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© 2009 AREOPA The Evolution of Change Fashionable Methodologies in tune with the Digital Age 1 AREOPA sc - CM – The Evolution of Change (scGNO20091214)

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Presentation on theme: "© 2009 AREOPA The Evolution of Change Fashionable Methodologies in tune with the Digital Age 1 AREOPA sc - CM – The Evolution of Change (scGNO20091214)"— Presentation transcript:

1 © 2009 AREOPA The Evolution of Change Fashionable Methodologies in tune with the Digital Age 1 AREOPA sc - CM – The Evolution of Change (scGNO ) 4 reasons IECC 3P 3S 12steps Measure ment EU / LIC Sales channels Philosophy Result Change Implementation Strategy Implementation Methodology Confidential, not to be disclosed without written approval of the author(s)

2 EXECUTIVES: Cope with threats of “Global Economy” Cope with demands of existing and potential customers Ensure company-wide strategy, consistently acted upon Translate company strategy into goals, objectives and results, in line with a positive perception of our customers MANAGEMENT: Keep budgets under control and retain quality of services to customers? Recognize investments to assure optimal future business impact Plan and implement these investments? Balance between people, processes and technology to support our customers Why CHANGE! – typical responses 2 AREOPA sc - CM – The Evolution of Change (scGNO )

3 1. 1.Improve Company Image How customers and shareholders perceive the company, the team (people) and its/their performance A positive perception (i.e. satisfied customers) results in a positive image and in an active reference for the company (free advertising!) 2. 2.Respond to increasing Customer Expectations Customers and shareholders become more and more demanding, affecting products /services delivered and increasingly the information provided as well as the treatment by whomever is in contact with them. Companies must meet ALL these expectations! 4 Reasons for Change 3 AREOPA sc - CM – The Evolution of Change (scGNO )

4 3. 3.Tackle global Competition Products become commoditized, more generic, less unique and are not by themselves sufficient to tie in customers. Stay ahead of the competition and customer lock-in are essential, through finding other and new ways to delight the customer, anticipating – if not creating – their FUTURE expectations! 4. 4.Focus on Cost Reduction Hardly a day goes by without pressure on company results and therefore cost reductions are never far away from the agenda. However customers do not only increase their expectations, they also get smarter and better informed Customers no longer want to bear the costs of their suppliers' inefficiencies (rework) or improductivities (activities without added value)! 4 Reasons for Change (continued) 4 AREOPA sc - CM – The Evolution of Change (scGNO )

5 The “customer” is key to all these answers Smart dynamic Business Processes focus on Customers and customer feed-back through continuous monitoring of Customer Expectations Effective organizations combine Business Change Management with IT Management to effectively deploy new IT solutions Such an organization implies an increasing impact of IT on the company’s bottom line and future 5 AREOPA sc - CM – The Evolution of Change (scGNO ) 4 Reasons for Change (continued)

6 Why do we need to manage change improve Company Image respond to increasing Customer Demands tackle Global Competition focus on Cost Reductions each require continuous “CHANGE” Transition to a Knowledge based and Service oriented organization  requires smart Business Processes Continuous monitoring of Customer Expectations Customers are central to AREOPA’s philosophy. Constant need for Change 6 AREOPA sc - CM – The Evolution of Change (scGNO )

7 EXECUTIVE’s concerns: How do we transform the company to cope with threats of “Global Economy”? How do we guide our managers to cope with changing and increasing demands of existing and potential customers? How do we translate the company vision into a company-wide strategy and how do we communicate this strategy to the organization so that everybody acts to it in a consistent way? How do we translate the company strategy into goals, objectives and results, in line with a positive perception of our customers? MANAGER’s concerns: How do we keep the budgets under control, without jeopardizing the quality of our services to our customers? Where do we invest to assure optimal business impact for the future and how do we plan these investments? How can we keep a good balance between people, processes and technology to support our customers? Questions to be answered 7 AREOPA sc - CM – The Evolution of Change (scGNO )

8 Mahatma Gandhi: “For things to change, first I must change.” New Economic Challenge: CEO’s challenge = VISION TO VALUE for customers, shareholders and team for community and other stakeholders Business Change Management starts with inward looking Need for ORGANIZATIONAL CHANGE 8 AREOPA sc - CM – The Evolution of Change (scGNO )

