This presentation provides a detailed overview of AREOPA\’s Total Change Management approach, including organizational change, the AIS Reference Model and the 12-steps Methodology.
2. Why CHANGE! – typical responses
EXECUTIVES:
Cope with threats of “Global Economy”
Cope with demands of existing and potential customers
Ensure company-wide strategy, consistently acted upon
Translate company strategy into goals, objectives and results, in line with
a positive perception of our customers
MANAGEMENT:
Keep budgets under control and retain quality of services to customers?
Recognize investments to assure optimal future business impact
Plan and implement these investments?
Balance between people, processes and technology to support our
customers
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 2
3. 4 Reasons for Change
1. Improve Company Image
How customers and shareholders perceive the company, the
team (people) and its/their performance
A positive perception (i.e. satisfied customers) results in
a positive image and in an active reference for the
company (free advertising!)
2. Respond to increasing Customer Expectations
Customers and shareholders become more and more
demanding, affecting products /services delivered and
increasingly the information provided as well as the treatment
by whomever is in contact with them.
Companies must meet ALL these expectations!
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 3
4. 4 Reasons for Change (continued)
3. Tackle global Competition
Products become commoditized, more generic, less unique
and are not by themselves sufficient to tie in customers.
Stay ahead of the competition and customer lock-in are
essential, through finding other and new ways to
delight the customer, anticipating – if not creating –
their FUTURE expectations!
4. Focus on Cost Reduction
Hardly a day goes by without pressure on company results
and therefore cost reductions are never far away from the
agenda. However customers do not only increase their
expectations, they also get smarter and better informed
Customers no longer want to bear the costs of their
suppliers' inefficiencies (rework) or improductivities
(activities without added value)!
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 4
5. 4 Reasons for Change (continued)
The “customer” is key to all these answers
Smart dynamic Business Processes focus on Customers and
customer feed-back through continuous monitoring of
Customer Expectations
Effective organizations combine Business Change
Management with IT Management to effectively
deploy new IT solutions
Such an organization implies an increasing impact of IT on
the company’s bottom line and future
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 5
6. Constant need for Change
Why do we need to manage change
improve Company Image
respond to increasing Customer Demands
tackle Global Competition
focus on Cost Reductions
each require continuous “CHANGE”
Transition to a Knowledge based and Service oriented
organization requires smart Business Processes
Continuous monitoring of Customer Expectations
Customers are central to AREOPA’s philosophy.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 6
7. Questions to be answered
EXECUTIVE’s concerns:
How do we transform the company to cope with threats of “Global Economy”?
How do we guide our managers to cope with changing and increasing demands of
existing and potential customers?
How do we translate the company vision into a company-wide strategy and how
do we communicate this strategy to the organization so that everybody acts to it
in a consistent way?
How do we translate the company strategy into goals, objectives and results, in
line with a positive perception of our customers?
MANAGER’s concerns:
How do we keep the budgets under control, without jeopardizing the quality of our
services to our customers?
Where do we invest to assure optimal business impact for the future and how do
we plan these investments?
How can we keep a good balance between people, processes and technology to
support our customers?
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 7
8. Need for ORGANIZATIONAL CHANGE
Mahatma Gandhi:
“For things to change, first I must change.”
New Economic Challenge:
CEO’s challenge = VISION TO VALUE
for customers, shareholders and team
for community and other stakeholders
Business Change Management
starts with
inward looking
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 8
9. Need for ORGANIZATIONAL CHANGE
Symptoms highlighting the need:
Responsibilities & accountabilities do no longer match reality
We do not adapt / respond timely & efficiently to:
changing market conditions & customer demands
Information and new obtained knowledge or the total lack thereof
Information not source originated or not driven by process owner
No added value and unnecessary/duplicated controls recognized in
process handover = bureaucracy
Incompetitiveness due to:
Uncontrolled outsourcing of activities and processes
Constant rework and non-value-added processes
Existing process-, departmental- and reporting structures
Business Change Management starts with the organization
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 9
10. The Organization Evolution Theory
Typical growth curve of an organization
Employees BOSRF
QMF
200
Crisis #3
FMF
Crisis #2
20
CMF
5
Crisis #1
Time
Adding people adds potential for inefficiency and non-
value-added processes
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 10
11. The Organization Evolution Theory
Crisis #1 = from commercial to mature organisation
Solutions:
Downsizing: 10 people out nice and cosy again
Appoint a manager to check 19 people waiting for approval at his door
Implement control systems and structure
Boss
Sales Plan Inventory data
Fin. plan Prod. plan
Sales Administration Manufacturing Logistics
Objective: information transfer everybody his own info
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 11
12. The Organization Evolution Theory
Crisis #2 = from mature to hierarchical organisation
What happens at 200 people:
24 signatures for a new pen non-value-add but increased costs
Central purchasing cheaper materials but not applicable
Everybody is busy
• Procedures, Bureaucracy
• Organisational power
• Adam Smith: division of labour
• Lack of ownership
• Contact with customer lost
• Company culture?
