process improvement and change management, 29th october 2015

Process Improvement and Change Management

Carl Halford & Elisabeth Goodman

Thames Valley Branch

29th October 2015 The Enabling Change SIG

Our theme for today and how we will explore it..

§  Organisational, cultural and other strategic change programmes are the ones that most often attract attention when talking about change. However, incremental process improvement can also significantly affect the way people work.

§  Agenda for today

1.  Introduction to the Enabling Change SIG 2.  Process improvement methodologies in relation to change

3.  Case Study

4.  Discussion /concluding messages

Speaker Profile: Carl Halford •  21 yrs IT, Office Solu3ons and Prin3ng •  Now Process Improvement leader, coach, mentor and trainer •  Process Improvement, Lean, Six Sigma, Change and Project Management.

Process Improvement – a way of life

APM Enabling Change SIG – suppor3ng M&S theme

Speaker Profile: Elisabeth Goodman •  25 yrs Pharma R&D (Informa3on Management plus..) •  Now trainer, coach, facilitator, consultant and author •  Crea3ng excep3onal managers and teams •  Change management, lean and six sigma, knowledge management, personality tools “porSolio”

Giving people the resources to be and to create navigators rather than vic;ms of change

APM Enabling Change SIG – Internal Collabora3on (SIGs & branches)

The SIG’s mission is to‘improve the change capability of organisa3ons,

teams and individuals’

Enabling Change SIG

Themes PracOOoner Groups

Events, Membership & Communica3ons

Methods & Standards

Collabora3on – External (OU, UCISA, ACMP)

Innova3on (Research, L&D, SoWware)

Collabora3on – Internal (SIG’s, Branches)

Transport

Financial Services

Public Services

Change Community

A show of hands…. v  How many of you have led or are leading:

v  change programmes v  process improvement activities

1. Process improvement methodologies in relation to change (Carl Halford) Lean Six Sigma - A Process Improvement Toolset

Process improvement Is a structured and disciplined approach in which a series of actions are carried out by a process owner in order to identify, analyse and improve a business processes within an organisation in order to meet new goals and objectives. Having these actions follow a specific methodology or strategy increases the likelihood of successful results.

What is Process Improvement

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Some examples of Process Improvement Methodologies Ø  Six-Sigma (3.4 defects per million opportunities) Ø  Lean (Waste elimination / streamlining etc.) Ø  Lean Six Sigma (Blend of Six Sigma and Lean) Ø  Kaizen (“change for better”) Ø  Design for Six Sigma (DFSS / DMADV) Ø  Plan Do Check Act (PDCA) Methodology Ø  Total Quality Management (TQM) Ø  Control Charts Ø  Plus many others

Lean Six Sigma (LSS) drives change in an organisation by inspiring people to look at their processes differently by focusing on data / data based decision making and waste awareness / elimination. However LSS itself is also change management tool that facilitates the changes that it requires, as well as those of other change initiatives in an organisation.

Process Improvement

Project Management

Change management

Can you deliver Process Improvement without Change and Project management?

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Change Management and Project Management are essential to successful Process Improvement initiatives

5 phases to project success applied to existing processes

LSS DMAIC Methodology

Define Measure Analyse Improve Control

Set project goals and boundaries based on the needs of the business, the customer, and the process. Select and begin defining the project value stream Key is Voice of the customer (VOC) – 4 types of customers - •  External

customers, •  Internal customers, •  Organisation •  Employees

Build a factual understanding of existing conditions and establish a baseline capability level. Complete a current state value stream map to establish a process baseline for the value stream.

Develop the theories of root causes, confirm the theories with data and identify the root cause (s) of the problem. Analyse the value stream to design a value stream with the shortest lead time, the highest quality and the lowest possible cost.

Develop, implement and evaluate solutions targeted at the verified root cause. Design, implement and debug a cell with the shortest lead time, the highest quality and the lowest cost possible

Ensure the new value stream meets / exceeds goals, that the problem stays solved, and that the methods can be further improved.

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Process Improvement (DMAIC) / Change Management (ADKAR)

Create Desire to Change amongst those affected

DEFINE

MEASURE

ANALYSE

IMPROVE

CONTROL

Build Awareness of the change

Train Knowledge for the change

Ensure Ability to change

Reinforcement of the change

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Change Management Activities / Deliverables under DMAIC framework