9 Symptoms highlighting the need: Responsibilities & accountabilities do no longer match reality We do not adapt / respond timely & efficiently to: changing market conditions & customer demands Information and new obtained knowledge or the total lack thereof Information not source originated or not driven by process owner No added value and unnecessary/duplicated controls recognized in process handover = bureaucracy Incompetitiveness due to: Uncontrolled outsourcing of activities and processes Constant rework and non-value-added processes Existing process-, departmental- and reporting structures Business Change Management starts with the organization Need for ORGANIZATIONAL CHANGE 9 AREOPA sc - CM – The Evolution of Change (scGNO )

10 Typical growth curve of an organization Adding people adds potential for inefficiency and non- value-added processes The Organization Evolution Theory 10 AREOPA sc - CM – The Evolution of Change (scGNO ) Crisis #1 Crisis #2 CMF QMF FMF BOSRF Employees Time Crisis #

11 Crisis #1 = from commercial to mature organisation Solutions: + +Downsizing: 10 people out  nice and cosy again + +Appoint a manager to check  19 people waiting for approval at his door + +Implement control systems and structure The Organization Evolution Theory 11 AREOPA sc - CM – The Evolution of Change (scGNO ) Boss SalesAdministrationManufacturingLogistics Sales Plan Fin. planProd. plan Inventory data Objective: information transfer  everybody his own info

12 Crisis #2 = from mature to hierarchical organisation What happens at 200 people: signatures for a new pen  non-value-add but increased costs + +Central purchasing  cheaper materials but not applicable + +Everybody is busy The Organization Evolution Theory 12 AREOPA sc - CM – The Evolution of Change (scGNO ) Procedures, Bureaucracy Organisational power Adam Smith: division of labour Lack of ownership Contact with customer lost Company culture?

13 The hierarchical vertical organisation What has happened? + +More chiefs than indians The Organization Evolution Theory 13 AREOPA sc - CM – The Evolution of Change (scGNO ) What has really happened? Take a Sales Rep: +<25% customer facing time +20% driving to the customer ++5% administration ++5% meetings +1-2% training +>50% = internal lobbying Everybody follows the unwritten rules of the game Boss SalesAdmin.MfgLog. Deb. Cred. Planning

14 The process The Organization Evolution Theory 14 AREOPA sc - CM – The Evolution of Change (scGNO ) The customer is the king? Finance & Admin Sales Production Warehousing Logistics

15 What is the organization’s focus The Organization Evolution Theory 15 AREOPA sc - CM – The Evolution of Change (scGNO ) Good audit Quota Productivity Costs JIT Finance & Admin Sales Production Warehousing Logistics

16 Hurdles for Change Management Where is your customer focus? The Organization Evolution Theory 16 AREOPA sc - CM – The Evolution of Change (scGNO ) Culture differences Contradictory Objectives The Boss ? Good audit Quota Productivity Costs JIT Finance & Admin Sales Production Warehousing Logistics

17  Manage « people change » phases Awareness, interest, trial, adoption  Focus on organizational development tactics Face-to-face meetings, personal profile, Mgmt training, …  Dynamics of resistance to change AREOPA’s Total Change Management 17 AREOPA sc - CM – The Evolution of Change (scGNO ) expenses revenues rightsizing downsizing down-sizing vs RIGHT-sizing Strategic Exercise

18 AREOPA’s Total Change Management 18 AREOPA sc - CM – The Evolution of Change (scGNO ) Strategic Exercise – Change is difficult! FROMTO  Processes complexsimple standardizedstandardized & unique  Jobs split taskmulti-dimension  People controlledindependent & accountable  Focus individualteam  Structure hierarchicalflat  Personnel workers & managersprofessional & experts Organizational change is all encompassing

19 AREOPA’s Total Change Management 19 AREOPA sc - CM – The Evolution of Change (scGNO ) Strategic Exercise – Resistance to change M ajor raison for failure: lack of change skills Management status is given, but leadership comes naturally Matrix the formal hierarchy and the informal networks Identify levels of resistance to change Organizational turn-around requires change rather than stabilizing orientation

20 AREOPA’s Total Change Management 20 AREOPA sc - CM – The Evolution of Change (scGNO ) Strategic Exercise – HOW? 5 management commitments to organizational change  Synchronized mission, vision, goals, objectives & tasks  Downwards communication  Business Process change:  Eliminate non-value add processes  + BPI/BPR/BPE  Build and integrate process and systems  Institutionalize process based structures Strategy alignment  Strategic integration  Operational integration  Functional integration  People and teams  Applications and Infrastructure... Everything changes...

