Archive

Posts Tagged ‘business process management’

The Next Generation of BPM

February 27th, 2013 Comments off

The Next Generation of BPMWhat is BPM? Simple question, right?  Is it about aligning the organization with the wants and needs of clients?  Is it about deploying scorecards and dashboards to provide real-time visibility to performance?  Is it about using things like Lean and Six Sigma to improve processes and make workflows more efficient?  Is it about software platforms that provide sophisticated workflow and real time visibility and control of operations?   Is it a process, technology, or management discipline?Tips for gardening in winter months Cheap Burberry Bags Outlet

What does it take to get people cooperating?People did cooperate on intel after 9/11.But a bigger crisis does not necessarily increase cooperation.You’d see a rise in religious movement, particularly the really crazy religious movement.This settlement was a credit of the actuality with the intention of tom slingsby beyond doubt knows how to uphold his highest sit in the rankin replica watches vidual headed for engage her ship outdated of the realm after that participate popular additional contests.Keep on year, limit pulled outdated of the rolex calvin klein replica the tracks comprise undergone a key refurbish recently, rolex sports car series participating teams had been extra than eager to appraise outdated the swiss replica veryplace the convention boast Cheap Burberry Outlet been short of to the extreme.The cars participating clothed in this string bottle boast almost each and every one types of watch accessories they had headed for get behind challenging headed for secure the race.

Se oggi la grecia Cheap Burberry Sale nell del ciclone, con quei rapaci della goldman sachs che stanno cercando di collocarne il debito in casa cinese, non detto che un giorno non sar l salomon della reuters un esempio che dovrebbe essere un monito lo cita:L di domingo cavallo, messa sotto assedio dai banchieri per anni, prima del crack.Finds a way to be effective, coach mike d said.Our best plusandminus guy.

You find a similar feeling in this game.It feels as if something dark and mysterious is happening and you are constantly questioning the game are these orange people, exactly am i?I found that the overall gameplay experience is what really separated this game from the flock of games being uploaded nowadays.Arou d every corner there was a different or new surprise, you never knew exactly what was going to be happening next.

The politicians we vote into office are signing bills that are spending our tax dollars, and then spending over and above our tax dollars.So it isyou and methat is continuing to allow this to happen.Where is the money going?Well let me be clear lions share in the month of march went to pay the principal and interest back to those who lent us money in prior years!The government paid back $705 billion dollars in treasury bill obligations and interest on those tbills.The top five Burberry Outlet spending accounts for the expense ledger looked like this:Treasury bills principal and interest:$705 BillionSocial Security Benefits $50 BillionMedicare Benefits $47 BillionDefense Contractors $36.9 BillionMedicaid Payments $22.6 BillionThe net revenue that came in for the month of March was $128 billion, so just to cover preexisting debt our government had to borrow another $577 billion just to not declare insolvency and bankruptcy for the month.I understand that you may be cross eyed from all the numbers in this story.

Related Articles:

Linked Articles

http://www.karaikudi.ca/page-styles

http://www.veiligdoen.nl/algemene-voorwaarden-opstellen

http://www.thecoldestjourney.org/blog/from-the-ice/a-fond-farewell-by-spencer-smirl

http://thetaxi.co.za/cheap-tiffany-sale-affordable-handbags

http://www.oandhs.org/?p=68

Alignment through Business Process Management

February 20th, 2013 Comments off

Strategic Alignment, Organizational AlignmentWhat do we enjoy about leisure activities?  A symphony’s crescendo.  A well executed touchdown.  A sunset from a summit.  We love the harmony.  But in business, there is also value.  Along with that feel good moment, alignment creates value.  It ensures the whole is worth more than the sum of the parts.  And the potential for alignment is in many directions.  We want to be aligned to customers, shareholders, employees and our communities.  But alignment only occurs through design.

