Part 1: Agile Organisations: Business and Process Transformation Event - Measuring, managing and improving business agility
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The document discusses the transformative journey towards agile organizations, focusing on improving business agility, efficiency, and customer service in the 21st century. It highlights the complexity of processes and structures inherited from industrial legacies, and emphasizes the importance of customer-centric approaches for successful outcomes. Key elements include understanding customer needs, adapting to changes, and effectively executing strategies to enhance overall organizational performance.
Part 1: Agile Organisations: Business and Process Transformation Event - Measuring, managing and improving business agility
- 1. Agile Organisations: Business and Process Transformation September 2010 Measuring, managing and improving business agility Business and process transformation techniques for the 21st century Improve agility, efficiency and customer service, increase revenue and reduce costs Steve Towers David Mottershead BP Group BP Group Agile Organisations - September 2010
- 2. “It’s true the questions Are the same… But this year the answers Are very different”
- 3. Measuring, managing and improving business agility Agility – The Key To Success In The 21st Century How to uncover significant opportunities for improving processes permanently - Factors constraining our agility - The emergence of a new landscape - The building blocks for change - Practical, results and analysis - Scores on the doors - Where to start - How to get more information Agile Organisations - September 2010
- 4. What do you want from this session? Agile Organisations - September 2010
- 5. Business Agility – What is it? The capability of an Measures organisation to Drivers Readiness proactively adapt to changes in the business landscape Innovation and creativity Agility Self sustaining Benchmarking Collaboration against competitors Changing the mindset Agile Organisations - September 2010
- 6. Your Business Goals Our organisations Reduce exist to deliver a cost product or service to a customer Other??? Your Increase goals revenue Enhance service Agile Organisations - September 2010
- 7. Challenges to Achieving Our Goals Complexity Complexity Strategy Measures Structure Strategy Customers Our Challenge Structure Customers Measures Agile Organisations - September 2010
- 8. We have inherited an industrial legacy in thought and action in the way we do work...
- 9. What shape are you in? Agile Organisations - September 2010
- 10. Our organisations all look the same... CEO Marketing Sales IT Customer Finance Service Agile Organisations - September 2010
- 11. Processes wend and meander their way around these rigid structures... CEO Marketing Sales IT Customer Finance Service Agile Organisations - September 2010
- 12. And hey ho – we nearly forgot the customer! Now where do they go? CEO Marketing Sales IT Customer Finance Service Structure Customers Complex Our Challenge Measures Strategy Agile Organisations - September 2010
- 13. Banking - the World was a simpler place... Agile Organisations - September 2010 1975
- 14. It isn‟t simple anymore 2010 Agile Organisations - September 2010
- 15. Just ..... One customer relationship And thinking from the organisations perspective, that is Inside-Out, makes things very complex. Perhaps we need to Rethink things from a Agile Organisations - September 2010 different Perspective.
- 16. Think about... All those rules “.. You know things got so complicated we actually Those procedures decided to structure ourselves along the line of our enterprise The standards software system, so things might work better” The systems CIO, Global Telco, 2008. The hierarchy (Source BPGroup IQPC 08 Survey) Reporting lines Agile Organisations - September 2010
- 17. However things have become very complicated The typical car contains about 2,000 components, 30,000 parts and 10 million lines of software code. (John Paul McDuffie, HBR June 2010) Agile Organisations - September 2010
- 18. MORE COMPLEX THAN A FIGHTER JET Safety regulations and consumer demand for performance and convenience Have led to an exponential spike in cars’ software complexity Structure Customers Complex Our Challenge Measures Strategy Agile Organisations - September 2010
- 19. Dealing with complexity is an inefficient and unnecessary waste of time, attention and mental energy. There is never any justification for things being complex when they could be simple. Edward de Bono
- 20. Houston, we have a problem 90% of businesses are unable to execute the strategy they have on paper 70% of businesses project performance they will never attain Source: Axon, L. Learning to lead: How Companies Grow Profits by Growing Leaders, Sept 22,2004 Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005