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 12
13. The Organization Evolution Theory
The hierarchical vertical organisation
What has happened?
More chiefs than indians
Boss
What has really happened?
Take a Sales Rep:
<25% customer facing time
Sales Admin. Mfg Log. 20% driving to the customer
+5% administration
+5% meetings
Planning 1-2% training
Deb. >50% = internal lobbying
Everybody follows the
unwritten rules of the game
Cred.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 13
14. The Organization Evolution Theory
The process
The customer is the king?
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 14
15. The Organization Evolution Theory
What is the organization’s focus
Quota JIT
Good audit Costs
Productivity
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 15
16. The Organization Evolution Theory
Hurdles for Change Management
Where is your customer focus?
The Boss ?
Culture
differences
Quota JIT
Good audit Costs
Productivity
Contradictory Objectives
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 16
17. AREOPA’s Total Change Management
rightsizing
down-sizing revenues
vs
RIGHT-sizing downsizing
Strategic Exercise expenses
Manage « people change » phases
Awareness, interest, trial, adoption
Focus on organizational development tactics
Face-to-face meetings, personal profile, Mgmt training, …
Dynamics of resistance to change
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 17
18. AREOPA’s Total Change Management
Strategic Exercise – Change is difficult!
FROM TO
Processes complex simple
standardized standardized & unique
Jobs split task multi-dimension
People controlled independent &
accountable
Focus individual team
Structure hierarchical flat
Personnel workers & managers professional & experts
Organizational change is all encompassing
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 18
19. AREOPA’s Total Change Management
Strategic Exercise – Resistance to change
Major raison for failure: lack of change skills
Management status is given, but leadership comes naturally
Matrix the formal hierarchy and the informal networks
Identify levels of resistance to change Inform a l
Influence
h ig h
lo w
lo w h ig h Resista nce
to C ha nge
Organizational turn-around requires change
rather than stabilizing orientation
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 19
20. AREOPA’s Total Change Management
Strategic Exercise – HOW?
5 management commitments to organizational change
Synchronized mission, vision, goals, objectives & tasks
Downwards communication
Business Process change:
Eliminate non-value add processes
+ BPI/BPR/BPE
Build and integrate process and systems
Institutionalize process based structures
Strategy alignment
Strategic integration
Operational integration
Functional integration
People and teams
Applications and Infrastructure
... Everything changes ...
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 20
21. AREOPA’s Total Change Management
Strategic Exercise – Everything changes!
FROM TO
Backbone function/department through-put process
Performance activity based collective result
measurement measurement measurement
Manager role supervisor coach
Director role score keeper leader
Priority financial mgmt operational mgmt
Personnel focus boss customer
Values protectionistic productive
Aiming at the “switch-over Point”
= from traditional to process organisation
CUSTOMER ORIENTED
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 21
22. AREOPA’s Total Change Management
Focus the process on the customer
Change Philosophy
Constantly renewing and improving the process
Implementation Strategy
Involve the whole organisation
Implementation Method
Process Enabled - Customer driven
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 22
23. Why Change Projects FAIL!
People are not against change
but against “being changed”
Change always causes resistance.
Underestimating the resistance
Company culture does not allow new / flexible thinking
Involving too late the real process owners and the persons who will finally
have to work within the new and changing market/customer environment
Or if they finally succeed, the project is being realized out of scope, out of
budget and/or out of deadlines.
