“After reading about this subject in an article from iSixSigma magazine it got me thinking about why six sigma is so slow to deliver and methods that can be used to make it more quantifiable and sustainable.

Without day-to-day operations being under control, the benefits expounded by all other initiatives tend to be understated and gradually deteriorate/revert to what was and are hugely dependant on individuals in the process as opposed to properly defined and executed management roles.

Typically, excessive time may be spent trying to identify data/metrics that exist in disparate systems and then try to understand them in terms of indicators of potential problems.  Often, such data does not exist or is really difficult to gather and correctly contextualise.  Does this sound familiar?

What I have noticed is that in equipping Management with real-time operational intelligence coupled with operational management best practices, ensures optimal delivery of all initiatives that are applied in the operational environments.

I have written extensively on this topic and invite you to learn more about utilising good operations management and request the full paper – just complete the contact form below.  Email any questions, thoughts and experience to ask@eguk.co.za”

Follow us on twitter @ http://twitter.com/egsolutions

Join our linked in Operations Management group – http://linkd.in/cgVtz5

“Great to see that huge results are possible without changing core processes and systems”

“Focus on the operational management fundamentals brings results – there is no silver bullet!”

So what was it about?

When one considers process excellence we typically think of project(s) as the mechanism to deliver the requisite operational excellence. The above diagram illustrates that these project(s) focus on a particular scope of work and this in turn impacts on the parameters of time, cost and quality. Different project methodologies have different methods of measuring the said impact of the project on these parameters. Some are good at tracking these operational metrics while others aren’t. Six Sigma (being very strong at measurement) for example could define:

• Cycle time as the primary metric – the main focus point of the project.
• Cost as the secondary metric – another metric that too will be measured to assess impact.
• Quality as the consequential metric – the metric to ensure that we “stay honest” i.e. it is all very well that things are happening quicker but is quality improving or decreasing?

We argue that this isn’t enough!

The above triangular diagram should be extended to all of the following dimensions and should be backed by an ability to view the metric dimension in the real-time:

• Enterprise/Division/Department/Teams/Individual/Process/Task

So with reference to the above project initiatives, what are typical examples of such projects in the people, process and technology space?

• Process Space

- Implementation of continuous improvement initiatives covering a broad spectrum of methodologies including BPR, TQM, Six Sigma and Lean etc

• Technology Space

- Existing system enhancement

- Replacement of existing systems

- Implementation of ERP/CRM/BPM solutions

• People Space

- Specific training relevant to core system utilisation

- Soft-skill training i.e. better communication skills, letter writing etc

In reality, the above are characterised by large budget spend/overspend, technical complexity, missing or deficient operational intelligence data, extended time frames, often sustainability issues and, in many instances, behaviours revert to what they were before the relevant intervention due to poor contextualisation.

What could be done to better implement the above and ensure sustainability?

• Getting management to better manage the existing operational environment and in doing so support their ability to drive large operational efficiencies/cost savings with their existing process, technology and people configurations
• Equip them to manage the transition from a current to future operational environment embodied in the aforementioned project initiatives that are ever-present in our back-offices?

This can be achieved by better understanding the role of the Team Leader and Manager in the context of the people, process and technology paradigm that is revisited in terms of operational management:

1.      Process and People:

The management communities, embodying the aforementioned roles, need to understand the following core elements of what is expected of them both day-to-day and in terms of the medium-to-long-term. The following key questions need to be addressed to transform their roles:

Measurement

• What measures do I actually need?
• How should I use them?
• Do I understand the inter-play between these measures?
• Do I know how to keep these measures current?

Planning – How do I understand capacity in the real time that includes:

• People – Who is here today, what is their skill and what is their availability?
• Work – What work is here, what work is arriving and what does this convert to in terms of effort?

Communication

• Do I know how to use visuals appropriately to review a balanced metric framework?
• Do I know how to set fact-based daily, weekly and monthly targets across a balanced metric framework?
• Am I able to communicate about performance at task, process, individual and team levels?
• Do I understand the utilisation of metric information in the terms of coaching, challenging and cheerleading?

Allocation

• What are the available allocation techniques and do I understand how to use them to maximise utilisation?

Monitoring

• What is true real-time monitoring not end of day, end of weak monitoring?