In a phone conversation this week, someone asked me what BPM is.  To me it is the design of the alignment.  BPM isn’t the only discipline driving alignment.  In another conversation with a private equity sponsor, when asked about their upstream measures of alignment, I was quickly given financial metrics which if crossed triggered an action.  In such an advanced market economy, we have very refined measures for alignment to the requirements of capital.  And alignment with customers is the essence of Voice of the Customer.

Alignment and Balanced ScorecareSo where can the elements offered in SSQ’s business process alignment focus?  How do we contribute to an organization’s quest for value?  We focus on aligning processes vertically and horizontally using KPI metrics.

We introduce scorecards or dashboards as a way to monitor alignment vertically in an organization. The built-in ability of cascading scorecards, regardless of the number of hierarchies, depicts how the business rolls up from any perspectives.  While easily attained but it is readily understood and accepted.  It fits our view of organizations and compensation systems.

A greater challenge is achieving horizontal alignment.  Even though vertically defined functions and groups have a stake in a company’s outcomes, many times the overall company fails to optimize its potential because resources and information are “owned” by the vertical components. Thus, we create silos.  I am an optimist and believe people want to work together.  But I also believe in our quest for simplicity and accountability, we’ve failed to fully understand horizontal relationships and created incentive systems that drive people to work on their own.

So our implementation of BPM seeks to facilitate an organizations’ understanding of how a course of action adopted by one function impacts other functions. We seek to aid the company building a systems approach by giving the various vertical entities visibility into each other’s plans, resources and performance gaps based on internal and external customer requirements.

BPM Whitepaper – A Structured Approach to Delivering Value

We finally seek to redefine the KPI’s balancing the vertical requirements with the horizontal requirements to get the alignment in harmony.  By comparing those KPI’s with actual performance we help a company define the projects and activities that will close the gaps to the highest scorecard to ensure we also meet external alignment.

The BPM we introduce has many benefits.  It examines and aligns to scorecards.  In ensures financial and vertical measures are met by building the muscle tissue in the form of process definitions.  It focuses on KPIs, performance gaps and prioritized project lists.  But it is unique in its facilitation of an understanding and acceptance of horizontal alignment and thus takes organizations a step closer to its optimal value creation.

So in answer to the question for a definition of BPM, I say the essense is alignment.  And in answer to what we bring different than any other focus, we feel we facilitate overcoming horizontal barriers to value creation.  If you’d like to discuss these concepts and how we can help your organization, contact me.

Leadership Steps in Creating a Customer-Driven Process Enterprise

February 13th, 2013 2 comments

Everyone in an organization has a responsibility and something to contribute to Process Management.  Executives, Process Owners and Process Team Members all have a role to play to create a Customer-Driven Process Enterprise.  But leadership’s role is the most impactful in truly achieving the end state.

Leaders need to have a map in their mind and understand their vital role.  They should know the foundation they can lay, the steps along the way and how to identify when they have arrived.  But first and foremost, they must understand what they can do as individuals and buy into those actions.

Download BPM Overview PresentationOur BPM Overview Presentation.

So what personal role must leadership take to create a customer-driven process enterprise?  We believe those steps are as follows:

  • Demonstrate commitment.
    • Stake your own reputation to the transition
    • Commit to the goals in public
    • Adjust reward and recognition programs
  • Commit the required resources
    • Fund in full the up-front investments to get started
    • Dedicate excellent people to the effort
  • Demand participation and engagement
    • Stay personally engaged throughout the process
  • Be passionate about change
    • Talk about it to everybody and get them emotionally engaged

If a leader can’t buy into those steps, don’t go any farther. But if they see the risk worth the reward, they should first focus on building a foundation in the organization which ensures success.  So here are the prerequisites for transitioning to a customer driven process enterprise.

