Scoping An Enterprise Process

1
Scoping An Enterprise Process
2
Ready to Launch

• Status
• BPR project has been been identified
• Process selected
• Design team has been mobilized
• BPR software has been selected
• What typically goes on in the scoping phase
• Paloma Bank Case

3
Background Managing Projects with Deliverables

• The Activities / Deliverables / Participants
  approach to project management
• What is a deliverable?
• What is a milestone?
• Tracking projects
• Appropriate deliverables

4
Activities in Phase 1Scoping the Process

• Operationalize process performance targets
• Define process boundaries
• Identify key process issues
• Understand known best practices and define
  initial vision
• Familiarize participants with BPR software
• Outline data collection plan and collect baseline
  data

5
Deliverables / Participants

• Deliverables
• Process scoping report
• Participants
• Process owners and partners
• Customers of the process
• BPR team

6
Paloma Bank Profile

• Regional bank CA, NV, AZ
• Serves 1.1 million individuals, 105,000 corporate
  and institutional customers
• Corporate, retail, and consumer banking
• 309 offices
• 12,000 employees
• Highly regarded in the commercial sector
• Excellent banking technology base
• State-of-the-art hub in Carlsbad, CA

7
Paloma Bank BPR Triggers

• BPR project is in its Research Adjustments area
• Corrects errors and imbalances in the item
  processing stream
• Research to identify problem and make adjustment

8
Paloma Bank BPR Triggers

• Triggers
• In 1996, centralized RA in Carlsbad and lost
  good employees
• High training costs
• Large write-offs
• Estimate that 20 million could be saved
• Business customers becoming more demanding in
  terms of quality and turnaround time
• Bank has started to use check imaging elsewhere
  in the firm and wants to expand its use to RA, a
  strategic opportunity

9
Operationalize Process Performance Targets

• Fuzzy goals are made concrete. A consensus on
  targets focuses the BPR team
• Defines success
• What gets measured, gets done
• Alerting mechanism
• Too many targets
• Priority
• Conflict

10
Operationalize Process Performance Targets

• The less well developed the BPR project goals
  are, the harder it is to operationalize
• Increasing the quality of customer service
• Faster response time? How much faster
• Which customers? Which services?
• Cutting processing time for simple requests from
  five days average to 24 hours max, and for
  complicated requests, from 10 days average to 90
  being processed in 3 days or less

11
Operationalize Process Performance Targets

• Initial goals should not be set in concrete!
• How?
• List goals in priority order
• For each goal, identify the related process
  performance targets in specific terms
• For each process performance target, identify
  tangible measures
• Group by type (cycle time, cost) and flag
  critical measures
• Identify the major resource constraints
  associated with the work environment related to
  the process

12
Define Process Boundaries

• Defines scope
• Counteracts temptation to expand scope Scope
  Creep
• Pointers for where to collect data

13
Define Process Boundaries

• Who are the customers of the process?
• Categories and types
• What are the outputs of the process?
• Types of deliverables
• What are the inputs to the process?
• Type of triggers that start the process
• What departments does the process interface with?
• What other processes does this process interface
  with?
• What external entities does the process interface
  with? (Suppliers, Customers, etc..)
• Subdivide the process

14
Identify Key Process Issues

• Assess what is known about the current state of
  the process.
• What are the critical problems?
• What is the state of the work environment?
• HR practices
• Better parts of the process
• Not a comprehensive analysis

15
Identify Key Process Issues

• Why?
• Provides a common starting assessment
• Identifies key issues related to the work
  environment
• Ensures process customer input

16
Identify Key Process Issues

• How?
• Questionnaire
• Current Expectations
• Process Problems
• Process Credits
• Time and effort expended by customers and
  interface departments
• Future requirements
• Elicit process issues thru brainstorming
• Categorize to distinguish process from work
  environment issues
• Distill key process issues and present in a
  summarized form

17
Identify Key Process Issues

• Results
• SWOT analysis
• Assessment of Work Environment Around Process

18
Understand Known Best Practices Define Initial
Vision

• Why?
• Do not want to reinvent the wheel
• Avoid NIH syndrome
• Adapting another companys (even in a different
  industry) process solution can be a rapid way to
  reengineer a process.
• Preliminary vision of the process puts a stake in
  the ground

19
Familiarize Participants with BPR Software

• By the end of premodeling, BPR participants must
  be familiar with the S/W selected
• Conceptual Familiarization
• Test Drive
• Learn to Use
• For those directly involved in use

20
Outline Data Collection Plan and Collect Baseline
Data

• Know which subprocesses, departments, and
  external entities to collect data from.
• Why?
• Data collection takes time and effort so it must
  be well planned to be effective.
• Early data gathering speeds baselining
• Increases buy-in

21
Outline Data Collection Plan and Collect Baseline
Data

• How?
• Identify sources
• Select case categorization criteria
• Define types of data needed
• Define data collection methods
• Start collecting baseline data

22
Outline Data Collection Plan and Collect Baseline
Data

• Is it difficult?
• Generally, yes
• Process of joint discovery
• Data Collection Methods
• Using documents and archival data
• Structured group interviews
• One-on-one structured interviews
• Questionnaires/forms/templates

23
Outline Data Collection Plan and Collect Baseline
Data

• What is appropriate data for baseline modeling?
• Default or typical process case
• Squeaky wheel process case
• Exhaustive Process Case

24
Process Scoping Reports

• Provided to the process owners for reporting and
  feedback purposes
• Used as a focusing and guiding device
• Structure of report (suggested)
• Executive Summary
• Brief explanation of steps taken so far
• Process performance targets
• Process boundaries
• Key process issues
• Preliminary vision of new process
• Data collection plan
• Plan for Phase 2