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Process and Performance Management Kick-Off No matter how carefully you plan your goals they will never be more than pipe dreams unless you pursue them with gusto. W. Clement Stone Paterson Public Schools Assessment Team 9/30/11

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2 2009 APQC. ALL RIGHTS RESERVED. Process Management Process Performance Management Process Improvement Objectives Introduce what Process and Performance Management is, and why it is important Provide an overview of the structure of PPM Introduce DMAIC, with a focus on D Identify actions needed to implement the project

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3 2009 APQC. ALL RIGHTS RESERVED.

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4 PPM works with any organization Regardless of type, size or geography. Process and Performance Management Process Management Performance Management Process Improvement

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5 2009 APQC. ALL RIGHTS RESERVED. Process Management. A systematic approach to: Identifying and aligning an organizations processes and measurement systems Gathering and analyzing customer and stakeholder data Performing gap analysis Identifying and prioritizing process improvement opportunities Aligns work efforts to strategic business goals and customer requirements. This holistic approach helps organizations create a structure that increases the ability to address efficiencies and effectiveness in a cross-functional, process focused approach to obtain higher levels of performance.

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6 2009 APQC. ALL RIGHTS RESERVED. Building implementation roadmap Documenting the processes Identifying new measurement systems Translating best practices Feedback into overall PPM structure All ideas go through here

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7 2009 APQC. ALL RIGHTS RESERVED. Performance Management A comprehensive process for establishing measurement systems that assess an organizations on-going ability to perform against strategic goals. Creates linkages of process activities to strategic goals and objectives Identifies key requirements for customers and stakeholders Utilizes well defined and communicated dashboards and scorecards Uses people and technology efficiently Fosters an environment of accountability and process focus Identifies areas for additional learning or support Helps to identify areas for improvement Tracks results: day-to-day performance and continuous improvement gains Helps to identify and document best practices and recognize excellence

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8 2009 APQC. ALL RIGHTS RESERVED. Performance Management Its More Than Employee Performance! The organization By department By process By program or project By system By team or individual

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9 2009 APQC. ALL RIGHTS RESERVED. Activity: Group Discussion 5 min Recap what PPM means to you and to your organization How can this help you as leaders? with the Assessment project?

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Define You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win. Zig Ziglar

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11 2009 APQC. ALL RIGHTS RESERVED. Objectives Clearly Identify the problem and lay the foundation for process improvement activities. Understand how the process works or not Understand the requirements of the customers Action planning

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12 2009 APQC. ALL RIGHTS RESERVED. DMAIC Key Topics DEFINEMEASUREANALYZEIMPROVECONTROL Team charter SIPOC Sub-Process maps Voice of Customer (VOC) Voice of Stakeholder (VOS) Building a Control Plan Risk Assessment Process Management Documentation Internalizing the changes Transferring Best Practices Creating solution ideas Screening solutions Determining solutions Testing solutions Implementation plans Process analysis Data analysis Root cause analysis Testing and proving hypotheses Defining measurements Building a plan Collecting data Establishing baselines Benchmarking

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13 2009 APQC. ALL RIGHTS RESERVED. All Processes Lead to Student Achievement

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14 2009 APQC. ALL RIGHTS RESERVED. A process is a series of steps whereby one thing (an input) is turned into something else (an output), with the intention of creating value for the customer. Definition of a process Everything we do all day is a process!

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15 2009 APQC. ALL RIGHTS RESERVED. Source: Quality Progress, February2010 Curriculum InstructionAssessmentInfo TechH.R. Transp. Finance Facilities Food Serv. Education System Work Happens Horizontally

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16 2009 APQC. ALL RIGHTS RESERVED. Group Discussion How many of your key processes are currently documented? How do you currently use your process documentation?

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17 2009 APQC. ALL RIGHTS RESERVED. Arthur Brisbane to the Syracuse Advertising Men's Club, in March 1911: "Use a picture. It's worth a thousand words." Process Mapping Enterprise Architecture High Level block diagram SIPOC (Suppliers, Inputs, Process, Outputs, Customers) As Is Sub-process maps Captures the flow, details, decisions, rework, delays, alternative paths, etc. Can create Standard Flow Charts or Deployment Maps

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18 2009 APQC. ALL RIGHTS RESERVED. Process Classification Framework www.apqceducation.org Sometimes referred to as core processes Sometimes referred to as enabling processes

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19 2009 APQC. ALL RIGHTS RESERVED. PSIOC Suppliers People Organization s May be the same as Customer Inputs Things used in process Items used again and again in a process are called Instruments Outputs The thing that comes out as a product or service Key outputs only Customer People Organizations Internal or external Could state as customer segments only High Level Process Start End Start high level only Usually 4 7 steps in a SIPOC Use a Verb / Noun structure No details, no rework, no decisions Can cross functional boundaries y

