Saturday, January 28, 2012
By adayal on 11/20/2011 1:56 PM

There are twelve  options in three categories , as per our experience :
1. Start Forward ( also called inside - out thinking )
2. End backwards ( also called outside - in thinking )
3. From one  point to another point

 

By adayal on 11/20/2011 1:31 PM

Not necessarily !
Check box based templates have been the new age tool for monitoring compliance  to processes  and policies.

By adayal on 10/25/2011 12:15 AM

 Formulating  Blue Ocean Strategy must be based on a   Process  for sustained bottomline impact !

By adayal on 9/27/2011 8:47 PM
Vertical Management

Almost all  Businesses are structured functionally in  the shape  of a pyramid. Managers...
By adayal on 9/26/2011 10:40 AM

  Because of this diversity in   beliefs,  thoughts and therefore  actions of the managers ,

  we loose the  race at the beginning of    of the year  itself 

By adayal on 9/21/2011 5:53 PM

The  most authentic research   is by Hammer  who defined five enablers

 

1.Process Design

2. Process Metrics

3.  Process performers ( People who work in Processes and not functions )

4. Process Infrastructure   ( IT and HR Systems  to help Process performers )

5. Process owners 

 

As of now , we define atleast  12 components of a process :

1. Customer 

2. Process Performance Indicators 

3. Process design

4. Inputs 

5. Suppliers 

6. People 

7. HR Processes to develop Process centric people

8.IT Solution

9. Physical Infractrusture 

10. Policy /Constraints 

11.  Process owner

12 . Process.Costs

 

By adayal on 9/14/2011 6:45 PM


Question: We have Products and Plant, we have six Ms, we make Strategic Plan, we make Annual Operation Plan and we review the same regularly - DWMQA, We have now ERP, we are ISO certified, we have HR process, largely a copy of practices of multinational  and a bit of localisation in certain areas. Our compensation is average but we have attractive incentive scheme. People earn 35 % of the amount provided? Why should we look at Business Processes (A Business Process is a Process that cuts across several functions)? In fact, we already have processes?

 
 
Answer: A combination of following factors /circumstances /anxieties would demand a look at Business processes with an external partner :
 
1. The company has looked at processes associated with a job /department or at best a function. Processes cutting across functions have not been examined. There are  huge  holes  when process travels from one function to another. .
                                           
2. What do people do everyday? Each guy says he is slogging  but end outcome is poor. There is lack of alignment among executives across functions  and levels and they blame each other at transactional level , operational level, tactical level as well as strategic level 
 
3. Sudden /fast changes in business environment has led to steep fall /fall /stagnation in performance and calls for reinventing what we do i.e. processes 
 
4. There are  major /significant gaps in accuiring new customers and retaining them. We have not recently revamped processes  to align with specific customer segments.
 
5. There is a gap between strategy and its execution..
 
6. We have cut cost and have exhausted vertical tools of Cost Reduction.    
                                                  
7. There is an invisible piece in the business, now we realise. It is  Business Processes. It is time to look at  all the major flows like Prospect to order, Order to cash, Flow of materials, Flow of money, Flow of information and decissions, Recruit to retire, etc.
 
8. The current processes are imbalanced. They do not meet expectations of all the business stake holders as well as statutatory stakeholders.

 

 

By adayal on 9/14/2011 6:16 PM

   1.  More  dynamic the external world for a business,  the more is the need to be Process oriented 



    Functional objectives , functional structure , functional JD and functional hierarchy were all created in a        
 
    slowly changing world /almost static  .
 
    The uncertainty due to external forces was low  and  customer had little choices .
 
    Products were 2 to 5  and job changes would be once a week 
 
    People  could stay in one of   silos / chimneys in a company  for more than a decade , often 2- 4 decades and for
 
    most people work pattern each day was exactly /almost same .
 
 
    The world has now changed  for  most  businesses : 
 
     - choices / alternatives   for customers , 
 
     - competitors 30 to 50 ,
   
     - orders small , 
 
     - SKUs range from 100 to 2000.
 
     - Number of customers have increased by a factor of 10 to 1000
 
     Order inflow  pattern is  changing year-on-year and sometimes quarter-on-quarter
 
     If we are not enough horizontal  in terms of Business Model (Vison, Strategy, Objectives,  Structure, MIS) and not
 
    managing business horizontally end backwards to benefit from external changes /dynamics, we are bound to be
 
    left behind and will perish.
 


  2. Customer  and Shareholder  not ready to pay for non - valued added  activities though reasons are slightly  different 

      Non valued added cost is anethema   now . This includes :
 
      - Idle people
 
      - Idle machine
 
      - Idle assets
 
      - Idle inventory
 
      - Idle money 
 
      - slow moving inventory 
 
      - slow movement of cash 
 
      - supervision
 
      - chase 
 
      - follow up
 
      - recycle 
 
      - reject and so on
 
      Vertical tools are exhausted . Horizontal tools ( Process- centric tools need to be deployed ) are to be deployed  
 
     to identify and remove NVAs and associated resources 
 

     3. More Value /different Value - Mix to win Customers 
 
     Product and product differentiation, modification, upgradation are well known ways and continue to be          
 
     focussed. But for most Businesses,  processes remained untapped as a new way to attract, service and win      
 
     customers 

     There are almost 7-15 elements to influence customer , out of which
 
     1 to 4 are around customer  and rest around processes 
 
     Businesses will therefore have to look at  full range of  value -elements  and make choices .
 
     Process driven value elements like TAT, Service Level, Delivery at home, 24x7, etc. are untapped ways which if          
     harnessed will help to outsmart competition 

 

 

By host on 9/9/2011 10:53 PM

How does process link with other components of the business (Strategy, HR, IT etc)?

By adayal on 10/22/2010 5:03 PM
There are multiple ways to classify processes, the famous 11 are: 1. Core Process (based on CVCP) and Enabling Processes: ...

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