An organizational change project is a complex entity, simultaneously
deploying changes in technology, company systems and structures. Rarely
one single party is able to offer solutions for all different aspects.
The increasing influence of Information Technology on company
management may bring together parties of totally different disciplines
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 23
24. How to avoid Change failure!
Focus on the CUSTOMER
S N E P
P + - - +
+ - + -
e.g. Kotler’s 4 P’s -> 4 C’s S
• Customer Value product B - + + +
• Costs price
• Competition promotion
• Channels place
The internal and external customers
judge the process’ output subjectively.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 24
25. How to avoid Change failure!
Focus on the PROCESSES
Input Activity Decision Wait state Output
Each step in the process adds value
Processes are visualized in function of the customer
Processes are continuously improved and renewed
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 25
26. How to avoid Change failure!
Focus on the PROCES OWNERS
Organizations can change by enabling the people who
perform the job (= process owners) deploying the change
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 26
27. AREOPA’s Change Philosophy
3 PILLARS for CHANGE
• Customers (internal and external)
• Processes (interdepartmental)
• Process Owners
(empower all of them)
“Give people chances, not guarantees” (Pres. Clinton in better times)
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 27
28. AREOPA’s Change Philosophy
I have a philosophy for CHANGE!
What now?
“Would you tell me please where I should go from here?”
“That depends on where you want to get to.”
“I don’t much care where.”
“Then it doesn’t matter which way you go!”
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 28
29. Objectives must be SMARTER
Specific
Measurable
Achievable
Realistic
Time related
Empowered
Resources
Customer oriented
Known and agreed to by all process owners
How?
Qualified (TAPE® = Timely - Accurate - Productive - Efficient)
Quantified (CoPP = Cost of Poor Performance)
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 29
30. AREOPA’s Implementation Strategy
how to make a difference for
your customers & shareholders
Improve Company Image
The things we say = the things we do
Typical organization and departmental drivers
Typical growth pains
Hierarchy building, bureaucracy & island creation
Respond to increasing Customer Demands
Increasing customer expectation (faster / cheaper) definition
TAPE grid (the 4 KPI’s): Timely - Accurate - Productive – Efficient
Ranking of priorities (internal)
Focus on top customer requirements
Everyone is involved in Customer Service Account Mngr role
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 30
31. AREOPA’s Implementation Strategy
Identify the 5 layers of Process Mapping
1. High-level Domains + inputs/outputs WHERE
2. Departments/B.U. and Process Owners WHO
3. Hand-off Process Mapping WHAT
4. Task/Activity Descriptions HOW
5. Procedures Programming HOW
Identifying Cost Reduction opportunities, using:
TRIADE thinking – potential for process elimination
CoPP analysis – practice “educated guess principle”
SIMIST® process simulation + BPI, BPR, BPE
TAPE ® grid – measure customer satisfaction
AREOPA’s Total Change Management
Process Enabled, Customer driven
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 31
33. AREOPA’s Implementation Method
Creating Awareness serves
to communicate the project objectives to all employees
to eliminate any insecurities in this respect
as an exercise in process-driven and customer-focused thinking
to create a momentum for change
to eliminate any initial resistance to change.
Process Mapping & Qualification
All business processes are identified and mapped
Then classified according to whether the processes
Supported by existing/appropriate systems and structures, or
need to be improved, renewed (reengineered) or defined (engineered)
Calculation of the Cost of Poor Performance (CoPP)
CoPP is calculated by applying AREOPA’s TAPE®-grid
management may determine priorities according to its results.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 33
34. AREOPA’s Implementation Method
Process Change Management (BPI/BPE/BPR)
consists of 12 specific steps during which the relevant processes are
improved, reengineered or engineered.
