Business Process Reengineering Center of Excellence BPR Co

Business Process Reengineering Center of Excellence (BPR Co. E) BPR Foundation Training – Day 1 Innovating The Enterprise

GROUP ACTIVITY: REENGINEERING CHOCOLATE BAR PACKING PROCESS Objective: Reengineer the packing process so you can fit 50 bars inside the box instead of the former 30 bars. Considerations: Use any supplies available to you Final product must be packaged securely to avoid potential damage The box should be able to close flat for efficient shipping 2

TRAINING OVERVIEW 3

BPR COE VISION AND MISSION The Business Process Reengineering Center of Excellence (BPR Co. E) is the primary service provider and source of expertise for BPR services across the Army Enterprise. The services transform processes to achieve cost savings and deliver Readiness at the best value for the Army. Empower the Army enterprise to deliver innovative BPR and achieve world-class Readiness To enable BPR throughout the enterprise through training, guidance, and execution si Vi s ice rv Se 4 Mission on Vision Innovating The Enterprise to Deliver Readiness at Best Value

BPR FOUNDATIONAL TRAINING STUDENT LEARNING OBJECTIVES Objectives Student Learning Outcomes • Know the basic terms and principals of BPR Principles BPR Requirements & Value Methodology & Tools Practical Application 5 • Be familiar with the value garnered from successful execution of BPR and the requirements to conduct BPR within the Army • Understand the steps of the Army BPR methodology and be able to support the execution of a BPR effort • Demonstrate the ability to utilize tools, templates, and best practices when executing a BPR project

GROUND RULES Breaks and Lunch Restroom location Prefer to keep computer and phone use to a minimum This is a judgment free zone – don’t be afraid to share your experiences and ideas and be open to your colleagues’ ideas! Feel free to speak openly – there will be no attribution to any statements or ideas shared during this training ……. ? 6

WHAT IS A PROCESS? TERMS AND DEFINITIONS 7

DEFINITION OF A BUSINESS PROCESS A business process is the set of activities, decisions, interactions and behaviors of people, technology, and systems that transform inputs into outputs to achieve desired business/mission outcomes. Inputs People, Technology, Systems 8 Outputs Activities Stakeholders & Outcomes

DEFINITION OF AN ACTIVITY An activity is a major unit of work to be completed in achieving the objectives of a process. An activity has precise starting and ending dates, incorporates a set of tasks to be completed, consumes resources, and results in work products. 9

DEFINITION OF A TASK A task is the smallest unit of work subject to management accountability. A task is a well-defined work assignment usually assigned to one person. Related tasks are grouped to form activities. 10

DEFINITION OF A PROCESS MODEL A process model is the analytical representation or illustration of an organization’s business processes. Process models are used to map out an organization’s current (or “as-is”) processes to create a baseline for process improvements and to design future (or “to-be”) processes. 11

TYPES OF PROCESSES Business processes are used to demonstrate and shape the way an organization executes its operations across all organizational levels and functions. Managerial Operational Business processes that govern the operations of the enterprise. Typical management processes include strategic planning and corporate governance. Core processes that deliver the primary mission and objectives of the enterprise, and as a result are the center of value creation for the organization. Typical operational processes include Engineering, Purchasing, Manufacturing, Marketing, and Sales. Supporting Enabling processes that allow for the core processes to be performed. Typical supporting processes include Finance, Information Technology, and Service Delivery departments such as Project Management and Process Improvement, as well as Organizational Development and Customer/Technical Support. 12 Source: Boutros & Purdie, 2014

TYPES OF PROCESSES - EXAMPLE Developing mission statement Managerial Operational Supporting 13 Changing organizational structure Procuring coffee beans Brewing cold brew coffee Hiring baristas Paying for store rental space

EXERCISE #1: DIFFERENTIATE BETWEEN ACTIVITIES AND TASKS Processes can be decomposed into activities and tasks. There can be many activities within a process, and there can be many tasks or no tasks within an activity. Arrange your cards into the correct category, differentiating between activities and tasks for the following process: “Lunch At Your Favorite Restaurant” 14

PROCESS EXAMPLE WITHIN THE GCSS-ARMY SYSTEM Material Request Inputs People, Technology, Systems Outputs Activities & Outcomes Customer submits a material request (e. g. , via ULLSAE/E, SAMS, PBUSE) that then is transmitted to GCSS-Army Stock Transport Order Verify Funds Release Strategy Check for On-Hand Stock Decision for On-Hand Stock o o Decision Point with Conditional Outcomes 15 Stakeholders If not, submit Purchase Req. If yes, submit Transfer Order Outbound Delivery Post Goods Issue Delivery of Goods (Inbound Delivery) Goods Receipt Customer picks up Material with MRO Requested Materials Received Funds transferred Stock and Storage Updated Reparable Management Process Integrity Increased Equipment Readiness

PROCESS EXAMPLE WITHIN THE GCSS-ARMY SYSTEM – TASK FOCUS FOR VERIFY FUNDS Material Request Inputs People, Technology, Systems Customer submits a material request (e. g. , via ULLSAE/E, SAMS, PBUSE) that then is transmitted to GCSS-Army Outputs Activities & Outcomes Verify Funds o o 16 Stakeholders Determines how much additional funding is available if all expected credits are received using the FBL 5 N report. Establishes whethere any unmatched collections (UMC) that can be used as additional sources of funding for reparable management turn-ins that do not have a corresponding Return (ZRL or ZRX) PR (walk through) in GCSS-Army using the FAGLL 03 report. Obtains the total value of expected and open credits using the Credit Status Report (BI). Cross-walks the logistics transactions to the financial transactions using the ZFSC 5 and ZFSNC 5 reports. Requested Materials Received Funds transferred Stock and Storage Updated Reparable Management Process Integrity Increased Equipment Readiness

PROCESS EXAMPLE WITHIN THE GCSS-ARMY SYSTEM

EXERCISE #2: OUTLINE A PROCESS Talk amongst your group and outline an example process you are familiar with using the process framework. 18

WHAT IS BPR? BASIC BPR CONCEPTS 19

DEFINITION OF BUSINESS PROCESS REENGINEERING Innovation and Sustainable Results Core Tenets BPR is not seen as a continuous improvement method but rather as a method for organizations that need dramatic and exponential improvement in short order (Reinventing) BPR focuses on processes rather than on tasks, jobs, or employees. BPR endeavors to redesign the strategic and value-added processes that exist within an organization. “BPR is a logical methodology for assessing process weaknesses, identifying capability gaps, and implementing innovation and optimization opportunities to achieve breakthrough improvements in operational performance. (AR) 5 -1

PROCESS IMPROVEMENT PRACTICES Other Process Improvement Methodologies include Total Quality Management (TQM), Six Sigma, Lean, and Kaizen. TQM Organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers. Six Sigma Lean Kaizen 21 Seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) to reduce process variation and aims to reduce that variation enabling a virtuous cycle of iterative improvements towards the goal of continuous flow. Traditionally focuses on the elimination of the waste classified as defects, and aims to achieve continuous flow by tightening the linkages between process steps. A Japanese word that translates to "change for better", and refers to any improvement, onetime or continuous, large or small. The cycle of kaizen activity can be defined as: "Plan → Do → Check → Act” (PDCA).