Project management / Change management activities and deliverables

DEFINE MEASURE ANALYSE IMPROVE CONTROL Ø  Assess change

Ø  Determine impacted groups

Ø  Evaluate group sponsors

Ø  Define the change as part of the charter

Ø  Assess sampling of impacted individuals

Ø  Determine communications

Ø  Design the communications feedback processes / tools


Ø  Determine impacted group

Ø  Identify sources of resistance


Ø  Analyse communications

Ø  Identify new roles, tasks, tools

Ø  Assess behaviour change

Ø  Identify implementation issues CHANGE

MANAGEMENT ACTIVITIES

CHANGE MANAGEMENT DELIVERABLES

Ø  Assessment results

Ø  Change definition

Ø  Change management strategy

Ø  Risk management plan

Ø  Communication plan


Ø  Sponsor plan

Ø  Updated communications plan


Ø  Sponsor plan

Ø  Updated communication plan


Ø  Training plan

Ø  Training plan and tools

Ø  Recognition and rewards programme

Ø  Integrate into performance management system

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Define

Understand the customer

Problem & Goal Statement and Estimated Business Benefits

Define the business case

Manage the Project

Gain Project Approval Obtain sign off for

Project Charter

Project Plan & Stakeholder Analysis

Define the Process

SIPOC (Map current Process)

Voice of the customer & Kano Analysis

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KANO Model – Different Types Of Needs And Requirements

Satisfaction +

- Dissatisfaction

Service Dysfunctional

Service Fully

Functional

One- Dimensional Delighters

Must Be

Ø  Must Be or Must Haves” (Dis-satisfiers) - Requirement that can dissatisfy but cannot increase satisfaction

Ø  More is Better, One-Dimensional (Satisfiers) - The more of these requirements that are met, the more one is satisfied

Ø  Delighters - (Attractive Qualities) - If the requirement is absent it does not cause dissatisfaction, but It will delight clients if present

Requirements Type - Definition

Not all requirements have the same priority to all customers –

you must determine what is really important to yours.

The Kano model helps determine the priority of the customer needs.

Todays delighter become tomorrows must be ! 15

Team activity – 10 minutes and 5 minute feedback

Breaking into groups, nominate one spokes person per group. We would like you to briefly execute a KANO analysis for using a Dry Cleaner called Spic and Span As a team, Identify three… Ø  Must Haves (Dis-satisfiers) - Requirement that can dissatisfy but cannot increase

satisfaction

Ø  More is Better - One-Dimensional (Satisfiers) - The more of these requirements that are met, the more one is satisfied

Ø  Delighters - If the requirement is absent it does not cause dissatisfaction, but It will delight clients if present

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KANO – ‘Spic & Span’ Drycleaners

MUST HAVE’S § 

MORE IS BETTER § 

DELIGHTERS §  What would Satisfy, Please and

Delight the Customer? Where are we, Where do we want to

be?

Analysis of what would delight the Customer… 17

KANO – Spic & Span Drycleaners

MUST HAVE’S §  No marks / stains left on clothes §  Clothes returned on hangers & in plastic §  Correct clothes returned

MORE IS BETTER §  Price §  Quick Turnaround Offered §  Convenient Location §  Extended opening hours

DELIGHTERS §  Free Collection & Delivery §  Same day cleaning as standard §  Loyalty programme – free / discounted

cleaning after a set number of visits

What would Satisfy, Please and Delight the Customer?

Where are we, Where do we want to be?

Analysis of what would delight the Customer… 18

The Change Space Process Improvement, specifically Lean Six Sigma is a catalyst for “Change” in three areas …

Team (Influence)

Organisation (Accept)

Personal (Control)

Personal Ø  Moving Through Uncertainty Ø  Overcoming Doubt Ø  Teaming Ø  Applying New Methods and Tools Ø  Accepting Accountability

Organisation Ø  Organisational Resistance Ø  Culture of Intuition Ø  Organisational Stress Ø  Layer of Mud

Team Ø  Providing Direction Ø  Advocating LSS Ø  Offering Encouragement Ø  Building Team Equity

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Change Agent Methods

To address the three areas of change, Change Agents frequently leverage …

Ø Proven approaches / methodologies / tools - successfully deliver the project and transition from the old way of working to new

Ø  Team Building – structuring project teams to leverage individual strength areas to accomplish the objectives of the process improvement project

Ø Style Assessment – a technique for understanding individual approaches to change

Ø Knowledge and understanding – methods for managing emotions in ourselves and others during the process of change and transition

Team (Influence)

Organisation (Accept)

Personal (Control)

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Questions

2. A case study

(Elisabeth Goodman)

As you listen… think about:

a)  What were the critical success factors?

b)  What were the challenges?

Case Study

Developing an OperaOonal Excellence Programme for a CRO -‐ 1

The context 1. 70 staff – 2 locations: Lab and Offices (France) 2. Several coincident changes:

1.  Building and transitioning to a new laboratory facility 2.  Responding to new GLP requirements 3.  Accreditation of the Animal Laboratories 4.  Developing a new HR performance culture.

