1 Klemens Hans Larissa, September 20th, 2012 Process Management

2 Overview – Introduction and organisational issues Introduction Objectives of the Course Working forms, Cyclic Learning Approach Organisational rules Module: schedule

3 Introduction: Person, Representing Company Consultant and Trainer of Roland Gareis Consulting GmbH Vienna/Bucharest, process-, project- & programme management, business analysis and change management (national and international) External lecturer at WU Wien - Vienna University of Economics and Business and University of Applied Sciences bfi Vienna 2005 – 2010: Project manager at ixxalp GmbH and diemoberbauer GmbH (sport events) Studied business administration at WU Wien – Vienna University of Economics and Business

4 Objectives of the Course Learning about the most important process management methods Implementation of process management methods on real training organizations Reflection, discussion, feedback as important working forms

5 Working Forms Inputs, examples Group works „Training on real life situations“ Discussion Reflection, Feedback

6 Cyclic Learning Approach Information Application Additional Information Discussion

7 Organisational Rules Being on time, agreements regarding breaks Active participation English language in the plenary Anytime: questions for clarification Accepting co-responsibility for the „learning success“

8 Schedule – 12.30: Macro-process management › Definitions: Process, project, process management › Process identification, map of processes › Process management standards – 13.00: Student‘s presentation of university, department, projects (WU, Austrian TEAM) – 14.00: Lunch break – 17.00: Micro-process management › Process boundaries › Process break-down structure, process flow chart, process responsibility chart › Process controlling and process optimizing › Process-oriented company

9 Module: Expectations Objective › Common agreement on objectives › Considering specific interests (if possible) Tasks › Identifiying specific topics of interest › Defining questions from the pre-study work, from the own practice › Relation to module: Operations Management Working form › Group work: 10‘, taking notes › Exchange in the plenary

10 Content Processes, Projects Process Management: Objectives, Tasks Macro-Process Management: Identification of Processes Process Management Standards Micro-Process Management: Methods Micro-Process Management: Responsibility Chart Process Ratios (KPIs) and Process Controlling Process Optimizing (by considering Sustainable Development Principles)

11 Processes, Projects

12 Process: Definition Start End A sequence of tasks with defined objectives and a defined start and end event; fulfilled by several roles of one or more organizations.

13 IT Company: Process Map ngebots - legung Markt- Business Develop- ment Auftrags - bwicklung A Pre- Sales Clients Partner Develop- ment Auftrags - Abwiclung B Proposal Prepar- ation Service Contract Perfor- mance PRWerbung Service Contract to Reference Lead to Opportu- nity Assignment of a Project Primary Processes Secondary Processes Tertiary Processes Campaign to Lead Contact to Lead PR Product Develop- ment Service Develop- ment Project & Programme Manage- ment Project Portfolio Manage- ment Strategic Manage- ment Manage- ment Meeting Change Manage- ment Process Manage- ment

14 Organizations for Processes Characteristics of Processes Scale Frequencycontinuouslyuniquely Durationshort termshort-, medium termmedium-, long term Importancelowmedium – highhigh Scopesmallmedium – largelarge Resource demandlowmediumhigh Costslow – mediummedium – highhigh Companies involvedfewseveral - manymany  OrganisationPermanent organisationProjectProgramme  Management approach Process management Project management Programme management

15 IT Company: Project Types ngebots - legung Markt- Business Develop- ment Auftrags - bwicklung A Pre- Sales Clients Partner Develop- ment Auftrags - Abwiclung B Proposal Prepar- ation Service Contract Perfor- mance PRWerbung Service Contract to Reference Lead to Opportu- nity Assignment of a Project Primary Processes Secondary Processes Tertiary Processes Campaign to Lead Contact to Lead PR Product Develop- ment Service Develop- ment Project & Programme Manage- ment Project Portfolio Manage- ment Strategic Manage- ment Manage- ment Meeting Change Manage- ment Process Manage- ment

16 Project? A temporary organization for the performance of a relatively unique process of medium to large scope and short or medium duration

17 Project Definition of an IT Company CriterionLine Organization Small ProjectProjectProgramme Strategic Importance Small: NPV<€ Small/middle NPV>€ Middle/high NPV>€ High: NPV>€ Scope of work of external projects Small: e.g. IT consulting service Small/middle: e.g. SW development Middle/high: e.g. SW development & implementation (one site) High: SW development & implementation (several sites) Duration< 10 weeks> 2 months> 4 months> 12 months Organizational units < 44 or more> 7> 10 Resources> 100 person days > 200 person days > 500 person days