Integrated Methodology
Customer (internal & external) has to be satisfied – external customer
involved
Process oriented implies the entire business process, across multiple
departments, has to deliver added value
People actively involved in the process, will do the rethinking of the
processes
AREOPA’s Total Change Management APPROACH
Focus on the transfer of know-how to customers
Permanent support to the internal change managers
Using the AREOPA AIS® Reference Model
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 34
35. AIS® Reference Model
The AIS Reference Model (Applied Information Service) is an
implementation model built on Organizational Process
Technology
An integrated, yet modular & scalable approach, oriented
towards realization, involving all stakeholders
A practical approach to match the organisation, its in- and outputs
define the discrepancies, against changing market conditions
AIS evaluate current status, work in progress and define areas of
priority and focus
The AIS Reference Model aims at transforming classical
hierarchical organizations into
Customer Focused and
Process Driven organizations
that are better adapted to constantly changing environments
by making use of Process Servicing Technologies
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 35
36. AIS® Reference Model
Process-supporting technologies (such as ICT) created the
need for service-processes to the spectrum of business processes
The AIS Reference Model contains three building blocks:
Company Strategy Block
covering the Company’s Business Strategy, the Company’s ICT
Strategy, and its Macro Organizational and ICT Governance Structure
Process Change Block
covering the Company’s core business processes, and
IT Block
covering the Company’s IT applications and IT processes
The total project is lead by a distinct Programme Directorship
The Company Strategy directs the Business Processes
whereas the IT Strategy coordinates Information Systems
and related IT processes
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 36
37. The AIS Reference Model®
Company Strategy
Company Strategy Block Information Strategy
• Strategic Options • Aligning investment in IS
• Vision
Scope • Innovative IS for competitive advantage
• Mission • Efficient management of IS resources
Development Assess Integration Development Assess
Macro Organizational Structure ICT Governance Structure
Program Directorship
Program Directorship
Awareness, TAPE, CoPP e-Discovery - Innovation
Process Change Block IT Block
Process Mapping & ITSM
Categorization IT2D
Process OK
Acquire an IT application
Reengineering
Improvement
Engineering
Define IT
Business
based on IT strategy
Mission, Vision & Strategy
BPE
BPR
BPI
• Qualify and categorize ITSM Parameterization &
processes Implementation
IT CoPP CoPP LIST • Apply process management
methodology and tools:
Technical Training
• AIS – Simist
• TAPE-grid
12 1) 1) 1)
S 2) 2) 2)
• 12-steps methodology
T (BPR, BPI, BPE) End-User Coaching
E 3) 3) 3) • IT Mgmt application
P -- -- --
s 8) 8) .8)
M
E
T
Detailed Organization Structures (e.g. Project Mgmt, SMT’s, Outsourcing, … )
H 9) 9) 9)
O
. . . HR
D
® . . . Quality Function
12) 12) 12) Function
MIS
37
38. AIS® Reference Model
Change The AIS Reference Model was developed by AREOPA
The AIS philosophy is based on a 3-phase
implementation strategy consisting of:
Philosophy
Awareness creation
Goal definition, and
Stepwise implementation
Process-supporting technologies (such as ICT)
Implementation
Strategy
created the need for service processes to the
spectrum of business processes
In order to properly scope the extent and content
Implementation
Methodology
(and likelihood of success) of an AIS project, an
analysis is made of existing projects and activities
and these are than mapped against the AIS
Result Reference Model
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 38
39. AIS® Reference Model
Change BPI/BPR/BPE
In collaboration with IT consultants, the BPI, BPR and BPE
methodology will be applied to those processes where
improvement, reengineering or even engineering is
Philosophy
required
The methodology goes through 12 distinct steps to
create a new process that fits the Customer’s needs
Implementation
Strategy
The requirements for supporting systems and functions
(IT, HR, QM, SCM, S&M,... and Mgt Reporting) are
defined and detailed organizational structures are
Implementation
designed and implemented
Methodology
Process owners perform cost and benefit calculations
Emphasis lies on the Management of Change: guiding
people at all levels during the organizational change
Result
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 39
40. AIS® Reference Model
Change IT2D
Covers IT applications development and
deployment, starting with the choice of an IT application
in line with the IT strategy, the parameterization and
Philosophy
implementation, supported by adequate technical training
and brought to live with End User Coaching in order to
obtain the initially defined process performances
Implementation
Strategy
targets
IT Service Management (ITSM)
The virtual IT department supports the virtual organization
Implementation
Methodology IT Strategy must be clearly defined – in alignment with
the overall Company Strategy – together with the
structural and organizational elements and all IT processes
