How do you know bp improvements scqaa
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The document discusses the application of systems thinking in business process improvement, focusing on key performance indicators (KPIs), change management, and the analysis of process variations. It emphasizes the importance of understanding when to implement changes versus maintaining existing processes and highlights the potential impact of modifications on project outcomes. Additionally, it outlines the need for effective team collaboration and decision-making strategies in response to observed variations in project performance.
How do you know bp improvements scqaa
- 1. Kristine A. Hayes Munson, MBA, PMP, CIA State Street
- 2. Photos of Attendees on December 11 2013 at Intuit Office www.scqaa.net
- 3. You will be able to apply systems thinking to business process improvement projects after: ◦ Selecting key performance indicators (KPI) ◦ Knowing when to implement change or when to leave a process “as is” ◦ Determining whether or not proposed changes will positively or negatively impact the project
- 4. Managed an user acceptance testing project to onboard a client to a major system within firm Project went from greenish-amber to red in less than a week with no major fires SVP comment on the project: ◦ The team is working frantically ◦ The team is not working hard enough
- 5. “There is no such thing as a fact concerning an empirical observation. Any two people may have different ideas about what is important to know about any event. Get the facts!” —W. Edward Deming
- 6. Process Improvement Projects Revisited Key Performance Indicators Why Change? ◦ Special Cause and Common Cause Variation ◦ The Plan-Do-Check-Act Cycle Seeing is Understanding ◦ Deming’s Red Bead Experiment ◦ Deming’s Funnel Experiment Understanding My Project
- 7. Change Agent ◦ Identify and articulate the need for a business process change ◦ Document and vet requirements for the proposed change ◦ Facilitate the proposed change ◦ Help businesses do their business better.
- 8. Acceptance & Evaluation Criteria Definition Brainstorming Interviews Document Analysis Focus Groups Observation Organization Modeling Process Modeling Prototyping Requirements Workshops Risk Analysis Root Cause Analysis Scenarios & Use Cases Scope Modeling Survey/Questionnaire
- 9. What are our results?
- 10. Translate collected data and information into knowledge Make the right management decisions and take the right action ◦ Implement appropriate, planned changes ◦ Allow the process to function “as is”
- 11. Select 3-5 key performance indicators (KPI) ◦ Understand the overall business objectives ◦ Ask stakeholders what is most important ◦ Identify the impact of not completing the project Make KPIs “SMART” Remember may need to be “bad” at some things in order to be “good” • Ensure stakeholders including the project team know and understand the KPIs
- 12. Think about a process improvement project on which you are currently working. ◦ Identify what are the 3-5 KPIs? ◦ What are you going to be intentionally bad at?
- 13. We observe variation from our expectations
- 14. How do we decide whether or not to “change,” “fix” or “improve” something? How do we determine if a change will positively and/or negatively impact a project?
- 15. Common Cause ◦ Fall inside the control limits Special Cause ◦ Something that is special, not part of the system of common causes ◦ Fall outside the control limits
- 16. Mistake 1 ◦ To react to an outcome as if it came from a special cause, when actually it came from common causes of variation. Mistake 2 ◦ To treat an outcome as if it came from common causes of variation, when actually it came from a special cause
- 17. When you discover that you are riding a dead horse, the best strategy is to dismount. In many companies more advanced strategies are often employed, such as: Reclassifying contractors to horseslighter riders as Declaring thataseveral dead ride the together to Providing additional deadso see does impaired’ Lowering to as dead horse study training Hiring Rewritingvisit other countries todead how Doingoutside the thestudy riders ‘living not horse Arranging the standards to that if the horse Appointing committee horse dead horses Harnessing the expected performance have a productivity funding and/or see Changing increasetoitincreaseincluded performance to improve can dead horse’s fed,theis less costly,horses dead the performance wouldberequirements horse’scarries lower others ride for allspeed the be dead horses… overhead, and therefore contributes substantially more to the mission of the organization than do some other horses
- 18. A D B C
- 19. Experience Perception of Cause and Effect
- 20. Adopt the change, or abandon it or run through the cycle again Act Plan Plan a change or a test, aimed at improvement –Which option to test? – What is anticipated result? Beware of Unintended Consequences Study the results. What did we learn? What went wrong? Check Do Carry out the change or test (preferably on a small scale)
- 21. Help Wanted ◦ 3 willing project team members (must be brave) ◦ 2 team leads (must be able to count) ◦ 1 business analyst (must be able to count) ◦ 1 project manager (must be able to add & use PowerPoint) ◦ 1 senior manager (sets the rules – me)
- 23. Wrong to rank people ◦ Demoralizing ◦ Really ranking the effect of the process on people Futility of pay for performance; rewarding and punishing the process Display of bad management; procedures were rigid No basis to assume that best team member would be the best in the future
- 24. Help Wanted ◦ 1 will project team member (must be able to hold funnel) ◦ 1 business analyst (must be able to use a marker) ◦ 1 senior manager (sets the rules – me) No one gets fired in this experiment.
- 25. Avoid management tampering ◦ Taking action based on the belief that a common cause is a special cause ◦ Overreacting ◦ Causes losses – management by results ◦ Increases variation Sometimes the process should just be left alone
- 26. What is the most important decision I face right now because of observed variation? ◦ What long-term consequence do the short-term issues have? ◦ How does this decision relate to the project’s 3-5 KPIs? How will we determine if this variation is a special cause or a common cause variation? How does this knowledge impact your decision? How will you test your decision?
- 27. You will be able to apply systems thinking to monitoring and controlling after: ◦ Selecting key performance indicators (KPI) ◦ Knowing when to implement change or when to leave a project “as is” ◦ Determining whether or not proposed changes will positively or negatively impact the project
- 28. “The truth is often buried deeper than where your intuition can reach. Uncovering it starts with the willingness to stop treating your beliefs as facts.” — Frances Frei and Anne Morriss “Learning the word ‘no’ is the hardest lesson for many project managers.” — Jim Johnson
- 30. Kristine A. Hayes Munson, MBA, PMP, CIA kahayesmunson@statestreet.com +949-932-1476 For SCQAA- San Fernando Valley Chapter Sujit Ghosh sujit58@gmail.com 818-878-0834