- 21. Few Organizations Execute Strategy Well “Strategy has never been more important” “Less than 10% of strategies effectively formulated are effectively executed” Fortune Magazine Agile Organisations - September 2010
- 22. Problem, or not important? Only 5% of the workforce understands what the strategy is Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005
- 23. Problem, or not important? Legacy Principles of the Strategy Focused Organization: „MAKE STRATEGY EVERYONE‟S JOB‟ (Telco) CORP SBU Top-Down “Bridging • EDUCATION Bottom-Up Process to Process” To Share the Internalize & Execute Strategy & Align the Workforce • PERSONAL GOAL ALIGNMENT the Strategy • BALANCED PAYCHECKS The Strategy Focused Workforce Agile Organisations - September 2010
- 24. Problem, or not important? Structure Stakeholder Perspective Customers Complex The Mission of the organization is to fulfill Our Public Policy expectations Challenge Customer Perspective Budget / Financial Perspective “To achieve our mission, how must we look “If we succeed, how will we look to our to our customers?” financial donors?” Measures Strategy Internal Perspective “To satisfy our customers, financial donors and mission, what business processes must we excel at?” Learning & Growth Perspective “To achieve our mission, how must our people learn, communicate, and work together?” The Legacy Balanced Scorecard Adopted for a Government Organization
- 26. Is halving waiting times a measure of success? Agile Organisations - September 2010
- 27. RailCorp aims to have ticket vending machines in operation 99% of the time in 2009-11. Agile Organisations - September 2010
- 28. RailCorp Customer Charter Agile Organisations - September 2010
- 29. Centrelink Customer Charter Agile Organisations - September 2010
- 30. “We were measuring the wrong ******* things!” Ryan Air – Europe‟s largest Ryan Air’s CEO Michael O’Leary And most successful Airline. “It‟s not rocket science. You need to be measuring What‟s important to the customer. Then you make Structure sure everything you do is achieving those measures. Customers Complex The ******* simple really. Challenge That way customers keep coming back for more”. Measures Strategy Agile Organisations - September 2010
- 31. Why should we change? Because the answers are very different ! Inspiration: Udayan Banerjee CTO, Agile Organisations - September 2010 NIIT Technology (India)
- 32. Let‟s review the elements of this transformation Agile Organisations - September 2010
- 33. The Always on World – It has all happened inst last 12 years! The Always on World of the 21 the Mapping the Growth of the Internet century - 1998 Agile Organisations - September 2010
- 34. The Always on World of the 21st century Mapping the Growth of the Internet Agile Organisations - September 2010
- 35. The Always on World of the 21st century Mapping the Growth of the Internet Agile Organisations - September 2010
- 36. We believe that within five years, 96 percent of consumers will have access to the Internet, whether it be through a personal computer, a set-top box or a mobile phone. You bet that changes everything. (2010) Source: Fanzine
- 37. Let‟s review the elements of this transformation Agile Organisations - September 2010
- 38. Choice: We now have a bewildering array in almost every product and service. Agile Organisations - September 2010 Source: Fanzine
- 39. Let‟s review the elements of this transformation Agile Organisations - September 2010
- 40. Rebellion: Customers – we don‟t take **it anymore Agile Organisations - September 2010 Source: iStockphoto
- 41. Rebellion: Customers – we don‟t take **it anymore
- 42. Rebellion: Customers – we don‟t take **it anymore United Breaks Guitars - became an instant online hit with 3 million views in 10 days on YouTube.
- 43. Let‟s review the elements of this transformation Agile Organisations - September 2010
- 45. Expectations: Say High – Do High, or else
- 46. Agile Organisations - September 2010
- 47. Agile Organisations - September 2010
- 48. Expectations: Say High – Do High, or else
- 49. Let‟s review the elements of this transformation Agile Organisations - September 2010
- 50. Prosumer: The Customer Experience is the Process Source: Fanzine
- 51. Let‟s review the elements of this transformation Agile Organisations - September 2010
- 52. Multi-channels: I want it my way when I say Source: Fanzine
- 53. Let‟s review the elements of this transformation Agile Organisations - September 2010
- 54. The Promiscuous Customer: I will go with anyone I choose on my terms Source: BigStock
- 55. And as we speak… Structure Customers Complex Our Challenge Measures Strategy Agile Organisations - September 2010
- 56. A New Landscape is emerging
- 58. This is a Copernican Moment Copernicus - 19 February 1473 – 24 May 1543 He died 467 years ago
- 59. How does this customer philosophy Compare to what we have been doing?