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20 2009 APQC. ALL RIGHTS RESERVED. PSIOC Suppliers People Organizations May be the same as Customer Inputs Things used in process Items used again and again in a process are called Instruments Outputs The thing that comes out as a product or service Key outputs only Customer People Organizations Internal or external Could state as segments only High Level Process Start End Start high level only Usually 4 7 steps in a SIPOC Use a Verb / Noun structure No details, no rework, no decisions Can cross functional boundaries Process Mapping High Level Block Diagram

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21 2009 APQC. ALL RIGHTS RESERVED. Steps to Create SIPOC 1.Identify and name the process 2.Identify and agree on boundaries 3.Brainstorm the high level steps We do this, then we do this, then we do this 4.Capture the key output(s) from the process 5.Determine who receives the output(s) and list them under the customer column 6.Identify the key input(s) Things that are used in the process to create the output Instruments do not change but are there in the process at all times, (i.e., people, technology, equipment, facilities, etc.) - list these separately 7.Determine who gives you the input(s) and list them under the supplier column 8.Always validate your maps with others Tweak accordingly

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22 2009 APQC. ALL RIGHTS RESERVED. Activity: High Level Mapping 20 min Identify one key process Create a SIPOC map of your process

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23 2009 APQC. ALL RIGHTS RESERVED. Activity: Identifying Projects Using your SIPOC map, identify pain or pressure points in the process Prioritize if necessary Discuss and decide on which one to focus for this project This will set the stage for the next steps in the Define phase 25 min

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24 2009 APQC. ALL RIGHTS RESERVED. Two Types of Projects: Group Discussion In this workshop, you will be working on either, a Process Improvement project, or a Process Design/Redesign project. In other words, incremental or transformational Which one is yours?

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25 2009 APQC. ALL RIGHTS RESERVED. The Project Charter

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26 2009 APQC. ALL RIGHTS RESERVED. A charter is a document used by teams that will outline the purpose, goals and milestones of a project and becomes the focus of work. Charter: What & Why Team Charter

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27 2009 APQC. ALL RIGHTS RESERVED. Project Name: Start Date: Problem Statement, Objective & Scope PROBLEM: OBJECTIVE: SCOPE: Business Case Future State Immediate Next Steps Performance IndicatorBaselineCS TargetFS Target Sponsor: Core Team: Extended Team: Action Plan (High Level)WhoDue % Completed 255075100 Current Date:

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28 2009 APQC. ALL RIGHTS RESERVED. Business Case Statements Each improvement opportunity should have a clear business rationale for why you should address this issue, at this time. Business Case Statements outline at a high level the importance of a project. How would this project support the strategic or business plan? How does it relate to federal or district goals? How will you measure success? What is the impact to the organization? What are the potential consequences of NOT acting? Process Improvement

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29 2009 APQC. ALL RIGHTS RESERVED. Business Case Statements You may include things like: Financial concerns Competitive advantage Customer satisfaction Employee morale Federal mandates Risks of continuing in the current manner Remember, a Business Case Statement is only a couple of sentences! Process Improvement Many of these components may become part of an Opportunity Statement if you are working on a Design or Redesign Project

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30 2009 APQC. ALL RIGHTS RESERVED. Business Case example The (QA01) Quality Management Audit has been in existence since 1976. This audit is a review of individual work orders that have pended based upon a set of pre- defined criteria. The intent of the QA01 was to improve our ability to handle work orders, but the current process negatively impacts the timeliness of completing jobs and is done in a variety of ways. This variation in how the job is done also causes confusion in our metrics. Process Improvement

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31 2009 APQC. ALL RIGHTS RESERVED. Group Activity: 15 min What is the Business Case for your project?

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32 2009 APQC. ALL RIGHTS RESERVED. Constructing A Problem Statement example Buses are late X# of buses were late 01/04-06/01, which resulted in X# of lost student learning hours. Work order costs have increased by X% The costs for the Work Order Maintenance process has increased by X% between 08/15/-12/15/09., which resulted in $Y budget overage.

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33 2009 APQC. ALL RIGHTS RESERVED. It can be hard to get jump started with a project charter and project description. Try writing a 3 Word Statement, then building on it to create a Problem Statement or an Opportunity Statement. Start With 3 Word Statements Process Improvement Process Design / Redesign Car wont start Car will run faster, safer and be more fuel- efficient Name the process or the unit moving through the process, and state whats wrong Name the process or the unit moving through the process, and state what the new design will accomplish (not how, but what).

