Category Archives: Methods

Process Management methods (including LEAN, Six Sigma)

What should come first, AS-IS or TO-BE?

  By Craig Westbury | March 24, 2009 - 6:30 am | Methods, Process Modelling
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Most process modelling methods start with analysis of the existing processes, an as-is model.  One of the challenges with as-is modelling is deciding how much work to do.  Very detailed as-is models can be time consuming (costly) and may drain the organisations tolerance for Process Management activities very quickly.

As-is modelling can also be quite hit-and-miss as the analysts try to decipher what the current process actually looks like, this can often be because there is not a single as-is process, there are many.

The main purpose of an as-is model is to give a Process Project the information it needs to work out where improvements are needed and what is the starting point for change?

On the other hand, to-be modelling is a description of future desired processes. To-be modelling requires analysts to be creative in solving problems and designing processes to achieve business outcomes, often with not so perfect information about what the organisation wants to achieve.

I find it fascinating to sit in a room and watch a selection of staff have a to-be model presented to them, you can see the defences rise – and everyone thinks it is not going to work – for different reasons.

So it doesn’t sound like either will work? not true.

My approach is to start with high-level to-be modelling. This often involves developing a future state, Process Architecture – aligning the organisations strategic goals with it’s process management goals. Further detail can be added about key processes in the form of IGOE Process Scope models  (more on these in future posts).

When agreement has been reached on the future state, then we can go back and look at the as-is. This is limited to the processes that will transition into the new architecture and only to the level of detail required to find the areas of process improvement and develop the change plan to implement the new to-be models.

With this approach there are plenty of stops along the way to make sure that everyone is in agreement.

When you do Process Modelling, which type of analysis do you do first? How effective is it?

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A great session on Lean Thinking?

  By Craig Westbury | February 26, 2009 - 7:44 am | Methods, Organisation Management
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In the previous post I referred to the Adelaide BPTrends Forum session that I attended, presented by Professor Peter Hines. I want to elaborate on what I got out of the session.

1. It is important to understand the fundamentals of the business and it’s strategy – common-sense management.

2. It is vital to understand how the business creates value for it’s customers. Customer surveys often focus on the products or services offered, not the experience that created the real value for the customer. Quite often organisations are not very clear about who their real customers are!

3. A good understanding of strategy and customer value leads to the ability to select to improve the processes that will be critical to achieving the organisations aims.

4. Detail this in a Purpose Statement, a practical communication about What we will do, How we will do it and What the outcome will be, including what the Critical Success Factors are and are we measuring the right metrics to achieve them?

Now the Process Improvement work can begin -

5. Understand the problem, what is the root cause and what opportunities exist to improve.

6. Ensure you have the right level of support. If Senior Managers are not behind the initiative and eager for success, then sucess is always going to be a big challenge.

Overall, a great session.

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What has happened to common sense management?

  By Craig Westbury | February 25, 2009 - 7:19 pm | Methods, Organisation Management
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Professor Peter Hines gave an excellent presentation on Lean Thinking to 30 BPM practitioners at the Adelaide BPTrends forum tonight.

Peter’s presentation covered a case study, demonstrating how a company used Lean Thinking to create a new strategic direction, execute organisational change and redesign their processes for greatly improved outcomes.

What struck me during the discussion was that the analysis and decision making techniques used were not ground-breaking, not proprietary and definitely not special. The techniques used were mainly common sense strategic management – understanding vision, setting goals, performing the analysis and executing change.

The only difference to what I got taught in the MBA unit on Strategic Management was to start the strategic process with obtaining a clear idea of how the organisation could create real value for their customers.

So the question for me was, has the wave of Process Management ideologies, tools and systems led senior managers to think they can achieve all the benefits of a Process Centric organisation without undertaking common sense strategic management?

Every Business Process Management project should be part of a Strategic Management initiative to assist the senior manager to change their organisation or business unit. The senior manager still needs to lead the development of strategy and execute organisational change, Process Improvement methods simply provide a new efficient and effective way to help achieve the desired outcomes.

Peter has setup a Lean Enterprise group on LinkedIn – “Lean Enterprise Australia & New Zealand”. I was very impressed with Peter’s presentation. Thanks to Ben Haigh (BPTrends Adelaide coordinator) and the University of South Australia for organising the event.

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