THE PROCESS IMPROVEMENT ECOSYSTEM What’s the main difference between the different methodologies? Process Improvement Radical Change Continuous Process Improvement (CPI) TQM Six Sigma Lean Kaizen BPR 22

EXERCISE #3: NEED FOR BPR Talk amongst your group to complete the exercises. Apply the checklist below to determine whether BPR is most appropriate solution approach. BPR OR q You are interested in significantly improving a process from a cost, quality and delivery perspective and all factors are of the utmost importance q You are interested in improving how employees monitor and control a current process (e. g. , performance management) q You are looking to fundamentally rethink or redesign an existing process or to create the process from scratch q You are interested in improving a process from primarily a quality perspective q The overall focus is on transformation of cross-functional or cross-domain processes q You are looking for minor improvements enhancements to a an existing process q You have already attempted to improve a process via incremental changes q You desire to conduct small or incremental changes to improve an existing process q Stakeholders may require detailed training on the new process q You are in the process of performing a system acquisition 23 Continuous Process Improvement or

BPR IS FOR CROSS-FUNCTIONAL PROCESSES Sales Goal: Sell More Order Processing Customer Support Supply Chain Goal: Process Faster Goal: Resolve Issues Goal: Deliver Products CPI Focus BPR Focus Goal: Increase Quality, Availability, Functionality, or Dependability BPR Focus Goal: Synchronize sales and inventory 24 BPR Focus Goal: Reduce call volume through enhanced supply chain

CROSS-FUNCTIONAL PROCESSES WITHIN THE CONTEXT OF THE ARMY : BMA DOMAINS AND END-TO-END PROCESSES NIMA The BMA is broken up into five domains: BMA WMA EIEMA End-to-End business processes span one or more domains and trace activities from “factory to foxhole” Lines of Business (Lo. B) Each domain is responsible for multiple Lo. Bs Financial Mgmt and Control (FM&C) Acquisition • Acquisition Mgmt • Logistics Acquisition Mgmt • Test & Evaluation • Army Operations Mgmt • Budgeting and Modernization • Architecture • Medical Acquisition Mgmt • National Guard Acquisition Mgmt • Accounting • Budget Mgmt • Cost Mgmt • Planning, Programming, and Budget Formulation • Financial Decision Support Analysis Human Resources Mgmt (HRM) • Structure • Acquire • Distribute • Develop • Deploy • Compensate • Sustain • Transition • Training Installations, Energy, and Environment (IE&E) • Base Closures • Army Construction • Army Housing • Energy & Sustainability • Environmental Mgmt • Facility Operations • Family & Community Services • Safety & Occupational Health • Sustainment Restoration Modernization Logistics • Ammunition • Basic Issue • Enterprise Resource Planning • Integrated Logistics Support • Maintenance • Other • Property • Supply • Transportation • War Reserve Acquire-to-Retire (A 2 R) Market-To-Prospect (M 2 P) Budget-to-Report (B 2 R) Order-to-Cash (O 2 C) Concept-to-Product (C 2 P) Plan-to-Stock (P 2 S) Cost Management (CM) Procure-to-Pay (P 2 P) Deploy-to-Redeploy/Retrograde (D 2 RR) Proposal-to-Reward (P 2 R) Environmental Liabilities (EL) Prospect-To-Order (P 2 O) Hire-to-Retire (H 2 R) Service Request-to-Resolution (SR 2 R) Service-to-Satisfaction (S 2 S) 25

CROSS-FUNCTIONAL PROCESSES WITHIN THE CONTEXT OF THE ARMY : EMPLOYEE TRANSFER EXAMPLE Business Mission Area (BMA) Domains Impacted Acquisition Financial Mgmt and Control (FM&C) üIdentity and Access Management Human Resources Mgmt (HRM) üPayroll üBenefits Installations, Energy, and Environment (IE&E) Logistics üGFE and network access üBuild a new cube Employee Transfer End-to-End Business Processes Impacted Acquire-to-Retire (A 2 R) Market-To-Prospect (M 2 P) Budget-to-Report (B 2 R) Order-to-Cash (O 2 C) Concept-to-Product (C 2 P) Plan-to-Stock (P 2 S) Cost Management (CM) Procure-to-Pay (P 2 P) Deploy-to-Redeploy/Retrograde (D 2 RR) Proposal-to-Reward (P 2 R) Environmental Liabilities (EL) Prospect-To-Order (P 2 O) Hire-to-Retire (H 2 R) Service Request-to-Resolution (SR 2 R) Service-to-Satisfaction (S 2 S) 26

CROSS-FUNCTIONAL PROCESSES WITHIN THE CONTEXT OF THE ARMY : GCSS-ARMY EXAMPLE Business Mission Area (BMA) Domains Impacted Acquisition Financial Mgmt and Control (FM&C) Human Resources Mgmt (HRM) üFunding for material Installations, Energy, and Environment (IE&E) Logistics üLogistics transactions üResponsible for system GCSS-Army Material Request Process End-to-End Business Processes Impacted Acquire-to-Retire (A 2 R) Market-To-Prospect (M 2 P) Budget-to-Report (B 2 R) Order-to-Cash (O 2 C) Concept-to-Product (C 2 P) Plan-to-Stock (P 2 S) Cost Management (CM) Procure-to-Pay (P 2 P) Deploy-to-Redeploy/Retrograde (D 2 RR) Proposal-to-Reward (P 2 R) Environmental Liabilities (EL) Prospect-To-Order (P 2 O) Hire-to-Retire (H 2 R) Service Request-to-Resolution (SR 2 R) Service-to-Satisfaction (S 2 S) 27

EKR The Enterprise Knowledge Repository (EKR) is a data repository that captures business architecture and related information in single location for use across the Army business enterprise. The purpose of EKR includes: ü One data repository could consolidate, rationalize and integrate different architecture products ü Leverage best-of-breed modeling tools and capabilities (ARIS) ü Integrate those products into core Enterprise Resource Planning systems ü Capture and manage architecture information across the lifecycle of an investment ü Enable the Army to better follow and comply with the Department of Defense architecture compliance requirements. 28