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34 2009 APQC. ALL RIGHTS RESERVED. Start With 3 Word Statements examples Process Improvement Process Design / Redesign Car wont start Name the process or the unit moving through the process, and state whats wrong Name the process or the unit moving through the process, and state what the new design will accomplish (not how, but what). Substitute costs have increased Work orders have defects Food inventory is wrong Attendance tracking process has errors The Attendance Tracking Process will be redesigned to be consistent & accurate Work orders will be accurate when Food inventory is accurate and consistent with the new process We have an opportunity to create an Attendance tracking process that is error free Car will run faster, safer and be more fuel-efficient

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35 2009 APQC. ALL RIGHTS RESERVED. Problem Statements Describes the pain or the issue in a process Is quantifiable (needs metrics) Use X placeholders if you need to State time period of any data used If you use %, put the ratio in ( ) [ex: 20% (20/100) Does not state causes or blame Reflects impact (so what?) First to the customers of the process, OR To the organization Brief 1 or 2 sentences Process Improvement

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36 2009 APQC. ALL RIGHTS RESERVED. Group Activity: 5 min What is the 3-Word statement for your project?

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37 2009 APQC. ALL RIGHTS RESERVED. Constructing a Goal Statement example Reduce instances of late buses by X%, which will result in X# of regained student learning hours. Project will be completed by (date TBD). Reduce the costs for the Work Order Maintenance process by X% thereby reducing overall budget by $Y, by (date) TBD.

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38 2009 APQC. ALL RIGHTS RESERVED. Goal Statements Describes what your team hopes to accomplish Not WHAT you are going to do Start with an action verb Reduce, Decrease, Increase Mirror image of problem statement Refer to the same issue as problem statement Is quantifiable (needs metrics) Use X placeholders if you need to Must have the same metrics as problem statement Caution! Dont over promise on the goal Must be time-bound Estimate when the project will be completed Brief 1 or 2 sentences Process Improvement

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39 2009 APQC. ALL RIGHTS RESERVED. The procurement process takes too long, x # of labor hours, thereby increasing support costs to $Y in X timeframe. Problem Statement Goal Reduce the cycle time by X# of labor hours, while also decreasing support costs by $Y by date (TBD). Problem and Goal Statement examples The Billing Payment process in our district (200 schools) currently operates at x% error rate resulting in a loss of revenue of $Y per year. Reduce the error rate by X% in the Billing Payment process which will result in a reduction of lost revenue of $Y, by (date TBD). Problem Statement Goal Process Improvement

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40 2009 APQC. ALL RIGHTS RESERVED. Opportunity Statement examples Sometimes, the projects we select are about creating or redesigning a process. In those instances, it is better to start with an Opportunity Statement, that clarifies why designing or redesigning a process is critical at this time. Many factors that would go into a Business Case Statement could apply here as well. Process Design / Redesign OPPORTUNITY: We have an opportunity to standardize examinations and assessments to assign grades which will be comparable across districts. This will allow classroom grades to gain prominence as a measure of student performance. A recent benchmarking study reported our district ranks among the lowest as (22%) in comparison to 7 other similar districts across the nation, regarding calculating classroom grades for student report cards. 75% of the Best Practice districts have some type of formal standards for grading.

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41 2009 APQC. ALL RIGHTS RESERVED. Opportunity Statement examples You will still need to include metrics, impact and/or benefits to your Opportunity Statement. Build off your 3 Word statement Start your sentence (at least in your rough draft) with We have an opportunity to. In Design/Redesign projects, you may have more than one issue you are trying to overcome. OPPORTUNITY: We have an opportunity to standardize examinations and assessments to assign grades which will be comparable across districts. This will allow classroom grades to gain prominence as a measure of student performance. A recent benchmarking study reported our district ranks among the lowest as (22%) in comparison to 7 other similar districts across the nation, regarding calculating classroom grades for student report cards. 75% of the Best Practice districts have some type of formal standards for grading. Process Design / Redesign

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42 2009 APQC. ALL RIGHTS RESERVED. Activity: Creating Opportunity, Problem & Goal Statements 30 min Review your 3 Word Statements Create an Opportunity Statement Design or Redesign Teams only OR Create a Problem Statement Start with 3 Word structure Add quantification and impact Create a Goal Statement Follow the SMART concept Same issue as Problem Statement Same quantification as Problem Statement

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43 2009 APQC. ALL RIGHTS RESERVED. Project Scope "The work that needs to be accomplished to deliver a product, service or result with the specified features and functions." Wikipedia Scope Basically, how much work is this gonna be?