21 AREOPA’s Total Change Management 21 AREOPA sc - CM – The Evolution of Change (scGNO ) Strategic Exercise – Everything changes! FROMTO  Backbone function/departmentthrough-put process  Performance activity basedcollective result measurement measurement measurement  Manager role supervisorcoach  Director role score keeperleader  Priority financial mgmtoperational mgmt  Personnel focus bosscustomer  Values protectionisticproductive Aiming at the “switch-over Point” = from traditional to process organisation CUSTOMER ORIENTED

22 Focus the process on the customer Change Philosophy Constantly renewing and improving the process Implementation Strategy Involve the whole organisation Implementation Method Process Enabled - Customer driven 22 AREOPA sc - CM – The Evolution of Change (scGNO ) AREOPA’s Total Change Management

23 People are not against change but against “being changed” Change always causes resistance. Underestimating the resistance Company culture does not allow new / flexible thinking Involving too late the real process owners and the persons who will finally have to work within the new and changing market/customer environment Or if they finally succeed, the project is being realized out of scope, out of budget and/or out of deadlines. An organizational change project is a complex entity, simultaneously deploying changes in technology, company systems and structures. Rarely one single party is able to offer solutions for all different aspects. The increasing influence of Information Technology on company management may bring together parties of totally different disciplines Why Change Projects FAIL! 23 AREOPA sc - CM – The Evolution of Change (scGNO )

24 Focus on the CUSTOMER e.g. Kotler’s 4 P’s -> 4 C’s Customer Value  product Costs  price Competition  promotion Channels  place The internal and external customers judge the process’ output subjectively. How to avoid Change failure! 24 AREOPA sc - CM – The Evolution of Change (scGNO ) S N E P P S B

25 Focus on the PROCESSES Each step in the process adds value Processes are visualized in function of the customer Processes are continuously improved and renewed How to avoid Change failure! 25 AREOPA sc - CM – The Evolution of Change (scGNO ) Input Output Activity Decision Wait state

26 Focus on the PROCES OWNERS Organizations can change by enabling the people who perform the job (= process owners) deploying the change How to avoid Change failure! 26 AREOPA sc - CM – The Evolution of Change (scGNO )

27 AREOPA’s Change Philosophy 27 AREOPA sc - CM – The Evolution of Change (scGNO ) 3 PILLARS for CHANGE Customers (internal and external) Processes (interdepartmental) Process Owners (empower all of them) “Give people chances, not guarantees” (Pres. Clinton in better times)

28 AREOPA’s Change Philosophy 28 AREOPA sc - CM – The Evolution of Change (scGNO ) I have a philosophy for CHANGE! What now? “Would you tell me please where I should go from here?” “That depends on where you want to get to.” “I don’t much care where.” “Then it doesn’t matter which way you go!”

29 Objectives must be SMARTER 29 AREOPA sc - CM – The Evolution of Change (scGNO ) Specific Measurable Achievable Realistic Time related Empowered Resources  Customer oriented  Known and agreed to by all process owners  How? Qualified (TAPE ® = Timely - Accurate - Productive - Efficient) Quantified (CoPP = Cost of Poor Performance)

30 how to make a difference for your customers & shareholders Improve Company Image The things we say = the things we do Typical organization and departmental drivers Typical growth pains Hierarchy building, bureaucracy & island creation Respond to increasing Customer Demands Increasing customer expectation (faster / cheaper)  definition TAPE grid (the 4 KPI’s): Timely - Accurate - Productive – Efficient Ranking of priorities (internal) Focus on top customer requirements Everyone is involved in Customer Service  Account Mngr role AREOPA’s Implementation Strategy 30 AREOPA sc - CM – The Evolution of Change (scGNO )

31 Identify the 5 layers of Process Mapping 1. 1.High-level Domains + inputs/outputsWHERE 2. 2.Departments/B.U. and Process OwnersWHO 3. 3.Hand-off Process MappingWHAT 4. 4.Task/Activity DescriptionsHOW 5. 5.Procedures  Programming HOW Identifying Cost Reduction opportunities, using: TRIADE thinking – potential for process elimination CoPP analysis – practice “educated guess principle” SIMIST ® process simulation + BPI, BPR, BPE TAPE ® grid – measure customer satisfaction AREOPA’s Total Change Management Process Enabled, Customer driven AREOPA’s Implementation Strategy 31 AREOPA sc - CM – The Evolution of Change (scGNO )