  • Bring all initiatives together under the umbrella of business process management
  • Communicate the seriousness of the need for a customer-driven process enterprise
  • Determine an implementation plan for becoming a customer-driven process enterprise

With a foundation in place, how do you get from point A to point B?  Here are the phases of the process and what you have to do at each step along the way –

  • Stage 1 – Establish.  Set a Vision, Mission and the elements of a balanced scorecard.
  • Stage 2 – Deploy. Identify Key Business Processes and their Process Metrics.
  • Stage 3 – Implement. Provide Process Owners and Team Members the support to establish a management system which measures actual results, gaps to the desired state and actions by which to improve.
  • Stage 4 – Review.  Evaluate and tie performance evaluation and rewards to how the management system operates.

Download BPM Scorecards executive briefDownload our new executive brief discussing scorecards as part of BPM.

Often, you work so hard at something that it is difficult to know when you’ve realized your goal.  Keep in mind the goal isn’t simply achieving the numbers established for process metrics.  The goal is a cultural shift that orients the company to the customer using processes.  So how do you know when you’ve arrived.  When all is said and done, you’ll know you are there when you see the following –

  • More focus on processes than on functions
  • Employees know and accept process goals
  • Everybody understands how the processes are performing
  • Processes are measured objectively and frequently

So if you are a leader in an organization, or working closely with one, think about whether you exhibit those last four bullet points today.  And if your organization doesn’t, ask whether you need to before one of your competitors does.  If the answers tell you to start changing, feel free to contact me to begin your efforts.  In the meantime, if you want more information, see the complimentary downloads featured in this article.  Upon download, we’ll follow up to offer a complimentary copy of our two day course “Establishing the Strategic Vision” which gets into much deeper reviews of all my points above.

Let Your Business Define Your Improvement Program

February 7th, 2013 Comments off

Old Six Sigma Training ModelI remember all too well when companies would be told they needed to “be a Six Sigma company” and to do so they had to subscribe to a formula requiring strict percentages of their employee population be trained as Master Black Belts, Black Belts, Green Belts and Yellow Belts.  In addition, the definitions of the knowledge those people required was equally strictly enforced.  Companies were told achieving these goals would make them a Six Sigma company and being a Six Sigma company would make them successful with their customers and shareholders.

Anyone that lived through the last 15 years of evolution in the field of Operational Excellence can recognize the folly of this prescription.  With the benefit of hindsight, it is obvious the program can’t dictate to the business.  And in all honesty, I don’t wish to pick on any singular subject area.  We’ve seen the same sin from many other philosophies and disciplines.  In the excitement generated by a successful new tool or compilation of tools, we tend to pursue the expertise ahead of resolution of our problems.

As we enter a new business cycle, let’s bring all our knowledge together and recalibrate how we choose to apply it by putting the problem or portfolio of problems first.  To avoid having a snazzy tool take over what we do each day, we recommend the following path;

  • Understand where you want to go.
  • Understand where you are…which has two aspects; (i) your level of performance and (ii) your ability to improve performance
  • Let the comparison between where you want to go and where you are currently performing define what you need to accomplish
  • Let the comparison between what you need to accomplish and your ability to improve dictate what new capability you need to acquire.

Download our BPM Overview Presentation

 Our BPM Overview Presentation.

When you are finished outlining the steps above, you will see something quite different than formulaic curriculum and percentages of your population to be trained.  In fact, the solution will not appear simple or fast.  And therefore it will not be as appealing as the aforementioned formula or any other formula from the array of philosophies available in the profession.  The plan that emerges is a function of applying a series of decision rules more than simply measuring the ingredients of a recipe.

But think about the obvious logic of the outcome.  Your business isn’t simple.  If it were, everyone would do it.  If your business isn’t simple, how can a solution to your challenges be simple.  The complexity of the solution will match the complexity of the problem.

Pull-based Capability and TrainingSo how and where do you start?  How do you bring order to the chaos?  The answer lies in the definition of your projects, the identification of their root causes and in grouping them together by root cause so as to build a roadmap forward.  The complexity is in the selection and prioritization of projects. The simplification comes in executing on the projects.

