© The Delos Partnership 2005 Process Owners and their role Application to the Delos Model

© The Delos Partnership 2005

Process Owners and their roleProcess Owners and their role

Application to the Delos Model


The Delos ModelThe Delos ModelFor Business Integration For Business Integration

InnovationInnovation

VisionVision

StrategyStrategy

PrioritisationPrioritisation

DemandDemand

SupportSupport

SupplySupply


Integrated Enterprise Integrated Enterprise PlanningPlanning

AACCTTIIOONN

AACCTTIIOONN

Week 1 Week 2 Week 3 Week 4

InnovationReview

InnovationReview

CustomerDemandReview

CustomerDemandReview

SupplyPlan

Review

SupplyPlan

Review

PriorityReview

PriorityReview

STAGE 1STAGE 1

STAGE 2STAGE 2

SeniorTeam

Review

SeniorTeam

Review

STAGE 5STAGE 5

STAGE 7STAGE 7

STAGE 4STAGE 4STAGE 3STAGE 3

SupportSupport

STAGE 6STAGE 6


The Delos Model for Industrial The Delos Model for Industrial EnterprisesEnterprises

• Provides integration of all the elements of the business

• Designed to deliver the strategy through the creation of robust operational processes

• Integrated Enterprise Leadership is based on effective Teamwork

• It is based on cross-functional teams, aligned to process – not functions.


NEW ACTIVITY TEAMResearch and Development RepCommercial RepProcess Development RepPlanning RepFinance Rep……….


Process for Implementation of Process for Implementation of IELIELImplementation Team – IEL• Senior Team and Project Leader

Integration Team• Project Leader• New Active Representative• Demand Representative• Supply Chain Representative• Support Representative• Financial Representative• …..• …..



Characteristics of IELCharacteristics of IEL

Feature Good PractiseHorizon 24 Months rolling Horizon

Focus Beyond month three

Language Families/Sectors by Production and Markets

Result Decisions on the long-term issues

Responsibility Managing Director

Decision outcomes Tactical and Strategic

Frequency Monthly

Process Process for the integration of strategic intent and operational activities.


Problems with ImplementationProblems with Implementation

• Availability of data• Process takes too long each month• New Activity review not carried out in timely

fashion• Defensive reaction to performance measures• Differences between Sales and Marketing

forecasts and financial numbers• Too many initiatives


Critical issues for Critical issues for implementationimplementation

• Collection of data• Effective systems support• Right levels of skill in organisation• Good communication• Making the tasks the right size• Putting in place the right level of resource• Selling the concept internally• The right level of Education• The right organisation


Role of the Managing DirectorRole of the Managing Director

• Insist that everyone participates• Makes sure that clear decisions are taken• Ensures that proper preparation is in place for

the meeting• Encourages realistic improvements to the

process• Resolves conflicts• Develops the capacity for leadership• Continually develops the plan into the future


An effective team focuses on a An effective team focuses on a common goalcommon goal

• The performance of the whole company – not a functional area

• Each function plays a part and is responsible for achieving the aims

• The supporting functions are intertwined with all of the processes

We need a process owner for each of the areas to ensure the effectiveness of the team.


Permanent Strategic DirectionPermanent Strategic Direction

To manage each step of the way it is important to have

• Process Owners– Ensures that the process is adapted to

suit the organisation

• Process Team members– Takes the operational decisions

required within each process stage


Process OwnersProcess Owners

It is impossible to evolve the process without someone to supervise and manage the process who makes the connection between the technical teams and the supporting functions

This process owner is not necessarily the person who is most expert in a particular function, but they must be able to understand the requirements and how to use the technology in the day to day business

This person must be sufficiently respected within the organisation to be able to make decisions. They must be best placed to develop and put in place new and simpler processes, and to negotiate the balance between operational objectives and technical requirements.


Process OwnershipProcess Ownership

Sales Ops R & D Finance Mktg

New Product ProcessNPD

Owner

Supply side processSupplyOwner

CustomerDemand ProcessDemandOwner

InnovationOwnerInnovation process

ManagementTeam

Support: Finance, IT,HR,QA, …. Support

Owner

Horizontal

Owners Act at the interface with the functions, to provide the link with other processes

The process Managers are responsible for managing the process within the « vertical » function.


Process OwnersProcess Owners

Sales Ops R & D Finance Mktg

New Product ProcessNPD

Owner

Supply side processSupplyOwner

CustomerDemand ProcessDemandOwner

InnovationOwnerInnovation process

ComitéDe Direction

Supports: Finance, IT,HR,QA, ….Support

Owner

Assure and guarantee the quality of the major processes in the organisation

•Innovation

•Demand

•Supply

•Support

•Integration

•Strategy

Analysing the environment, and ensuring best practise is adopted


Role of Process Owners – 1/2Role of Process Owners – 1/2

• Guarantor of the quality of the process, and its integration into the operation of the global plan, and within the IEL process

To pilot the idea, and put the process into action: to agree the priorities and the balance between operational objectives and technical requirements

To propose the rules for the operation and management of the process, and ensure respect for the rules of the process

To identify the problems at the interface between the process and the functions. To act in concert with the other teams who are part of the IEL process

To take part in the definition of the operation of the supporting information systems


Role of process owners 2/2Role of process owners 2/2

1. To champion the development of the performance measures relevant to their process, and ensure that they are used within the IEL process

