeting
Senior management
approval to continue the
project
Stakeholder approval to
continue the project
Project Sponsor approval
to continue the project
Stakeholder approval to
continue the project
Project Sponsor approval
to continue the project
Project success or failure
Integration of Project Management, Six Sigma and Change
Management within the Project Life Cycle
Change Management and Project Management are essential to successful
Process Improvement initiatives
30

31. Measure
KPI’s – May exist or may need to be developed
Obtain sign off for project charter
Example tools include histograms and
time series plots to identify trends
over time
You need to know your data is accurate using
Measurement System Analysis – Tools vary
dependent on the type of your data.
Will you use all data or just a sample, if sampled how big
will your sample be. How often will you collect your data.
Is your Data Discrete or Continuous?
Collect Process
Data
Develop Process
Measures
Understand
Process Behaviour
Baseline process
Capability & Potential
Check the Data
Quality
31

32. Analyse
How does the process actually
work – Detailed process
mapping is key. Also tools such
as Pareto Charts and FMEA
Use correlation &
Regression
Use of multiple tools
depending on Data type
(Potential Root Causes),
Fishbone diagram & 5 Whys
Develop Theories
& Ideas
Analyse the
Process
Verify Root
Causes
Analyse the data
32

33. Improve
Brainstorming, benchmarking
A Pilot study provides useful information
before full implementation. Measure using
your previously identified KPI’s
Using FMEA to understand impact and risk
Group your ideas and identify best solutions
Select the Best
Solution
Generate
Solutions
Pilot & Implement
Assess the risks
33

34. Control
Use a control plan, only key KPI should now be tracked
Complete project report
Use Control Charts
Have the solutions become standardised process?
Document &
Standardise Solution
Implement ongoing
measurement
Close the project
Quantity the
Improvement
34