The Insiders Guide to BPM – Step 1
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Presentation from the book, the Insiders Guide to BPM: 7 Steps to Process Mastery
Transcript
The Insiders’ Guide toBPM7 Steps to Process MasteryBy Terry Schurter Step 1 – Understand andEmbrace your Goal The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoal1. Identify what needs to change2. Translate that need to a goal3. Identify metrics for measuring the goal4. Measure them now, to establish the baseline5. Set the target, thereby defining success6. Measure metrics when complete, to assess our success7. Learn from the results8. Continually improve our goal setting skillsA Template is included at the end of this presentation to help insetting process improvement GoalsThe Eight (8) Elements of Goal Setting and Delivery2The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.com The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoal1) Documenting your motivation2) Identifying metrics that represent that motivation3) Establishing the baseline for those metrics – the current state of theprocess4) Determining the goal – or target – you wish to achieve5) Documenting the base units of measure of the metrics6) Calculating the goal as a percentage of changeProcess Goal Setting Requirements3The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.com The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoalThe most effective Process Improvement is driven by Goalsthat represent an improvement through REDUCTION ofone or more goal metrics…i.e. – reduce cost, time, activity, movement, etc.When process goals seek to reduce something, thelikelihood of achieving real process improvement goes upexponentially.CRITICAL GOAL DRIVER4The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.com The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoal1) Cost Reduction2) Time to completion3) Productivity4) Performance5) Efficiency6) Quality7) Customer ExperiencePossible Motivations…5The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.com1) $ per unit, $ per dept2) Average elapsed time3) Production per unit of time4) One person to Y work (ratio)5) Work over time6) Rework or return count7) # Moments of TruthPossible Measures… The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoalBy approaching process goals by reducing a process metric, weactually improve the process “across the board”A percentage improvement on a targeted goal metric produces asimilar degree of improvement in other process metrics.Therefore, if you reduce costs by 30% you will also reduce time tocompletion by 30%, increase productivity by 30%, improveperformance by 30%, and so on – even including enhancingcustomer satisfaction by 30%.GOAL RELATIONSHIPS – EXPLICIT LINKING6The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.com The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoalExamples (from actual projects):7The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.comMotivation Metric Baseline Goal Units ofMeasureTargetReduce process time Transaction time 4 2 Hours 50%Improve quality Exceptions produced 10 2 Exceptions 80%Reduce manual processing Processing time 40 20 Hours 50%Reduce case investigationtimeInvestigation elapsed time 40 .1 Hours 99.75%Reduce complexity People involved in process 5 1 People 80%Reduce processing time Cost per request $840 $420 Dollars 50%Improve customer service Response time to Client 12 4 Hours 67%Improve compliance Fines $10,000 $1,000 Dollars 90%Reduce costs Costs per Document $50 $10 dollars 80%Reduce training time Training modules 7 3 Modules 57% The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoal1) Build your goal as a form of reduction2) Identify one or metrics that you can establish a baseline on(current state)3) Set your target – it will drive the process optimization activity4) Measure the baseline after optimization – to assess your resultsBut what if we don’t know what optimization (improvement)potential exists?Goal Setting – Key Takeaways8The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.com The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoalIn Step 2 we will discuss how to develop an elegant processdesign, including how to assess improvement based onactions we can take to improve a process.Where process targets are not obvious (what is a reasonablegoal?) we can discover, evaluate and compare possibleprocess improvements, and then determine ourimprovement target!Discovering Opportunity9The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.com The Insiders’ Guide to BPM: Step 1Understand and Embrace YourGoalhttp://www.amazon.com/Insiders-Guide-BPM-Process-Mastery/dp/0929652096Would you like to learn more about Mastering BPM?10The Insiders’ Guide to BPM by Terry Schurter – www.tschurter.comhttp://acuitystudio.com/human-centric-process-analysis-and-improvement/
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