Baselining the Organisation: Maturity Audit Process

1. Baselining the Organisation: Maturity Audit Process 8 Omega ORCA Organisational Readiness and Capability Assessment Section 4

2. Obstacles and Realities • Silo behavior - undue preoccupation with organization structure • Instinct to reinforce ‘command and control’ • Stifling of innovation • Lack of executive support • No strategy for change • Difficulty in defining the best process projects • Incomplete, inappropriate resources • Resistance of turf protection politics • Hard to get accurate baseline data from within functions • Shifting priorities deflect efforts, disable consistency, impact schedules • Delays in deploying needed technology • Not enough focus on people

3. Insights and Realities • The scope for improvement is determined by - The size of the gap between current and desired performance - The leadership team’s willingness to close the gap - The capacity of the organisation to absorb change • Discovery (corporate honesty) is tough and politically demanding • Analysis is easy – if done against a background of earlier honesty • Design is harder • Integration is challenging • Implementation and Control/ongoing Process Project and Operational management is where the rubber hits the road BUT FIRST OF ALL WE HAVE TO ASSESS WHERE WE ARE NOW

4. Starting Point? For many organisations the challenge is: • Where do we start? • How do we start? • Where are we now? • What issues do we need to address? • Who do we involve? • How do they go about it? • How high is this mountain we are trying to climb? • Where are we starting from? ASSESS THE ORGANISATION’S APTITUDE & ATTITUDE

5. Are You Ready - AptitudeThe Firm’s Skill Level in Process? • Minimal awareness of the need to improve and manage business processes • Broad awareness of the need to improve and manage business processes, but little action so far • Some successful process redesign projects, but not much sustainable process management • Several successful process redesign projects, and a few key end-to-end BP’s managed for continuous improvement • The full set of customer-touching processes are being managed for continuous improvement • The entire business is being managed as a system of integrated business processes. Where is Your Organisation? Do You Know?

6. Current Attitude – Are You Ready?What’s the Predominant Mental Model? Does the organisation believe that: • strategy begins with the customer ? • it is designed, led and managed so that it is easy for the customer to do business with the company ? • customer value is created through a company’s enterprise wide business processes ? • the need to manage business processes at 3 levels is fundamental to the approach ? • organizations are complex business and social systems ?

7. From [Control] Reporting relationships and the flow of authority Quality costs more The key measures are actual vs. budget Authority and responsibility should be defined according to functional, cost centre or profit centre units. To [Influence] Services provided to customers [external and internal], the flow of value added work is top priority Quality costs less The key measures are related to the quality, timeliness, and cost of services provided to customers Joint authority and responsibility must be defined for providing value added services to customers. The Required Shift in ‘Attitude’

8. Play the position you are in… • Understand your current position with regard to EBPT/process maturity • Identify the gaps - from where you are to where you would like to be • Prepare a plan involving Strategy, People, Processes & Systems • Grow the organization’s Process Competence (be pragmatic) • Make the right moves to align the different pieces • Execute – refine – execute. Remember your position may be unique so make sure you understand your pieces before making the moves!

9. tm BPT Group - Process Maturities Range™ 2 3 4 5 8 6 7 1 LEADERS CHALLENGERS Business Process - Priorities- Impact- opportunities Program Launch CONTENDERS BPT Assessment & Readiness Program Business BenefitsAssessment BP Maturities Matrix SLEEPERS BP Assessment BPTAccreditation LATENTS Maturity Levels

10. Business Process - Priorities- Impact- opportunities Program Launch BPT Assessment & Readiness Program Business BenefitsAssessment BP Maturities Matrix BP Assessment BPTAccreditation 8W Maturity Levels Organisation focus • The approach can be tailored to match the performance level and the ‘readiness for change’ that you find in your organisation • It is likely that each part of a business unit will be at a different stage of development. 2 3 4 5 8 6 7 1

11. The Good News:You can actually measure how you are progressing towards your Strategic Goals! 8 Omega ORCA Organisational Readiness and Capability Assessment • Commitment by Top Management • Program Organisation & Structure • Improvement Training • Performance Objectives • Functioning of Improvement teams • Tools and Techniques • Stakeholder specifications • Information Systems • Accreditation/Certification (individual – enterprise – partners)

12. BPTG BPX Maturity MatrixA means of understanding an organisations capabilities

13. BPTG BPX Maturity Matrix™A means of understanding capabilities

14. This is where we are BPTG Maturity Matrix – A Measure of Competence Answers a number of questions against a range of key EBPT Issues This is where we want to be This is the gap

15. 8 Omega ORCA Organisational Readiness and Capability Assessment Auditing the organisation’s current capability and identifying the gaps helps create the basis for the process review project plan When planning the project roadmap based on the gaps consider the following questions: • What economic advantage will be gained from the step? • Are we looking to shoot too high in too many areas? • Are we focused on the areas that will deliver the improvements in customer outcomes? These questions are relevant to: • the organisation’s position in the marketplace • the number of individual steps that have to be taken to bridge the gaps • the timescale over which change is to be made The audit helps build consensus – on where the organisation is, and where it needs to be.

16. Maturity Matrix Assessment LEADERS PROFILE (2004) CONTENDERS PROFILE

17. Some Key Questions in Progress Self-Assessment How are you doing? • Has the firm made the tough strategic choices? • Can leaders express strategy in business process terms? • Is there a shared understanding of which business processes have to be improved by how much to achieve strategic goals? • What is your level of ‘aptitude’ in improving critical business processes? • Do your leaders have a concise map of the firm’s enterprise business processes? • Have they appointed process owners/stewards for key processes? • Are there clear, usable process measures and metrics? • Developed an enterprise view business process relationship map. • Have business process owners or stewards been appointed for major cross functional business processes? • Have key performance metrics been linked from a customer’s point of view to key financial metrics? • Has the organisation invested in training key people in a robust framework for change? • To what extent have you gone beyond one-time improvements to sustained management of continuous change? • Have recognition/reward systems been aligned? • Do the leaders see the business from the customer’s point of view? • Do the leaders believe that customer value is created through a company’s enterprise wide business processes? • To what extent is there awareness and skill in improving and managing the end-to-end business processes?