WHY USE BPR? REQUIREMENTS AND VALUE 29

REQUIREMENTS OF BPR WITHIN THE U. S. ARMY BPR is important to the Army for the following reasons: 30 Title 10 of the U. S. Code, Section 2222 states that the Secretary of Defense shall ensure that defense business processes are reviewed, and, as appropriate, revised through business process reengineering. Calls for the certification of funds if the appropriate pre-certification authority for the covered DBS program has determined that appropriate business process reengineering efforts have been undertaken. According to the Army Business Strategy (ABS) 2017 -2021, an objective outlined is to “develop and institutionalize the Army's approach to Business Process Reengineering (BPR) and Continuous Process Improvement (CPI) to optimize cost savings and to improve the Army's ability to deliver readiness at best value with the highest possible product and service quality, on-time, every time, anywhere. ” Clinger-Cohen Act of 1996 states the need for the Federal Government to reassess its business processes. Federal Government agencies and departments are required to determine whether their administrative and mission-related business processes should be improved before investing in major information systems to support them. Department of Defense Instruction (Do. DI) 5000. 75 states that BPR is a required component of the Business Capability Acquisition Cycle (BCAC) which allows functional proponents to determine the best means to deliver needed capabilities.

WHY IMPROVE PROCESSES? BAD THINGS HAPPEN WITH BAD PROCESSES Don’t let this happen to you! Poor mission agility Bottlenecks Risk Disconnected and inefficient realization processes productivity Slow/ failed Poor visibility Over-taxed Inconsistent product outcomes resources and control development Dissatisfied customers 31 Wasted funds Poor internal control and mgmt No activity audit trail

IMPACTS OF BAD PROCESSES UNIQUE TO THE U. S. ARMY BPR Prevents Unnecessary IT Acquisitions! MYTH: AUTOMATION = EFFECTIVENESS Bad processes won’t be helped by automation Being efficient doesn’t mean you will be effective Re-think how the work can be done to solve the root problem 32

BENEFITS OF BPR Delivers improvements in cost, productivity, timeliness and quality Reengineered processes increase the ability of employees to add value and reduces the stress and burden from juggling multiple roles due to hiring freezes Drives efficiency, effectiveness and agility Delivers Drives Improvements Efficiency Increases Improves Employee Visibility Contributions Improves customer service levels and increases customer satisfaction through process optimization 33 Improved Operational Performance Improves Customer Satisfaction Enables innovative solutions to process problems by eliminating constraints of status quo and group think mentalities Improves visibility and transparency of the process to all levels of the workforce (e. g. , supports training) Delivers Readiness at Best Value Enables Satisfies U. S. Innovation Army Requirements Manages Risk Helps manage risk and meets everchanging compliance regulations Improves Integration High quality and efficient processes enable the Army to deliver Readiness at best value Satisfies requirements of the investment certification and acquisition process while improving performance and creating value Improves communication and integration between mission areas involved in the process (e. g. , who is responsible for what and when)

WHEN USE BPR? SITUATION TRIGGERS 34

BPR PROJECT TRIGGERS There are three (3) high-level scenarios that often trigger the need to conduct a BPR project: You want a different outcome (e. g. , your mission changes) You want the same outcome, but a market or technology disruption causes you to change the way you work (e. g. , airbnb vs. hotels) You want the same outcome, but a non-technology factor causes you to change the way you work (e. g. , a change in policy or people) 35

HOW TO THINK ABOUT BPR? USING INNOVATION 36

WHEN THE SITUATION CALLS FOR SOME SERIOUS INNOVATION Apollo 13 was the seventh manned mission in the American Apollo space program and the third intended to land on the Moon. The craft was launched on April 11, 1970, at 13: 13 CST Kennedy Space Center, Florida, but the lunar landing was aborted after an oxygen tank exploded two days later, crippling the Service Module (SM) upon which the Command Module (CM) had depended. Despite great hardship caused by limited power, loss of cabin heat, shortage of potable water, and the critical need to makeshift repairs to the carbon dioxide removal system, the crew returned safely to Earth on April 17 37

A STARTING POINT FOR INNOVATION IN BUSINESS PROCESSES –PRACTICES FOR UNLEASHING THE VALUE OF DIGITALIZED PROCESSES Rather than merely inserting newer digital technologies into existing processes, rethink the work itself and how it is best accomplished. The right work for people will be those areas that require a human touch for strategic reasons. Think of exceptions as indicators of positive motivation and exceptional handling, not as aberrant or deviant behavior. 38

THE DIGITAL AGE IS DRIVING INNOVATION IN BUSINESS PROCESS MANAGEMENT Advancements in technology and its pervasiveness in human lives is driving change in how humans interact and behave with machines and one another Technology is now an extension of the human rather than being something humans only interact with 39 Sm M ar ac t hin es Com p Ever uting ywh ere 3 D et rn Printing nte e I gs Th hin T of eal e R g th he rgin d t Me ld an orld r Wo ual W t Vir Technology presents a unique opportunity to transform the way work is viewed and done providing innovation opportunities in business process management nt /Clie d u Clo puting Com Softw ar Applic e-Defined Webations a Scale IT Infrast R ructur nd e Ba isk. Se se cu d Th rit e N y Re alit ew IT y E me rge s Technology may serve as a primary catalyst or disruptor in business and mission delivery causing the need for BPR Digital Business Intelligence Everywhere tex t n Co ich ems R yst S Advanced, Pervasive and Invisible Analytics

INNOVATION IN BPR IS ITERATIVE AND COMES FROM MANY SOURCES Leveraging the opportunities for innovation within BPR is key to its success Innovation can take place ins several ways and often all are used throughout a BPR project Innovation is as much art as it is science and requires several iteration cycles 40

LARGE GROUP EXERCISE – GROUP DISCUSSION FOR INNOVATION IDEATION In the near future, how will technology change the way Army personnel deliver on the mission (e. g. how do they work)? 41 Sm M ar ac t hin es Digital Business Intelligence Everywhere Advanced, Pervasive and Invisible Analytics tex t n Co ich ems R yst S 3 D Printing What technology implications is the Army dealing with today? et rn nte e I gs Th Thin of How has technology changed the Army’s mission delivery in the past? Com p Ever uting ywh ere eal e R g th he rgin d t Me ld an orld r Wo ual W t Vir Let’s revisit the technology forces that are driving change in the Army via Digital Business nt /Clie d u Clo puting Com Softw ar Applic e-Defined Webations a Scale IT Infrast R ructur nd e Ba isk. Se se cu d Th rit e N y Re e w alit y E IT me rge s THE DIGITAL AGE AND INNOVATION IN WHAT AND HOW WE VIEW WORK