32 AREOPA’s Implementation Method 32 AREOPA sc - CM – The Evolution of Change (scGNO )

33 AREOPA’s Implementation Method 33 AREOPA sc - CM – The Evolution of Change (scGNO ) Creating Awareness serves to communicate the project objectives to all employees to eliminate any insecurities in this respect as an exercise in process-driven and customer-focused thinking to create a momentum for change to eliminate any initial resistance to change. Process Mapping & Qualification All business processes are identified and mapped Then classified according to whether the processes Supported by existing/appropriate systems and structures, or need to be improved, renewed (reengineered) or defined (engineered) Calculation of the Cost of Poor Performance (CoPP) CoPP is calculated by applying AREOPA’s TAPE ® -grid management may determine priorities according to its results.

34 AREOPA’s Implementation Method 34 AREOPA sc - CM – The Evolution of Change (scGNO ) Process Change Management (BPI/BPE/BPR) consists of 12 specific steps during which the relevant processes are improved, reengineered or engineered. Integrated Methodology Customer (internal & external) has to be satisfied – external customer involved Process oriented implies the entire business process, across multiple departments, has to deliver added value People actively involved in the process, will do the rethinking of the processes AREOPA’s Total Change Management APPROACH Focus on the transfer of know-how to customers Permanent support to the internal change managers Using the AREOPA AIS ® Reference Model

35 The AIS Reference Model (Applied Information Service) is an implementation model built on Organizational Process Technology An integrated, yet modular & scalable approach, oriented towards realization, involving all stakeholders A practical approach to match the organisation, its in- and outputs define the discrepancies, against changing market conditions AIS evaluate current status, work in progress and define areas of priority and focus The AIS Reference Model aims at transforming classical hierarchical organizations into Customer Focused and Process Driven organizations that are better adapted to constantly changing environments by making use of Process Servicing Technologies AIS ® Reference Model 35 AREOPA sc - CM – The Evolution of Change (scGNO )

36 Process-supporting technologies (such as ICT) created the need for service-processes to the spectrum of business processes The AIS Reference Model contains three building blocks: Company Strategy Block covering the Company’s Business Strategy, the Company’s ICT Strategy, and its Macro Organizational and ICT Governance Structure Process Change Block covering the Company’s core business processes, and IT Block covering the Company’s IT applications and IT processes The total project is lead by a distinct Programme Directorship The Company Strategy directs the Business Processes whereas the IT Strategy coordinates Information Systems and related IT processes AIS ® Reference Model 36 AREOPA sc - CM – The Evolution of Change (scGNO )

37 IT Block ITSM End-User Coaching Parameterization & Implementation Technical Training Acquire an IT application based on IT strategy IT2D 37 Program Directorship Company Strategy Block Process Change Block Scope Integration Information Strategy Aligning investment in IS Innovative IS for competitive advantage Efficient management of IS resources DevelopmentAssess Process Mapping & Categorization Business Process OK BPR Reengineering BPE Engineering BPI Improvement CoPPLISTCoPP IT 9). 12) 9). 12) 9). 12) 1) 2) 3) - 8) 1) 2) 3) - - 8) 1) 2) 3) -.8) 12 S T E P s M E T H O D ® Detailed Organization Structures (e.g. Project Mgmt, SMT’s, Outsourcing, … ) The AIS Reference Model ® Company Strategy Strategic Options Vision Mission DevelopmentAssess ICT Governance Structure Macro Organizational Structure Awareness, TAPE, CoPPe-Discovery - Innovation HR Function Quality Function MIS Define IT Mission, Vision & Strategy Qualify and categorize ITSM processes Apply process management methodology and tools: AIS – Simist TAPE-grid 12-steps methodology (BPR, BPI, BPE) IT Mgmt application

38 38 AREOPA sc - CM – The Evolution of Change (scGNO )  The AIS Reference Model was developed by AREOPA  The AIS philosophy is based on a 3-phase implementation strategy consisting of:  Awareness creation  Goal definition, and  Stepwise implementation  Process-supporting technologies (such as ICT) created the need for service processes to the spectrum of business processes  In order to properly scope the extent and content (and likelihood of success) of an AIS project, an analysis is made of existing projects and activities and these are than mapped against the AIS Reference Model AIS ® Reference Model Philosophy Result Change Implementation Strategy Implementation Methodology