18 Group Work: Process, Project, … Objectives › Reflecting the terms and models introduced › Relating the terms and models to the own experiences Tasks › Discussing the terms process, project, etc. › Identifying commonalities and differences to the own practices Working Form › Small discussion groups: 10` › Documentation: notes › Plenary: Discussion

19 Process Management: Objectives, Tasks

20 Process Management: Objectives and Tasks Objectives › Processes as management objects of consideration › Process maps and process descriptions as communication instruments › Increase of the efficiency in the performance of the processes › Contribution to organisational learning › Basis for individual learning › Basis for the definition of qualification profiles of the personnel Tasks › Macro-process management › Micro-process management Stable processes versus dynamic organization structures

21 Macro & Micro-Process Management MacroMicro... Annual Planning of Seminars Organizing a Seminar Organizing a Seminar

22 Model: Identity of a Social System Structures of the system › Objectives, strategies › Services, products › Technologies › Organizational structures › Organization culture › Personnel structure › Infrastructure › Budget, financing Context relations Context of the system › Objectives of the higher social system › Stakeholders › History and future Context Structures Social Environment Environment relationship

23 Plenary: Selection of Organizations for Case Studies Objectives › Selection of organizations (companies, divisons, profit centers), which provide case studies › Selection criteria: Real, accepted, information available, use for process management only (developing a process map, describing one process), different › Contribution to the learning process (as „learning vehicles“) Process › Listing of potential organizations › Forming groups

24 GW: Description of the Organization Objective › Description of the selected organization › Providing a basis for the identification of processes Tasks › Description of the organization according to the identity model (see checklist) › Objectives, strategies; services, products, etc. Working Form › Group work: 30` › Documentation on flip charts › Assign a moderator

25 Description: Services, Products, Technologies Services the organization provides › …. › Revenue in 2011 Products of the organization › …. › Revenue in 2011 Technologies

26 Description: Organization, Personnel, Infrastructure Organizational structures › Organization chart › Roles › Processes Personnel › Number of people employed Infrastructure › Locations › Head office › IT infrastructure (special software applications)

27 Description: Context History of the organization › Established in: … › Major transformations: …. Expectations about the future › … Stakeholders › Markets (Industries, countries) › Partners › Competitors › ….

28 Role of the Moderator Objectives › Contributing to a successful group work Organizational position › Special role in the group as moderator › But also a group member contributing to the contents work Tasks › Redefining the objectives of the group work › Assuring that the objectives of the group work are fulfilled › Watching the time and the progress › Assuring that all group members are involved in the group work › Allowing, promoting different opinions, but then finding a consensus › Documenting the results of the group work

29 Macro-Process Management: Identification of Processes

30 Value Chain Model (Porter)

31 RGC: Process Map Performance of event, lecture, analysis-WS Sales in-house service Sales in-house service Sales seminar, educational programme, coaching Sales product Performance of seminar, educational programme, coaching Performance of research Clients Primary processes Secondary processes Tertiary processes Procuring material Management service, product Management organisation Management personnel Management infrastructure Management finances Management stakeholder relationships Marketing / PR Strategic management Operational management RGC, profit center, cost center, expert pool Process management Project and programme management Projectportfolio management Change management Management of sustainable development Knowledge management Performance of in-house service

32 Processes per Process Group Performing an open Seminar Performing an Educational Program Performing Seminar/Program in-house Performing Coaching Performing a Seminar, an Educational Program, Coaching Performing event happy projects Performing a Symposium Performing a Lecture Performing an Event, a Lecture

33 Structuring Process Maps Structuring according to competences › Core, support and management processes › Based on lean management concept: Focussing on core competences › Core competence: hard to copy, creating an USP › Support processes can be outsourced Structuring according to customer orientation › Primary, secondary and tertiary processes

34 Benefits of the Process Map Communication instrument, internally and externally Instrument to communicate the identity of an organization A stable instrument; does not change even when the organizational structures are changing

35 Process Identification: Tipps, Tricks Definition of relevant objects to be considered › Primary processes: Services (types of services), products, for different markets › Secondary processes: Personnel (types of personnel); IT ( IT hardware, IT software); etc. Analyzing life cyles for each object › E.g. Personnel: Hiring, developing, coaching and leading, laying off › E.g. IT software: Demand definition, developing and implementing, using and maintaining, abandoning › See life cycle models Secondary and tertiary processes › Similar for different companies › Identity is based on primary processes

