1 © the delos partnership 2006 sanofi aventis what is required to develop “process thinking”

1 © The Delos Partnership 2006

Sanofi AventisSanofi Aventis

What is required to develop “Process Thinking”


Requirements for Process Requirements for Process Ways of workingWays of working

1. A sponsor for “Process Ways of Working”.2. A formal definition of organisations’

processes – as-is and to-be3. Ownership of the processes – managing

cross - functionally4. Definition of a team based culture5. Pilot an area – e.g. Innovation process for

new products and new production line.6. “Educate” people into new ways of working


The Delos ModelThe Delos ModelFor Business Integration For Business Integration

InnovationInnovation

VisionVision

StrategyStrategy

PrioritisationPrioritisation

DemandDemand

SupportSupport

SupplySupply


IEL Process StepsIEL Process Steps

AACCTTIIOONN

AACCTTIIOONN

Week 1 Week 2 Week 3 Week 4

InnovationInnovationReviewReview

InnovationInnovationReviewReview

CustomerCustomerDemandDemandReviewReview

CustomerCustomerDemandDemandReviewReview

SupplySupplyPlanPlan

ReviewReview

SupplySupplyPlanPlan

ReviewReview

PriorityPriorityReviewReview

PriorityPriorityReviewReview

Stage 1Stage 1

Stage 2Stage 2

SeniorSeniorTeamTeam

ReviewReview

SeniorSeniorTeamTeam

ReviewReview

Stage 5Stage 5

Stage 7Stage 7

Stage 3Stage 3

SupportSupportReviewReview

SupportSupportReviewReview

Stage 6Stage 6

Stage 4Stage 4


Framework for Process Framework for Process ReviewReview

Process Name :Process Name :Process Owner :Process Owner :

InputsInputs Purpose/AgendaPurpose/Agenda OutputsOutputs

PeoplePeople Desired CultureDesired Culture MeasuresMeasures

Systems to support this stepSystems to support this step

Link to otherLink to other

ProcessesProcesses


Business Processes - Business Processes - TargetTarget

Capture and Track Customer Order

Handle/resolve customer queries

Measure Customer Satisfaction

Obtain sales forecasts

Manage Paper Balance

Sell part-finished goods

Manage Demand against supply

Plan Paper Production (tactical)

Plan converting (tactical)

Store paper & finished goods

Manage inter-company transfers

Distribute finished goods

Maintain Accounts

Account for fixed assets

Make payments

Collect receivables

Remunerate staff

Treasury and Asset Management

Manage expenditure

Provide Internal Audit

Recruit Staff Develop StaffPlan Staff benefits

Set Staff Objectives

Appraise Staff performance

Plan Staff Succession

Schedule Production (finished goods)

Schedule Production (paper)

Make PaperConvert Finished Goods

Manage Manufacturing Operations

Maintain Plant

Source Strategically

Source locallyPlace Purchase Orders

Receive Goods

Manage Vendor performance

Trade Marketing

Consumer Marketing

AdvertisingManage Promotions

Develop and Research Product

Manage Product specifications

Introduce new & changed Products

Retire Obsolescent products

Innovation

Identify and Prioritise business solutions

Build/maintain business and technical models

Develop new business solutions

Support users

Maintain and enhance legacy systems

Manage technical infrastructure

Manage Finance in IS

Manage HR in IS

Monitor external trends

Develop production strategy and plans

Develop Market Strategy and Plans

Develop Sourcing strategies

Develop Human Resource strategy

Co-ordinate country /regional plans

Manage New products

Manage New Activities

Procurement

Manufacturing

Order fulfilment and

customer service

Logistics, Scheduling and

Distribution

Finance processes

HR processes

IS and IT processes

Strategy and Planning


Generic Process Generic Process OwnershipOwnership

Sales Ops Quality Finance Eng’g

New Product ProcessNPD

Owner

Supply processSupplyOwner

Customer Demand ProcessDemandOwner

InnovationOwnerInnovation process

ManagementTeam

Support: Finance, IT,HR,QA, …. Support

Owner


Process OwnershipProcess Ownership

Horizontal

Owners Act at the interface with the functions, to provide the link with other processes

The Process Managers are responsible for managing the process within the « vertical » function.