Result must be optimized and created
Methods, tools and best practices used in BPI, BPR and
BPE are also applied on the IT processes and organization
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 40
41. AIS® Reference Model
Change HR, QM, SCM, S&M,... & MR Systems
In parallel with the above mentioned process change
exercises, the supporting systems (incl. HR, QS
and Mgt Reporting Systems) are designed for the
Philosophy
core business processes
Measurement of Process Performance using the
TAPE® grid elements
Implementation
Strategy
(Timeliness, Accuracy, Productivity and
Efficiency) provides a dashboard for top
management to monitor and manage the activities of
Implementation
an organization
Methodology
Program Directorship
Coordinates and lead all above mentioned activities
Result and makes sure that all plans that have been agreed
upon are realized within the promised time
frames, involving the right people in the right
places
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 41
42. AIS® Reference Model
Change IST Categorization and CoPP analysis
The IST (=current) situation of the organization is
identified and compared with the newly defined
Philosophy
organization in the previous phase
Cross-departmental core business processes are
mapped and qualified in one of 4 categories
according to the further treatment methodology:
Implementation
Strategy Business Processes that are OK, but need better IT
Support/EUC
Business Process Improvement (BPI), with calculation
of Cost of Poor Performance (CoPP)
Implementation
Methodology Business Process Reengineering (BPR), also with
calculation of CoPP
Business Process Engineering (BPE) = new processes
required to coop with changing market conditions
Result
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 42
43. 4
reasons
You want Change ? Sales IECC
channels
EU / LIC 3P
Change
Change The 4 vital REASONS
To improve your Image: Measure
ment
3S
the things you say 12steps
must be the things you do
Philosophy
To satisfy the ever increasing PERC.
Q T A P E
Customers’ Expectations Prod./Serv
Delivery
Service
Implementation Info
Strategy
•
Cust..
To tackle your Competition Treatmnt
Score well in each segment of the TAPE® grid
Implementation
Methodology
• Cost of Poor Performance (CoPP®)
Average process loss = 23% Q
• 12% non-timelines & inaccuracy (2)
• 25% non-productivity Quality gap
Result (1)
• 33% non-efficiency / rework t (1) actually perceived
(2) expected quality
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 43
44. You want Change ?
4
Sales reasons
channels
IECC
Make it happen !
EU / LIC 3P
Change
Measure
3S
ment
12steps
Change build on 3 PILLARS
Philosophy
1. Focus on the Customer of the process
2. Continuous improving of the process
3. Emphasis on involving the whole organization through
Implementation the Process Owners
Strategy
Pioneers 1 Proof persons 10 Proof persons Outlaws
Implementation and focus on the Gauss Curve to
Methodology
overcome resistance to change
5% 45% 45% 5%
Increased customer satisfaction leads to
Result
Increased market share, sales & revenue
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 44
45. You want Change ?
4
Sales reasons
channel
IECC
We make it happen !
EU / LIC 3P
Change
Measure
ment
Change structured in 3 PHASES 12steps
3S
1. Starting creation of Awareness
Philosophy top & middle management and personnel
2. Setting goals
Process qualification & mapping
Implementation CoPP® (calculation Cost of Poor Performance) and
Strategy
TAPE® measurements
3. Implementing the change
12-Steps Methodology
Implementation
Methodology
= the new way of working
= the new processes are being prepared including all details necessary for
its realization
= it is known by which persons, in which way, at which costs the different
process steps will be executed and what the result will be achieved
Result = all tasks necessary for building the new processes are defined, detailed
and included in the cost/benefit analysis
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 45
46. From Process Mapping to
4
Sales reasons
channels
IECC
Change
Implementation EU / LIC 3P
Measure
3S
ment
1. WHO are the CUSTOMERS and
WHO are the PROCESS OWNERS 12
steps
Philosophy 2. Identify & prioritize the Customer
requirements (TAPE®)
3. Paired Weighing Ranking
Implementation 4. Project Definition
Strategy
5. Process Descriptions
6. Identify Deviations
7. Cost & Efficiencies
Implementation
Methodology 8. Improvement Plan
• Define change management areas (= WHAT)
• Request each department/function to make presentation
of HOW to resolve their inefficiencies
Result
• Combine and set total resolution
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 46
47. From Process Mapping to
4
Sales reasons
channels
IECC
Change
Implementation EU / LIC 3P
Measure
3S
ment
9. Presentation by process owners
to top management 12
steps
Philosophy We went to our customers
We listened and understood them
We did process deviation ranking
We identified where deviation occurs and the causes
Implementation
Strategy Then we involved all depts. How to improve our process
We did cost and benefit analysis
Implementation Project Team
Methodology
“We like to start the change” say the process owners
Management has no longer a choice… they will approve.