36 Stage Gate Modell (Cooper) DiscoveryScopingBusiness Case DevelopmentTestingLaunch Post launch review Idea screenSecond screenGo to developGot to testGo to launch Idea stage Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Driving a new product to the market

37 Toll Gate Modell: Oil and Gas Industry

38 Process Identification: Tipps, Tricks II Don`t stop at the department boundaries. Assure a holistic process perception! Consider required go/no-decisions for the definition of the start and the end event of the processes Differentiate by considered objects › One or several objects of consideration, e.g. process for one seminar or for several seminars Labeling processes › Not only name of the object (service, product, etc.), but also function Similar names of processes and departments Number of processes: If too many, build process groups

39 Chain of Processes: Different Objects of Consideration Administrating an Invoice Analysis of Monthly Invoices

40 Group Work: Identification of Processes Objectives › Application of the method „process map“ Tasks › Identification of primary processes, definition of groups of processes › Identification of a few secondary and tertiary processes (as examples) › Development of a process map Working Form › Forming working groups › Group work: 30´; moderator, documentation on flip charts › Some coaching by KH › Plenary: Reflecting the results and the approach

41 Process Management Standards

42 Process Management Standards Standards for macro-process management › Methods: Map of processes, process portfolio, list of process managers, etc. › Templates Standards for micro-process management › Methods: Process break-down structure, flow chart, process ratios, etc. › Templates SW tools for visualizing and modelling processes Integration of the process documentations in a management manual

43 Modelling a Process (e.g. with ARIS) Data Organisation Structure Process Tasks Kundendaten Auftragsdaten Vertriebsdaten Vertriebs- abwicklung Auftrags- verfolgung Auftrags- bestätigung Auftrags- bestätigung erstellt Auftragsdaten Vertrieb Kunden- auftrag eingegangen Auftrags- bestätigung Sachbearbeiter Geschäfts- leitung Produktion Sachbearbeiter Vertrieb Produktions- planer Vertrieb

44 Process Map ADONIS

45 Process Break-down ADONIS

46 Flow Chart ADONIS

47 Process Organization ADONIS

48 Visualizing a Process (e.g. Visio)

49 Micro-Process Management: Methods

50 Micro-Process Management: Methods Definition of the process boundaries Process break-down structure Process flow chart Process responsibility chart Process ratios (key performance indicators)

51 Definition of Process Boundaries Start, end, duration Objectives, non-objectives Results Plus › Pre-process, performed before the process under consideration › Post-process, performed after the process of consideration

52 Boundaries of a Process Organizing a Seminar StartDecision to perform the seminar EndSeminar documentation filed Duration5-6 weeks ObjectivesCompetences of the participants further developed (average feedback score better than 1,5) Seminar flip chart protocol for participants distributed (mailing performed within 5 days) Invoices sent out (mailing performed within 5 days) A profit generated (minimum € ) Seminar organized professionally (average feedback score better than 1,5) Non- Objectives Contracts acquired Additional seminars sold Related processes Planning seminars Following-up invoices

53 Process Break-down Structure Organizing a Seminar Planning the seminar Preparing the seminarPerforming the seminarFollowing-up the seminar Planning the venue Appointing the trainers Informing participants Adapting the contents Preparing handouts Providing pre-study materials Producing seminar materials Compiling marketing data … Preparing day 1 Performing day 1 Reflecting day 1 Performing day x Reflecting day x Transporting materials Analyzing the feedbacks Creating flip chart protocols Adapting contents Providing follow-up materials …

54 Process Flow Chart (Elements) Task Decision Event Document Data Storage Relationship

55 Micro-Process Management: Tipps, Tricks Differentiating between modeling and optimizing a process Completeness › All tasks that influence duration have to be considered; also tasks of partners, contractors › Also process coordination might be considered (for more comprehensive processes) Level of detail › One task „performed“ by one organizational unit only Approach › Flow charts are not enough, also boundaries definition (objectives, results, …), break-down structures, relationships to other processes, etc. are required

56 Group Work: Process Documentation Objectives › Application of micro-process management methods Tasks › Selection of a process (or a chain of processes) for the documentation › Definition of the process boundaries › Development of the process break-down structure and a flow chart Working Form › Group work: 40`; moderator › Documentation: Flip charts › Coaching by KH › Plenary: Reflection

