Accenture TM Nillezen Sustainable Performance Improvement V1 [Compatibility Mode]
- 1. Sustainable Performance Improvement “Creating a breakthrough performance with Lean Six Sigma as a vehicle for process excellence” Amsterdam, August 2010 Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
- 2. Management Summary Execution is identified as the key area of CEO attention, since execution issues directly impact business performance. Traditional improvement initiatives, aimed at overcoming execution issues, are generally incremental and not sustainable. Our proven approach focuses on creating sustainable performance improvement, by developing a continuous improvement capability. A Continuous Improvement Capability must be fully integrated with your operating model. Accenture supports capability development through a combination of leadership workshops, training & coaching, project delivery and organization transformation. This combination is tailored to meet specific client’s needs. We have a significant track record and assets to bring to our clients. Continuous improvement projects are self funding, and generally have a payback period of less than one year. Accenture uses a four step methodology towards developing a sustainable continuous improvement capability. Depending on level of process-orientation, the lead-time of one or more steps of the framework can be adjusted, in order to meet client’s needs and constraints. © Accenture 2010 All Rights Reserved. 1
- 3. Content Introduction Continuous Improvement Capability Continuous Improvement Methodology Contacts © Accenture 2010 All Rights Reserved. 2
- 4. Today’s CEO Challenge Research Identifies execution as the key area of CEO attention. Execution is getting more difficult as a result of Challenges of greatest concern speed of change, globalization and specialization Excellence in execution Sustained and steady top-line growth Execution is getting more important as a result of Consistent execution of strategy by top management more demanding customers, commoditization, and the economic downturn Profit growth Finding qualified managerial talent Customer loyalty/retention Speed, flexibility, adaptability to change Corporate reputation Stimulating innovation / creativity / enabling entrepreneurship Speed to market © Accenture 2010 All Rights Reserved. 3
- 5. Execution and Performance Issues Execution issues directly impact business performance and thereby customer- and shareholder value. Typical Execution Issues Business Performance Impact Performance Impact • High volumes of work in progress combined with typical ‘batch & queue’ processing • High operating costs • Rework, expediting, and large amount of troubleshooting • Operational planning & prioritization highly variable in nature, often • High Working capital driven by ad-hoc decision making based on opinions and circumstance • Slow to market • Long learning curves and limited standardization in processes and required skills • Low success rates • Complex organizations that are composed of multiple units/levels, deeply siloed, geographically diverse, and in which there is no clear • Low customer satisfaction line of accountability • Proliferation of products and services straining process execution • Inflexibility with limited insight in customer added value © Accenture 2010 All Rights Reserved. 4
- 6. Key Questions By asking key questions executives set a first step in overcoming the issues and becoming excellent in execution. • Do my people really know and act upon what drives cost in our business and creates value for our customers? • How much complexity do I need to be competitive and what are the real (hidden) costs of complexity? • How do I get better collaboration between functional departments? • How can I manage quality delivered and drive continuous improvement in the workplace without building more bureaucracy and without burdening management? • How much of the time it takes to get something done in my company, somebody is actually working on it (and how much is just waiting time)? • How do I reduce the errors we make and the re-work they generate? © Accenture 2010 All Rights Reserved. 5
- 7. High Performing Executors Excellent executors beat competition on simplicity, flow and discipline. Execution drivers Execution improvements Business Performance Impact • Eliminate duplication • Eliminate low value activities Low operating costs Simplicity • Eliminate re-work • Reduce work in progress • Clarify decision making authority Low working capital • Standardize work Flow • Focus on delivering value to Fast to market customers • Reduce waiting time • Reduce errors High customer satisfaction • Work fact based Discipline • Manage for results High flexibility • Build an execution culture © Accenture 2010 All Rights Reserved. 6
- 8. Sustainable Performance Improvement We see that many traditional interventions on process, systems and people are incremental and not sustainable. Our proven approach focuses on creating sustainable performance improvement, by developing a continuous improvement capability. Traditional Incremental Interventions Our sustainable approach, focused on capability development Leadership and Process Ownership Continuous Improvement Capability Development Project Performance Glass ceiling Implementation and Training Project prioritization and quick win implementation Process Traditional Interventions assessment Time Time © Accenture 2010 All Rights Reserved. 7
- 9. Content Introduction Continuous Improvement Capability Continuous Improvement Methodology Contacts © Accenture 2010 All Rights Reserved. 8