BPR CASE STUDY 42

CASE STUDY – DUKE ENERGY FACTS Duke Energy* Facts One of the largest electric power holding companies in the US. Headquartered in Charlotte, NC with assets also in Canada and Latin America. Owns 58, 200 megawatts of base-load and peak generation in the United States, which it distributes to its 7. 2 million customers. Service territory covers 104, 000 square miles with 250, 200 miles of distribution lines. After many acquisitions, it has expanded its territory throughout the Carolinas and Midwest and now operates nuclear plants, coal -fired plants, conventional hydroelectric plants, natural-gas turbines to handle peak demand, and pumped hydro storage Financial as of 2016: Operating Revenues: $22. 7 billion Total Assets: $133 billion Employees: 28, 798 43 *Known as Duke Power Company during the reengineering effort

CASE STUDY – DUKE ENERGY THE BUSINESS CHALLENGE Duke Energy has a record of high customer service and low energy costs. In the late 1990 s, the U. S. government began deregulating the electric industry. Many states launched initiatives to break apart monopoly utilities and allow retail companies to sell electricity to consumers. Leadership at Duke Energy recognized that it needed to cut costs and further improve customer service if it wanted to remain competitive when deregulation happened. The President, Richard Priory, and a Senior Vice President, Jimmy Hicks, started looking at the customer operations department for improvement. Customer Operations Department Determine rates Read the meter Power Grid 44 Run, dig and maintain lines in the street Conduct invoicing Customers

CASE STUDY – DUKE ENERGY THE BUSINESS CHALLENGE – CONT’D Priory found many opportunities for improvement, including improving work processes. Processes were fragmented and there were no formal or standard process designs. To compound the issue, the company had 13 geographic locations and each location did things in different ways. Many employees felt that particular changes would not work in their area for any number of reasons. To Be Continued…. 45

CLOSING 46

OBJECTIVES PROGRESS RECAP Objectives BPR Principles BPR Requirements & Value Methodology & Tools Student Learning Outcomes • Know the basic terms and principals of BPR • Be familiar with the value garnered from successful execution of BPR and the requirements to conduct BPR within the Army • Understand the steps of the Army BPR methodology and be able to support the execution of a BPR effort Day 2 & 3 Practical Application 47 • Demonstrate the ability to utilize tools, templates, and best practices when executing a BPR project

OPEN DISCUSSION “” 48 what is your biggest takeaway so far?

Business Process Reengineering Center of Excellence (BPR Co. E) BPR Foundation Training – Day 2 Innovating The Enterprise

GROUP ACTIVITY: ZOOM Objective: Arrange your group’s images from zoomed-in to zoomed-out through verbal communication only. Instructions Divide into 2 groups Receive a zoom card. Look at the card but do not show others in your group Verbally describe the image on your card to your group Arrange yourselves from zoomed-in to zoomedout images 50

OBJECTIVES PROGRESS RECAP Objectives BPR Principles BPR Requirements & Value Methodology & Tools Student Learning Outcomes • Know the basic terms and principals of BPR • Be familiar with the value garnered from successful execution of BPR and the requirements to conduct BPR within the Army • Understand the steps of the Army BPR methodology and be able to support the execution of a BPR effort Day 2 & 3 Practical Application 51 • Demonstrate the ability to utilize tools, templates, and best practices when executing a BPR project

BPR METHODOLOGY OVERVIEW 52

STANDARDIZED BPR METHODOLOGY The BPR Co. E developed a standardized approach to conducting BPR. The standard approach enables practitioners to consistently achieve successful results, facilitates information exchange among stakeholders, and maximizes the potential benefits gained from process engineering. The BPR Delivery Process Phase: Objectives: Sample Outcomes: 53 Launch Plan Design As -Is Design To -Be Close Implement Validate the problem definition Scope the processes involved Identify stakeholders Implement the Design the To-Be Validate Develop the Gather information on To-Be process to deliverables project the current perform in the Communicate schedule and state and future state with plan interview SMEs Provide stakeholders Design As-Is recommendations process maps on how to reach and analyze the future state current state Meeting with Functional Sponsors Project plan Stakeholder kickoff meeting/call As-Is processes To-Be process Stakeholder As-Is analysis To-Be briefings and findings recommendations Achieve milestones against roadmap or recommendations delivered

BPR PROJECT EXECUTION 54

LAUNCH PHASE The focus of the Launch phase is to confirm the underlying problem, scope, and key stakeholders Securing a leadership champion is critical Spend time understanding pain points, overarching laws/regulations/policies (LRPs), and all processes involved or impacted 55

UNDERSTANDING THE UNDERLYING PROBLEM AND DESIRED FUTURE STATE To best determine how to improve a process, it is critical to understand people’s perception of the current underlying problems of the process, as well as their vision for the future process. The sample questions outlined below will help you identify the underlying problem and articulate your desired future state. What are your pain points/challenges with the current process? Problem Identification What are the factors driving the pain points? What known or possible costs are associated with this process? Are there any applicable laws, regulations, or policies associated with this process that need to be considered? Future State What outcomes do you hope to gain? (e. g. , new capabilities, process efficiencies, cost savings, improved cycle time, input to other organizational processes, etc. ) What specific benefits do you hope this process will provide in the future? Once the problem has been clearly identified it is useful to develop a problem definition. A problem definition is a clear description of the challenge at hand with information related to its severity and impact. The problem definition should not dictate a solution. 56

EXERCISE #4: PROBLEM DEFINITION Develop a desired future state and problem definition for the Army Scenario. The Scenario can be found in the Handout. 57

UNDERSTANDING THE UNDERLYING PROBLEM AND DESIRED FUTURE STATE What are your pain points/challenges with the current process? What are the factors driving the pain points? Problem Identification What known or possible costs are associated with this process? Are there any applicable laws, regulations, or policies associated with this process that need to be considered? 58

UNDERSTANDING THE UNDERLYING PROBLEM AND DESIRED FUTURE STATE Future State What outcomes do you hope to gain? (e. g. , new capabilities, process efficiencies, cost savings, improved cycle time, input to other organizational processes, etc. ) What specific benefits do you hope this process will provide in the future? 59

SCOPING THE PROJECT ACCURATELY Scoping helps identify clear project success parameters. Sample scoping questions are included below: 60 Future State Current State What are some of the measures of success for the BPR effort? How will we know when success is achieved? What internal organizations/people will be impacted? What other business processes will be impacted? Is a technology solution(s) being considered to support the future state? What are some of the policy, regulatory, legal, and cultural norms that might need to change? What business processes are impacted by this effort? What is the intended outputs of the processes? Which other business processes are impacted? Are your current state processes documented? What are the specific pain points / challenges? Are there technology solutions supporting the current process today? Are there any current baseline metrics such as cycle time?