57 Micro-Process Management: Responsibility Chart

58 Responsibility Chart: Organizing a Seminar 1.1Planning the seminar 1.1.1Planning the venuePC 1.1.2Appointing the trainersPC 1.1.3Informing the participantsMPII 1.2Preparing the seminar 1.2.1Adapting the contentsIP 1.2.2Preparing handoutsMPC 1.2.3Providing pre-study materialsMPI …… RGC Seminar Management RGC Back OfficeRGC AccountingRGC Trainers Seminar Participants Hotel/CateringCourier Service Legend: p=performing, c=cooperating, m=managing, i=informed

59 Process Responsibility Chart Responsibility types › Performing, cooperating, being informed › An overall coordination function for the performance of a process can be defined All tasks shall be considered (not only a selection of tasks)

60 Example: Responsibility Chart

61 Group Work: Process Responsibility Chart Objectives › Application of the micro-process management method: Responsibility chart Tasks › Drawing the organization chart of the company › Identifying the roles contributing to the performance of the process › Developing a draft of a process responsibiliy chart Working Form › Group work: 30`, moderator › Documentation: Flip charts › Coaching by KH › Plenary: Reflection

62 Process Ratios (KPIs) and Process Controlling

63 Process Ratios: Definition, Objectives Process Ratio/KPI: Definition › Indicator providing information for planning and controlling a process › Requirements for process ratios – Direct reference to the process objectives (economic, ecologic, social; short and mid-term, local and regional) – Quantifiable, reachable and comparable Process ratios/KPIs: Objectives › Basis for assuring efficiency and effectivity of a process › Basis for controlling of process › Contribution to implementing company strategies › Basis for an incentive system › Part of the company culture („what is of importance“)

64 Generic Process Ratios Customer satisfaction with the process results Duration of a process; adherence to delivery date Costs/profit of a process Quality of process (from the perspectives of different stakeholders)

65 Example: Process Ratios Ratios of the Process: Performance of a Seminar RatioObjectiveMeasurement Customer RelationshipPositive feedback by the participants, average < 2,0 Feedback sheet for participants Duration of processTotal duration < 6 weeks, follow-up < 1,5 weeks Continous documentation, random sample Costs of processTarget costs in XXX €Calculation of seminar Profit of processTarget profit in XXX €Calculation of seminar Quality of processNo complaints by the customersNumber of customer complaints Mood in the trainer team High motivation, synergiesFeedback sheet for trainer

66 Process Ratios: Planned/Actual Customer Satisfaction Process Duration Meeting Delivery Dates Process Quality Process Costs Planned Actual

67 Process Optimizing (by considering Sustainable Development Principles)

68 Process Optimization: Options

69 Process Optimization: Options II

70 Process-oriented Company

71 Process-oriented Organizations Influence organization Matrix Organization Pure Process Organisation Funktionsorientierung Prozessorientierung Functional Organization The differentiation of these organization forms is based on the distribution of the authorities (ressources, budgets, etc.) between the process managers and the line managers.

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73 Strategic Group PM-Support Ressource Pools Process Support IT-Services Account Unit 1 Account Unit 2 Account Unit 3 Project Ericsson Interpretations: „Accounts“ are „Project Owners“ and responsible for the business cases All ressources are organized in pools Project managers are assigned from the PM-Support Pool

74 Organization Chart of the Process & Project-oriented Company Depart- ment Business Unit B Expert Pool 3 Expert Pool 4 Management Board Depart- ment Business Unit A Expert Pool 1 Expert Pool 2 Projects, Programmes Depart- ment Services PcM/PM Office Depart- ment Projects, Programmes Project Portfolio Group Process Managers

75 Process Manager Responsible for micro-process management Responsible for implementation of general process management standards for a particular process Not responsible › for the performance of a process

76 Process Manager Objectives  Responsibility for a process (process documentation, process optimization)  Adjustment with other processes  Non- objective: performance of a process - Position in the Organisation  Is assigned by the management board  Reports directly to management board Tasks  Documentation  Analysis of potential of optimization (together with process-related employees)   Performance of optimization  Integration of the optimized process   Communication of changes to the process-relate employees Competences  Decision for design of the process (together with management board)

77 List of Process Managers CodeProcessProcess Manager Acquisition P1Acquisition of a seminarSchön P2Acquisition of a contractStummer Performance of Services P3Organizing of a seminarSchön P4Coaching of a project managerStummer P5Consulting of a projectStummer P6…

78 Close-down Module: Process Management

79 Close-down Module Provision of slides Provision of feedback

80 Happy Projects! Klemens Hans