I spoke to an executive at a company yesterday that described the old process as creating angst.   The word itself gives you heartburn.  When I asked him what gave rise to the angst, he responded that the discipline had been forced fit.  What can you say to such powerful words as those?

If those are the feelings the prior model drove, what do we strive for today?  We strive to “PULL” the required knowledge.  We believe anyone pursuing the path above should one day describe it using words such as choice and flexible.  The emotion we hope to see at the end is relief.  That is the new paradigm.

If participants should one day replace the words “Forced Fit” with “Choice” and “Flexibility” and the word “Angst” with “Relief”, what should we see at a business level?  Well, here are some key results that should be witnessed.

  • Faster returns.  While the long path is more complex, the milestones become simpler so measured returns should be faster. The simple formula of ten years ago is monolithic and so the returns can’t be measured for a long time.  In fact, the fallacy of the monolithic argument is partly hidden by the time spectrum as you are asked not to measure for months if not years.   (A key aspect of this is discussed in our recent article “Pay as you Go”).  Armada v. Drake's English fleet.
  • Organizational Traction.  Creating a ladder of success ensures Organizational Traction by producing “wins” and establishing a foundation of knowledge and capability to tackle tougher problems.  So many Performance Improvement strategies talk about resolving the big chronic problems.  But pursuing them right from the beginning is fraught with risk. And pursuing resolution to smaller problems with the tools you need to solve big problems takes too much time and effort which is wasteful for individuals and the organization.
  • Alignment.  If you adopt a Pull strategy, you can’t help but be aligned.  Your business defines your problems which in turn define your program.  As a result, your activities are ensured to be aligned to your business.  Leadership needs to see resources dedicated to the problems they are trying to resolve.  We are all living in an environment where we must do more with less.  There is no room for unaligned activities.  Pursuing a philosophy for its own sake is a luxury no company can afford.

We see this happening every day now.  Listening to the organization and being flexible produces more of the right gains faster than talking to the organization and forcing it to fit a prescription.  Individuals get more involved with something that produces relief instead of creating angst.  Pull is significantly more effective than Push.  Let the business needs and ability define the improvement program.

Contact me if you'd like to discuss this in more detail.

What Can Yellow Belts Do … Really?

January 29th, 2013 Comments off

Yellow Belt TrainingAs a followup to my recent post titled Trained Yellow Belts Think Differently, I thought I would spend a little time talking about what yellow belts can actually DO.

In a traditional six sigma deployment, yellow belts play a critical role in supporting higher level black belt and green belt projects.  They are trained in the foundation of the DMAIC problem solving process and can speak the language of Six Sigma.  They can handle some of the lower level tasks of process mapping, data collection, setting up measurement systems, establishing and maintaining control systems , and may actually be subject matter experts. Basically, they allow the black belts and green belts to focus on the more complex analytical aspects of the project.  If yellow belts are used effectively, they can improve the productivity of black belts and green belts in a BIG way.

BUT, what can they do outside of supporting higher level belts?   What if you don’t even have higher level belts?  What can a yellow belt trained employee do for the organization?

Six Sigma purists might argue that Yellow Belts should not be trained, without Black Belts and Green Belts, and that their role is to support higher level belts.  I don’t agree with this at all.   Again, I have to hedge by saying that I’m talking about the level of capability that yellow belts trained by SSQ have (i.e. 4-5 days of training).   So, what can Mr. Yellow Belt do?