39 39 AREOPA sc - CM – The Evolution of Change (scGNO ) BPI/BPR/BPE  In collaboration with IT consultants, the BPI, BPR and BPE methodology will be applied to those processes where improvement, reengineering or even engineering is required  The methodology goes through 12 distinct steps to create a new process that fits the Customer’s needs  The requirements for supporting systems and functions (IT, HR, QM, SCM, S&M,... and Mgt Reporting) are defined and detailed organizational structures are designed and implemented  Process owners perform cost and benefit calculations  Emphasis lies on the Management of Change: guiding people at all levels during the organizational change AIS ® Reference Model Philosophy Result Change Implementation Strategy Implementation Methodology

40 40 AREOPA sc - CM – The Evolution of Change (scGNO ) IT2D  Covers IT applications development and deployment, starting with the choice of an IT application in line with the IT strategy, the parameterization and implementation, supported by adequate technical training and brought to live with End User Coaching in order to obtain the initially defined process performances targets IT Service Management (ITSM)  The virtual IT department supports the virtual organization  IT Strategy must be clearly defined – in alignment with the overall Company Strategy – together with the structural and organizational elements and all IT processes must be optimized and created  Methods, tools and best practices used in BPI, BPR and BPE are also applied on the IT processes and organization AIS ® Reference Model Philosophy Result Change Implementation Strategy Implementation Methodology

41 41 AREOPA sc - CM – The Evolution of Change (scGNO ) HR, QM, SCM, S&M,... & MR Systems  In parallel with the above mentioned process change exercises, the supporting systems (incl. HR, QS and Mgt Reporting Systems) are designed for the core business processes  Measurement of Process Performance using the TAPE ® grid elements (Timeliness, Accuracy, Productivity and Efficiency) provides a dashboard for top management to monitor and manage the activities of an organization Program Directorship Coordinates and lead all above mentioned activities and makes sure that all plans that have been agreed upon are realized within the promised time frames, involving the right people in the right places AIS ® Reference Model Philosophy Result Change Implementation Strategy Implementation Methodology

42 42 AREOPA sc - CM – The Evolution of Change (scGNO ) IST Categorization and CoPP analysis  The IST (=current) situation of the organization is identified and compared with the newly defined organization in the previous phase  Cross-departmental core business processes are mapped and qualified in one of 4 categories according to the further treatment methodology:  Business Processes that are OK, but need better IT Support/EUC  Business Process Improvement (BPI), with calculation of Cost of Poor Performance (CoPP)  Business Process Reengineering (BPR), also with calculation of CoPP  Business Process Engineering (BPE) = new processes required to coop with changing market conditions AIS ® Reference Model Philosophy Result Change Implementation Strategy Implementation Methodology

43 Philosophy Result Change Implementation Strategy Implementation Methodology Philosophy Result Change Implementation Strategy Implementation Methodology Philosophy Implementation Strategy Implementation Methodology Result Change You want Change ? 43 AREOPA sc - CM – The Evolution of Change (scGNO ) The 4 vital REASONS  To improve your Image: the things you say must be the things you do  To satisfy the ever increasing Customers’ Expectations To tackle your Competition Score well in each segment of the TAPE ® grid Cost of Poor Performance (CoPP ® ) Average process loss = 23% 12% non-timelines & inaccuracy 25% non-productivity 33% non-efficiency / rework Prod./Serv Delivery Service Info Cust.. Treatmnt PERC. Q     TAP E Q t Quality gap (1) actually perceived (2) expected quality (1) (2) Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3S 12steps Measure ment EU / LIC Sales channels

44 4 reasons IECC 3P 3S 12steps Measure ment EU / LIC Sales channels You want Change ? Make it happen ! 44 AREOPA sc - CM – The Evolution of Change (scGNO ) Philosophy Result Change Implementation Strategy Implementation Methodology Change build on 3 PILLARS 1.Focus on the Customer of the process 2.Continuous improving of the process 3.Emphasis on involving the whole organization through the Process Owners and focus on the Gauss Curve to overcome resistance to change Increased customer satisfaction leads to Increased market share, sales & revenue 5%45% 5% Pioneers10 Proof personsOutlaws1 Proof persons

