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B OOZ A LLEN & H AMILTON Management Consulting Better Business Through Better Decision Making.

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Presentation on theme: "B OOZ A LLEN & H AMILTON Management Consulting Better Business Through Better Decision Making."— Presentation transcript:

1 B OOZ A LLEN & H AMILTON Management Consulting Better Business Through Better Decision Making

2 Management Consulting 1 2 3 4 2 Introduction Overview of Booz Allen & Hamilton Reengineering Methodology Deliverables Presentation Outline 12341234

3 Management Consulting 1 2 3 4 3 1 2 Why youre here What were going to accomplish today Introduction

4 Management Consulting 1 2 3 4 4 Introduction Overview of Booz Allen & Hamilton Reengineering Methodology Deliverables Presentation Outline 12341234

5 Management Consulting 1 2 3 4 5 Pricing & Fee Structuring Contract Price Negotiations Cost Realism / Should Cost Realism Business Decision Analysis Business Case Analysis Cost/Benefit Analysis Cost/Performance Trade Feasibility Studies Business Process Reengineering Lease/Purchase Trade-offs Return on Investment Cost Estimating & Modeling Cost Risk Analysis Independent Cost Estimates Life Cycle Cost Estimates Economic Analysis Infrastructure Assessments Outsourcing / Privatization Performance Measurement Activity Based Costing Earned Value Management Outcomes-based Performance Measurement / Benefits Capture BA&H Business Solutions Overview of BA&H

6 Management Consulting 1 2 3 4 6 Introduction Overview of Booz Allen & Hamilton Reengineering Methodology Deliverables Presentation Outline 12341234

7 Management Consulting 1 2 3 4 7 Reengineering Methodology Overview Start Analyze Issues and Drivers Diagnose and Plan Design and Blueprint Implement Adjust Efforts Departmental Review Reengineering Methodology

8 Management Consulting 1 2 3 4 8 Methodology - Divisional Input Start Analyze Issues and Drivers Diagnose and Plan Adjust Efforts Departmental Review Participate in team meetings Baseline current processes (as-is analysis) Reengineer processes (to-be analysis) Identify service productivity measures Recommend the Most Efficient Organization (MEO) Design and Blueprint Implement Reengineering Methodology

9 Management Consulting 1 2 3 4 9 … it is a picture of a business process or system sufficiently detailed to facilitate meaningful improvements Process: A series of interrelated activities which convert inputs into results; processes consume resources and require standards for repeatable performance; processes respond to control systems which direct quality, rate and cost What is a Process Map? Reengineering Methodology

10 Management Consulting 1 2 3 4 10 Grocery Shopping Process Plan Next Weeks Menu Inventory Pantry Cabinets and Refrigerator Generate Shopping List Buy Fruits and Vegetables Enter Grocery Store Buy Meat and Dairy Products Update Shopping List Check Out with Cashier and Groceries Bagged Restock Pantry Cabinets and Refrigerator Repeat this step as necessary 1 2 4 3 5 6 Total - $8,912/Labor - $1,912/Overhead - $1,500/Other - $5,500 Output - Stocked pantry, cabinets, and refrigerator Frequency - 60 in FY 98 (once per week plus eight trips for holidays) Mandate - Biological Requirement - must feed children Quality Measures - # trips with 100% complete list, # weeks able to complete menu without a return trip, $ saved per week with coupons Time - Normal trips average 2 hours; Special holiday trips average 3 hours; Return trips average 1.1 hours Reengineering Methodology Buy Bread and Miscellaneous Snacks

11 Management Consulting 1 2 3 4 11 1 2 3 Gather data for measuring improvements Identify barriers/potential problems at interfaces Identify causes of bottlenecks 4 Identify points to fix/develop action plans Uses of Process Maps Reengineering Methodology

12 Management Consulting 1 2 3 4 12 1 2 3 Identify a specific start and stop for the process List all activities that occur between those two points Copy all activities on sticky notes 4 Arrange activities in sequential order Steps in Process Mapping 5 Identify decision points and alternate paths 6 Identify the process owner Reengineering Methodology

13 Management Consulting 1 2 3 4 13 7 8 9 Check for completeness and accuracy Define your process Look for invisible processes 10 Steps in Process Mapping Understand your process Reengineering Methodology

14 Management Consulting 1 2 3 4 14 1 2 3 Map the as-is process not the to-be or should-be Need consensus from stakeholders Dont expect one session to be enough 4 Check all shifts and locations for any anomalies Caveats Reengineering Methodology