  • Characterize Processes.  Process mapping and characterization is a skill that should not be taken lightly.  All too often,  improvements are made to processes when we don’t know how the current process really operates, the current state.  These so-called improvements, in many cases, add unnecessary complexity and create more problems than they fixed.  We call this tampering and it is a sure-fire recipe for disaster.  A great example of where process characterization is an invaluable skill is with large-scale enterprise software implementations.   It seems common sense that we should understand exactly how a process works before we try to systemize/automate with software, right?  How often is there really a focused effort to characterize and optimize processes?   I would argue not enough of the time and this is readily apparent in the big $’s spent on configuration, customization, tweaks, etc.
  • Establish/validate measurement systems. Yellow belts learn the basics of Six Sigma and its focus on using data to understand problems and get to the root cause.  The learn the basics of what makes a good measurement system, and what does not.    The can certainly help establish measurement and data collection systems that are actionable, and validate (or invalidate) existing ones.
  • Establish Process Control Systems.  This is a key yellow belt skillset and its importance should not be overlooked.  Yellow belts learn how to set up process control systems to assure that processes function as expected by the customer.  Spec limits are establish, as are response plans when an indicator goes out of control
  • Execute small scale improvement projects in their own areas.   Will they have the deep statistical analysis skills that well-trained green belts or black belts have?  No, they will not.  But they will have a solid problem solving foundation around DMAIC and they will have a working knowledge of the basic tools in D-M-A-I-C.  They know what a well scoped project looks like, they know the basic measure and analyze graphical tools, they know how to use a structured approach to select improvements, and they definitely know about process control systems.   Let’s not lose site of the fact that these basic tools will likely be sufficient to address a significant portion of the process problems you’ll face.

Some may think of Yellow Belts as team members, data collectors, or assistants to Black Belts.  I strongly question this view and think, in reality, a Yellow Belt’s role should be much deeper than that.  Yellow Belts practice a Process Management approach (control and manage processes using metrics and data) and can solve real business problems using basic, but proven, quality tools and a systematic approach.

Yellow belt skills are valuable at any level of the organization, from managers to the lowest level process operators, and the processes they improve are usually the ones they work in day in and day out.  Many years back the term daily process management was in vogue.  The term has certainly faded a bit, but it’s hard to argue against the value of actively managing and improving processes on a daily basis.

Contact me if you’d like to talk about how yellow belts might be able to help your organization.  And, if you haven’t already, download our yellow belt training manual to see for yourself the rich skillset a yellow belt acquires.

Business Process Management (BPM) – Process Stability as a Prerequisite to Process Improvement

January 22nd, 2013 Comments off

Stability Provides Predictability

After a long business cycle that saw the creation and expansion of performance improvement programs, we have undergone tremendous change that has forced every initiative at every company to re-evaluate its goals and validate its existence.  At some companies, continuous improvement has been repatriated to operations.  At others, it has mistakenly been eliminated and will undoubtedly have to reconstitute at a later date. And for a lucky few, economic changes are providing an opportunity to start for the first time or reorient their efforts to contribute to a new set of challenges.

Those that seek to prosper in the new normal get excited by the prospect of implementing or applying a responsive system that offers such promise. It is a pretty appealing prospect and there are a number of books that paint this picture as attainable using a variety of methodologies (i.e. Lean, Six Sigma, etc).  The challenge is that with all the turmoil of the last several years few have the infrastructure needed to really identify or sustain high value improvements, and this presents a major dilemma.

So, how can you overcome this dilemma? If you want to implement any improvement methodologies effectively, there are some pre-requisites must exist, possibly even before you attempt your first improvement project.  You can’t put an improvement in place if staff doesn’t follow standard work in a disciplined way – improvements rely on control to actualize the planned benefit.

The very arguments that support the exciting prospects of improvement methodologies often neglect to mention these issues, perhaps because they assume that the desire to improve makes you “ready”.   But sometimes that’s not the case and you must build a foundation before you try to put up the building.  The term that’s normally used for being “ready” is Basic Stability. It means that you can pretty much rely on your people and equipment to do what they are supposed to do, and you have a way (i.e. metrics) to verify.  Basic Stability usually involves establishing (or re-establishing) standard work processes and key process metrics.  Everything need not be perfect, but operations should repeat in a consistent manner or any change will soon be lost and thus the effort will prove to have been worthless.
essay editing service reviews

Download “BPM – A Structured Approach to Delivering Customer Value”

A good Business Process Management (BPM) program establishes the cornerstones of repeatability and thus Basic Stability.  Along with establishing alignment and cross-functional thinking, it  identifies and characterizes processes, identifies data sources, identifies key metrics, and provides for process analysis and control.  If this is in place, soon enough you will get to the place from which you can make those improvements and have them stick.