45 45 AREOPA sc - CM – The Evolution of Change (scGNO ) Philosophy Result Change Implementation Strategy Implementation Methodology You want Change ? We make it happen ! Change structured in 3 PHASES 1.Starting creation of Awareness top & middle management and personnel 2.Setting goals Process qualification & mapping CoPP ® (calculation Cost of Poor Performance) and TAPE ® measurements 3.Implementing the change 12-Steps Methodology = the new way of working = the new processes are being prepared including all details necessary for its realization = it is known by which persons, in which way, at which costs the different process steps will be executed and what the result will be achieved = all tasks necessary for building the new processes are defined, detailed and included in the cost/benefit analysis 4 reasons IECC 3P 3S 12steps Measure ment EU / LIC Sales channel

46 46 AREOPA sc - CM – The Evolution of Change (scGNO ) From Process Mapping to Implementation 1.WHO are the CUSTOMERS and WHO are the PROCESS OWNERS 2.Identify & prioritize the Customer requirements (TAPE ® ) 3.Paired Weighing Ranking 4.Project Definition 5.Process Descriptions 6.Identify Deviations 7.Cost & Efficiencies 8.Improvement Plan Define change management areas (= WHAT) Request each department/function to make presentation of HOW to resolve their inefficiencies Combine and set total resolution Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3S 12 steps Measure ment EU / LIC Sales channels

47 47 AREOPA sc - CM – The Evolution of Change (scGNO ) From Process Mapping to Implementation 9.Presentation by process owners to top management We went to our customers We listened and understood them We did process deviation ranking We identified where deviation occurs and the causes Then we involved all depts. How to improve our process We did cost and benefit analysis Project Team “We like to start the change” say the process owners Management has no longer a choice… they will approve. Top management agreed that it has to happen = we are all willing. Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3S 12 steps Measure ment EU / LIC Sales channels

48 48 AREOPA sc - CM – The Evolution of Change (scGNO ) From Process Mapping to Implementation 10.Implement Change Management Project Understand and manage the drivers of change Set Program Directorship Use the AIS Reference Model Company Strategy Block Process Change Block IT Block 11.Remeasure the TAPE grid 12.Institutionalize... measurement = continuous process... Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3S 12 steps Measure ment EU / LIC Sales channels

49 Measuring the RESULTS 49 AREOPA sc - CM – The Evolution of Change (scGNO ) Philosophy Result Change Implementation Strategy Implementation Methodology CoPP calculation (obtain costing elements, keys and data)  Focus on manpower, product and transmission cost + related depreciations (Activity Based Costing)  relate to timing / sequence of processes = PROCESS COST (PC)  Determine the cost of deviations / non-performance (= errors, rework, duplication, non-value-added processes,...)  use TRIADE thinking:  non-productivity  non-efficiency  non-accurate & non-timely (from customer satisfaction rating) = INTERNAL FAILURE COST (IFC)  Determine the effect of internal failures to related processes = EXTERNAL FAILURE COST (EFC)  Root-cause investigation and analysis = APPRAISAL COST (AC)  Add Prevention Costs (waste of investment = prevention, training, improvement) = max 10% of CoPP and decreases over time COPP = IFC + EFC + AC = real invested process cost 4 reasons IECC 3P 3F 12steps Measur ement EU / LIC Sales channels

50 Measuring the RESULTS 50 AREOPA sc - CM – The Evolution of Change (scGNO )  using TAPE ® and CoPP ® to  measure the present customer perceived quality  predict the improvements  measure the change  applying to  Information & Communication Technology (ICT)  Business Process …..  Improvement (BPI)  Re-engineering (BPR)  Engineering (BPE)  Business processes as core of performance calculation  TAPE ® grid & SNEP ® – measure customer satisfaction  SIMIST ® Architecture – process simulation & implementation Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3F 12steps Measur ement EU / LIC Sales channels

51 Measuring the RESULTS 51 AREOPA sc - CM – The Evolution of Change (scGNO )  End-user Coaching direct coaching & training effort  on nearly individual basis  over an extended period of time  to get the maximum out of the application  Measurable improvements in  Process quality & performance  End User’s efficiency  Improvements typically exceed net. 35%, measured with the TAPE ® grid AREOPA’s Total Change Management Process Enabled, Customer driven Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3F 12steps Measur ement EU / LIC Sales channels