15 Management Consulting 1 2 3 4 15 Methodology - Divisional Input Start Analyze Issues and Drivers Diagnose and Plan Implement Adjust Efforts Departmental Review Participate in team meetings Baseline current processes (as-is analysis) Reengineer processes (to-be analysis) Identify service productivity measures Recommend the Most Efficient Organization (MEO) Design and Blueprint Reengineering Methodology

16 Management Consulting 1 2 3 4 16 Goal: To do the right things right! Process Improvement There is nothing so useless as doing efficiently that which should not be done at all. Peter F. Drucker Reengineering Methodology

17 Management Consulting 1 2 3 4 17 Grocery Shopping Process Plan Next Weeks Menu Inventory Pantry Cabinets and Refrigerator Generate Shopping List Buy Fruits and Vegetables Enter Grocery Store Buy Meat and Dairy Products Update Shopping List Check Out with Cashier and Groceries Bagged Restock Pantry Cabinets and Refrigerator Repeat this step as necessary 1 2 4 3 5 6 Total - $8,912/Labor - $1,912/Overhead - $1,500/Other - $5,500 Output - Stocked pantry, cabinets, and refrigerator Frequency - 60 in FY 98 (once per week plus eight trips for holidays) Mandate - Biological Requirement - must feed children Quality Measures - # trips with 100% complete list, # weeks able to complete menu without a return trip, $ saved per week with coupons Time - Normal trips average 2 hours; Special holiday trips average 3 hours; Return trips average 1.1 hours Reengineering Methodology Buy Bread and Miscellaneous Snacks

18 Management Consulting 1 2 3 4 18 Grocery Shopping Process - Detailed Plan Next Weeks Menu Determine Approval Requirements Inventory Refrigerator Repeat this step as necessary Inventory Cabinets Reengineering Methodology Inventory Pantry Compare Inventory to Menu Requirements Plan Which Stores to Visit and in What Order Enter Store Buy Fruits Buy Vegetables Buy Meats Buy Dairy Products Buy Ice Cream Buy Bread and Chips Buy Candy Enter Check Out Line Cashier Rings Up Bill Bag Groceries Pay Bill Load Car Update Shopping List Restock Cabinets Restock Pantry Restock Refrigerator

19 Management Consulting 1 2 3 4 19 1 2 3 Identify potential bottlenecks, barriers, and breakdowns Analysis of wait time Inspection possibilities 4 Process Improvement Cycle time analysis Assessment of customer expectations/requirements 5 Reengineering Methodology

20 Management Consulting 1 2 3 4 20 1 At each process step (activity) answer the following questions: What is going wrong? Bottlenecks, Barriers, and Breakdowns What could go wrong? How does this activity affect subsequent activities? How is this activity affected by previous activities? 2 Use this analysis to develop an extensive list of possible reengineering candidates Reengineering Methodology

21 Management Consulting 1 2 3 4 21 1 2 3 Which activities take the longest to complete? Is staffing adequate? Is training adequate? 4 Cycle Time Analysis Why? Can the activity be simplified, combined with another activity, or eliminated? 5 Reengineering Methodology

22 Management Consulting 1 2 3 4 22 1 2 3 Where do delays occur? Is capacity sufficient for peak demand? Should it be? (cost effectiveness) 4 Analysis of Wait Time (Queues) Why? Can you develop contingency plans or resources to satisfy peak demand? 5 Reengineering Methodology

23 Management Consulting 1 2 3 4 23 1 2 3 Where are problems discovered? Would a formal inspection early in the process be helpful? Can problems be prevented? 4 Inspection Possibilities Where do they actually occur? Reengineering Methodology

24 Management Consulting 1 2 3 4 24 1 2 3 What are our customers needs? Does the customer think they are being met? What is most important to our customers? 4 Customer Expectations/Requirements Are they being met? What is least important to our customers? 4 Reengineering Methodology

25 Management Consulting 1 2 3 4 25 Methodology - Divisional Input Start Analyze Issues and Drivers Diagnose and Plan Implement Adjust Efforts Departmental Review Participate in team meetings Baseline current processes (as-is analysis) Reengineer processes (to-be analysis) Identify service productivity measures Recommend the Most Efficient Organization (MEO) Design and Blueprint Reengineering Methodology

26 Management Consulting 1 2 3 4 26 1 2 4 3 5 6 Gain Insights and make judgements about effectiveness and efficiencies Measure Progress Toward Meeting Strategic Goals and Objectives Drive Continuous Improvements in the Organization Translate Strategy into Action Support Resource Allocation Decisions Support Process Reengineering Decisions Why Measure Service Productivity? 7 Support Annual Performance Planning Reengineering Methodology