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44 2009 APQC. ALL RIGHTS RESERVED. The 3 Components of Scope IN OUT Boundaries As identified on your process Complexity # of people or hand-offs # of units in the process # of locations Geography Technology Legal or regulatory issues In & Out of Frame In what is inside your sphere of influence and control Out what is outside your sphere of influence and control

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45 2009 APQC. ALL RIGHTS RESERVED. u Ideas for Scoping IN OUT Selecting up front pilot groups (such as 2 ES, 2 MS, 2 HS) can help you address the amount of work required of your team, thereby reducing the overall work load Once solutions have been developed for pilot sites, you can transfer your solution to other locations thereby reaping the rewards without additional upfront work!

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46 2009 APQC. ALL RIGHTS RESERVED. Project Scope example In Regular QA01 work orders Facilities and grounds work orders All high schools in the district Measurement practices for the district Policies regarding work order practices Training issues Staff allocations Validity of audit Out IT related work orders Schools other than High School (at this time) Legacy Systems or work orders Vendor selection & management Supplies ordering Contracting practices

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47 2009 APQC. ALL RIGHTS RESERVED. Activity: Project Scope 15 min Create the format for In & Out of Frame Use a flip chart Use stickie notes to brainstorm Place stickie notes in the appropriate area on the frame Any item you are unsure of can be placed on the boundary line between In & Out, to be discussed with your Champion later

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48 2009 APQC. ALL RIGHTS RESERVED. Activity: Revisit/Revise Your SIPOC Map 25 min Review your SIPOC Do you have the right scope? Name? Customers? Is it still an improvement or a re-design? If redesign, more detailed map needed (see next pages) Update your action plan SIPOC may need to be tweaked or validated

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49 2009 APQC. ALL RIGHTS RESERVED. Sub-Process Mapping Start or Stop points Tasks or activities Depicts flow Decisions

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50 2009 APQC. ALL RIGHTS RESERVED. Sub-Process Flow example Identify type of problem Sort work orders ok? Assign tech Research problem & correct Load data into D860 system Schedule work Get supervisor approvals Obtain parts or supplies for repair Complete repair Log repair notes into system & close order Start Stop y n Work Order Process ok? yN

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51 2009 APQC. ALL RIGHTS RESERVED. Change Management

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52 2009 APQC. ALL RIGHTS RESERVED. What is Change Management ?* *Or, Change Execution, Change Leadership, Change Marketing

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53 2009 APQC. ALL RIGHTS RESERVED. Change Cycle DenialCommitment ResistanceExploration

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54 2009 APQC. ALL RIGHTS RESERVED. What is a Stakeholder? A stakeholder is any person or organization who has something at stake related to your project A customer is a stakeholder BUT not all stakeholders are customers!

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55 2009 APQC. ALL RIGHTS RESERVED. 55 Stakeholder Roles Advocate Change Target Change Target Change Agent Sponsor

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56 2009 APQC. ALL RIGHTS RESERVED. Sponsor a leader with accountability for the change, who has consequential influence over change targets Change Target an individual expected to do something different in their work to realize the change Advocate anyone in support of the change initiative, willing to promote it Change Agent an individual with specific responsibilities to help drive the change initiative Core Role Definition

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57 2009 APQC. ALL RIGHTS RESERVED. 57 Stakeholder Roles Advocate Change Target Change Target Change Agent Sponsor The change agent interacts with everyone, but has a primary responsibility to the sponsor

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58 2009 APQC. ALL RIGHTS RESERVED. Stakeholder Management Stakeholder Management is the process you create to communicate with, influence or use your stakeholders, in a manner that will ensure acceptance of the changes your team implements. R = Q x A

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59 2009 APQC. ALL RIGHTS RESERVED. Slide 59 VIII.Internalization VII.Institutionalization VI.Adoption V.Experimentation IV.Positive Perception III.Understanding II.Awareness I.Contact U n a w a r e n e s s C o n f u s i o n N e g a t i v e P e r c e p t i o n I n a c t i o n R e j e c t i o n T e r m i n a t i o n Action Threshold Disposition Threshold C o m m i t m e n t P h a s e A c c e p t a n c e P h a s e P r e p a r a t i o n P h a s e Time D e g r e e o f S u p p o r t Reversibility Threshold The Commitment Curve Strategy

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60 2009 APQC. ALL RIGHTS RESERVED. Four Rules for Stakeholder Management Test your assumptions Test their assumptions Plan your strategy Take action R = Q x A