52 TAPE ® -grid Customer Satisfaction 52 AREOPA sc - CM – The Evolution of Change (scGNO ) Customer-focused change aims to measurably improve customer satisfaction. The TAPE ® -grid measures the customer perception through performance indicators related to the 3 process components Any improvement in customer perception results in reducing the Costs of Poor Performance: these are the process costs due to inefficiency (rework) and non-productivity in process steps, and to the rectification of non-timeliness and/or inaccuracies of the output. Philosophy Result Change Implementation Strategy Implementation Methodology

53 SIMIST ® Process Simulation 53 AREOPA sc - CM – The Evolution of Change (scGNO ) SIMIST ® Architecture dynamic and visual simulation model of the operations Based on the 5 layer Process Mapping Hand-off Process Mapping = WHAT A clear view of your organization Philosophy Result Change Implementation Strategy Implementation Methodology

54 SIMIST ® Process Simulation 54 AREOPA sc - CM – The Evolution of Change (scGNO ) Start with the business processes Charting them = a first good step But who points out improvements in this chart! Philosophy Result Change Implementation Strategy Implementation Methodology

55 SIMIST ® Process Simulation 55 AREOPA sc - CM – The Evolution of Change (scGNO ) What are efficient business processes? a group of activities aimed at a specific result a group of business activities (tasks) that create added value for the customer a transformation of input(s) into output(s) focused on the customer and the result not on the mechanism Philosophy Result Change Implementation Strategy Implementation Methodology

56 SIMIST ® Process Simulation 56 AREOPA sc - CM – The Evolution of Change (scGNO ) SIMIST ® has been developed by AREOPA together with leading universities in the field of simulation techniques SIMIST ® is supported by an interactive information system reflecting your company’s current environment SIMIST ® has the ability to simulate alternatives and anticipate future process flows with operational and financial impact of decisions, without experimenting with the organization itself or indeed... the customer SIMIST ® shows how processes perform in terms of flow (bottlenecks, imbalance,…) statistics (service level, throughput time, capacity utilization, …) financials (activity based costs, waste, spare capacity) SIMIST ® significantly reduces the time required to analyze present and future (proposed) process performance. Philosophy Result Change Implementation Strategy Implementation Methodology

57 SIMIST ® Process Simulation 57 AREOPA sc - CM – The Evolution of Change (scGNO ) SIMIST example: present situation “Customer Service Process” Philosophy Result Change Implementation Strategy Implementation Methodology General PHONE-DESK Inter-arrival Time : 2,5 min. If waiting-time > 20 sec. Info-Desk Complaint-Desk Order-Desk Agenda-Desk If waiting-time > 30 sec. Avg : 5 / Var : 2 Avg : 5 / Var : 1 Avg : 1 / Var : 0.25 Avg : 1.5 / Var : 0.5 Avg : 5 / Var : 2 Delay : 12 sec. Avg : 1.5 / Var : 0.25 Avg : 2.5 / Var : 0.5 Avg : 6 / Var : 2 Prepare Info Check/Send Order-Entry Mailing

58 SIMIST ® Process Simulation 58 AREOPA sc - CM – The Evolution of Change (scGNO ) SIMIST: the wanted process flow using TAPE ® grid Timeliness90 %  Extra Delay Accuracy80 %  New Start Efficiency90 %  Rework Activity Productivity100 % Philosophy Result Change Implementation Strategy Implementation Methodology Avg : 5 / Var : 1 Prepare Info Avg : 30 / Var : 10 Send Info Avg : 20 / Var : 5 Additional Info Avg : 10 / Var : 2.5 Order-Call Avg : 15 / Var : 3 Reject Avg : 15 / Var : 5 Decide Phone-Call : Info-Desk Phone-Call : Order-Desk

59 SIMIST ® Process Simulation 59 AREOPA sc - CM – The Evolution of Change (scGNO ) SIMIST: financial representation AREOPA Facilitating Change Management Philosophy Result Change Implementation Strategy Implementation Methodology

