PROPOSAL RECONCILIATION

1. PROPOSAL RECONCILIATION • These slides are intended to support a group through an exercise to reconcile their process proposals back to their top-level QFD – its objectives, measures and targets. • Two methodologies are represented, the first using a reverse clothesline, and the second using syndicate groups. • Please do not attempt to use these slides as part of a presentation until you have read and fully understood the relevant sections of ‘Managing by Design’, you know how the slide works, and you are clear on the points you wish to draw out with it.

2. Dear organisation this is what we need to do this year Yes, if all the teams do what they say, we can meet it Quadrant Chart Reporting Performance Trend Analysis Actions Well, if you have to meet that, then we will need to perform like this. Great, we’ll take responsibility for ensuring we meet those targets. SETTING TARGETS – A CONTRACTWhat we are trying to achieve with proposal reconciliation Top-Level Process Team

3. The next four slides can be used to facilitate the reverse clothesline approach

4. PROCESS PROPOSALS Walkround • Review the flipchart proposals from the Process owners – in particular their objectives; performance targets; and high-level plans to deliver them • Consider the extent to which they collectively supp-ort our QFD targets, particularly in the area you have been asked to focus on (indicated on your sheet) • Where you have concerns, questions, or challenges regarding a proposal, stick a pink post-it note on the associated feedback flipchart, stating your issue • Please try and be as clear as possible in your feedback, and initial it so that the process owner can come back to you for clarification if necessary • You have 60 minutes to cover X proposals so please be mindful of managing/prioritising your time.

5. PROCESS PROPOSALS Reflection • Process Owners: • Review the post-its that have been stuck on your feedback flipchart; ensure that you understand them • Pick up with the originator of the feedback if you are unclear on any point – purely for clarification • Make any changes to your proposal (in substance or in clarity) you feel warranted by the feedback, and tick off the related post-its • Provide answers beside those post-its seeking further clarity, and provide a response to those post-its seeking a change, or making a challenge, that you do not feel warranted • Please write your responses and make your corrections clearly

6. REVIEWING THE RESPONSE • Individually: • Revisit the proposals where you raised a question or challenge, and understand the response • If issues remain, these will now need to be picked up off-line (unless they can be addressed quickly in this session directly with the owner) • You have 30 minutes, so please prioritise your time carefully

7. CLOTHESLINE REVIEW • The Target Reviewing Process: • For each measure we peg the current performance & the proposed target at the ends of the clothesline • Everyone stands along the clothesline at a performance which they currently believe the sum of the proposals will deliver our organisation • We hear the arguments for and against the extremes, and people move as they are swayed • If the consensus is that the target will be delivered, it is confirmed and we move on • If the consensus is that the target will not be delivered, we reflect on how proposals could be altered to better support the target, and agree changes as appropriate

8. The next four slides can be used to facilitate the syndicate approach

9. CONTRIBUTION SHEETSC Objective: Process: Contribution Process Process PerformanceObjective Measure Target PROCESS CONTRIBUTION • In your process teams • Work through the top level QFD objectives and create a contribution sheet for each • Where your process has no significant contribution to make, simply write the process name and ‘Nil’ • Where you have process performance targets which clearly support the top-level objective, write these out clearly on the sheet • Deliver the finished sheets to the collection point at the front of the room

10. EVALUATION – THE PROCESS • In your cross-process syndicate groups • Ensure that you fully understand what the objective means, and the measures & targets associated with it • Work through the process contribution sheets you have been given, starting with critical relationships • Evaluate (in your opinion) whether the proposed total contributions will ensure that your objective will be met (the processes are the only means of delivery) • Identify what (if anything) additionally is required to guarantee delivery of the objective, and the processes to which you feel they should be assigned • Be prepared to present back your conclusions and recommendations

11. EVALUATION - EXAMPLE • On Time Delivery • Are we clear on what it means? • Does it require any further definition? • Contribution • What do the processes (as defined by their contribution sheets) materially contribute to the fulfilment of this objective? • Are we sure it will be guaranteed if the processes meet their performance targets? • What else do we need of the processes? On Time Delivery

12. EVALUATION FEEDBACK • For each of the objectives: • Are you confident that the processes will ensure the objective is met? • What are the priority process outputs required to ensure that? • What are your main areas of concern (if any)? • What do you recommend we do to ensure that they will be met? • Which process targets will be best adjusted to accommodate this? • Will the Process Owner(s) accept these recommendations?