EXERCISE #5: PROJECT SCOPING Using the scoping guide template, discuss potential scope boundaries for the Army Scenario. Exercise can be found in your handout. 61

ARMY SCENARIO SCOPING EXERCISE –SAMPLE RESPONSES Future State Question Current State Question Q: What are some of the measures of success for the BPR effort? Q: Which enterprise processes are impacted by this effort? A: Reduced time, increased data quality, trusted data sources, reduced resources required, decreased process downtime A: Hire to Retire, Budget to Report, Concept to Product Q: Are there any organizations outside of the PEO H 2 O that will be impacted? Q: What are the intended outputs of the processes? A: ASALT and Army G 8 for reporting A: Report that informs the decision making process along the lines of cost, schedule, and technical performance management Q: Will there be any PEO H 2 O offices not impacted? Q: Are your current state processes documented in any manner? A: No- they will all be impacted A: No Q: What are the specific, positive impacts on U. S. Army Readiness and soldier mission effectiveness? Q: What are the specific pain points / challenges that BPR must address? A: CG will be able to make more informed and timely decisions, as well as an increased ability to provide more capabilities to the Army and warfighters more quickly A: Inconsistent data results, low access to data, inefficiency in how the work is performed, the organization is brought to a halt for a month, employee dissatisfaction/low morale Q: What are some of the policy, regulatory, legal, and cultural norms that might need to change? Q: Are there technology solutions supporting the current process today? A: PEO’s policy to conduct the APPMU; data management/governance policies A: Financial management system, shadow IT 62

STAKEHOLDER MAPPING INTRODUCTION Stakeholders are those individuals, both external and internal to the organization, who are involved in or will be impacted by the BPR project. Stakeholder Mapping Identify Engage 1. Identify who needs to be part of the project and who is impacted by the project Analyze 2. Analyze communication needs 3. Plan communication touch points and messaging Plan 63 4. Engage with project stakeholders

EXERCISE #6: STAKEHOLDER IDENTIFICATION Discuss potential stakeholders for the Army Scenario. Exercise can be found in your handout. Stakeholder Identification Questions 64 Who is the executive sponsor of the initiative? Who is the functional proponent of the process? What Domains are impacted? Which E 2 E process owners are impacted? Who are the key SMEs for the process?

ARMY SCENARIO STAKEHOLDER IDENTIFICATION EXERCISE RESPONSES Sample Stakeholders Q: Who is the executive sponsor of the initiative? A: BG Hernandez – CG of PEO H 2 O Q: Who is the functional proponent of the process? A: Because this is not an enterprise issue, BG Hernandez has put the Special Projects office in charge Q: : What Domains are impacted? A: Logistics, FM&C, Acquisitions, IE&E Q: Which E 2 E process owners are impacted? A: Unknown – track to reduce risk Q: Who are the key SMEs for the process? A: G 8, Action Officer 65

STAKEHOLDER ANALYSIS Different stakeholders will have different concerns and objectives, so communication messages must be tailored to be effective. To develop effective messages for each identified stakeholder, the following questions should be kept in mind to better understand each person’s communication interests: ü ü ü ü Who has the most influence? Who controls the resources? Who are the biggest supporters? Non-supporters? Who is most impacted? What are their motivations and interests? What is the anticipated benefit to them? What are their challenges or pain points? What specific type of information do they need to do their job?

EXERCISE #7: STAKEHOLDER ANALYSIS With a partner, complete the sample stakeholder analysis for the Army Scenario. Exercise can be found in your handout. Role or Name Commanding General of PEO H 2 O (BG Hernandez) Description Oversees direction and results of the organization. Sponsor of the BPR project. Communication Interests Resources required to deliver and implement the project Alignment to the strategic plan Benefits anticipated across the organization

BEST PRACTICES FOR THE LAUNCH PHASE Treat the BPR project effort like a new operation/business startup to get the project off to a fast and effective start. Build trust with the project sponsor and establish a clear understanding of what the sponsor/customer is trying to accomplish and agree on an achievable success definition. Continually track the definition of the problem definition as the BPR effort ensues. Ensure project-driven organizational change is identified, owned and completed to maximize strategic results and realized benefits. 68

PLAN PHASE The Plan phase establishes the structure, operational norms and tempo, and mechanisms to manage the project. The Project Manager creates a roadmap that may be followed by the team during execution. Progressive elaboration of the problem statement and project scope may occur. Repeated validation with the sponsor is critical. 69

PROJECT PLANNING TOOLS The following BPR tools, methods and techniques are commonly used for planning the BPR project: Project Plan Project Schedule Work Breakdown Structure (WBS) Organizational Breakdown Structure (OBS) GANTT Charts Critical-Path Method and Analysis Stakeholder Map Risk Register Assumptions and Constraints Analysis Critical Success Factors And others found in the project management discipline 70

PROJECT PLAN EXAMPLE Tool: Project Plan Purpose: Supports the scheduling and tracking of BPR activities. First, define roles and responsibilities (e. g. , Accountable, Responsible) for those supporting the BPR effort. Next, outline major project activities, dependencies between activities, and target dates to complete the activities. Project Activity Project Task Dependency Milestone Target End Actual Start Actual End % Complete Accountable Responsible (Y/N) Start Date Scope the project using the Scoping Guide questions NA N Conduct workshop with appropriate Meet with people who should Stakeholders be involved NA N As-Is Process Map the As-Is Stakeholder Mapping process Mapping Y As-Is Process Analyze the current As-Is Process Analysis state’s weakness Mapping Y Map the To-Be process based on To-Be Process future state As-Is Process Mapping visioning Mapping Y Follow up with To-Be Leadership for Process Gain Approval approval Mapping Y Problem Identification 71 10 Jan 6 Feb 3 Feb 6 Feb 100% Ms. Lemon Ms. Berry 7 Feb 12 Feb 7 Feb 16 Feb 100% Ms. Lemon Ms. Berry 13 Feb 20 Feb 17 Feb 24 Feb 100% Mr. Rabe 21 Feb 5 March 25 Feb 5 March 100% Ms. Lemon Mr. Rabe 6 March 13 March 100% Mr. Rabe 10 April 17 April 24 April 100% Ms. Lemon 10 April

CRITICAL SUCCESS FACTORS EXAMPLE Tool: Critical Success Factors Purpose: Critical success factors (CSFs) refer to elements and activities that must be present or executed to a high standard in order to achieve the goals of your project. CSFs are a way to prioritize certain tasks as the project plan is being executed. Having clear CSFs helps the project team clarify what needs to be worked on first or needs special attention, allowing people to work together to achieve the project’s main objectives. • Leadership & Team • Policy & Strategy • Stakeholder Management • Resources • Contracting • Project Management 72 CSF Project Success

