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Envision Stage. What’s it all about?. Opportunity Generation – Workshop 1: Turning issues into opportunities. Why did we collect process issues?. Exercises Basic Structured Brainstorm SCAMPER. Lateral Thinking Techniques. A missing ingredient is required…. World Class Principles.
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Envision Stage What’s it all about?
Opportunity Generation – Workshop 1: Turning issues into opportunities Why did we collect process issues? • Exercises • Basic Structured Brainstorm • SCAMPER
Lateral Thinking Techniques A missing ingredient is required… World Class Principles Enabling Technology Process Mission CSF’s = + Visioning Workshop TO BE Process Model Opportunity Search Output AS IS Process Model Benchmarks / Best Practice
Lateral Thinking Techniques Creative ThinkingThe human brain as seen from above Left Right Logical Analysis Linearly Numerical Creativity Imagination Music Color
Lateral Thinking Techniques Structured Brainstorming One Approach 1.Participants write 5 or more ideas for improving process. (5 mm) Silence is mandatory. 2.Facilitator asks each participant, in sequence, for one idea and writes it on a post-it. • if a participant is out of ideas, he/she says “pass. • If someone else triggers a new idea, participant writes it down. 3.Open it up to everyone; process continues until no one has any more ideas to contribute 4.Rationalize, categorize, synthesize, analyze or prioritize. something with the ideas. See BITD Facilitation Guidebook for other ideas.
Lateral Thinking Techniques Paradise Principle • Green Field Vision • No Constraints • See the Future – and Describe it
Lateral Thinking Techniques The Power of Absurdity:The key to newness Throw off the shackles and be absurd. Think: • Impossible • Illegal • Impractical • Illogical • Incendiary • Lifetime ambition • Mega risk • Cost a fortune • Cultural taboo • Total embarrassment
Lateral Thinking Techniques The Challenge:Just ask “Why?” Block: If we could no longer do it this way, how should be do it? Next Step Escape: If we did not have to keep our customers happy, what could we do? Answer Drop it: What would be lost if we just stop Answer Why and why again Root causes Why do we do things this way? Answer Continuity analysis Continuity driven by: • Neglect • Complacency • “Lock-in” • Time sequence Search for alternatives Answer Challenge dominating concepts Challenge assumptions Challenging the shaping factors Answer Challenge boundaries Challenge avoidance factors “Whatever it is, I’m against it!” -Groucho Marx
Lateral Thinking Techniques Sixty Excuses for avoiding Creative Thinking 1. We tried that before 2. Our place (company, group, plant) is different 3. It costs too much 4. That’s beyond our responsibility 5. That’s not my job 6. Its too radical a change 7. We’re (they’re) too busy to do that 8. We don’t have the time 9. We don’t have enough help 10. That will make our other equipment obsolete 11. Lets do market research first 12. Our plant (office) is too small for that 13. That’s not practical for operation people 14. The employees (managers) will never buy it 15. The union will scream 16. We’ve never done that before 17. That’s against company policy 18. That would run up our overhead 19. We don’t have the authority to do that 20. That’s too ivory tower
Lateral Thinking Techniques Sixty Excuses for avoiding Creative Thinking 21. Lets get back to reality 22. That’s not our problem 23. It’s still working okay, why change it? 24. I don’t like the idea 25. You’re right but… 26. You’re two years ahead of your time 27. We’re not ready for that 28. We don’t have the money (equipment, room, personnel) for that 29. It isn’t in the budget 30. You can’t teach an old dog new tricks 31. That’s good but impractical 32. Let’s table that for now and come back to it 33. Let’s give it more thought 34. Top management will never go for it 35. Well be the laughing stock of the department (company, industry, town) 36. Let’s put it in writing 37. Not that again 38. We’d lose money in the long run 39. Where d’you dig up that one? 40. We did alright without that
Lateral Thinking Techniques Sixty Excuses for avoiding Creative Thinking 41. That’s what we can expect from staff (managers, consultants) 42. It’s never been tried (done) before 43. Let’s shelve that for the time being 44. Let’s form a committee 45. Has anyone else done this before? 46. Customers (suppliers) won’t like this 47. I don’t see the connection 48. That won’t work in our plant (department, company, industry) 49. What you’re really saying is… 50. Maybe that’ll work in your department but it won’t work in mine 51. The executive committee will never go for that 52. Don’t you think we should look into it further before we act? 53. What do they do in our competitor’s plant? 54. Let’s sleep on it and see what we think tomorrow 55. It can’t be done 56. It’s too much trouble to change 57. It won’t pay for itself 58. I know someone who tried that 59. It’s impossible 60. We’ve always done it this way
The Envision Stage: What’s it all about? Business Process Transformation “AS IS” “TO BE” ?
