Loughridge Transformations' Webinar: Process Model - Begin with Basics
- 1. Process Model – BeginWith Basics JENNIFER LOUGHRIDGE WOON-HUI OH HANS BOGAARD
- 2. Feb-22 © Loughridge Transformations Ltd 2 Is your organisation leaving value on the table by not leveraging a process model?
- 3. INTHIS WEBINAR,YOU WILL LEARN: what are the seven must-do items in process model deployment why mindset is a gamechanger how to realise process model benefits FAST Feb-22 © Loughridge Transformations Ltd 3
- 4. HOW IT IS GOINGTO WORKTODAY… § Presentation around 45mins § Q&A for 15mins § The session is recorded § All except the presenters are muted § Please ask questions at any time via the Q&A Function – we’ll come to them at the end § Please raise any technical questions via the Q&A– the moderator will see them and answer publicly or individually as appropriate § Please fill in your name and location, and give us a hello now to test it out! Feb-22 © Loughridge Transformations Ltd 4 Click Here to open Q&A Type your name here Write your question here
- 5. WE WILL COVERTODAY: How to get the benefits of a process model •Fit-For-Purpose •Early as Possible About LoughridgeTransformations •Jennifer Loughridge •Woon-Hui Oh •Hans Bogaard Why a process model is an enabler •Improving performance •Transformation readiness The Seven Must-Do Items Close Out Feb-22 © Loughridge Transformations Ltd 5
- 6. YOUR SPEAKERS Feb-22 © Loughridge Transformations Ltd 6 •Senior Executive Finance professional with 20+ years’ global experience. •specialises in Finance Transformation and Continuous Improvement, with particular expertise in Strategy, Performance Management, Business Partnering, Commercial Decision-Making, Corporate Governance & Valuation. •an experienced leader of large and complex teams in a global, virtual environment. •a significant track record exploiting virtual technology and developing innovative practices to deliver world- class transformative process, system and behavioural change in a complex and challenging global environment impacting 5000+ FTEs with multi- year, multi-million US$ budgets Jennifer Loughridge jennifer.loughridge@loughridgetransformations.com •over 16 years of experience in Business Transformation, Restructuring, Change Management and Operational Excellence. •specialises in Strategy and Execution, with particular expertise in Performance Management, Customer Experience and Data/Information Management. •an experienced leader and influencer in diverse teams (different businesses and functions) in cross-border and virtual environments. •strong focus on delivery, integration and assurance, with a proven track record of delivering multi-year, multi- million US$ budgets, impacting large groups of FTEs across multiple locations Woon-Hui Oh woon-hui.oh@loughridgetransformations.com •Senior Finance professional with 30+ years’ global experience. •specialises in Finance Transformation and Continuous Improvement with particular expertise in Financial Systems, Management Information, Process Design & Deploy and Off-Shoring/Outsourcing. •an experienced leader and influencer within operational and project teams in shared-service and cross-border virtual project environments. •led Continuous Improvement and Problem-Solving and Process, System & Control Design & Deploy across on- and multiple off-shore locations, affecting hundreds of FTEs. •delivered multi-year, million US$ budget projects, impacting large groups of FTEs. Hans Bogaard hans.bogaard@loughridgetransformations.com
- 7. HOW DOES A PROCESS MODEL ENABLE AN ORGANISATION? To have the level of agility needed for successful business transformation, organisations need, among others, business process management. Only 25% have the right capabilities. Gartner 2016 Every transformation effort should begin with a (process) maturity assessment effort, but an assessment is not a one-time process. As companies implement changes, repeating the assessment at regular intervals (typically every 9 to 12 months) is helpful to check that the current transformation plan is working, to identify deviations from the plan that may require additional efforts, and to uncover new improvement opportunities. McKinsey 2017 Sources: https://www.gartner.com/smarterwithgartner/bpm-is-critical-to-business-transformation-success https://www.mckinsey.com/business-functions/operations/our-insights/deployment-models-how-mature-are-your-operational-practices? Feb-22 © Loughridge Transformations Ltd 7