Sales Ops QualityFinance Eng’g

New Product ProcessNPD

Owner

Supply processSupplyOwner

Customer Demand ProcessDemandOwner

InnovationOwnerInnovation process

ManagementTeam

Support: Finance, IT,HR,QA, …. Support

Owner


Role of process ownersRole of process owners

1. To propose the rules for the operation and management of the process, and ensure respect for the rules of the process

2. To identify the problems at the interface between the process and the functions. To act in concert with the other teams who are part of the same process

3. To take part in the definition of the operation of the supporting information systems

4. Putting the process into action: to agree the priorities and the balance between operational objectives and technical requirements

5. To develop the performance measures relevant to their process, and ensure that they are used

6. To ensure the continuous improvement of the process7. To sponsor the process managers and their teams8. To act across each of the functions to ensure the right team-based

behaviour.


Development of a cross-Development of a cross-functional culturefunctional culture

1. Identify what is good and bad about today’s culture, and what are the barriers.

2. Identify good “Values” for teamwork culture.

3. Identify actions required to implement cross-functional working.


Development of new “culture”Development of new “culture”

TraditionalTraditional NowNow FutureFutureProcess Process problemsproblems

Not my job Ownership Accountability

Management Management StyleStyle

Supervise Facilitator/

Team Leader

Coach

Working StyleWorking Style Individual Team Empowered

Teams

Training and Training and

EducationEducation

Non-existent Luxury Necessity

KnowledgeKnowledge Ignorant Understands Expert

Attitude to Attitude to PeoplePeople

Liability Cost Asset


Pilot an areaPilot an area

1. Select a “process” that requires cross-functional activity, and develop a project/team-based activity

2. Communicate to ELT that this is an example of “Process Ways” of working.

13 © The Delos Partnership 2006ORGANISATIONORGANISATIONORGANISATIONORGANISATION

Elements of Change Elements of Change processesprocesses

PEOPLE

TOO

LSPRO

CESSES


ORGANISATIONORGANISATIONORGANISATIONORGANISATION

No focus on toolsNo focus on tools

CULTURE/BEHAVIOUR

TECHNO

LOG

YWAYS O

F

WO

RKING

No tools to do the job

- Frustration- Creation of own - spreadsheets..



No focus on cultureNo focus on culture

CULTURE/BEHAVIOUR

TECHNO

LOG

YWAYS O

F

WO

RKING No focus on culture- No behaviour change- No change in heartsand minds



No focus on processNo focus on process

CULTURE/BEHAVIOUR

TECHNO

LOG

YWAYS O

F

WO

RKING No formal procedures

- Automated chaos- Anarchy

17 © The Delos Partnership 2006ORGANISATIONORGANISATIONORGANISATIONORGANISATION

Elements of Change Elements of Change processesprocesses

PEOPLE

TOO

LSPRO

CESSES

EEDDUUCCAATTII

OONN

TTRRAAIINNIINNGG


EducationEducation

1. Sharing the knowledge that is unique to the function.• Finance• Quality• Engineering• IS• HSE

2. Empowering people to take action based on their knowledge.3. Getting everyone to act as if it were their own pharmaceutical

business with customers out there to service.4. Get people to understand how to act without fear of another

“function” telling them they had got it wrong.


Dagenham’s FutureDagenham’s Future


WorkshopWorkshop

Group A

1. How much does the Dagenham SLT want “process ways of thinking and working”?

2. What would be the simplest way of proceeding?

3. What are the next actions required ?

Group A

1. How much does the Dagenham SLT want “process ways of thinking and working”?

2. What would be the simplest way of proceeding?

3. What are the next actions required ?

Group BGroup B

1.1. Assuming that Assuming that Dagenham wants to Dagenham wants to work cross-functionally work cross-functionally how would this be how would this be brought into the site ?brought into the site ?

2.2. What would be the What would be the barriers, and how barriers, and how would they be would they be overcome? overcome?

Group BGroup B

1.1. Assuming that Assuming that Dagenham wants to Dagenham wants to work cross-functionally work cross-functionally how would this be how would this be brought into the site ?brought into the site ?

2.2. What would be the What would be the barriers, and how barriers, and how would they be would they be overcome? overcome?

1 © the delos partnership 2006 sanofi aventis what is required to develop “process thinking”

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