And, the good news is that establishing a foundation Business Process Management (BPM) does not have to be overly expensive or resource-consuming.  See more about our BPM approach with our complimentary power point download or contact me directly if you want to discuss.

Economically Delivering the Right Mix of Lean, Six Sigma and Business Process Management

January 17th, 2013 Comments off

The Right Mix

My colleagues and I have written about this subject from several angles I want to start bringing it togetter.  In my post On Demand Performance Improvement  and Lynn Monkelien’s, Senior Director of Enterprise Learning at the Apollo Group and SSQ guest blogger, post entitled Pull Learning in Business Process and Performance Improvement we discussed how to break the paradigm of training inefficiencies.  This was further supported in my white paper entitled On Demand Performance Improvemnt – Traditional Training Meets Social Media which is available on our website’s home page in the “spotlight” section.  Then my colleague, Eric Harris wrote Back to Basics where he introduced the various foundation aspects of Yellow Belt, Lean and Business Process Management.   Since then there have been numerous posts on each of these subjects.

Together we are all describing a new training paradigm that is emerging where with our clients we not only making better use of technology and social media standards but also of a contemporary and robust library of materials and broad capability of personnel to meet the contemporary needs of organizations.  Specifically, with so much pressure on costs and the limited availability of company personnel’s time, it’s not surprising that most companies are looking hard at how and what they delivery to their workforce.  The key is to define what is needed… nothing more and nothing less…in terms of both content and exposure.  And that is done by matching the depth of training to the problems the organization seeks to address and putting the information into the users hands in as many low cost forms as possible as close to the actual application as possible.

And here are some questions to ask when considering how to get the chosen information to the user:

* What sort of time is available from the targeted personnel? Can they spend a day in a classroom or is thier time limited to hours per day or per week? Will targeted candidates be in different locations or at one facility?

* Do you know exactly what thier problems require or will it evolve over time?

* Are they comfortable with technology and social media?

Overview of SIPOC & a 12-step process to build one

Here are some factors to consider when asking what training and coaching is needed:

* Are you addressing manufacturing, engineering or transactional processes?  In factories and laboratories where much of the improvement activity may focus on equipment, techniques such as Gauge R&R, Process Capability, Setup Reduction, Total Productive Maintenance and perhaps even Design of Experiments are invaluable.  But in transactional businesses, they can be substituted with more impactful subjects.

* Are you dealing with high-volume repetitive processes?  Much of the Lean training can be simplified and reduced if you are not.  Value Stream Mapping, for example, can be covered at a more general level.

* What is the objective and the environment?  Are you attempting to remove defects or reduce cycle time?  If you seek to reduce errors in a financial services company, the focus is on process analysis so Pareto Charts, Run Charts and the like, which are quick and easy to teach, become the focus.

The point is that you have choices.  You can follow a fairly standardized prescription for Lean Six Sigma training as described through the classic belt definitions or you can tailor your training to unique needs.  At the same time, you can perform standard instructor lead training or you can use various communication tools that leverage technologies and social media standards.

I have one note of caution –if you cut the content or instructor interaction too far, the price for the mistake doesn’t immediately show itself during the training.  Problems evidence themselves once the training is well underway or completed.  And the problems might be that projects get delayed, more coaching is needed to complete high value projects or certified candidates fail in follow-on projects.  The result is a general loss of confidence emerges for the whole process.  By the time you discover your mistake, the effort is deemed a failure.  We don’t say this to scare you into overbuying or overdesigning.  We believe the answer is to monitor the situation closely and maintain flexibility in both the training and support.  It is in this reaction time that modular content and flexible, technology enabled support tools and methods really make a difference.