ASSEMBLING YOUR PROJECT TEAM • • • KSAs Required: Project Management Analytical Thinking Negotiating Sound Judgment Building Partnerships Communication Workshop Facilitation Change Management Deputy Project Manager 73 Project Sponsor Project Champion Project Analyst Business Analyst Process SMEs (e. g. Process Owner, Stewards, etc. )

BEST PRACTICES FOR THE PLAN PHASE • Develop clear exit criteria for what will trigger the BPR effort to be considered “complete. ” • Establish regular communication for the duration of the project between the BPR project team and the sponsor, and between the BPR project team and all stakeholders. • Identify the right group of Subject Matter Experts (SMEs) to support the effort. • Assemble the right group of colleagues to be on the BPR project team. • Utilize project management best practices when developing and executing the roadmap. 74

DESIGN AS-IS PHASE As-Is Process Discovery & Mapping Objectives: Document and assessed all LRPs Document a directionally correct current state process Identify of the process’s position within hierarchy and linkage to other processes 75 As-Is Analysis & Findings Objectives: Document process performance Decompose large and/or complex processes Uncover what hinders and/or fragments the overall effectiveness Identify the business process value chain and the hand-offs in-between Identify the alignment between the outcomes and value delivered with the business/mission needs

THE FOUR LENSES OVERVIEW 76

PEOPLE LENS People, the organization, and the design of how people interact enable the execution of a process. People are the key actors that exert influence over the successful outcome of processes. People may work functionality and not see the entire causes and effects of the processes they work in. Considerations for organizational change management must be included. Types of people questions to ask to support analysis: Ø Are the right people involved in the process? Ø Do people have the right skills and training? Ø Do people understand their role in the process? Ø Who is formally held accountable for the process? 77

PROCESS LENS Process is the core subject of BPR! Types of process questions to ask to support analysis: Ø Is the process standardized and consistently followed? Ø Is the process documented? If so, where? Ø What is the process trigger? Ø What are the pain points or bottlenecks? Ø Is it an enterprise (E 2 E) or local process? 78

POLICY LENS Policy is the primary form of governance. Policies may take several forms and are commonly referred to as laws, regulations and policies (LRPs). Layered policies and procedures can result in people working in outdated ways. Technology can change the execution style of a process and different policies may be needed. Types of policy questions to ask to support analysis: Ø Are there existing policies that guide the process? Ø Are new/changed policed needed to support process changes? Ø What type of policy would be most effective? 79

TECHNOLOGY LENS Technology is an enabler of a process BPR projects should look at technology last, not first With progress of digitization continuously marching forward, people are quick to point at technology as the problem and the solution – this is a fallacy. Types of technology questions to ask to support analysis: Ø Is the technology meeting user needs? Ø Can the technology be replaced or altered? Ø How is the technology changing in the future? Ø Is there an enterprise solution that can meet capability needs? 80

GROUP ACTIVITY: PYRAMID BUILDING EXERCISE Objective: Arrange your group’s cups into a pyramid only using the two strings within the tape box without stepping into the tape box – all sides of the pyramid must be in the tape box. Instructions Divide into groups of 6 (approx. 3) Designate 2 builders Designate a team leader Read the instructions worksheet Ask facilitators any clarification or additional questions Build pyramid! 81

AS-IS PROCESS DISCOVERY AND MAPPING – INFORMATION DISCOVERY Defining and mapping the “As-Is” process is a step to help create a baseline. Work with appropriate stakeholders to discuss the process to be defined and ensure there are no gaps in necessary information needed to support the activities and processes and that there is consensus and buy-in from participants*. There are multiple information discovery tools that can be utilized, and the selection of the tool can depend on the maturity of the process selected. Policy People Tech Process The BPR activity sheet template is one tool available to help elicit and capture input from stakeholders if the process is immature. BPR Activity Sheet 82 ** A BPR project is not just a documentation exercise. Only document the As-Is state as necessary.

AS-IS PROCESS DISCOVERY AND MAPPING – INFORMATION DISCOVERY CONT’D Another tool is available to help elicit and capture input from stakeholders if the process is more mature. 83

AS-IS PROCESS DISCOVERY AND MAPPING – INFORMATION DISCOVERY CONT’D Another tool is available to help elicit and capture input from stakeholders if the process is more mature. Tech Process People Process Tech Process People Policy 84 Tech People

EXERCISE #8: INFORMATION DISCOVERY Within your group, utilize either information discovery tool for the Army Scenario in your handout. BPR Activity Sheet <Insert graphic of tool #2> 85

BUSINESS PROCESS MODELING • Business Process Modeling uses a variety of techniques to illustrate the movement of the various activities and tasks within a process • Typically done using modeling tools ranging from Microsoft Visio to sophisticated architecture modeling software like ARIS and System Architect

WHY MODEL BUSINESS PROCESSES? Understand • To document the existing process in a way that all stakeholders have visibility and clarity Monitor • To understand how a process will perform under varying conditions Control • To use as an assessment against standards and requirements Improve • To use as he basis for identifying opportunities for improvement Transform • To prepare for designing a brand new process 87

BUSINESS PROCESS MODELING TECHNIQUES There are several techniques that can be used to document the business process. Below are some common techniques. Business Process Model & Notation • The gold standard of business process modeling Unified Modeling Language (UML) • Developmental modeling language used in software engineering to provide a graphical means of displaying a system design Subject-Oriented Business Process Management • Focuses on Actors in the process orchestration, using subject, object, and predicate to describe the business process 88

BUSINESS PROCESS MODEL AND NOTATION (BPMN) • BPMN is a standard for business process modeling where processes are mapped out graphically using a flowcharting technique • BPMN was developed by the Business Process Modeling Initiative and was adopted as a standard by the Object Management Group (OMG) in 2006 • OMG defines the BPMN Charter as “A standard Business Process Model and Notation (BPMN) will provide businesses with the capability of understanding their internal business procedures in a graphical notation and will give organizations the ability to communicate these procedures in a standard manner. ” • BPMN 2. 0 was released in 2011 BPMN is a common language for those designing the process and those implementing 89

BPMN ELEMENTS OBJECTS EVENT ACTIVITY GATEWAY FLOW DATA 90 ARTIFACT SWIMLANE Source: OMG

BPMN ELEMENT – FLOW OBJECTS 91 EVENT Something that happens during the course of the business process that impacts the flow of the process. ACTIVITY Used to describe the specific work being performed within the business process GATEWAY Represents decisions that take place during the course of the process and the splitting or joining of paths. Source: OMG