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61 2009 APQC. ALL RIGHTS RESERVED. Stakeholder Analysis Worksheet Stakeholder Information COMMITMENT LEVEL and CHANGE ROLE (Examples: Enthusiastic, Helpful, Compliant, Hesitant, Indifferent, Unaware, Uncooperative, Opposed, Strongly Opposed, etc) Desired Behavior Concerns? Influenced by Whom? Influence PlanResponsibilityTiming Individual or GroupTodayNeeds to Be

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62 2009 APQC. ALL RIGHTS RESERVED. Activity: Identifying Stakeholders 15 min Identify the key stakeholders for this project Select 1 or 2 stakeholders and complete the worksheet template up to behaviors column

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63 2009 APQC. ALL RIGHTS RESERVED. Elevator Speech 1. What you are doing 2. Why it is important 3. Whats in it for the stakeholder 4. What the stakeholder can do to help Note: 1 & 2 above will not change but item 3 & 4 can change depending on who the stakeholder is at the time you engage them

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64 2009 APQC. ALL RIGHTS RESERVED. Elevator Speech example We are working to reduce defects in the Invoice Payment Process, which will likely change how we currently do the work. Our current cost estimates show that we currently waste over $300k per year due to extra labor, credits, fines and overpayments. Continuing this process [ complete this statement with the group ] You can help us by [ complete this statement with the group ]

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65 2009 APQC. ALL RIGHTS RESERVED. Activity: Action Planning 10 min Create or update any items for your action plan Refer to the activities and tools you have started in this section

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66 2009 APQC. ALL RIGHTS RESERVED. Project Plan High Level milestones For the one-page charter Lay out by phases of DMAIC The more detailed project plan Further detail for to the high-level plan Captures all the action items, responsibilities, due dates, etc. Not in Charter, but used by the team

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67 2009 APQC. ALL RIGHTS RESERVED. Project Plan example

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68 2009 APQC. ALL RIGHTS RESERVED. Key Deliverables by Phase DEFINEMEASUREANALYZEIMPROVECONTROL Team charter SIPOC Sub-Process maps Voice of Customer (VOC) translated into measureable requirements Stakeholder Management Control Plan Risk Assessment Documentation Project Closure plan Process for Transferring Best Practices Solution options Solution Decision Risk Assessment Cost Benefit (CBA) Pilot Plan Implementation Plan Identification of Non-Value Added activities Proven root causes Key findings from data analysis A Measurement Plan Identification of key metrics (outcomes & predictors) Performance Baselines COPQ

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69 2009 APQC. ALL RIGHTS RESERVED. Revisit the Charter

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70 2009 APQC. ALL RIGHTS RESERVED. Project Name: Start Date: Problem Statement, Objective & Scope PROBLEM: OBJECTIVE: SCOPE: Business Case Future State Immediate Next Steps Performance IndicatorBaselineCS TargetFS Target Sponsor: Core Team: Extended Team: Action Plan (High Level)WhoDue % Completed 255075100 Current Date:

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71 2009 APQC. ALL RIGHTS RESERVED. Wrap-Up

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72 2009 APQC. ALL RIGHTS RESERVED. Summary The Define phase is all about laying the foundation. This is critical to ensure success for project teams. A Charter is a one page document that clearly articulates the purpose, goals and timelines of a project. High level SIPOC maps are extremely helpful to identify the key activities, inputs and outputs of a process, as well as the key players suppliers and customers. Sub-process maps allow an organization to see exactly what occurs in a process, who does what and how much variation exists. These maps are key to defining the steps that add value for the customer and for establishing specific measurement points. Gathering VOC data from customers - internal and external allows us to measure our process performance in order to understand how well we provide products or services. VOC data can help organizations identify where improvement opportunities exist.

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73 2009 APQC. ALL RIGHTS RESERVED. Reminders Have you created and agreed upon your team charter? Have you shared your charter with the Project Champion to ensure alignment? Do you have maps of your key processes? Have you scrutinized your maps looking for variation and non-value added activities? Are your maps validated with others who do the work? Do you have a systematic approach for gathering VOC data and then translating it into measureable requirements? Have you updated all your action plans?

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74 2009 APQC. ALL RIGHTS RESERVED. 10 Ingredients for a successful team 1.Clarify team goals 2.Clearly define roles & responsibilities 3.Identify how you will communicate with each other; share files, updates, etc. 4.Agree on decision making methods before you get to decisions 5.Balance workload and action items 6.Establish and follow ground rules 7.Follow the DMAIC process 8.Ask questions, seek help when you need to 9.Be positive about the experience with your team members and with others in your organization 10.Celebrate every success along the way not just at the end. Pat each other on the back.