Process Improvement, Reengineering and Reorganization IMPROVING WORK PROCESSES

The processes by which a person, network or organization produces valued outputs that contribute to the public good. WORK PROCESSES

VALUE-BASED PROCESS RE-ENGINEERING Criteria: Adds value Salient Alternative value considerations are not constraints, but they may require changes in other processes. Identify public value propositions Management of internal resistance Mapping + data: Quantitative Qualitative Modifications Complications

PROCESS FLOW Sequence of actions or decisions Some can be done in parallel Determinants of work content and sequence: RationaleSequenceWork Content LogicCan’t do one before the other (network, info, resources) Capacity (line balance), knowledge/specialization ControlAuthorization sequenceSeparation of decision and oversight, authority StrategyTriage, screening, mobilizing effort Triage, screening, relationship building TraditionWe’ve always done it this way.

What is the product? A good or a service Who is the customer? What qualities of the product are most important to customers, stakeholders, overseers? Examples: cost, quality (what dimensions?), timeliness, politeness and respect ANALYZING WORK PROCESSES

What is the process by which the product is produced? Hint: Lay it out schematically, or in a diagram. At what points in the process do things go wrong? Examples: bad experiences for customers, delays, lack of attention to other aspects of quality, wasted resources What can be done to fix the problems?

Ask whether the problem is deserving of full-scale re- engineering. Ask whether the principles of good supply chain management can be applied. Ask whether the organization is structured around the work processes. Ask whether the work ought to be done in some completely different way. Ask whether the culture of the organization is consistent with doing good work. AFTER THE PROBLEMS ARE IDENTIFIED…

Reengineering is the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance. DO THE PROBLEMS WITH THE PROCESS WARRANT FULL-SCALE REENGINEERING?

When an important process is clearly badly broken and fixing it is important. When you’ve got a decent chance of success: Leadership Commitment Culture WHEN SHOULD YOU REENGINEER?

Taking too long; too much analysis Not being bold enough Trying to include everyone and everything Not building internal support Not building external support Too little attention to implementation COMMON PROBLEMS

Goal is incremental improvement, not radical redesign Strategy of devolving responsibility for solving problems and improving processes Often involves teams of workers. AN ALTERNATIVE: QUALITY MANAGEMENT

Not clear the process is producing the right product for the right customer Also involves teams charged to be creative May or may not lead to reengineering of processes. AN ALTERNATIVE: PROBLEM SOLVING

How does an organization: Divide up labor? Coordinate work? Answers to those questions ought to determine organizational design ORGANIZATIONAL DESIGN

Mutual adjustment Direct supervision Standardization of: Work process Outputs Skills COORDINATING MECHANISMS

ORGANIZATIONAL TYPES AND THEIR ENVIRONMENTS StableDynamic Complex Decentralized Bureaucratic Standardize skills Decentralized Organic Mutual Adjustment Simple Centralized Bureaucratic Centralized Organic Direct Supervision

Organize around cross-functional core processes, not tasks or functions Install process owners or managers who will take responsibility for the core process in its entirety Make teams, not individuals, the cornerstone of organizational design and performance PRINCIPLES OF HORIZONTAL ORGANIZATION

Creating the Performance Framework Driving Performance Improvement Learning to Enhance Performance BETTER PRACTICES PRINCIPLES

Creating the Performance Framework Practice 1: Articulate the Organization’s Mission Practice 2: Identify the Organization’s Most Consequential Performance Deficit Practice 3: Establish a Specific Performance Target Practice 4: Clarify Your Theoretical Link between Target and Mission BETTER PRACTICES PRINCIPLES

Driving Performance Improvement Practice 5: Monitor and Report Progress Frequently, Personally, and Publicly Practice 6: Build Operational Capacity Practice 7: Take Advantage of Small Wins to Reward Success Practice 8: Create “Esteem Opportunities” BETTER PRACTICES PRINCIPLES

Learning to Enhance Performance Practice 9: Check for Distortions and Mission Accomplishment Practice 10: Analyze a Large Number and a Wide Variety of Indicators Practice 11: Adjust Mission, Target, Theory, Monitoring and Reporting, Operational Capacity, Rewards, Esteem Opportunities, and/or Analysis BETTER PRACTICES TOOLS

EMBRACE THE CONTRADICTIONS Variance is bad, but good service requires meeting the client’s needs, and every client is different Establish SOPs and train your employees in them Empower your employees to make decisions that best fit the situation What you measure is what you get, so measurement information is biased Get buy-in from those you are measuring Use measurement for learning first, and accountability second IT can lower your costs dramatically or it can burden you with capital expenses and maintenance costs Before implementation ask: What does this buy me? After implementation: what else can I get? It is a complex world, but you have to act Pay attention to the details Create the organizational conditions that maximize learning