 | |  | |  | |  | |  |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
Introduction
To effectively and efficiently manage strategic planning, the
consequent organisational and business development, and
day-to-day operations organisations need structured and
systematic processes.
consequent organisational and business development, and
day-to-day operations organisations need structured and
systematic processes.
We define a process as:
Business Process Improvement (BPI) is an approach
organisations use to review and redesign an existing
process or to design a new process. BPI is used to analyse
the current way of doing things and to determine whether
there is a better way to design how the activity is
undertaken or in some cases if the activity is really needed.
organisations use to review and redesign an existing
process or to design a new process. BPI is used to analyse
the current way of doing things and to determine whether
there is a better way to design how the activity is
undertaken or in some cases if the activity is really needed.
Business Process Improvement (BPI)
How organisations undertake BPI depends on the relative maturity of the organisation. New growing companies who
have identified that they are reaching a size where the informal processes adopted on start-up are no longer
sufficient may look to gain benefits from simple measures. On the other hand, there may be real opportunities for
more mature organisations to make a real break through from the application of BPI.
have identified that they are reaching a size where the informal processes adopted on start-up are no longer
sufficient may look to gain benefits from simple measures. On the other hand, there may be real opportunities for
more mature organisations to make a real break through from the application of BPI.
The key principle is that it is difficult to improve anything that is not understood:
What is not defined cannot be controlled;
What is not controlled cannot be stabilised;
What is not stabilised cannot be measured;
What is not measured cannot be improved.
■
■
■
■
Service Improvement Initiatives
Das Management Services’ first step in any service improvement initiative is to assess the current health and
maturity of the processes that support the efficient and effective delivery of those services. In undertaking this
assessment we model the Value Chain of the organisation rather than considering organisational functions and
define the processes being adopted as being in one of six stages of maturity.
maturity of the processes that support the efficient and effective delivery of those services. In undertaking this
assessment we model the Value Chain of the organisation rather than considering organisational functions and
define the processes being adopted as being in one of six stages of maturity.
We employ a scale of 0 – 5 based upon the Capability Maturity Matrix:
0 - Non-Existent:
Complete lack of any recognised process. The organisation has not even recognised that
there is an issue to be addressed.
there is an issue to be addressed.
1 - Initial:
Evidence that the organisation recognises there are issues that exist which need to be
addressed; staff may initiate process activities only on an as needed basis.
addressed; staff may initiate process activities only on an as needed basis.
2 - Repeatable:
Processes designed so that similar procedures are followed by individuals; there is a high
reliance on individual knowledge and skill level.
reliance on individual knowledge and skill level.
3 - Defined:
A standardised and documented level of process; processes are in place and objectives,
activities, inputs and outputs for the processes are defined; communicated through training.
activities, inputs and outputs for the processes are defined; communicated through training.
4 - Managed:
Processes which are good practice and under constant improvement; automation and tools
are beginning to monitor compliance.
are beginning to monitor compliance.
5 - Optimised:
Facility of the process structure to receive and provide quality data to external management
and business processes; process driven organisational culture exists.
and business processes; process driven organisational culture exists.
From such a maturity baseline, Das Management Services works with the Client to develop a plan to improve and
gain benefits including:
gain benefits including:
Understanding specific and targeted opportunities for
process and service improvement;
process and service improvement;
Providing the ability to periodically and quickly re-assess
the organisation to compare changes in process
maturity and the impact of improvement activities;
the organisation to compare changes in process
maturity and the impact of improvement activities;
Receiving guidance as to the improvement activities that
will generate quick and/or substantial benefits;
will generate quick and/or substantial benefits;
Enabling measurement of incremental process
improvements and pinpoint with clarity, procedural, role
or policy deficiencies.
improvements and pinpoint with clarity, procedural, role
or policy deficiencies.
■
■
■
■
Policies & Procedures
Policies and procedures are used to empower a process with the direction and consistency necessary for successful
process improvement.
process improvement.
Policy is a guiding principle used to set direction in an organisation.
Procedure is a series of steps to be followed as a consistent and repetitive approach to accomplish an end result.