- 60. PERFORMANCE BENEFITS - PROCESS TRANSFORMATION EVOLUTION © Towers Associates 2010 – Research 800+companies 2006-2010 SERVICE & COST & REVENUE Agile Approaches e.g. Customer Expectation Management 4 Business Objective Benefits Process Management Lean post 2000 SERVICE & COST Six Sigma Business Process 3 1995-05 2 Business Reengineering Process Improvement 1980-95 1 Total Quality SERVICE Management 1970-80 Rigid Agile Scope of Transformation
- 61. PERFORMANCE BENEFITS - PROCESS TRANSFORMATION EVOLUTION © Towers Associates 2010 – Research 800+companies 2006-2010 SERVICE & COST & REVENUE Agile Approaches CUSTOMER e.g. Customer Expectation 4 Management DRIVEN post 2000 Business Process Management Objective Benefits 3 Lean SERVICE & COST CUSTOMER 1995-05 Six Sigma CONSIDERATE CUSTOMER 2 Business Business Process Process Reengineering 1980-95 Improvement SENSITIVE 1 Total Quality Management SERVICE 1970-80 Rigid Agile Scope of Transformation
- 62. Process Reality in the 21st century Everything an organisation does is process. There isn‟t anything that isn‟t process. Processes are the DNA of the organisation. In fact processes transcend the organisation. The Customer Experience is the Process. Agile Organisations - September 2010
- 63. We show that we value our customers by serving them well, putting their needs and interests at the center of everything we do. (from the AOL mission statement) http://www.youtube.com/watch?v=xaaAYVUWP0I
- 64. Perception 80% of CEO‟s believe their brand provides a superior customer experience Only 8% of their customers agree (Bain & Company)
- 65. “We can‟t solve problems using the same kind of thinking we used when we created them” Structure Customers Complex Our Challenge Measures Strategy
- 66. Revenue 12 10 8 6 4 2 0 2004 2005 2006 2007 2008 2009
- 67. Business Agility – What is it? The capability of an Measures organisation to Drivers Readiness proactively adapt to changes in the business landscape Innovation and creativity Agility Self sustaining Benchmarking Collaboration against competitors Changing the mindset Agile Organisations - September 2010
- 68. Measuring, managing and improving business agility Agility – The Key To Success In The 21st Century How to uncover significant opportunities for improving processes permanently - Factors constraining our agility - The emergence of a new landscape - The building blocks for change - Practical, results and analysis - Scores on the doors - Where to start - How to get more information Agile Organisations - September 2010
- 69. Advanced Business Process Management An Agile method for managing an organisation by understanding and delivering Successful Customer Outcomes (SCO) It is also referred to as „Outside-In‟ Agile Organisations - September 2010
- 70. www.cemmethod.com EXECUTE REVIEW ASSESSMENT DISCOVERY
- 71. Understand & Develop Successful Customer Outcomes CRAFTING THE SUCCESSFUL CUSTOMER OUTCOME Understanding the real Customer Need TOOLS Layer 1: Layer 4: Who is the How does what Customer? We do impact Customer Success? Layer 2: What is the Customers current Expectation? Layer 5: The Successful Customer Outcome – what does Layer 3: What is the process The One liner SCO: the customer really the customer thinks they are One line statement need from us? involved with? that explains the actual SCO The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy inside-out thinking to create an actionable strategic and operational objective for the entire organisation. Agile Organisations - September 2010
- 72. If I had asked them what they wanted they would have said faster horses Henry Ford – the Model T
- 73. Turn Feedback Into Inspiration Steve Jobs has often cited this quote from Henry Ford: "If I'd have asked customers what they wanted, they would have told me, 'A faster horse!' “ This is Jobs' defence of Apple's reluctance to listen to even its most passionate customers, and the line is a good one to remember the next time you're considering a new round of focus groups. "They'll tell you a bunch of stuff they want. Then if you build it, it turns out that's not right. It's hard to visualize things that don't exist.“ But Jobs doesn't exactly ignore customers; he uses their ideas as inspiration, not direction; as a means, not an end. Source http://www.fastcompany.com/magazine/147/apple-nation.html Agile Organisations - September 2010
- 74. Gilead Sciences Gilead Sciences http://bit.ly/62PfbP Gilead Sciences (GILD) saw sales rise to $5.3 billion in the past 12 months, capping off three years of 38% sales growth on average. One secret was turning a cocktail of AIDS drugs into a single once-a-day pill, making it easier for patients to stick to their drug regimens. Agile Organisations - September 2010
- 75. Performance, Agility & Quality are driven by... The Causes of Work MOT Moments of Truth Break Points BP Business Rules
- 76. Questions in an Outside-In world What is the ultimate Cause of all work? Agile Organisations - September 2010
- 77. Jan Carlzon "We have 50,000 moments of truth every day.“ President, SAS Agile Organisations - September 2010
- 79. MOT MOT MOT MOT MOT MOT MOT MOT Any interaction with the CUSTOMER is a MOMENT OF TRUTH
- 80. MOT MOT MOT MOT MOT MOT MOT MOT And every MOMENT OF TRUTH Ripples and reverberates through the organisation
- 81. MOT MOT MOT MOT MOT MOT MOT MOT And MOMENTS OF TRUTH Create complexity, cost, wastefulness and failure
- 82. MOT THE CAUSE OF WORK MOT MOT MOT MOT MOT MOT MOT THE EFFECT
- 83. State Farm Insurance Example Lifestyle Management Rationalized 80% MOTs Developed Trust Based management - „employ‟ only the customers they want Delivered „Best in Class‟ service 2007-2010 Achieved „most profitable‟ Ins. Co 2007-2010 Average customer policies rose to seven Agile Organisations - September 2010
- 84. Measuring, managing and improving business agility Agility – The Key To Success In The 21st Century How to uncover significant opportunities for improving processes permanently - Factors constraining our agility - The emergence of a new landscape - The building blocks for change - Practical, results and analysis - Scores on the doors - Where to start - How to get more information Agile Organisations - September 2010