BPMN ELEMENT – CONNECTING OBJECTS 92 SEQUENCE FLOW Shows the order of activities in a process MESSAGE FLOW Shows the flow of messages between two Process Participants that are prepared to send and receive them ASSOCIATION Links data, text, and other Artifacts with Flow Objects. Directed Associations have an arrowhead and Non-Directed Associations do not > Source: OMG

BPMN ELEMENT - DATA 93 OBJECTS Provides information about what data activities require in order to be performed and/or what they produce INPUTS Provides detailed information about the data object that is input to a process OUTPUTS Provides information about a data object that is output from a process STORES A means for activities to retrieve or update stored information that will exist beyond the project itself Source: OMG

94 Lane LANE Represents the sub-partition within the pool and extends the entire length of the pool. Used to organize and categorize activities Pool POOL Represents a participant in a process. It also acts as a graphical container for separating a set of activities from other pool Pool BPMN ELEMENT - SWIMLANES Source: OMG

BPMN ELEMENT - ARTIFACTS GROUP ANNOTATION 95 Represents a participant in a process. It also acts as a graphical container for separating a set of activities from other pool Represents the sub-partition within the pool and extends the entire length of the pool. Used to organize and categorize activities Text annotation allows a modeler to provide additional information Source: OMG

A SIMPLE EXAMPLE Start/End Event Swimlane for actors 96 Activities Decision Points

BPMN 2. 0 POSTER 97 Source: OMG

EXERCISE #9: MODEL THE PROCESS Each team will create a process model based on the following example: As-Is APPMU Approval Process The APPMU is drafted by the Action Officer. The Action Officer requests information regarding their project’s funding, staffing, and technical efforts from the G 8, G 1, and their project team, respectively. If the Action Officer has questions about the information provided or needs additional information, he or she will reach back to the providing organization. Once all information is gathered and compiled into the report, the first draft is sent to the Branch Chief for review. The Branch Chief reviews the APPMU and either approves it or sends it back to the Action Officer with changes. If changes are requested, the Action Officer will edit the APPMU, or may seek additional information from the providing organizations. Once the APPMU has been edited, it is sent back to the Branch Chief for a second review. Once the APPMU is approved, it is sent to the Division Chief for final approval. If the Division Chief approves the APPMU, he or she will present it to the CG. If the Division Chief requests edits, it will be returned to the Branch Chief, and subsequently to the Action Officer for additional edits. 98

PROCESS DISCOVERY AND MODELING BEST PRACTICES • Start with the most basic steps of the process and expand as needed. • Don’t go into more detail than is necessary to understand the as-is process. • Do not attempt to create solutions or new processes while modeling the as-is. • Never make assumptions. • Validate the model with the people doing the actual work. 99

SOMETHING TO KEEP IN MIND ABOUT PROCESS DISCOVERY AND MAPPING…. Process Improvement Radical Change BPR Continuous Process Improvement (CPI) TQM Six Sigma Lean Kaizen Similar discovery methods (e. g. , interviews, workshops) Similar mapping methods (e. g. , process maps) Despite similar techniques, when conducting BPR your mental frame should be INNOVATION on CROSS-FUNCTIONAL processes 100

AS-IS ANALYSIS & FINDINGS OVERVIEW THE CURRENT STATE As-Is analysis is a discipline of accessing process weaknesses and identifying capability gaps. For this reason, the As-Is analysis looks at the process through the lens of people, process, policy and technology 101 Lens People Analysis Process Analysis Examples Are all stakeholders needed currently involved? When does the process breakdown or experience delays? Policy Are their overlapping policies that results in confusion? Technology What existing technologies could support the process?

BEST PRACTICES FOR THE DESIGN AS-IS PHASE Access to stakeholders are critical. Understand the laws, regulations, and policies (LRPs) early in the As-Is phase as a team. Accept that the degree of As-Is analysis and supporting techniques used may be variable depending on the sponsor/organization. 102

BPR CASE STUDY 103

CASE STUDY – DUKE ENERGY LAUNCH • • Hicks and Ferrell launched the project by communicating with stakeholders. A process is like a football team. Different people play different roles and we all interface with each other. PLAN • • They further defined the processes in scope of the BPR effort. Ultimately, five major processes were defined “so much depends on people working together to achieve a common goal” “Once we defined the processes…we could see how to go about actually reengineering the activities that make up the processes” 104

CASE STUDY AS-IS Mapped the current processes and discovered: Ø Numerous problems Ø Fragmented way of working Ø Inefficiencies in how people were organized around the work Ø No one was responsible for processes Process 1 Process 2 Process 5 Customer Operations Process 4 105 Process 3 Began analyzing the interconnections between the output of one process, the input of another, and the effect on the customer. Looked at processes to minimize the number of handoffs and eliminate steps. Wanted to measure impacts to the customer and discovered that they only completed orders within the promised period around 74% of the time. Realized frontline performers didn’t have the right information available.

CLOSING 106

Business Process Reengineering Center of Excellence (BPR Co. E) BPR Foundation Training – Day 3 Innovating The Enterprise

GROUP ACTIVITY: THINKING CREATIVELY Objective: Develop an interactive game using materials found in your group’s box. Prepare to teach everyone how to play. 108

DESIGN TO-BE PHASE “To-Be” Process Design and Mapping “To-Be” Analysis and Recommendations Objectives: Refine the new Ideate and explore process design Design the new process Explore and Design high-level communicate how operating model and the design meets architecture the desired Prototype/Test outcomes Detail implications along the four lenses 109 “To-Be” Business Requirements Development “To-Be” Process KPI/Metric Development Objectives: Support transition to implementation Potentially support an acquisition process Objectives: Measure the success to achieving intended outcome(s) Monitor the performance in action

BPR DESIGN IN AN ITERATIVE PROCESS As-Is Knowledge Internalized Desired Future State Iterative To-Be Design Stakeholder Workshop To-Be Design Idea Stakeholder Interviews Design Idea Starting Point Documentation Review Design Idea “ ” The general who wins the battle makes many calculations in his temple before the battle is fought -Sun Tzu 110

DESIGN IDEA REFINEMENT AND ANALYSIS TECHNIQUES 1 2 3 111 Qualify Ideas for by Level of Impact Conduct Idea Refinement and Vetting Further Refine and Analyze Ideas Using the “Six Thinking Hats” 4 5 6 7 Assess Uniqueness and Value of Ideas Determine Viability of Idea Map Ideas to the Strategic Relevance to Value Matrix Develop Scenarios for Each Idea

BUSINESS REQUIREMENTS DEVELOPMENT Requirements establishes a scope for the work that will need to be undertaken, and provides context and objective ways to measure progress and success. There are three common type of requirements: business, functional and technical. Only focus here Business Functional Technical 112 Conveys a specific need that must be addressed in order to achieve an objective. States the 'why' for a project. Breaks down the steps needed to meet the business requirements. Outlines the 'what'. Defines ‘how’ the system should work.

