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© 2009 AREOPA


    Developed for
                                                                                                                  Change


        Insert Client
         Logo Here                 The Evolution of                                                             Philosophy


                                       Change
                                                                                                               Implementation
                                                                                                                  Strategy




         Sales
       channels
                  4 reasons
                     IECC
                                   Fashionable Methodologies                                                   Implementation


                                   in tune with the Digital Age
                                                                                                                Methodology
 EU / LIC                     3P



   Measure
                         3S
    ment




                                                                                                                 Result
             12steps




        Confidential, not to be disclosed without
        written approval of the author(s)           AREOPA sc - CM – The Evolution of Change (scGNO20091214)                 1
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
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 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
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
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
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
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
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
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
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
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
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
The Organization Evolution Theory
The process


                              The customer is the king?




              AREOPA sc - CM – The Evolution of Change (scGNO20091214)   14
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
AREOPA’s Implementation Method




             AREOPA sc - CM – The Evolution of Change (scGNO20091214)   32
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
67

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The Evolution Of Change

  • 1. © 2009 AREOPA Developed for Change Insert Client Logo Here The Evolution of Philosophy Change Implementation Strategy Sales channels 4 reasons IECC Fashionable Methodologies Implementation in tune with the Digital Age Methodology EU / LIC 3P Measure 3S ment Result 12steps Confidential, not to be disclosed without written approval of the author(s) AREOPA sc - CM – The Evolution of Change (scGNO20091214) 1
  • 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
  • 32. AREOPA’s Implementation Method AREOPA sc - CM – The Evolution of Change (scGNO20091214) 32
  • 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
  • 67. 67