Process Management

Managing and improving operational delivery

Alec Steel & Kevin Summersgill

Process Management Team

Process Management

Why the NAO is interested in Operational Delivery •  NAO: Process management - how organisations manage

and improve business operations

•  Many labels / approaches; Lean / Continuous improvement / Kaizen / Six Sigma / BPI / BPR, Operational Excellence.

•  2006 onwards: Growing use of lean principles in UK govt

•  The NAO has established the capability to say if government is getting it right

•  The NAO thinks process management is a good thing…if done well.

Process Management

NAO Process Management Team •  Team of Process Management specialists

•  Cross-government remit: worked with over 100 areas across the UK government; •  Process Management Maturity Analytic •  Process Improvement work •  Assurance to senior officials

•  Work with public and private sector bodies to identify and share good practice

Process Management

The questions we answer •  How capable is an organisation in managing

and improving business operations?

•  What is an organisation’s PRIORITY business problems?

•  How can this understanding drive sustainable improvement?

Process Management

How we developed the Process Management Maturity Analytic

•  NAO experience diagnosing and improving processes across government

•  A review of existing process maturity models

•  Visits to good practice organisations

•  Input from process management experts from the public & private sector

•  Application in more than 90 business areas

We know these are the right things to look for…

Process Management

Process Management Maturity Analytic Using Information to manage and improve process performance

Using continuous Improvement to target areas of most benefit

Using Strategy to define and drive process activity

Helping People manage and improve process performance Ensuring the end to end

Process has the capacity and capability to meet

demand

Process Management

40 questions, across 5 areas, testing 270 ‘characteristics’. Organisational enablers and operational business processes

Process Management

Strategy Information People Process Mgt Improvement

Leadership

Obligation

Accountability

Leadership

Obligation

Accountability

Organisation

Operations

Process Management

UK Government’s results - December 2010

Using Strategy to define and drive activity

Using Information to manage and improve process

performance

Helping People manage and improve process

performance

Ensuring end to end Process has the capacity and capability to meet

demand

Using continuous Improvement to target areas of most benefit

Process Management

UK Government’s results - December 2010

Using Strategy to define and drive

activity

Using Information to manage and improve process performance

Helping People manage and improve process

performance

Ensuring end to end Process has the capacity and capability

to meet demand

Using continuous Improvement to target areas of most benefit

Performance Gaps

•  Understanding the level and type of customer demand and having a planned response even when it changes

•  Giving staff the obligation to continuously improve

•  Making the case for change and proving the benefits

•  Managing end to end delivery to the customer

•  Having a consistent approach to continuous improvement

Process Management

We can cut the information in different ways…

Strategy Information People Process Improvement

Use information to measure performance and target improvement

Establish control through strategy deployment and clarity of end to end delivery

We have since analysed performance against themes which run ‘horizontally’ through the model; e.g. control, measure & improve

Use a consistent approach to improve priority areas

Process Management

Our analysis shows that…..

Even when the process type is the same, ‘delivery’ departments are more mature in their process management than ‘policy’ departments.

Processes that have developed the characteristics of continuous improvement have more mature process management. Although…

It is essential departments first control and measure business operations before embarking on improvement initiatives.

Overall, government is least mature in allocating resources and producing policy.

Mature process management at operational level is dependant on enablers in place at the organisational level. 1

2

3

4

5

Process Management

Next steps: Closing the UK government’s performance gaps We are…

•  Helping UK government organisations understand and solve their business problems

•  Providing assurance on UK government’s continuous improvement agenda

•  Working with world experts to research best practice examples to share

•  Working internationally with public & private sector organisations

Process Management

For further information please contact:

Kevin Summersgill Audit Manager Process Management Team

Contact: processefficiency@nao.gsi.gov.uk

Alec Steel Audit Manager Process Management Team