- 8. HOW DOES A PROCESS MODEL ACHIEVETHAT? Feb-22 © Loughridge Transformations Ltd 8 Our OrganisationWins Makes performance visible Speeds up delivery Reduces cycle times Reduces errors, rework, waste and variation Reduces handovers Focuses on outcomes Our PeopleWin Values the contribution of employees Increases job satisfaction Reduces frustration due to blockers and rework Frees up time for more value-adding activities Increases engagement of staff and managers Increases collaboration
- 9. SO, WHERE DOYOU START, WHAT IS CRITICAL? HOWTO KEEP IT FIT-FOR-PURPOSE? 1. Assess where your organisation is today 2. Consider that process is as much about mindset as it is about the nuts and bolts of a process model. 3. Determine the level you aspire or need to be at Feb-22 © Loughridge Transformations Ltd 9 Process & Data Systems &Technology §structure §capability §culture Organisation Risk & Controls
- 10. GARTNER MATURITY ASSESSMENT - PROCESS 1 ACKNOWLEDGE OPERATIONAL INEFFICIENCIES Measure & monitor business activities 2 BECOME PROCESS AWARE Model and analyse business processes Establish process performance metrics Identify process owners and governance structure 3 ESTABLISH INTRA-PROCESS AUTOMATION & CONTROL Directly link process model and rules to execution Compare alternatives by various optimisation techniques Integrate activity-based accounting with process steps 4 ESTABLISH INTER-PROCESS AUTOMATION & CONTROL Achieve process alignment Craft process automation across the enterprise, customers and trading partners 5 ESTABLISH ENTERPRISE VALUATION CONTROL Achieve advanced exploitation of business rule management Ensure goal- driven processes 6 CREATE AN AGILE BUSINESS STRUCTURE Innovate new businesses, products and services through an agile business structure Feb-22 © 2008 Gartner Inc. 10
- 11. WHAT DO WE MEAN BY A PROCESS? A series of steps and activities including people, materials, information and equipment designed to bring a product or service to the customer. What happens to customer satisfaction when all of these departments work independently? Feb-22 © Loughridge Transformations Ltd 11 Packing Dispatch Receiving Payments Connect with Customer Order Processing Picking Packing Dispatch Receiving Payments Connect with Customer O r d e r P r o c e s s i n g Picking
- 12. A GOOD PROCESS IS A PERFECT PROCESS the impact of variability is understood PREDICTABLE doing the right things EFFECTIVE doing it the same every time REPEATABLE output volume varies with demand FLEXIBLE doing things right EFFICIENT the process is known and changes made to it are clearly communicated COMMUNICATED everyone can see how the process is performing TRANSPARENT Feb-22 © Loughridge Transformations Ltd 12
- 13. DOYOU HAVE A PROCESS MINDSET? ARETHESEYOUR LEADERSHIP BEHAVIOURS? PURSUE END- TO-END RESULTS MAKE PERFORMANCE VISIBLE COACH FOR IMPROVEMENT FOCUS ON CUSTOMER DRIVE SIMPLICITY IMPROVE CONTINUOUSLY Feb-22 © Loughridge Transformations Ltd 13 GO SEE ASK WHY RESPECT
- 14. INTRODUCING OUR SEVEN MUST-DO ITEMS 1. Is there a transparent process model with well-defined processes defined at the right level? 2. Does each process have a clear owner with authority and accountability within the process? 3. Are the data definitions and data owners within the process well established? 4. Is process performance sufficiently understood and cycles for improvement in place? 5. Are the opportunities within the process for automation exploited? 6. Have risk assessments been completed to ensure controls are fit-for-purpose? 7. Are the integration points between processes understood and operating effectively? Feb-22 © Loughridge Transformations Ltd 14 Integration Ownership Data Automation Controls Performance Process Model
- 15. 1: Map 2: Process Overview 3: Main Process 4: Process/Activity 5: Step/DetailedTask Process Description Process Architecture Process Example Strategic Process Description Tactical Process Description Operational Process Description Finance Manage Close Fixed Assets Maintain Depreciation DataTables Run Depreciation Calculation for Month WHAT IS A WELL-DEFINED PROCESS MODEL ATTHE RIGHT LEVEL? Feb-22 © Loughridge Transformations Ltd 15