If you would like to discuss this emerging model, contact me.

Mayhem – The Case for Business Process Management

January 11th, 2013 Comments off

Needs a Process!

Companies often deny they have a process or admit they don’t follow the processes they’ve developed.   In today’s economic environment, many attribute this behavior to a lack of resources.  Oddly enough, this behavior and explanation often comes from professionals that know the cost of not establishing or following processes.  Leaders have created a seemingly endless list of reasons for dismantling process efforts and eliminating process improvement projects.  Let’s examine those reasons and how to respond to them:

Reason No. 1: “I can’t do just a couple of processes. I’ve got to improve them all, and I’ll never get that done.“

Response: Concentrate first and foremost on the processes that touch the customer.

 

Reason No. 2: “Process improvement takes too long. “

Response: Not every process requires the same level of resources or attention to build, design or repair.  And not every process carries the same importance.  Also, most processes can be fixed or redesigned in weeks, and some should be finished in days.  Pick the ones that provide the most juice for the squeeze.  Get them 80 percent right and get it done. Resort and prioritize frequently.  You eat an elephant a bite at a time.

 

Reason No. 3: “All processes require a blank-sheet approach to redesign. “

Response: Not true. Some portion of the process can always be salvaged and reused in the new version.

 

Reason No. 4: “Modeling my process is complicated and it won’t get me anywhere. “

Response: Software is available to perform modeling and save hours of frustrations. It runs the process in the confines of the computer before it’s unleashed on the organization.

 

 

A basic view of BPM and a three step approach to implementation.

 

Reason No. 5: “We don’t need to spend time understanding the current process. I already know what the new process needs to look like. “

Response: Take the time to understand the current environment. This is by far the best technique for ensuring a smooth transition to the future.

 

Reason No. 6: “We’ve already improved our processes. “

Response: Process improvement is never done.  It is constantly on-going as people, technologies, customer requirements and competitor offerings change.

 

The point of this discussion is that if your company has responded to profit pressures by dismantling its process management and improvement efforts in favor of simply responding to immediate needs, you must revive mission before the undeniable problems come home to roost.  In restarting, reviving or keeping such efforts alive, adjust to the realities of our new economic environment.  Reduce what is being done to the available resources and focus on the customer.  Then continue to make the business case and document the ROI\ which reminding what has happened in the past when these efforts have been abandoned.  The case is as strong now for process improvement as its ever been.

If you would like to see how SSQ recommends its clients hone in on what is important and ensures a high ROI on the efforts, either download our slide presentation on BPM or contact me.

Drive Results by Managing Outcomes through Networked Teams

January 8th, 2013 Comments off

The field of Operational Excellence, including Six Sigma Qualtec, has often laid out the case that you drive improvement by properly chartering projects aimed at performance gaps. The performance gaps are chosen by looking at enterprise level value streams’ ability to meet critical requirements laid out by various voices important to the organization. The challenge is often to overcome functional silos. Cross functional teams are formed to overcome that challenge. To progress, the conflict which must be resolved is often resolving the white space between functional responsibilities.

But there is a third axis. What if instead of trying to reconcile the differences between value streams and functional areas, the real challenge was to marshal the energies of existing networks of personnel.

The concept of organizational networks has grown by leaps and bounds. It has happened for a variety of reasons. Our general understanding, and probably more importantly our level of comfort, with our lives being dependent on networks has probably been one of the most important reasons. On a personal level, we manage a networked life with Facebook. Professionally, we do the same with LinkedIn. Organizationally, we’ve increasingly dealt with the concept as we outsource more shared services, expand and contract supply chains, use more contractors and manage activities with cloud based solutions. We live and manage networks.

How then does the concept of networks impact our ability to improve processes? Well, they are as important to understand as value streams, processes and functional areas. And in many ways, it is networks that get projects and initiatives successfully completed as much, if not more so, than functional areas. The challenge therefore isn’t to build a project team cross-functionally but to do so with the right support of critical networks.