Analysis and Improve

• How do I understand peaks, troughs and bottlenecks and feed this understanding into better performance management at the aforementioned levels of task, process, individual and team?

2.      Technology

• Need to be able to utilise technology to deliver the following capabilities in the real-time:
• Real-time balanced metric framework
• Capacity planning
• Short-interval scheduling
• Line-balancing

And not necessarily with having to do via integration!

In essence, all performance improvement methodology initiatives require measurement and operational management tools to help define monitor and report problems and solutions. I’d be interested to hear your experiences.  See the short client video for how our clients have approached it.

Has your BPM project delivered – please lets open this debate up and comment below?

If you would like a copy of the white paper ‘Too much BP but not enough of the M’  just complete the form below.

We tend to over emphasise the roll of technology yet fail to fully appreciate the fundamentals that truly differentiates day to day operational excellence from “betting the bank” on the latest technological fad.

Too many project-based initiatives that focus on improving efficiency and effectiveness do not sustain long after the relevant project has completed – I have heard this time and time again.

How is one able to address the following in a single focused initiative with quantifiable results as rapidly as 2, 5 months after commencement:

• Internal and external service level compliance
• Risk based quality framework
• Transformation of management’s capability to run the day to day operations
• Improved productivity by between 20 and 50%
• Reduced costs

while focusing on real-time operational activity with the existing processes and technologies?

Please share your experience with me at tonycohn@egsa.co.za  as I hear more and more often that promises of such results often fail to deliver.  Even when we do know what we are looking for….

So what do all the above mean……why all the different angles?

Well the crux of things I feel is that we need to deliver to the customers’ expectations while minimising the costs of doing so.  If this is the case what is the best path to take…..getting people to do the correct thing at the correct time…not just for a project’s sake, not because a newer technology promises the world but takes too long or is too expensive to do so. Run your business properly.  Understand what you already have in place, use what you have coupled with real-time operational metrics and change operational management behaviours.

This brings sustainability, continuity and supports the proliferation of continuous improvement best practice. What do you think and which initiative has delivered the best benefits for you?

Given my previous blog entry around the problems with the “silver bullet” mentality to solve operational management issues, I wish to emphasise my belief that by getting the day-to-day running of an operational management area to be “optimised”, a minimum of 20 and up to 50% productivity gain is easily possible – while working with the existing operational parameters (the as is) before spending huge effort (time, money) on the move to a new future view (the to be).

This then underpins the understanding of the current situation, generates productivity gains and becomes the “measurement system” to understand what is required to migrate to the “to be” in a more controlled and structured manner.

Broadly speaking operational management should:

• Define what you have in terms of current processes
• Apply real-time operational metrics to unlock the understanding
• Gain control of the current operational space by applying a tried, tested and proven operational management methodology
• Deliver rapid productivity gains
• Understand the type and appropriateness of interventions (combinations of items mentioned under the “silver bullet” point above) and be able to measure their impact in transforming from the “as is” to the “to be” environment in a controlled fashion.

And yes, be able to do this before, during or after other initiatives….

Do you agree or can you share your experience of chicken or egg?  Please comment and we can get some debate going.

1. The infamous ’silver bullet’ – whether this be BPM, New System Replacement /System Enhancement, Lean Six Sigma or BAM is characterised by the incorrect belief that in focusing all efforts on one of these initiatives our operational world will be transferred into the infamous ‘greener pasture’.

2. You can’t focus on more than one thing at a time – in conjunction with the first misconception, there is the belief that, or rather lack of understanding of, what is actually required to support the ability to do ‘multiple things/projects’.

The reality is much of the above is premised on the fact that day-to-day operations are already being run optimally…….isn’t this where so much success or failure is pinned from the get go?

During our recent presentation at the IT Web BPM summit much support was expressed around the following for:

1. The inability for BPM on its own to transform operational management and guarantee results.

2. eg’s ability to either precede or implement concurrently with a BPM deployment to ensure managerial behaviour transformation.

I have the presentation slides from this event that cover how day–to-day operations are not being run optimally and what can be done to turn this around quickly, with some outstanding results.

For anyone who is interested in receiving the slides please email tonycohn@egsa.co.za