Seven Deadly Sins of Business Process Improvement

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Seven Deadly Sins of Business Process Improvement

• Gregory C. Oberland
• Sr. Vice President
• Insurance Operations

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Business Process Improvement
multiple jobs, processes and functions
VERY LARGE
VERY HIGH
multiple jobs and processes
multiple jobs
SMALL
VERY LOW
Change Management Complexity
Savings Opportunities
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Seven Deadly Sins

• 1
• Lack of a continuous process improvement culture
  at all levels in the organization.

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Seven Deadly Sins

• 2
• Failing to determine whether a business process
  is a competitive advantage before implementing
  solutions.

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Key Decisions

• Look at work processimprovements first
• Use PeopleSoft financial modules unless proven
  otherwise
• Do not customize software(configure is OK)
• Financial process is generic (vs. core)

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Principles

• Drive down costs (vs. control increase)
• Reduce cycle time (speed matters)
• Keep it simple
• Easier to use (more intuitive)
• Lowers cost
• Makes it faster
• Continuous improvement
• Keep score (measurement)

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Business Decision Support
Financial Reporting
Transaction Processing
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High
Analytical/ Decision Support
Low
High
Low
Cost/Cycle Time
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Seven Deadly Sins

• 3
• The inability to take an enterprise view on
  certain business process issues/projects.

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Seven Deadly Sins

• 4
• Engaging in complex business process projects
  without having a long-term plan/vision.

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Seven Deadly Sins

• 5
• Not having the right people with the right
  resources working on business process
  improvements.

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Profiled Companies Change Management Team
Structure

• Company Size Location Structure History
• A 9 HR Matrix 4 yrs
• B 30 HR Matrix 2 yrs
• C 70 Prod. Line Decentralized 3 yrs
• D 23 Corp. Decentralized 2 yrs
• E 4 Corp. Matrix 1.5 yrs
• F 8 Finance Ad Hoc 3 yrs

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Reporting Structure
CEO / High level management
Division A
Division B
Division C
Division D
Division E
Champion
Champion
Champion
Champion
Champion
Four business improvement staff
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Seven Deadly Sins

• 6
• Underestimating the amount of time, energy and
  work involved with successfully implementing
  change.

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Faced with the choice between changing ones mind
and proving that there is no need to do so,
almost everybody gets busy on the proof
John Kenneth Galbraith American Economist
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Clean Air Policy Transition

• Research/Benchmarking
• Survey of Employees
• Task Force/Discussions with Union
• Transitional Policy
• Final Policy
• Communications (included CEO message)
• Support Programs
• Changes to Building/Procedures

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Preparing for Change

• Clear Vision
• Succinctly describe change and why it must
  happen.
• Sponsorship
• Get commitment from the top dog.
• Understand/Address Organization Impact
• Assess whos losing what? Address losses.
• Plan
• Develop detailed change plan.
• Communication
• Frequently communicate purpose, goal, plan,
  role.
• Training/Integration
• Assess how behavior has to change. Provide
  training.
• Support

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Sell Problems, Not Solutions

• People let go of outlived arrangements and
  bygone values more readily if they are convinced
  that there is a serious problem that demands an
  ending.

Managing Transitions - Making the Most of
Change William Bridges
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Seven Deadly Sins

• 7
• An absence of high-level leadership in business
  process improvement initiatives.

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