A basic view of BPM and a three step approach to implementation.

Networks aren’t invisible as much as they aren’t tracked. They can be identified with organizational network analysis. I suggest you look at the work done by Rob Cross, a faculty member the McIntire School of Commerce at the University of Virginia to see the basic elements of identifying networks in your organization.

Once you understand your networks and they touch critical improvement projects, we suggest managing desired outcomes by holding elements of the network accountable for milestones. Naming and using cross-functional teams can still be effective if the people chosen from the various functional areas are well connected within the critical networks.

I may be tossing out some ideas that might seem to muddy the waters. Do we really need to introduce one more axis into how we successfully execute projects? We know these networks exist. We know processes produce outcomes and people reside in functional areas. We know to

fix problems we must execute projects within processes that cut across functions. And to execute the projects we must have cross functional teams. But to ignore that networks get things done simply because they are messy or not shown on an organizational chart isn’t a good way to go. We need to tap into the networks to get projects done. Ensure team members are well networked and then manage the outcomes of the network through those individuals. Recognize and leverage how things get done.

If you wish to discuss these points, feel free to contact me.

Trained Yellow Belts Think Differently…Ask Blue Eyes

December 30th, 2012 Comments off

Some folks think for themselves from the first day.  Frank Sinatra was one of them.  Others learn to think differently.  Yellow Belts are process owners and team members who have been taught to think differently.  We detail our highly popular Yellow Belt training on our website.  While it has been out for many years and reconstituted in many flavors, people remain genuinely interested in this foundation capability.

The Chairman of the Board

By way of history, we were the first to develop yellow belt training.  Six Sigma Qualtec is the renamed Florida Power & Light’s unregulated subsidiary Qualtec Quality Services.  Qualtec housed materials developed when FPL engineers studied under Deming and documented their work.  Qualtec was spun off and acquired Six Sigma training materials and client lists.  The renamed company developed Yellow Belt from the Deming based materials as a foundation for process owners and members that were part of Six Sigma teams and who were left to manage a process after any improvements were implemented.

Like any classic, the concepts embedded in Yellow Belt  remain the foundation for any process improvement program.   In fact, we have posted how companies remain devoted to the basics of Operational Excellence methodologies.  This devotion to the basics continues to deliver results to a broad base of the organization.

Yellow belt is a distinct and valuable skillset.  But a lot of people don’t have a good feel for exactly what a yellow belt does and how it can benefit the organization.  So, I’m going to provide some thoughts here and on some subsequent posts.

As a disclaimer, since we launched Yellow Belt, just like with Black and Green Belts, there have been many others that followed such that there is really no standard out there for a Yellow Belt.   So this description is addressing  Six Sigma Qualtec’s definition of a Yellow Belt.   Yellow Belts really should think and act differently after training so, let’s first talk about what yellow belts should be thinking about after training:

  • Analyzing real data to drive business decisions, analyzing root cause to drive implementation of the right solutions, and understanding that CI (Lean, Six Sigma, BPM, etc) is all about improving business performance in terms of voice of the customer.
  • Identifying and tracking the right metrics (primary, secondary, etc), really understanding process capability and process performance.
  • How to practically get and use data and a scientific approach to solve a problem?
  • Understanding what a problem is really costing the business, the real cost-of-poor-quality (COPQ)
  • Putting in the proper process control mechanisms to sustain improvements over time
  • The project selection and prioritization process of the company to assure that the right things are being targeted, things that will make an impact.

Download “Yellow Belts Play a Crucial Role”

The Yellow Belt skillset is a foundation set of quality improvement and process control tools.  It is something that can be applied anywhere in the organization and on any process to yield wide-ranging improvements.  It is one approach, and an effective one for many, to building a solid foundation for CI in their organization.

Contact me if you want more info or would like to discuss in more detail ….