The Envision Stage: What’s it all about? Change Integration Life Cycle Evaluate Envision Empower Excel Strategy Environment Issues & Opportunities Implementation Continuous Improvement
The Envision Stage: What’s it all about? The Integrated Solution:Organizational Dimensions People & Culture Structure Processes & Systems Technology • Transition Management Activities: • Manage Communications • Secure Commitment to Change • Build Teams and Transfer Skills
The Envision Stage: What’s it all about? The Integrated Solution:Risks of Going It Alone “All this talk about empowerment, it just means getting more done in less time with fewer people” “This is the third time we’ve restructured in two years, but our costs are higher than ever” RISKS “Okay, we’ve redesigned the process. But I’m not sure the accounting people are going to be happy. And who really knows EDI?” “This systems plan seems feasible. And we’ve got the bucks, but will this system help me help my customers?”
The Envision Stage: What’s it all about? Integrated Nature of Evaluate Tasks • Asses culture • Identify stakeholder issues • Assess skills • Map organization • Describe HR management • Assess financial structure • Inventory facilities • Facts • Issues • Opportunities • Map processes • Assess communication • Assess technological environment
The Envision Stage: What’s it all about? Integrated Nature of Evaluate Tasks • Target Environment Design Areas • Processes • Organizational structure • Info/comm. Systems • Technologies • Facilities • Skills and culture Vision
+ – xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx Costs $________ Benefit $________ The Envision Stage: What’s it all about? Envision Stage Inputs and Activities Internal Input: • BPI “As Is” • CSF’s Goals & Measures • Opportunity Search Vision Workshops Design Workshops Reality Check Justification High Level Change Planning • Comparison / benchmarks • Transformation Principles • Enabling Technology • Experts External Inputs:
The Envision Stage: What’s it all about? BPI Envision Stage Route-map Workshop Approaches Customer Requirements High Level Vision Process CSF’s Measures & Goals R Green-Field Envisioning Transformation Principles Issues & Opportunities Simplification & Red-Lining BDP Research & Benchmarking r Turn Issues to Opportunities Process Maps & Analysis Long-term Vision Evaluate Stage Output Envision Stage Input Design Process and Target Environment Create Opportunity Matrix Gap Analysis & Change Planning Cost / Benefit Analysis Identify Quick Wins • ONE BAXTER… • What it is • How it will be implemented • Why it must happen = Sanity Check / Approval Point
The Envision Stage: What’s it all about? Redesign Business Processes Idea Generation Alternatives “Compact” “Model-Driven” “Greenfield” • Bottom-up • Process validation • Eliminate NVA activities • Change inputs • Outside-in • Best practices • Transformation Principles • Enablers • Packages • Top-down • Blank sheet • Visioning • Bare minimum • Ideal process Opportunities Ranked by Effort to Implement and Relative Benefit
Categorizing and Prioritizing Opportunities – Setting up the Matrix Step One: Categorize the Opportunity Process 1 Process 2 Process 3 Process 4
Maintain Capital Assets Manage Customers Connect New Customers Answer Inquiries Disconnect Old Customers Bill Customers Read Meter Update Customer Database Update Accounts Invoice Customer Produce Invoice Verify Invoice Stuff Envelope Mail Invoice The Envision Stage: What’s it all about? Different Levels in the Process Macro Processes Processes Activities Tasks Strategic Operational
5 4 3 2 1 0 3 6 9 12 15 18 The Envision Stage: What’s it all about? The Opportunity Matrix high Benefit low low Effort toImplement high
5 16 3 11 21 9 14 4 20 6 4 19 8 18 12 Benefit 3 2 13 15 10 2 7 5 1 17 1 0 3 6 9 12 15 18 Effort toImplement Categorizing and Prioritizing Opportunities – Setting up the Matrix The Opportunity Matrix Opportunities Ranked by Effort to Implement and Relative Benefit
The Envision Stage: What’s it all about? Output 1: Collective Vision & Organizational Momentum
BPI “To Be” Strategy The Envision Stage: What’s it all about? Output 2: “To Be” Blue-print and Plan • Contents • Management summary • The vision & how it works • Validation • Business case for doing it • Implications, dependencies and contingencies • Implementation plan • Summary
The Envision Stage: What’s it all about? Output 3: Balanced Set of Performance Measures and Targets External • Customer Satisfaction Index • Baxter Stock Price • Customers Returns / Sales • On Time Delivery • Order Fill Rate Process Result • Procurement Fill Rate • Procurement Cycle Time • Cash Flow Margin • Inventory Turnover • Working Capital / Sales • Day Sales Outstanding • SG&A / Sales • Employee Satisfaction Index Internal
2/15 2/28 3/15 3/31 4/15 Implement Quick Hits Plan Implementation Design Target Environment Analyze Issues & Opportunities “As Is” Mapping Validate Scope Present Final Deliverable Incorporate Best Practices & Customer Focus Analyze Organization Incorporate Best Practices Project Approach • Manage Communications • Steering Committee • Project Teams • Marketing Organization Project Management