Top management
Result agreed that it has to happen = we are all willing.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 47
48. From Process Mapping to
4
Sales reasons
channels
IECC
Change
Implementation EU / LIC 3P
Measure
3S
ment
10. Implement Change
Management Project 12
steps
Philosophy • Understand and manage
the drivers of change
• Set Program Directorship
• Use the AIS Reference Model
Implementation
Strategy • Company Strategy Block
• Process Change Block
• IT Block
Implementation
11. Remeasure the TAPE grid
Methodology 12. Institutionalize
Result
... measurement = continuous process...
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 48
49. Measuring the RESULTS
4
Sales reasons
channels
IECC
EU / LIC 3P
Change CoPP calculation
(obtain costing elements, keys and data) Measur
3F
Focus on manpower, product and transmission cost ement
+ related depreciations (Activity Based Costing) 12steps
relate to timing / sequence of processes
Philosophy
= PROCESS COST (PC)
Determine the cost of deviations / non-performance (=
errors, rework, duplication, non-value-added processes,...)
use TRIADE thinking:
Implementation
Strategy
non-productivity
non-efficiency
non-accurate & non-timely (from customer satisfaction rating)
= INTERNAL FAILURE COST (IFC)
Implementation Determine the effect of internal failures to related processes
Methodology = EXTERNAL FAILURE COST (EFC)
Root-cause investigation and analysis
= APPRAISAL COST (AC)
Add Prevention Costs (waste of investment =
Result prevention, training, improvement) = max 10% of CoPP and decreases
over time
COPP = IFC + EFC + AC = real invested process cost
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 49
50. Measuring the RESULTS
4
Sales reasons
channels
IECC
EU / LIC 3P
Change
using TAPE® and CoPP® to
measure the present Measur
3F
ement
customer perceived quality 12steps
predict the improvements
Philosophy
measure the change
applying to
Information & Communication Technology (ICT)
Implementation
Strategy
Business Process …..
Improvement (BPI)
Re-engineering (BPR)
Implementation
Engineering (BPE)
Methodology
Business processes as core of performance calculation
TAPE® grid & SNEP® – measure customer satisfaction
SIMIST® Architecture – process simulation &
Result
implementation
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 50
51. Measuring the RESULTS
4
Sales reasons
channels
IECC
EU / LIC 3P
Change End-user Coaching
direct coaching & training effort Measur
3F
on nearly individual basis ement
12steps
over an extended period of time
Philosophy to get the maximum out of the application
Measurable improvements in
Implementation
Process quality & performance
Strategy End User’s efficiency
Improvements typically exceed net.
Implementation
35%, measured with the TAPE® grid
Methodology
AREOPA’s Total Change Management
Result
Process Enabled, Customer driven
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 51
52. TAPE®-grid Customer Satisfaction
Change Customer-focused change aims to measurably improve
customer satisfaction.
The TAPE®-grid measures the customer perception
Philosophy
through performance indicators related to the 3 process
components
Implementation
Strategy
Implementation
Methodology
Any improvement in customer perception results in reducing the
Costs of Poor Performance: these are the process costs due to
Result inefficiency (rework) and non-productivity in process steps, and to
the rectification of non-timeliness and/or inaccuracies of the output.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 52
53. SIMIST® Process Simulation
Change
SIMIST® Architecture
dynamic and visual simulation model of the operations
Philosophy
Implementation
Strategy A clear view
of your
organization
Implementation
Methodology
Based on the 5 layer Process Mapping
Result Hand-off Process Mapping = WHAT
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 53
54. SIMIST® Process Simulation
Change
Start with the business processes
Charting them = a first good step
Philosophy
Deploym ent Chart - Contr actor Review Policy
Return report to
Implementation
Legal Division contractor!
