The Process Audit and Maturity Model

1. The Process Audit and Maturity Model Kenneth Webber MBA 731 November 5, 2007

2. Process Reengineering

3. Processes and Reengineering Processes • Consistency • Predictable • Control • Effective • Reinventing the Wheel • Constant improvement • Changing Business environment

4. Process Assembly Line • Who • Tasks • Specific Order • Location • Circumstances

5. Results • Removes Non-Value Adding Tasks • Reduces Errors • Reduces Delays • Reduce ad hoc & inconsistently performed practices

6. Questions? • Did we start with the right thing? • How do we know we are making progress? • What will the organization look like when we are finished?

7. Process Audit and Maturity Model Definition • Evaluate the existing processes • Evaluate redesigned processes • Evolutionary Improvement • Deliver High Performance Processes • A maturity framework for improving an organization. • Toward mature, disciplined, and continuously improving development of the knowledge, skills, motivation and business performance.

8. Process Audit • Process Enablers • Top Level Process Owners • Implementation • Performance • Enterprise wide Capabilities • Management Support the Processes • Employees Value Customers • Teamwork • Personal Accountability

9. Design Performers Owners Infrastructure Metrics Knowledge Skills Behavior Five Process Enablers • Purpose • Contest • Documentation • Identity • Activities • Authority • Info Systems • HR Systems • Definition • Uses

10. Process Enabler’s Four Levels • P1 through P4 • Each has a definition • Definition builds on last • Above 80% True is GREEN • 20% to 80% is YELLOW • Below 20% is RED

11. Worksheets

12. Performers – Skills Hamburger Assembly • P1 - Performers are skilled in problem solving process improvement • P2 - Performers are skilled at teamwork and Self-management • P3 - Performers are skilled at business decision making • P4 - Performers are skilled at change management & change implementation

13. Hamburger Assembly Enablers

14. Process Audit • Process Enablers • Top Level Process owners • Implementation • Performance • Enterprise wide Capabilities • Management support the processes • Employees value customers • Teamwork • Personal Accountability

15. Leadership Culture Expertise Governance Teamwork Customer Focus Responsibility Attitude Towards Change Four Enterprise Capabilities • Awareness • Alignment • Behavior • Style • People • Methodology • Process Model • Accountability • Integration

16. Enterprise Capabilities Four Levels • E1 through E4 • Each has a definition • Definition builds on last • Above 80% True is GREEN • 20% to 80% is YELLOW • Below 20% is RED

17. Culture - Responsibility Hamburger Assembly • E1 – Accountability for results rest with managers • E2 – Frontline personnel begin to take ownership of results • E3 – Employees feel accountable for enterprise results • E4 – Employees feel a sense of mission in serving customers and achieving ever-better performance

18. Hamburger Assembly Capabilities

19. Real Life Examples • Michelin • CSAA • Tetra Pak • Shell • Clorox

20. Take Away • Generic Maturity Model • Doesn’t specify how the processes should look • Characteristics that any enterprise should have • Incremental • Simple

21. References • Hammer, Michael, “The process Audit”, HBR, Reprint R0704H, April 2007 • “Beyond CMMI... PEMM”, Gant Head Web site, Posted: April 17, 2007 02:48 PM,http://www.gantthead.com/blog/Project-Management-2.0/335/> (05 Nov 2007) • Hammer, Michael, “The 7 Deadly Sins of Performance Measurement”, MIT SLONE Management Review, Spring 2007 • Harmon, Paul Business Process Trends Newsletter, March 2004, Volume 2, No. 3 PP1-11 • “Hammer and Company – PEMM”, n.d.,http://www.hammerandco.com/pemm.asp, (05 Nov 2007) • “CIO as Chief Process Officer, Not Strategic Leader”, CEO Insight Web site, n.d., http://www.cioinsight.com/article2/0,1540,2191426,00.asp, (05 Nov 2007)