Decision Modeling: Foundation for Process Reengineering Gemini Consulting June 1998

- 2 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential To define Decision Modeling and provide the context of how it is different from traditional process modeling To provide a step-by-step approach for building decision models Objectives

- 3 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential What is a Decision Model? The Decision Model shows a chronological sequence of major decisions, in a To-Be mode, with the knowledge needed to support them Gemini intends to start using modeling, uniformly, as a new foundation for process reengineering

- 4 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential The Decision Model is a foundation for the To-Be process As-Is Process: Decision Model: To-Be Process: New Decisions will always have to be made no matter how the tasks are carried out.

- 5 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Process Modeling Depicts “how” the work is done... often highlighting decisions An excellent place to start, especially in an “As-Is” state Depicts “how” the work is done... often highlighting decisions An excellent place to start, especially in an “As-Is” state Decision Modeling Decision Modeling focuses on the “whats” instead of the “hows” Focuses on “what” needs to be accomplished An excellent bridge to the “To- Be” phase Provides focus on the undergirding decisions... the work that MUST be done Focuses on “what” needs to be accomplished An excellent bridge to the “To- Be” phase Provides focus on the undergirding decisions... the work that MUST be done An “As-Is” process model should identify key decisions

- 6 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Gemini intends to start using Decision Modeling as the new foundation for process reengineering Decision Modeling... Helps abstract away from the often cluttered “As-Is” process Provides focus on what’s essential and builds consensus among participants on areas to be tackled Makes it easier to design the “To-Be” process rather than having to initially deal with many small steps Focuses on the purpose of each group of process steps –without any constraints related to current work practices, technology or client specific policies.

- 7 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Decision Modeling jump starts the “To-Be” phase... Decision Modeling Client workshops can start immediately and are very productive –Initial focus is rational... a good decision model is one where EVERYONE agrees Immediately developing “To-Be” process modeling can be painful and extremely unproductive –“We need to do it this way because we have always done it this way” –Can get too detailed, too quickly –Can be difficult uncovering non-value- adding work Rational EmotionalPolitical... often allowing for the Results Delivery to be shorter in length.

- 8 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Decision Modeling - A step-by-step approach 1.Build the “As-Is” process flow (brown paper mapping), identifying both activities and decisions. 2. Identify decisions from the “As-Is” process in a chronological order. 3.Evaluate the decisions and determine knowledge required for making them. 4.Work decision points by adding, removing, re-sequencing, grouping and splitting as needed. 5.Agree on the “To-Be” decision model. 6.Use the Decision Model as the framework for the “To Be” design. Client Workshops should be used extensively.

- 9 - DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Step 1: Build the “As-Is” process flow identifying activities and decisions As-Is Process Active Referral Client Initiated Opportunities Internal Network Recommen- dations Analyze Customer Base to Determine Leads Yes No Yes No Yes No Yes No Forward Request to RM Client Request for Proposal Contact Client to Define Needs Contact Specialist to Understand Needs Pass Initial Screening ? Archive Request Meet with Client and Product Group Review Proposal Internally Formal Present ? Prepare Initial Proposal Present to Client Send Proposal to client Prepare Formal Presentation Resolve Queries Win ? Archive Proposal Provide Service Support Develop Solution Establish Pricing Pursue ? Archive Request

DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential As a starting point, chronologically order the decisions 1Does RFP a. pass initial screen? 2Should we pursue RFP? 3Should we prepare a formal presentation? 4Did we win proposal? Why or why not? Step 2: Identify decisions from the “As-Is” process in a chronological order Interbanken As a group, are there any other decisions that should be considered? Pass Initial Screening? a. Request for proposal (request for bid) Pursue ? Formal presentation? Win Proposal?

DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Step 3: Evaluate the decisions and identify knowledge required to make these decisions Identify Possible Enablers (Knowledge Requirements) The undergirding decisions that need to be made are knowledge intensive Evaluate Decisions We have a decision to make For Example: Qualify Prospect Does RFP Pass Initial Screen? Marketing Objectives Post-Mortems –Prospect specific Win/Loss Ratio Is it congruent with our Marketing strategy? What are our chances of winning? XXXXX

DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Step 4: Work decision points by adding, removing, re- sequencing, grouping and splitting as needed Like classical Reengineering, Decision Modeling is a combination of Art and Science. Decision Model Grouped XXXXX Should “Response Strategy” be split into multiple decisions? - Compliance (respond according to their outline)? - Scope (respond to all parts)? - Price (price high, low, fixed price )? Split XXXXX Should we have internal compliance standards before we screen? Re-sequenced XXXXX Do we have any promising leads? Group intelligence from: - Client requests - Relationship Managers - Customer database

DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Step 5: Agree on the “To-Be” Decision Model Decision Model Develop Solution What resources are required? What solution areas do we emphasize? How much of the solution do we provide? How would our competition respond? Does it pass internal QA / QC? Gain Approval What timeframe? How do we ensure victory? Do we amend our response? What did we do good/bad (internal)? What was the client’s feedback? (external) Assemble Delivery Team Who? What? when? Where? How Long? Determine Response Strategy Compliance –Do we respond according to their outline? Scope –Do we respond for all or part? Pricing –Do we price high or low? Compliant RFP Is the RFP compliant? –Enough info –Comprehensive Qualify Prospect Strategic fit –Congruent with our marketing objectives? –Do we have the internal capabilities? –What are our chances of winning? Bid / No Bid Internal capacity –Are we fully utilized? –Do we have the specific expertise available?

DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Step 6: Use the Decision Model as the framework for the “To-Be” design From the “To-Be”... Establish Measures Build RACI Determine knowledge enablers and supporting technology “Decision Model” “To-Be” RFP Matches Guideline Collect Information Internal Capabilities Marketing Objectives. Assess Against Guide-line Compliant RFP Y N Y N Qualify Prospect Bid / No Bid Determine Response Strategy Complete RFP Keep it high level

DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential In Summary, Decision Modeling: Starts with an “As-Is” process flow Requires extensive use of client workshops Provides an excellent framework for the “To Be” design For more information, please access the AKM Centre of Excellence Knowledge Base.

DecModelv4.ppt Gemini Consulting Limited Proprietary and Confidential Exercise - Develop a Decision Model Use your Brown Paper to develop a Decision Model, following step 2 to 4. (You have already done step 1 making the Brown Paper) 1.Identify decisions from the process (your Brown Paper) in a chronological order. 2.a) Evaluate the decision and b) determine knowledge required for making each of the decisions. 3.Work decisions by adding, removing, re-sequencing, grouping and splitting as needed. Prepare for a debrief in the large group. Agenda