Legal Division
Strategy
No
Technical Contractor submits Is report Yes Notify contractor of Assign control Is data No Develop clarification Contractor receives
Initial review. Log report in. Technical Division Review and comment. Sign disapproval letter.
report for review. complete? receipt. number: approved? request. disapproval letter.
Division
Yes
Sign and approve Contractor receives
C.C. Division C.C . Division
letter. approval letter.
Implementation
Methodology But who points out improvements in this chart!
Result
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 54
55. SIMIST® Process Simulation
Change
What are efficient business processes?
Philosophy
• a group of activities aimed at a specific result
• a group of business activities (tasks) that create
added value for the customer
Implementation • a transformation of input(s) into output(s)
Strategy
Implementation focused on the customer and the result
not on the mechanism
Methodology
Result
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 55
56. SIMIST® Process Simulation
Change
• SIMIST® has been developed by AREOPA together with
leading universities in the field of simulation techniques
• SIMIST® is supported by an interactive information
system reflecting your company’s current environment
Philosophy
• SIMIST® has the ability to simulate alternatives and
anticipate future process flows with operational and
financial impact of decisions, without experimenting
Implementation with the organization itself or indeed ... the customer
Strategy
• SIMIST® shows how processes perform in terms of
• flow (bottlenecks, imbalance,…)
• statistics (service level, throughput time, capacity
Implementation
Methodology
utilization, …)
• financials (activity based costs, waste, spare capacity)
• SIMIST® significantly reduces the time required to
analyze present and future (proposed) process
Result
performance.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 56
57. SIMIST® Process Simulation
Change
SIMIST example: present situation
“Customer Service Process”
Avg : 5 / Var : 2
Avg : 5 / Var : 1
Delay : 12 sec.
Info-Desk
Philosophy Prepare Info
Inter-arrival Time : 2,5 min.
Avg : 5 / Var : 2 Avg : 6 / Var : 2
Complaint-Desk
Check/Send
Implementation Avg : 1 / Var : 0.25
Strategy
General PHONE-DESK
Avg : 1.5 / Var : 0.5
Avg : 2.5 / Var : 0.5
Order-Desk
Implementation
Methodology Order-Entry
If waiting-time > 20 sec.
Avg : 1 / Var : 0.25
Avg : 1.5 / Var : 0.25
Agenda-Desk
Result Mailing
If waiting-time > 30 sec.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 57
58. SIMIST® Process Simulation
Change
SIMIST: the wanted process flow using TAPE® grid
Timeliness 90 % Extra Delay Phone-Call : Info-Desk
Accuracy 80 % New Start
Efficiency 90 % Rework Activity
Philosophy Avg : 20 / Var : 5
Productivity 100 %
Additional
Info
Implementation
Strategy Avg : 5 / Var : 1 Avg : 30 / Var : Avg : 15 / Var : 5 Avg : 10 / Var :
10 2.5
Prepare Info Send Info Decide Order-Call
Implementation
Methodology
Avg : 15 / Var : 3
Reject
Result
Phone-Call : Order-Desk
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 58
59. SIMIST® Process Simulation
Change
SIMIST: financial representation
400000
350000
Philosophy 300000
250000
200000 Sales
Implementation Profit
Strategy 150000
100000
50000
Implementation
Methodology 0
IST IST plus What-if
Result
AREOPA
Facilitating Change Management
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 59
60. You want Change ?
4
Sales reasons
channels
IECC
We make just that happen!
EU /
LIC 3P
Change
Measure
3F
ment
AEP Knowledge Centres 12steps
Philosophy
First step: develop the Program Directorship, organized
in the AEP Knowledge Center (KC)
Selection of KC leaders, project champions and
other core team members
Implementation
Strategy
Training and certification of core team in
AREOPA’s Change Management Methodology
Knowledge Center-team – in collaboration with AREOPA’s
Implementation
SAMs, Subject-Experts and/or assigned CAPs – undertake:
Methodology
Initial Analysis Phase:
Current and intended strategic environment
1-9 of 12=step Methodology
Result Results presented by Process Owners and obtain
board, management and process owner’s buy-in
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 60
61. You want Change ?
4
Sales reasons
channels
IECC
We make just that happen!