3. Hierarchical organisational structure

Case Study


Activities carried out over 18 months 1.  Project management guidance, coaching and support for Lab Transfer 2.  Assisted with design and analysis of ‘Voice of the Customer’ survey 3.  Developed / facilitated Lean and Six Sigma ‘operational-excellence’

workshops with representatives from all areas of the business 4.  Coached sub-teams to implement improvements 5.  Worked with external consultant to explore how on-going ‘operational

excellence’ could be incorporated in the HR performance process 6.  Took sub-set of staff through advanced training to attain Green Belt

accreditation in Lean and Six Sigma. 7.  Guided the team in how to embed ‘operational excellence’ as a way of

working.

Case Study


Outcomes 1.  Lab Transfer completed on schedule 2.  Voice of the Customer survey had a 60% response rate and significantly

enhanced the quality of interactions with clients. 3.  More than 20 improvement opportunities were identified and implemented,

involving staff across all scientific and business areas 4.  New competencies for on-going ‘operational excellence’ incorporated in HR

performance process 5.  4 staff completed Green Belt accreditation 6.  Responsibilities and a framework for on-going ‘operational excellence’

incorporated in the organisation’s management programme

Case Study


Factors contributing to success 1.  Single point of contact plus regular access to CEO 2.  Development (and implementation) of change plan 3.  Use of reps in each department 4.  Focus on tangible and ‘important’ improvements 5.  Context of end-to-end process 6.  Engagement with external customers 7.  Regular communication with all staff – with visible information in common

area Challenges 1.  Full engagement of executive team 2.  Embedding of ‘operational excellence’ framework

3. Discussion / concluding messages

§  Each other §  Events §  Micro-‐site

§  Newsle[er §  Spark Collabora3on

§  Contact us! [email protected]

[email protected]

Resources available to help you take this further

Appendix

Phase I Discovery

Define

Phase II Requirements

Define

Phase III Validation

Measure/Analyse Improve/Control

Phase IV Implementation

Planning Improve/Control

Phase V Implementation Improve/Control

Phase VI Post

Implementation Control

> VOC -statement of work > Pareto diagrams > Fishbone diagram > FMEA > Process flow > Control plan > Scope definition, objectives > Assumptions > Risk process > Project deliverable checklist

> Requirements writing > Criteria for project completion > Communication plan > Responsibility assignment matrix > Risk process > Change management > Lessons learned > Weekly team meeting

> Cost estimating > Work breakdown structure – Cost budget – Schedule > Gauge R&R > Pareto analysis > FMEA > DOE > Risk process > Change management > Earned value analysis > Lessons learned > Weekly team meeting

> Recommend solutions > Recommend controls of solutions > Design recommended solution > Design controls > Risk process > Change management > Earned value analysis > Lessons learned > Weekly team meeting

> Implement process improvements > Project process monitoring with countermeasures and controls > Purchase capital > Test solution > Risk process > Change management > Earned value analysis > Lessons learned > Weekly team meeting

> Measure for completion of objectives > Repeat at 3 months then again at 6 months > Controls review > Close project > Project book archive > Risk process > Change management > Lessons learned > Weekly team meeting

Senior management approval to continue the project

Stakeholder approval to continue the project

Project Sponsor approval to continue the project

Stakeholder approval to continue the project

Project Sponsor approval to continue the project

Project success or failure

Integration of Project Management, Six Sigma and Change Management within the Project Life Cycle

Change Management and Project Management are essential to successful Process Improvement initiatives

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Measure

KPI’s – May exist or may need to be developed

Obtain sign off for project charter

Example tools include histograms and time series plots to identify trends over time

You need to know your data is accurate using Measurement System Analysis – Tools vary dependent on the type of your data.

Will you use all data or just a sample, if sampled how big will your sample be. How often will you collect your data. Is your Data Discrete or Continuous?

Collect Process Data

Develop Process Measures

Understand Process Behaviour

Baseline process Capability & Potential

Check the Data Quality

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Analyse

How does the process actually work – Detailed process mapping is key. Also tools such as Pareto Charts and FMEA

Use correlation & Regression

Use of multiple tools depending on Data type

(Potential Root Causes), Fishbone diagram & 5 Whys

Develop Theories & Ideas

Analyse the Process

Verify Root Causes

Analyse the data

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Improve

Brainstorming, benchmarking

A Pilot study provides useful information before full implementation. Measure using your previously identified KPI’s

Using FMEA to understand impact and risk

Group your ideas and identify best solutions Select the Best Solution

Generate Solutions

Pilot & Implement

Assess the risks

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Control

Use a control plan, only key KPI should now be tracked

Complete project report

Use Control Charts

Have the solutions become standardised process? Document & Standardise Solution

Implement ongoing measurement

Close the project

Quantity the Improvement

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