- 10. Relationship between an Operating Model and a Continuous Improvement Capability A Continuous Improvement Capability must be fully integrated with your operating model. An operating model will: A continuous improvement capability will: • Provide control mechanism for systematically • Establish a clear consistent method for identifying, identifying which processes to standardize across controlling and improving processes, ensuring structural /functional boundaries robust, sustainable management of process performance A framework for building globally reusable components Comprise a defined list of key corporate End-to- End processes (add process layer) Provide guidance to unblock the barriers to acting in the right way Deliver processes that can be deployed globally and operated locally, or as required Establish context for initiatives that deliver key components of the operating model (Organization Embed continuous process improvement thinking Design, Information, Flows, Support Systems, etc) and rigor in “Business as Usual" activity and sets standards for what should be achieved Use pilot initiatives in key areas to build skills and prove the methodology while delivering real value © Accenture 2010 All Rights Reserved. 9
- 11. Continuous Improvement Capability Development Accenture supports capability development through a combination of leadership workshops, training & coaching, project delivery and organization transformation. This combination is tailored to meet specific client’s needs. Our sustainable approach, focused on capability development Leadership and Process Ownership Continuous Improvement Capability Development Project Implementation and Training Project prioritization and quick win implementation Process assessment Time © Accenture 2010 All Rights Reserved. 10
- 12. Typical Benefits We have a significant track record and assets to bring to our clients. Continuous improvement projects are self funding, and generally have a payback period of less than one year. Quick Overview Typical Sustainable results • We have served over 200 clients world wide with process improvement initiatives • Operating costs decreased by 20% • Every engagement up to now has a pay back period of one year • Working capital decreased by 30% • Time to market decreased by 40% Accenture Lean Clients • Customer satisfaction increased by 25% • Increased overall flexibility • Increased employee satisfaction © Accenture 2010 All Rights Reserved. 11
- 13. Content Introduction Continuous Improvement Capability Continuous Improvement Methodology Contacts © Accenture 2010 All Rights Reserved. 12
- 14. A comprehensive framework Accenture uses a four step approach towards developing a sustainable continuous improvement capability. Depending on level of process-orientation, the lead-time of one or more steps of the framework can be adjusted, in order to meet client’s needs and constraints. 1. 2. 3. 4. Assess Define Implement Sustain Process model Project Charters Project Charters Continuous (Using DMAIC) Improvement 8 – 10 wks 10 - 12 wks 2 – 6 months 8 – 12 wks Approach: Advantages: 1. Early identification & prioritization of improvement 1. Start with short assessment phase & process awareness opportunities based on key business processes workshops 2. Definition of well-defined project charters, supported by 2. Use a bottom-up approach for defining project charters strong business case. Bottom-up approach leads to enthusiasm and ownership 3. Proven methodology & tools for implementing project 3. Effective implementation of project charters, leading to charters measurable bottom-line benefits 4. Focus on sustainable continuous improvement by 4. Self-funding continuous improvement organization development and training of employees © Accenture 2010 All Rights Reserved. 13
- 15. 1. Assess process model overview This phase assesses the current process model, and defines a roadmap 1. towards sustainable continuous improvement. Quick win process Assess Process model improvements are implemented immediately. 8 – 10 wks Main activities: Main output: • High-level process model • Define high level process model - using Accenture’s industry process models • Process dashboards containing overview of: level 2 process definition, functional involvement, improvement • Organize process-workshops to validate process model, opportunities and supporting applications define detailed processes (level 2 & 3), and identify area’s for improvement – using Lean process modeling techniques • Level 3 process definitions • Analyze applications supporting key business processes • Application heatmap (optional) (optional) – using Accenture’s application portfolio assessment tools • Roadmap towards sustainable continuous improvement • Prioritize improvement opportunities and define roadmap • Business case for quick win process improvements • Implement quick wins • Implemented quick win process improvements © Accenture 2010 All Rights Reserved. 14
- 16. 2. Define project charters Overview This phase uses a bottom-up approach for defining project charters. By 2. using a phased approach, with predefined gate criteria, most effort is spent Define Project Charters on improvement initiatives with the highest potential benefits. 10 - 12 wks Main activities: Main output: • Generate improvement ideas using process dashboards, workshops, expert interviews and, process observations • Customized ‘funnel’ approach for project selection • Document ideas, using standard templates, in process • Identified value levers in the business and translated into improvement database (SharePoint, lotus notes, etc.) Opportunity Areas • Define KPI’s per improvement idea, set up measurement • Detailed calculation of potential benefits per improvement systems and collect baseline data initiative • Analyze process improvement idea using process-flows • Translated opportunities into potential savings (best case and -metrics by applying lean techniques – worst case) using detailed “value tree” • Quantify potential benefits & complete project charters • Complete Draft Project Charters • Prioritize implementation of project charters based on • Scheduled project launches based on resource availability benefits and efforts © Accenture 2010 All Rights Reserved. 15