60 60 AREOPA sc - CM – The Evolution of Change (scGNO ) Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3F 12steps Measure ment EU / LIC Sales channels You want Change ? We make just that happen! AEP Knowledge Centres  First step: develop the Program Directorship, organized in the AEP Knowledge Center (KC)  Selection of KC leaders, project champions and other core team members  Training and certification of core team in AREOPA’s Change Management Methodology  Knowledge Center-team – in collaboration with AREOPA’s SAMs, Subject-Experts and/or assigned CAPs – undertake:  Initial Analysis Phase:  Current and intended strategic environment  1-9 of 12=step Methodology  Results presented by Process Owners and obtain board, management and process owner’s buy-in

61 61 AREOPA sc - CM – The Evolution of Change (scGNO ) Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3F 12steps Measure ment EU / LIC Sales channels You want Change ? We make just that happen! Implementation Phase  Awareness creation  CoPP of top-10 processes – management selects 3-5 processes to start with  12-steps for Process Improvement – BPI  12-steps for Process Re-/Engineering – BPR / BPE  SIMIST  All above in parallel with 12-steps: IT2  Present Implementation Plan  Roll-out and Measure AREOPA or assigned CAP (Certified AREOPA Partner) will assist, train and guide through-out the process of up to 4 projects, gradually transfer ownership to KC-Team / Process Owners, after which they will take full ownership, train additional resources and roll-out

62 62 AREOPA sc - CM – The Evolution of Change (scGNO ) Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3F 12steps Measure ment EU / LIC Sales channels You want Change ? We make just that happen! End User Coaching (EUC)  In order for the implementation of new systems to be successful all involved employees need to be adequately trained in line with the processes they are part of, particularly the End Users, who are probably the most impacted by changes in their daily activities  EUC programmes are based on the expectations of both the management and process owners and include measurable objectives in terms of process performance and specific scripts for process-based training  EUC mentors (pedagogically trained people, not technical consultants) carry out Holon sessions (individual coaching in groups of 2 to 3 users)

63 63 AREOPA sc - CM – The Evolution of Change (scGNO ) We also realize with you End-User products  Measure change  Strategic Exercises  SIMIST ® process simulation  Customer Satisfaction Measurement – SNEP ®  Cost Of Poor Performance – COPP ®  IT Architecture  End User Training & Coaching In B2B we make you profit through Transfer of know-how by (licensed)  High Level BPR body shopping  Strategic Alliances  Virtual Participation  In-sourcing Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3F 12steps Measure ment EU / LIC Sales channels You want Change ? We make just that happen!

64 64 AREOPA sc - CM – The Evolution of Change (scGNO ) We support you through  Strategic Alliances  AREOPA Group International – a global network of independent experts, collaborating in a closed virtual network (GNO = Global Network Operations) representing cross geography and industry/expertise  AREOPA Knowledge Centres (AKC) by ECO Zone  AREOPA Training Centres (ATC) – regional & AEP location  Certified Alliance Partners  = consultancy services providers, covering 1-all ECO zones  Fully trained and certified by AREOPA  Access to AREOPA’s Knowledge Base  Subject-Experts Insource Pool  AREOPA has access to subject-experts sourced from CAPs and project outsourcing providers Philosophy Result Change Implementation Strategy Implementation Methodology 4 reasons IECC 3P 3F 12steps Measure ment EU / LIC Sales chann els You want Change ? We make it happen !

65 65 AREOPA sc - CM – The Evolution of Change (scGNO ) “No Cure,... We Stay”  AIS is a smart combination of a complete and pragmatic Change Management philosophy and Organizational Development and Change concepts, brought together and continuously enriched with field experience  The philosophy implemented in the AIS Reference Model leads to fixed price projects with measurable and committed results, by focusing on:  Customers  Processes, and  Process Owners  Process performance is measured and improvements are monitored by means of TAPE ® Grid Elements  Results to be achieved are defined upfront for a fixed price, and AREOPA agrees to stay onboard until the agreed objectives are achieved AREOPA’s Business Proposition Philosophy Result Change Implementation Strategy Implementation Methodology

66 66 AREOPA sc - CM – The Evolution of Change (scGNO ) AREOPA is the leading-edge knowledge and practice provider managing organizational change creating leverage for our partners and “excelleration” in business performance For CUSTOMERS Guaranteed predictable and sustainable results AREOPA Challenging the KNOWLEDGE ECONOMY and bringing the standards of INTELLECTUAL CAPITAL to market. 4 reason s IECC 3P 3S 12steps Measure ment EU / LIC Sales channels You can Change ! Let’s start ! Philosophy Result Change Implementation Strategy Implementation Methodology

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