The purpose for creating an internal control system through defining and documenting processes with well-written
procedures can be summarised as:
procedures can be summarised as:
Compliance:
While procedures themselves may not demonstrate compliance with legislation, well-defined
and documented processes (i.e. procedures, training materials) along with records that
demonstrate process capability can make evident an effective internal control system and
compliance to regulations and standards.
and documented processes (i.e. procedures, training materials) along with records that
demonstrate process capability can make evident an effective internal control system and
compliance to regulations and standards.
Operational
Needs:
Needs:
Procedures ensure processes fundamental to the organisation’s success are properly
guided by management, are performed in a consistent way that meets the organisation's
needs, and that important related information and data are captured and communicated.
guided by management, are performed in a consistent way that meets the organisation's
needs, and that important related information and data are captured and communicated.
Manage
Risks:
Risks:
Procedures define how reasonable measures are built into processes to prevent
unacceptable risks events occurring, and they describe how the organisation will manage
and recover from such events should they occur. Key personnel leaving is a business risk
and the documentation of organisational knowledge through procedures can mitigate this risk.
unacceptable risks events occurring, and they describe how the organisation will manage
and recover from such events should they occur. Key personnel leaving is a business risk
and the documentation of organisational knowledge through procedures can mitigate this risk.
Continuous
Improvement:
Improvement:
Is one of the most important, yet frequently overlooked reasons for developing an internal
control system of policies and procedures. One role procedures play in continuous
improvement is implementing a Plan-Do-Check-Act (PDCA) approach to processes.
control system of policies and procedures. One role procedures play in continuous
improvement is implementing a Plan-Do-Check-Act (PDCA) approach to processes.
■
■
■
■
Who Uses Policies & Procedures
An important question Das Management Services poses to its Clients is for what purpose policies and
procedures are used within the organisation. These may be as follows:
procedures are used within the organisation. These may be as follows:
Frequent Users are expected to be experienced. They do not require a lot of explanation, technical definitions or
detailed step-by-step instructions.
detailed step-by-step instructions.
Occasional users are not experienced. They may only use the procedure now and then, when they fill-in for
someone or perhaps the procedure is only used once a month.
someone or perhaps the procedure is only used once a month.
Novices are learning the procedure for the first time and need step-by-step instructions. These are called work
instructions and are included as a separate document referenced from within the procedure.
instructions and are included as a separate document referenced from within the procedure.
Procedures can be written for all three or it can be determined that only a certain group will be using them. The
editorial style takes account of these specific needs. Procedures are also written for auditors to verify to
management that the processes are under control. Procedures are also written for the company to ensure that the
company is continuously improving, realising the business objectives, and increasing its future prospects.
editorial style takes account of these specific needs. Procedures are also written for auditors to verify to
management that the processes are under control. Procedures are also written for the company to ensure that the
company is continuously improving, realising the business objectives, and increasing its future prospects.
■
■
■
Lean Management
Management. Lean Management was first applied in the Japanese car
industry but is now successfully adopted internationally across a broad
from the application of lean management can be significant.range of
sectors. Depending on the particular circumstances the benefits to an
organisation in increased effectiveness and efficiency from the
application of lean management can be significant.
industry but is now successfully adopted internationally across a broad
from the application of lean management can be significant.range of
sectors. Depending on the particular circumstances the benefits to an
organisation in increased effectiveness and efficiency from the
application of lean management can be significant.
Whilst many organisations are good at the things that add value they
are not so good at reducing the non value adding steps in processes.
Lean Management defines this non value adding activity as waste and
through its systematic identification releases the resources that are
taken up with wasteful activities.
are not so good at reducing the non value adding steps in processes.
Lean Management defines this non value adding activity as waste and
through its systematic identification releases the resources that are
taken up with wasteful activities.