27 Management Consulting 1 2 3 4 27 Strategic Plan Establish and Update SPMs Customers Input Service Productivity Reporting Evaluate and Use Information Establish Accountability Measure Service Productivity Improve Processes Service Productivity Feedback Loop The Service Productivity (SP) Process Model Analyze and Review Data Stakeholders Input Management Priorities Management Decisions Reengineering Methodology

28 Management Consulting 1 2 3 4 28 Strategic Plan Customers Input Service Productivity Reporting Evaluate and Use Information Establish Accountability Measure Performance Improve Processes Performance Feedback Loop Analyze and Review Data Stakeholders Input Management Priorities Management Decisions Establish and Update SP Measures If a task can be performed, it can be measured. Edwin Booz Measure the right thing Choose a measure that is central to the process Define targets, minimums, or maximums for each measure Establish and Update SPMs Reengineering Methodology

29 Management Consulting 1 2 3 4 29 Strategic Plan Customers Input Service Productivity Reporting Evaluate and Use Information Establish Accountability Measure Performance Improve Processes Performance Feedback Loop Analyze and Review Data Stakeholders Input Management Priorities Management Decisions Establish and Update PMs Common measures financial performance customer satisfaction internal business operations employee satisfaction community and stakeholder satisfaction time performance quality measures efficiency measures quantitative measures Avoid data overload Establish and Update SPMs Reengineering Methodology

30 Management Consulting 1 2 3 4 30 Strategic Plan Establish and Update SPMs Customers Input Evaluate and Use Information Measure Performance Improve Processes Service Productivity Feedback Loop Analyze and Review Data Stakeholders Input Management Priorities Management Decisions Service Productivity Reporting Establish Accountability What gets measured, gets done. Common Sense Foster buy-in from employees and managers by establishing ownership Formalize ownership of measures Establish responsibilities for data collection, reporting, and analysis Establish a contract: manager provides a supportive environment employee provides results Empower employees with the authority to make decisions and solve problems related to the results for which they are accountable Establish Accountability Reengineering Methodology

31 Management Consulting 1 2 3 4 31 1 2 4 3 5 6 Collect data for as is service productivity not should be service productivity Service productivity measures should be accepted by, and meaningful to, the customer Service productivity measures should be simple, understandable, and logical Service productivity measures should be unambiguously defined Service productivity measures should allow for economical data collection Establish realistic service productivity goals to avoid de-motivation Keys to Success 7 Good service productivity measures drive appropriate action Reengineering Methodology

32 Management Consulting 1 2 3 4 32 Methodology - Divisional Input Start Analyze Issues and Drivers Diagnose and Plan Implement Adjust Efforts Departmental Review Participate in team meetings Baseline current processes (as-is analysis) Reengineer processes (to-be analysis) Identify service productivity measures Recommend the Most Efficient Organization (MEO) Design and Blueprint Reengineering Methodology

33 Management Consulting 1 2 3 4 33 Methodology - Departmental Review Start Analyze Issues and Drivers Diagnose and Plan Implement Adjust Efforts Design and Blueprint Participate in team meetings Compile divisional inputs Review of reengineered processes Finalize service productivity measures Finalize departmental MEO Develop the final report Deliver the final report Departmental Review Reengineering Methodology

34 Management Consulting 1 2 3 4 34 Methodology - Divisional Input Start Analyze Issues and Drivers Diagnose and Plan Implement Departmental Review Design and Blueprint Possible modification of input to account for departmental perspective Detailed instructions from departmental review group Short notice/quick response items Adjust Efforts Reengineering Methodology

35 Management Consulting 1 2 3 4 35 Project Schedule 1 2 4 3 5 6 Kick Off Brief Independent Divisional Research Divisional MEOs Departmental Review of Reengineered Processes Finalize Service Productivity Measures and Standards 7 Deliver Final Report Finalize Departmental MEO Reengineering Methodology

36 Management Consulting 1 2 3 4 36 Introduction Overview of Booz Allen & Hamilton Reengineering Methodology Deliverables Presentation Outline 12341234

37 Management Consulting 1 2 3 4 37 Team Membership Current Organizational Chart Summary of Reengineered Processes Process Maps (Baseline) Process Maps (Reengineered) Service Productivity Measures Identification Most Efficient Organization Recommendation Division Deliverables 12345671234567 Deliverables