- 16. THE IDEAL PROCESS OWNER HAS AUTHORITY OVER: § Standard Process Design & Performance § Standard Data Design (Master &Transactional Data) § Continuous Improvement § Process Ownership § Data Ownership Process & Data § ERP Design, Implementation & Performance § Automation (Including Robotics & Other Digitalisation) Systems & Technology § Role & Organisational Structure Design § Capability Requirements § Behavioural Requirements Organisation § Standard Control Design & Performance § Evaluation of end-to-end process for risk and decision-making on mitigations § Control Ownership Risk & Controls 16 © Loughridge Transformations Ltd Feb-22
- 17. WHY DATA OWNERS & DEFINITIONS ARE CRITICAL § Every step in a process uses data § Want a “single version of the truth”? § Data cannot be a free for all! § Data Owner: accountable for managing data from creation to consumption § Be clear on: § What types of data exist in your organisation § Which process owns which data Feb-22 © Loughridge Transformations Ltd 17 Unstructured Data Transactional Data Metadata Hierarchical Data Reference Data Master Data
- 18. PROCESS PERFORMANCE: MEASURE, MONITOR & CONTROL Feb-22 © Loughridge Transformations Ltd 18 Process Measures Which measures aligned to business strategy? 01 02 03 Analytics Embed the right information & insight Maturity Continuous roadmap to increase capability Process Performance Enables focused efforts Enables informed decision Enables improvement
- 19. PROCESS AUTOMATION –THE OPPORTUNITY &TRENDS What is it? §Use of technology to perform daily and repetitive tasks through automation. It replaces manual labour and gets things done with the help of technology Benefits §Increased efficiency ■ Better productivity & performance §Reduced cost ■ Enhanced customer satisfaction Trends §Hyper-automation via Machine learning & AI §No or low code integration §Robotic Process Automation (RPA) §End-to-end organisation visibility §Smart technology integration e.g. voice-activation §Digital round the clock workforce Feb-22 © Loughridge Transformations Ltd 19
- 20. MANAGING RISKS IN PROCESSES Feb-22 © Loughridge Transformations Ltd 20 1. Assess Risks & Vulnerabilities 2. Build Controls into Processes 3. Ensure Accountability & Transparency Identify Business & Process Objectives Identify & Assess Risks per Objective Determine & Design Risk Responses Deploy & Embed Risk Responses • Owned/Understood by Management • Integrated to Business • Communicated Operate/Evidence Control Monitor Controls to ensure operating and design effectiveness Appraisal & Report • Self-Appraisal • Independent Appraisal
- 21. INTEGRATION AT ENTERPRISE LEVEL Feb-22 © Loughridge Transformations Ltd 21 Finance - Governance HSSE Organisation Finance - Functional Finance - External Non-Finance (HR, Goods-Services- Logistics, Reputation, IT, Legal, Real Estate) DESIGN WIDGETS BUILD WIDGETS SELL WIDGETS Governing Processes Core Processes Enabling Processes
- 22. OUR SEVEN MUST-DO ITEMS FOR PROCESS Feb-22 © Loughridge Transformations Ltd 22 Integration Ownership Data Automation Controls Performance Process Model
- 23. WE’LL LEAVEYOU WITH 3THOUGHTS 1. It has to be alive § It is not working if it is a paper exercise 2. Evolve and Improve § It isn’t sustainable if you have no mechanism built-in for improvement 3. It is the foundation for transformation § Tackling transformation without considering process is a huge oversight Feb-22 © Loughridge Transformations Ltd 23
- 24. Feb-22 © Loughridge Transformations Ltd 24 Q&A Click Here to open Q&A
- 25. THANKYOU FOR JOINING… We hope you enjoyed the webinar. Feel free to connect with our speakers: Register for our next webinar at www.loughridgetransformations.com Arrange a call with any of our consultants at: www.loughridgetransformations.com/schedule-meeting/ For more content, take a look at LoughridgeTransformations’ blog: Jennifer §www.linkedin.com/in/jennifer- loughridge §Jennifer.Loughridge@loughridg etransformations.com Woon-Hui §www.linkedin.com/in/woon-hui- oh/ §Woon- Hui.Oh@loughridgetransformat ions.com Hans §https://www.linkedin.com/in/ha ns-bogaard-9a27ba14/ §Hans.Bogaard@loughridgetrans formations.com Nine Steps to Finance Transformation DefineThe Future –Target Setting & Benchmarking DigitalTransformation for Finance: HowTo Get It Right Feb-22 © Loughridge Transformations Ltd 25