KPI/METRICS DEVELOPMENT It is also important to determine what to measure and how to measure it in order to ensure that desirable outcomes are achieved. Measurement is important because it provides transparency and allows for predictability. 113

EXERCISE #10: DESIGN THE TO-BE Brainstorm ideas for the future state 114

EXERCISE #10: DESIGN THE TO-BE Qualify ideas by level of impact 115

EXERCISE #10: DESIGN THE TO-BE Further refine and analyze 116

EXERCISE #10: DESIGN THE TO-BE Determine viability 117

EXERCISE #10: DESIGN THE TO-BE Map to strategic relevance and value 118

AFTER THE TO-BE DESIGN After the to-be process is refined and solidified, the BPR team will perform the following activities before closing out the project: SOCIALIZE with stakeholders VALIDATE with sponsor BUILD process maps 119 DOCUMENT actionable DEVELOP recommendations business ANALYZE requirements through the and metrics 4 lenses

POTENTIAL PROJECT DELIVERABLES Process Maps Report Roadmap

CLOSE PHASE The Close Phase marks the end of the BPR Methodology and the transition to implementation The objectives of the close phase is to receive full formal acceptance from the project sponsor, customer and key stakeholders of the reengineered process 121

TRANSITION TO IMPLEMENTATION A good idea communicated badly is dead on arrival. A good idea implemented badly is dead eventually. 122

IMPLEMENTATION BEST PRACTICES Treat the effort like a start-up. Confirm program and project authority for the BPR implementation with a Decisions Rights Matrix. Limit the core decision-making group to no more than seven. Draft an approach to the program, and carry out short-cycle validation iterations to collect feedback and improve the approach. 123

ORGANIZATIONAL CHANGE MANAGEMENT 124

PROJECTS USUALLY FOCUS ON ‘THINGS’ NOT ‘PEOPLE’, ‘OBJECTS’ NOT ‘RELATIONSHIPS’ What projects typically focus on Logical objects and results receive most of the focus in project communications… Schedule, Milestones Costs Documents / Objects These are essential for a successful project delivery, but not necessarily a successful project ‘outcome’ where change is successfully adopted and benefits are realized. What projects often miss Project engagement and communication approaches often fail to address the human dynamics associated with implementing change… How does this change my job? What’s in it for me? What degree of control or influence will I have? Will this make my life easier? I’m anxious, frustrated, excited – all of the above. The human element is often missed.

OCM HELPS BREAKDOWN BARRIERS, RESISTANCE TO CHANGE AND FACILITATES ADOPTIONS Individuals and groups respond to the introduction of change in similar ways. Understanding where we, as individuals and collectively, fall on this cycle can help us better prepare to encounter the stakeholders to breakdown the barriers and resistance to change.

MANAGING ORGANIZATIONAL CHANGE AND ORGANIZATIONAL CULTURE IS IMPERATIVE FOR TRANSFORMATION OCM OBJECTIVES Organizational Change Management (OCM) is necessary in any BPR effort to ensure the successful delivery and acceptance of the changes by the stakeholders involved. Facilitate adoption of the change Ensure those impacted are prepared Manage expectations Ensure delivery of anticipated benefits Demonstrate benefits “No company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it. ” - Jack Welch, GE

FRAMEWORKS FOR CHANGE There are many OCM frameworks to help plan for change, and prepare stakeholders for change. A few of them include: 1 READY SET Envision the Change Plan the Change 2 128 GO! Execute the Change 3

Description Phase ORGANIZATIONAL CHANGE MANAGEMENT FRAMEWORK READY SET GO! Envision the Change Plan the Change Execute the Change Describe why change is Describe what specific necessary and defines change is necessary to the future state achieve the target state The case for change Identify impacts on must be clear, stakeholders compelling, and sponsored by executive leadership Ensure delivery of the anticipated benefits by managing and monitoring the change

ORGANIZATIONAL CHANGE MANAGEMENT FRAMEWORK – CONT’D Kotter’s 8 -Step Process for Leading Change

ORGANIZATIONAL CHANGE MANAGEMENT FRAMEWORK – CONT’D Lewin’s Change Theory Model– Unfreeze, Change, Freeze

ORGANIZATIONAL CHANGE MANAGEMENT FRAMEWORK – CONT’D One more perspective to consider…

EXERCISE #11: CHANGE MANAGEMENT With a partner, imagine how you would engage stakeholders of the Army scenario during each phase of the BPR methodology Identify Engage Analyze Plan The BPR Delivery Process Launch Plan Design As -Is Design To -Be Close Implement

PROVIDING CHANGE LEADERSHIP REQUIRES A SHIFT IN FOCUS Change Leadership requires: Passion – Belief in the need for, and the benefits of, the change you are leading. Commitment – Deep organizational change takes time and patience. Self-Management – The role of change leader requires full energy and attention. At the same time, and perhaps counterintuitively, you need to know when to hold back — when to pace yourself, step aside, take a break, or recharge. Effective Communication – Abandon the “one size fits all” mentality.

BEST PRACTICES FOR OCM Leadership involvement and alignment. Dedicated resources. Accountability and clear responsibilities for completing individual tasks. Authority given to assigned initiative and task owners. Integrated planning to ensure OCM activities support major transition milestones. 135

BPR CASE STUDY 136

CASE STUDY Process 1 Process 2 Process 4 Process 3 Process 5 Duke Energy established and standardized processes across geographies, and paid close attention to the handoffs and transition points. They eliminated nonvalue add activities, including unnecessary approvals. More authority was given to front line employees. One of the biggest secrets to their success was become a process-centered organization by choosing process owners early on. “Once reengineering helped us understand our processes, we were able to measure them”. Duke Energy created a KPI for improving customer services - minimum of 96% of orders completed by the day they were promised. 137 96%

CASE STUDY There were many cultural barriers, which required a lot of education and training. Took longer than he expected to get people on board and required strong leadership. Would have articulated clearer vision and increased the level of communication to stakeholders. Ensure there are quick wins early on to increase morale. 138

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CASE STUDY After the BPR effort, Duke Energy experienced very positive results, very quickly. And, they took on another BPR effort for an Engineering process. 140 Investing in technology that supports Common the desired perspective outcomes and attitude 2 years in a row Fortune rated “Best in Customer Service” Customer surveys are high and getting higher Ability to take advantage of new opportunities Driving down costs further Top percentile of competitors

CLOSING 141

OPEN DISCUSSION Tell us what you think! 142

THANK YOU 143