38 Management Consulting 1 2 3 4 38 1 2 4 3 5 6 Team Leader - Mary Smith Administrative Support - Tom Jones Financial Support - Joe Sanchez Field Operations/Customer Interface - Patty Wilson Member #5 - Functional Expertise Member #6 - Functional Expertise Team Membership 7 Member #7 - Functional Expertise Deliverables

39 Management Consulting 1 2 3 4 39 Total Authorized Positions = 43 Actual Positions Filled = 40Total Vacancies = 3 Current Organizational Chart Deliverables

40 Management Consulting 1 2 3 4 40 1 2 4 3 5 6 Grading Plan/Check Process - Cost (Total/Labor/Overhead/Other) Residential Plan/Check Process - Cost (Total/Labor/Overhead/Other) Grading Inspections Process - Cost (Total/Labor/Overhead/Other) Electrical, Plumbing, and Mechanical Inspection Process - Cost (Total/Labor/Overhead/Other) Commercial Inspection Process - Cost (Total/Labor/Overhead/Other) Summary of Reengineered Processes 7 Residential Inspection Process - Cost (Total/Labor/Overhead/Other) Commercial Plan/Check Process - Cost (Total/Labor/Overhead/Other) Deliverables

41 Management Consulting 1 2 3 4 41 Plan Next Weeks Menu Inventory Pantry Cabinets and Refrigerator Generate Shopping List Buy Fruits and Vegetables Enter Grocery Store Buy Meat and Dairy Products Update Shopping List Check Out with Cashier and Groceries Bagged Restock Pantry Cabinets and Refrigerator Repeat this step as necessary 1 2 4 3 5 6 Total - $8,912/Labor - $1,912/Overhead - $1,500/Other - $5,500 Output - Stocked pantry, cabinets, and refrigerator Frequency - 60 in FY 98 (once per week plus eight trips for holidays) Mandate - Biological Requirement - must feed children Quality Measures - # trips with 100% complete list, # weeks able to complete menu without a return trip, $ saved per week with coupons Time - Normal trips average 2 hours; Special holiday trips average 3 hours; Return trips average 1.1 hours Reengineering Methodology Buy Bread and Miscellaneous Snacks High Level Process Map (Baseline) Grocery Shopping Process

42 Management Consulting 1 2 3 4 42 Plan Next Weeks Menu Determine Approval Requirements Inventory Refrigerator Repeat this step as necessary Inventory Cabinets Reengineering Methodology Inventory Pantry Compare Inventory to Menu Requirements Plan Which Stores to Visit and in What Order Enter Store Buy Fruits Buy Vegetables Buy Meats Buy Dairy Products Buy Ice Cream Buy Bread and Chips Buy Candy Enter Check Out Line Cashier Rings Up Bill Bag Groceries Pay Bill Load Car Update Shopping List Restock Cabinets Restock Pantry Restock Refrigerator Detailed Process Map (Baseline) Grocery Shopping Process

43 Management Consulting 1 2 3 4 43 Detailed Process Map (Reengineered) Repeat this step as necessary Grocery Shopping Process Deliverables

44 Management Consulting 1 2 3 4 44 High Level Process Map (Reengineered ) 1 2 4 3 5 6 Original Cost (Total/Labor/Overhead/Other) Output (Product or Service) Output Frequency (Per Year) Mandate (Policy/Regs/Convention) New Service Productivity Measures Estimated Time Required to Produce Output Repeat this step as necessary Grocery Shopping Process Deliverables

45 Management Consulting 1 2 3 4 45 1 2 4 3 5 6 Financial - Cost per Shopping Trip; $ Saved per Trip Quality - Percent of Shopping Trips Completed Correctly the First Time Time - Time to Complete a Shopping Trip; Time to Generate a Shopping List; Time in Each Store Customer/Stakeholder/Community Satisfaction - Are Your Children Happy with the Product Selection; Are the Meals Complete and Satisfying Employee Satisfaction - Percentage of Employees Who Feel They Have Adequate Training to Properly Perform Their Job Error Rate/Percent Rework - Number of Return Visits for Items on the List; Number of Return Visits for Items not on the List Sample Service Productivity Measures 7 Efficiency - $ Spent/Time Shopping (Aggregate and for Each Store) 8 Other Deliverables

46 Management Consulting 1 2 3 4 46 Total Suggested Personnel = 40 Sample Most Efficient Organization *Note - Ensure suggested classifications are included with this generic organization Deliverables

47 B OOZ A LLEN & H AMILTON Management Consulting


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