2. To make sure that each stage of the process is completely developed and documented, and that they key users are educated in them

3. To ensure the continuous improvement of the process

4. To sponsor the process managers and their teams and ensure their participation in the IEL process

5. To act across each of the functions to ensure the right behaviours.


Process owner - ProfileProcess owner - Profile

Concentrated on strategic objectives, and not the short termUnderstands completely the IEL processHas a high degree expertise in their area, and has a high level view of their

processUnderstands the other processes, and works to develop the interfaces

between themUnderstands the links between the IT systems, and their processChampions the “horizontal” integration of the organisationChampions the behaviour change and continuous improvementChampions team workA communicator, and someone who acts to get agreementCredible, and respected at all levels in the organisation

This is not a job, but a mission with a requirement for around 15 % of their time. Their title makes them part of the general management team.


Multi-Level Integrated Multi-Level Integrated Enterprise PlanningEnterprise Planning

Week 1 Week 2 Week 3 Week 4

DemandPlanning

DemandPlanning

DemandPlanning

DemandPlanning

DemandPlanningCustomer

New ActivityReview

Innovation

Innovation

SupplyReview

SupplyReview

SupplyReview

SupplyReview

FinancialPriorities

ConsolidatedRecocniliation

FinancialPriorities

CorporateReview

SeniorTeam

Review

GLOBAL

LOCAL

LEVEL 1Country/Market

LEVEL 2Region/Business

Unit

LEVEL 3Europe/

Global HQ


Corporate process ownersCorporate process owners

They look after the vision and the stratgey at the corporate levelThey are expert in the IEL processThey assure that there is a very high level of integration of the

processThey harmonise the data structure and hierarchy and operation of

the processThey intervene in a strict link with

– Local process owners– They work with local operators of the process or a centre of

excellence, and work within the relevant teamThey respect the decision making responsibilities of the local

management teams, and analyse their performance through a common set of measures.


Measurement - BasicsMeasurement - Basics

VISION AND STRATEGY

OBJECTIVESOBJECTIVES

TARGETSTARGETS

MILESTONESMILESTONES


Organisation HierarchyOrganisation Hierarchy

Managing Director

Directors/Process Owners

Managers/Team Leaders

Operators/Team members


Link to Organisational Link to Organisational HierarchyHierarchy

Managing Director

Directors/Process Owners

Managers/Team Leaders

Operators/Team members

LINK THEM

VISION AND STRATEGY

OBJECTIVESOBJECTIVES

TARGETSTARGETS

MILESTONESMILESTONES


Measures are based around Measures are based around the processesthe processesPerformance Measures are designed to improve the

processesProcess owners have responsibility for these measuresProcess owners take action “horizontally” across the

functions to bring about change in behaviourIt is essential that people work in teams to improve the

processesProcess owners must have a high degree of ability to

work at the improvement of inter-functional attitiudesIt is essential that there is a culture which allows

humans to err. The objective is not to get rid of humans but to get rid of errors.


Goal DeploymentGoal Deployment

New Activity Management

Demand Management

Supply Management

Support Activities

Senior management Activities

Shareholder/

Corporate

Customers

Suppliers

Employees

Community

GOALS

Process Owners


Process ManagersProcess Managers

Experts in their process area, they understand it to a high levelThey ensure the daily operation of all or part of their process areaThey have sufficient authority to make the decisions developed in

the IEL processThey are responsible for performance in the short termThey are responsible for Continuous Improvement in their functionsThey are generally in charge of a functional area

• Production• Purchasing• R&D• Sales and Marketing• Finance• HR……


Example – Master Scheduling Example – Master Scheduling ProcessProcess

Interface between supply and the IEL process

• Role of Master Scheduling process manager– The operation of the Production plan for their products– The MPS ensures the achievement of the plan, and the

operational and strategic objective of the organisation– The MPS manager decides to report by exception, each

month• Each important variation in volume

• The failures against plan, and the means for recovery

• Identified risks and opportunities


Master SchedulerMaster Scheduler

Strategy

Master Scheduler

Sales Forecasts

CustomerOrders

ManufacturingPlan

PurchasingPlan

MRPSystem

Balanced PlanBalanced Plan


Customer Relationship Customer Relationship ManagementManagement

Strategy

Demand Planner

Sales and Marketing

SystemForecast

Plan

ManufacturingAnd Purchasing

ERPSystem

Consensus ForecastConsensus Forecast


Innovations ManagerInnovations Manager

Strategy

Innovation Manager

DevelopmentIdeas

ProjectPlans

DevelopmentPlans

Supply Plans

ProjectSystem

Prioritised PlansPrioritised Plans


SummarySummary

OwnersThe Process owners ensure integrationThe process owners ensure the quality of their process and the integration into their business environmentThe process owners are responsible for a commitment to continuous improvementThe process owners ensure the commitment to teamwork. They are responsible for the joint local and global performance of the enterprise

ManagersProcess managers are responsible for operational execution of the IEL processThey are technical experts from a functional area, and integrated into the processThey are responsible for the execution of specific projects that form part of continuous improvementThey ensure that people work as teams. They are responsible for execution of the activities that means the achievement of the company’s aims and objectives.

Documents

© The Delos Partnership 2005 Process Owners and their role Application to the Delos Model