- 17. 3. Implement project charters Overview During this phase, cross-functional teams implement project charters in 3. order to achieve sustainable solutions and benefits. Team members are Implement Project Charters managed and coached by black belts. (Using DMAIC) 2 – 6 months* Main activities: Main output: Implemented process improvement initiatives, leading to: During this phase, project charters are implemented using lean tools and techniques. The five phase that implementations • Streamlined business processes, through fact-based typically go through are: Define, Measure, Analyze, Improve process improvements and Control. • Bottom-line financial benefits Each phase has specific activities, tools & techniques, deliverables and gate review criteria. • Engaged workforce, through structured approach and bottom-up idea generation For certain improvement initiatives, a Kaizen event is recommended rather than a standard 2-6 month • Skilled workforce implementation. A kaizen is a 1-week highly intensive implementation where employees are pulled away full time from their regular jobs. Kaizen events are recommended when obvious waste sources have been identified, scope and boundaries are clear and results are needed immediately. © Accenture 2010 All Rights Reserved. 16
- 18. 4. Sustain Continuous Improvement Overview 4. This phase is the final step for the creation of a sustainable continuous Sustain improvement capability and contains the embedding in the organization's Continuous operating model. Improvement 8 – 12 wks Main activities: Main output: Define role description of process managers and process consultants. • An organizational culture which shows leadership Coaching / training of process managers and business engagement and a communication strategy supportive to consultants ‘Learning & Improving’ Add process dimension to organizational model, not just for • An Infrastructure supportive to independent program process improvements but also for: internal audits, management, financial benefit tracking and delivery, and prioritization of projects, prioritization of IT change requests, recognition of ongoing successes performance appraisals based on process metrics, incentives / bonus structure based on process performance, • Availability of customized improvement methodology, etc. covering project identification, selection & execution Set in place process KPI’s on Operational Level • Trained workforce with the capability of ongoing development and knowledge management Hand over process improvement framework from project organization to business owners © Accenture 2010 All Rights Reserved. 17
- 19. 4. Sustain Continuous Improvement Dependencies ‘Handshake” among leadership about a roadmap with defined milestones and clear goals* for the middle and long term (Sponsorship from ‘leadership’ is imperative for sustainability). Working with an integrated vision, “continuous improvement will be shown throughout the whole company, of course leadership, but certainly also ground personnel”. Performance management including ‘lagging’ as well as ‘leading’ process performance indicators (e.g. lead- times, cycle times, first-time right, etc.) • Management defines (“flow-down”) process value drivers and success factors, these will be translated into operational KPI’s. Inspiring and rewarding of all employees, and stimulating continuous learning! Focus on results, supported with generic way of working, methods en techniques. Fact-based project selection, prioritizing and execution, herewith also knowing when to ‘kill’, stop a project. *derived from the desired Process Excellence maturity level (Accenture’s BPM methodology) © Accenture 2010 All Rights Reserved. 18
- 20. Content Introduction Continuous Improvement Capability Continuous Improvement Methodology Contacts © Accenture 2010 All Rights Reserved. 19
- 21. Contacts In case of any questions or comments, please do not hesitate to contact us. About Process & Innovation Performance The Accenture Process & Innovation Performance service line takes an end- Paul van Schaik (P&IP) to-end, process-based approach to address key business challenges such as complexity reduction, lean manufacturing and operations, process innovation, Accenture strategic cost reduction, and growth through innovation, in order to create Gustav Mahlerplein 90 competitive advantage for clients globally. We help our clients become high- Postbus 75797 performance businesses by enhancing the internal capabilities needed to 1082 MA Amsterdam continuously improve operational and innovation performance. Accenture enhanced its long-standing operations and strategy expertise with the 2007 +31 612824628 acquisition of George Group, a recognized market leader in process, [email protected] operational and business transformation, and innovation strategy, whose capabilities and offerings form the foundation of this new practice. Toine Nillezen (P&IP) Thomas Rieken (SCM) Accenture Accenture Gustav Mahlerplein 90 Gustav Mahlerplein 90 Postbus 75797 Postbus 75797 1082 MA Amsterdam 1082 MA Amsterdam +31613755087 +31622472119 [email protected] [email protected] © Accenture 2010 All Rights Reserved. 20
- 22. Track record overview We have a significant track record and assets to bring to our clients Quick Overview Publications Credentials • We have served over 200 clients world wide with operational excellence initiatives • Every engagement up to now has a pay back period of one year Accenture Lean Clients © Accenture 2010 All Rights Reserved. 21