EU /
LIC 3P
Change
Measure
3F
ment
Implementation Phase 12steps
Philosophy
Awareness creation
CoPP of top-10 processes – management selects 3-5
processes to start with
12-steps for Process Improvement – BPI
Implementation
Strategy
12-steps for Process Re-/Engineering – BPR / BPE
SIMIST
All above in parallel with 12-steps: IT2
Implementation
Present Implementation Plan
Methodology
Roll-out and Measure
AREOPA or assigned CAP (Certified AREOPA Partner) will assist, train
and guide through-out the process of up to 4 projects, gradually
Result transfer ownership to KC-Team / Process Owners, after which they
will take full ownership, train additional resources and roll-out
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 61
62. You want Change ?
4
Sales reasons
channels
IECC
We make just that happen!
EU /
LIC 3P
Change
Measure
3F
ment
End User Coaching (EUC) 12steps
Philosophy
In order for the implementation of new systems to be
successful all involved employees need to be adequately
trained in line with the processes they are part
of, particularly the End Users, who are probably the most
Implementation
Strategy
impacted by changes in their daily activities
EUC programmes are based on the expectations of both
the management and process owners and include
Implementation
measurable objectives in terms of process
Methodology
performance and specific scripts for process-based
training
EUC mentors (pedagogically trained people, not technical
Result consultants) carry out Holon sessions (individual
coaching in groups of 2 to 3 users)
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 62
63. You want Change ?
4
Sales reasons
channels
IECC
We make just that happen!
EU /
LIC 3P
Change
Measure
3F
ment
We also realize with you 12steps
End-User products
Philosophy
Measure change
Strategic Exercises
SIMIST® process simulation
Implementation
Customer Satisfaction Measurement – SNEP®
Strategy Cost Of Poor Performance – COPP®
IT Architecture
End User Training & Coaching
Implementation In B2B we make you profit through
Methodology
Transfer of know-how by (licensed)
High Level BPR body shopping
Strategic Alliances
Result Virtual Participation
In-sourcing
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 63
64. Sales
You want Change ?
chann 4
els reasons
IECC
We make it happen ! EU / LIC 3P
Change
Measure
3F
ment
We support you through 12steps
Strategic Alliances
Philosophy AREOPA Group International – a global network of
independent experts, collaborating in a closed virtual
network (GNO = Global Network Operations)
representing cross geography and industry/expertise
Implementation
Strategy AREOPA Knowledge Centres (AKC) by ECO Zone
AREOPA Training Centres (ATC) – regional & AEP location
Certified Alliance Partners
Implementation
= consultancy services providers, covering 1-all ECO zones
Methodology Fully trained and certified by AREOPA
Access to AREOPA’s Knowledge Base
Subject-Experts Insource Pool
Result AREOPA has access to subject-experts sourced from CAPs
and project outsourcing providers
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 64
65. AREOPA’s Business Proposition
Change “No Cure, ... We Stay”
AIS is a smart combination of a complete and pragmatic
Change Management philosophy and Organizational
Development and Change concepts, brought together
Philosophy
and continuously enriched with field experience
The philosophy implemented in the AIS Reference
Model leads to fixed price projects with measurable
Implementation
Strategy
and committed results, by focusing on:
Customers
Processes, and
Process Owners
Implementation
Methodology Process performance is measured and improvements are
monitored by means of TAPE® Grid Elements
Results to be achieved are defined upfront for a fixed
Result price, and AREOPA agrees to stay onboard until the
agreed objectives are achieved
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 65
66. You can Change ! Let’s start !
Change
AREOPA is the leading-edge 4
knowledge and practice provider Sales
channels
reason
s IECC
managing organizational change
Philosophy creating leverage for our partners and EU / LIC 3P
“excelleration” in business performance Measure
3S
For CUSTOMERS
ment
12steps
Implementation
Strategy Guaranteed predictable and sustainable results
Implementation AREOPA
Challenging the
Methodology
KNOWLEDGE ECONOMY
Result
and bringing the standards of
INTELLECTUAL CAPITAL to market.
AREOPA sc - CM – The Evolution of Change (scGNO20091214) 66