“Manufacturing Lean”defines seven
wastes:
wastes:
Manufacturing waste definitions do not
necessarily have “face” validity in a
"service” context. Service “waste” can
be redefined as:
necessarily have “face” validity in a
"service” context. Service “waste” can
be redefined as:
Overproduction
Waiting
Transporting
Inappropriate processing
Unnecessary inventory
Excess motion
Defects
An eighth is now often added:
Underutilisation of employees
Work waste
Process waste
Information waste
Human energy waste
■
■
■
■
■
■
■
■
■
■
■
■
Capabilities
■
In many cases, current processes have been in place for years and have gradually become outmoded. This may
prompt a decision to overhaul "the way we do business." Organisations can also sponsor BPI initiatives when they
are presented with changes brought on by advances in technology or other innovations. Customers may also
prompt an organisation to undertake a review or redesign of a business process through, for instance, supplier
prequalification requirements of IS09001:2008 Quality Management System certification. As customers'
expectations change, many organisations recognise the need to update how they undertake business.
prompt a decision to overhaul "the way we do business." Organisations can also sponsor BPI initiatives when they
are presented with changes brought on by advances in technology or other innovations. Customers may also
prompt an organisation to undertake a review or redesign of a business process through, for instance, supplier
prequalification requirements of IS09001:2008 Quality Management System certification. As customers'
expectations change, many organisations recognise the need to update how they undertake business.
■
■
■
■
■
■
Page Last Update 09.08.08 - All Rights Reserved Das Management Services SRL 2007 - Management Consultancy - Romania
The process mapping of existing activities is a key element in establishing opportunities for streamlining processes
and reducing waste leading to greater efficiency and effectiveness. We facilitate workshops and interviews to
identify wasteful activities and the root causes and to develop pragmatic solutions to address the issues. We can
assist in selecting and implementing these solutions applying both Programme Management and Change
Management tools and techniques.
and reducing waste leading to greater efficiency and effectiveness. We facilitate workshops and interviews to
identify wasteful activities and the root causes and to develop pragmatic solutions to address the issues. We can
assist in selecting and implementing these solutions applying both Programme Management and Change
Management tools and techniques.
Das Management Services is able to advise on the introduction of systematic policies and procedures across the
whole range of business functions and activities. We help identify where opportunities for early sustainable benefits
can arise addressing waste, defects and delays. An appropriate structure of policies and procedures can be
proposed to meet the particular needs of the organisation. We can plan the development and rollout of policies and
procedures and can oversee implementation.
whole range of business functions and activities. We help identify where opportunities for early sustainable benefits
can arise addressing waste, defects and delays. An appropriate structure of policies and procedures can be
proposed to meet the particular needs of the organisation. We can plan the development and rollout of policies and
procedures and can oversee implementation.
We help senior management develop policies that align with
the organisation’s values – refer Strategic Planning web
page – providing impartial objective advice and comment. In
many cases the employees are best placed to map the
existing “how it is now” processes. Our Associates provide
training and coaching in undertaking these activities whilst
maintaining a consistent approach or lead workshops during
team mapping of processes. Sampling exercises can be
undertaken to verify that the process mapping reflects the
currently adopted practices. We also coordinate the
publishing of the policies and procedures both in hard copy
and electronic form with final editorial control to ensure a
seamless suite of documentation that can be cross
referenced and readily revised.
the organisation’s values – refer Strategic Planning web
page – providing impartial objective advice and comment. In
many cases the employees are best placed to map the
existing “how it is now” processes. Our Associates provide
training and coaching in undertaking these activities whilst
maintaining a consistent approach or lead workshops during
team mapping of processes. Sampling exercises can be
undertaken to verify that the process mapping reflects the
currently adopted practices. We also coordinate the
publishing of the policies and procedures both in hard copy
and electronic form with final editorial control to ensure a
seamless suite of documentation that can be cross
referenced and readily revised.
Process consists of a series of actions or steps that produce
a product or service.
a product or service.
We define policies and procedures as follows:
His promises were, as he
then was, mighty; But his
performance, as he is now,
nothing.
William Shakespeare
1564-1616, English dramatist
in Henry VIII (1613), act 4, sc.
2
then was, mighty; But his
performance, as he is now,
nothing.
William Shakespeare
1564-1616, English dramatist
in Henry VIII (1613), act 4, sc.
2