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As part of Technology Enabled Process Optimization, TEPO, a method to quantify time spent, and why, within processes, data captured in-flight, analysis used to target or size opportunities to improve or gain leverage from best practice
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Core Systems Transformation Solutions
Measuring Drivers of Process Efficiency and Effectiveness
May, 2012
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Return on Intelligence’s Discovery Method - a rapid “MRI” of any as-is business process
• ANY process or “issue of interest”:– Transactional (Underwriting, Claims, Order-to-cash)– Customer facing (Call centers, customer service, field sales force)– Knowledge Intensive (Systems Testing, Help Desk, Business analysis, etc.)– Issues (e.g. drug rehab program managers, Customer QC, etc.)
• Uses existing process models or builds its own• Calculates task frequency and level of effort• At the point of task completion, collects information about task
efficiency and effectiveness drivers• Delivers quantitative and qualitative process data, concurrently
collected• An effective resource for process analysis and design, opportunity
discovery and investment justification analyses
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How Return on Intelligence’s Discovery method works
• Every time a participant performs a task we care about, we will know:– How long did it take
• Thus, how much did it cost
– How often was it performed– What initiated the task (project or initiative identifiers)
• As tasks are executed, Discovery asks questions about that instance providing insights beyond simple task timings and costs. For example:– Process Compliance questions allow us to know:
• What is the rate of task satisfaction and compliance; what drives exceptions: time constraints, understanding of the task, acceptance of task’s utility, etc.
– Knowledge Management questions allow us to know:• What are the knowledge content requirements of a task; how effectively does the current
process or tools enable use of knowledge; what are the issues resulting in knowledge gaps
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KM impact thru meeting preparation
Discovery provides hard data to establish opportunities in real, current, quantitative terms
Discover & Adapt Internal Best Practices
50% reduction thru KM
Low impact internal meetings
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Case Example: Root Cause Discovery & Analysis
• Discovery: the 25% of bills were in paper form driving 62% of suspensions. Paper bills take 2x as long to handle
• Quantified the ROI of moving to 85/15 electronic to paper mix from 75/25
• Major productivity improvement for 30 person team
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Was source paper or electronic?
Data Electronic Paper Overall
Average Time 1.14 2.01 1.68Pct of Units 38% 62% 100%Num of Units 2,684 4,439 7,123 Avg Cost/unit $ 0.48 $ 0.84 $ 0.70
Current Future
Suspensions per year total 1,053,000 843,414From paper 656,223 393,732From electronic 396,777 449,682
Paper suspend process costs $ 553,005 $ 331,803 Electronic suspend process costs $ 188,829 $ 214,008 Total Process costs $ 741,834 $ 545,811
Savings $ 196,023
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Group1 Review Valuation0
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Case Example: Reduce cycle time & accelerate loan funding ($4 million revenue gain)
Average lag: 9.0 daysMedian lag: 7 days
Days Lag:
Issue: 39% apps need valuation ordered by operator at assessmentToo often operator fails to order valuationGoal: Reduce average lag by 2 days by branch ordering all valuationsGain: loan starts 2 days earlier
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• Time Lag: Application Arrival to Satisfactory Valuation
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Case Example: Knowledge Management leverage opportunities
• 80% of legal staff’s hours are spent on tasks with “High” improvement potential via Knowledge Management
• Improvement Opportunities1. Technologies that reduce the time to do tasks
2. Technologies that combine and collapse tasks
3. Technologies that improve meeting-related productivity and/or necessity of having some meetings
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DiscoveryTM Metric Study – Three Step Process
1. Front End Study Engineering: Setup Application (PC)
2. Data Collection: Virtual PDA on PC
3. Results Reporting
Data Transfer
2-3 days
1 – 2 weeks
Immediate
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1 hour training+ Learning curve
Clarifications Group
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Hourly Time Slot
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Method Summary –1. Collect and re-use existing process models or create an as-is
process definitionApply the definition of as-is processes in the Discovery Tool
Method Summary –1. Collect and re-use existing process models or create an as-is
process definitionApply the definition of as-is processes in the Discovery Tool
2. Participants self-record process data using the Virtual PDA application on their PC’sData collection is usually 1 week
Method Summary –1. Collect and re-use existing process models or create an as-is
process definitionApply the definition of as-is processes in the Discovery Tool
2. Participants self-record process data using the Virtual PDA application on their PC’sData collection is usually 1 week
3. Collected data is analyzed by Discovery’s powerful reporting engine
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Next Steps
• Identify processes and functions in need of analysis• Craft scope of a project
– As few as 10 to 20 participants, up to 100– Select pilot focus– Engineer, train, deploy, collect data and analyze/present results
• Contact Return on Intelligence to find out how to get started
– Ira Feinberg Partner/Practice Lead (917) 705-4148– Doug Brockway Partner (617) 834-0067
– http://www.returnonintelligence.com/
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