BPI Priority Opportunities – Focus Phase

BPI Priority Opportunities – Focus Phase

Description

• A summary, including preliminary (+/- 50%) estimates of costs and benefits, of the key opportunities for changes in processes, information technology, physical infrastructure, human resources, etc. identified through assessment activities conducted to date in the BPI project.    

Client Value

• This overview sensitizes both management and staff to the nature and size of the changes being contemplated. Management then has the opportunity to 'remove from the table' at the outset any proposed solutions it considers unworkable or unaffordable (given its understanding of the benefits and costs of each idea).
• This deliverable provides the first tangible analysis of what can be improved to achieve the desired performance in the organization. If all process opportunities are not formally documented, suggested improvement opportunities might not be given justice and could be overlooked. In addition, if constraints to implementation are not identified and addressed up-front, the risk of failure in implementing a proposed opportunity will increase significantly.
• The articulation and communication of opportunities proposed by staff of all levels helps to foster a sense of openness and employee involvement in the BPI initiative. Often resistance to change can be reduced if it can be demonstrated to employees that their ideas have been taken into consideration (whether or not the suggestion ends up being accepted as part of the solution).

Approach

This deliverable is a compilation and continuation of three deliverables previously completed: As-Is Process Assessment, As-Is Technology Assessment, As-Is Human Resource Assessment. The objective of the deliverable is to identify opportunities for performance improvement along with associated constraints to implementation in order to communicate to senior management preliminary estimates of costs and benefits for proceeding with the BPI effort.

1. Review results from previous assessment activities and identify potential opportunities for significant performance improvement (Activity Based Costing Using , Cost/Benefit Analysis).
1. Identify key performance improvement opportunities within each of the focus areas
2. Estimate high level costs and benefits for opportunities identified
3. Identify potential barriers/constraints that could impact the feasibility of         implementation (e.g. collective agreement stipulations, government legislation, shortage of in-house skills, etc.)
2. Document results and communicate to appropriate audiences
1. Identify audiences
1. The primary audience for the briefing consists of the decision-makers who will sponsor the imple­mentation of the opportunities identified. This includes the project sponsor and members of his/her management team. If appropriate, the sponsor     may choose to invite others in the organization who will be affected by the redesign.
2. Determine mode of communication
3. Present, discuss and obtain management 'buy-in' and approval for the results

Guidelines

Problems/Solutions

• Be careful of choosing processes as early targets that will require significant up-front technology investments, which are costly and which delay both tangible change and measurable benefits.
• Be aware that unexpected, “hot” organizational issues may cause the executive team to shift its focus to processes that do not have a significant business impact. The use of the Process Impact Analysis can help to refocus the executive team.
• Where many processes re being considered, it may be necessary to assign weights to the Critical Success Factors, so that a quantitative rating of processes will not produce many “ties” and so that the relative importance of the Critical Success Factors is considered (see technique Process Impact Analysis).
• The priority opportunities should tie directly back to the Critical Success Factors, Key Performance Indicators, Stretch Targets, and the Focus Areas. Obtaining client buy-in for the redesign will go smoothly if it can be shown that the process improvements and the resultant performance improvements are aligned with the Focus Areas. To recapitulate, the focus areas were derived from critical success factors, key performance indicators, and stretch targets of the clients business.

Tactics/Helpful Hints

• Maintain regular communications with the key members of the leadership team and other leading project stakeholders (while As-Is assessments are being conducted) to ensure they are not caught off guard by last-minute, surprise conclusions. 'Previews' of this nature prepares these key audience members for issues they will face, and can serve as a forum to identify political obstacles or other prob­lems before they arise.    

Resources and Timing

1. External Consultant resources involved in completing this deliverable require experience     in compiling the results of process analysis workshops and assisting client design personnel in identifying and describing opportunities/problems/constraints to be addressed with senior management

BPI Quick Wins – Focus Phase

BPI Quick Wins – Focus Phase

Description

• Identified opportunities for change that share three common characteristics:
• The time-frame to implement the Quick Win is short (e.g., less than three months)   
• The Quick Win is relatively inexpensive to implement   
• The sponsor(s) have the authority to implement the Quick Win.

Client Value

• Quick Wins enable the BPI team to demonstrate early successes that, if carefully managed, help to generate enthusiasm and momentum for broader changes.In certain organizations, they also serve to reinforce the clear message that the upcoming changes are underway and are unstoppable.   
• Not identifying and implementing quick wins may eliminate the possibility to demonstrate tangible benefits early in the project, which can lead to a loss of employee and management support for the initiative.

Approach

Potential areas for rapid improvement are documented at all stages of the BPI exercise. They are typically compiled as an ongoing part of workshops, interviews, and data collection exercises. Common Quick Wins include the elimination of low-value or redundant activities (e.g. admin­istrative reports that are no longer relevant and services that are no longer in demand).

1. Compile all Quick Win suggestions gathered from previous project activities.
1. Potential Quick Wins should be documented when identified and any additional research assigned to design team or extended team members. It may be helpful to provide a common format to document and track Quick Wins or other short term opportunities.       
2. Conduct an assessment of the benefits, costs and implications of each Quick Win. (Cost/Benefit Analysis)   
1. Benefits range from tangible improvements (e.g. increases in revenue, reduction of cost or resources required) to intangible benefits (e.g., improved morale). Whether tangible or intangible, attempts should be made to measure or quantify the degree of improvement (e.g., faster response time, reduced error rates, improved customer satisfaction scores, etc.). Estimated costs for Quick Wins depend on the nature of the Quick Wins themselves. Implications typically entail, for example, changes to internal policies or the need for creative internal advertising to reach all staff.   
3. Present proposed Quick Wins to management for their feedback.
1. Identified Quick Wins need to be evaluated by management to ensure a clear understanding exists of the relative risks and benefits of the proposed opportunities.        
4. Develop detailed implementation plan for each approved Quick Win, and assign an individual to manage its implementation. (Work Packages)
5. Prepare a communications strategy for each approved Quick Win, ensuring change management implications are taken into consideration.    
6. Monitor the progress of the Quick Win implementation to ensure compliance with other project activities as well as broader project milestones.

Guidelines

Problems/Solutions

• BPI project activities can become 'clogged up' if long lists of relatively small or irrelevant improvement oppor­tunities become a major focus of the BPI program. If this situation arises, screen out secondary Quick Wins opportunities to allow the core project team to focus on the broader business solution opportunities.

Helpful Hints

• The value of Quick Wins must always be weighed against the cost of implementing them. Proceed with a Quick Win only if the costs are recoverable in a period of a few weeks or months and is not in conflict with the objective of the redesign. For many large organizations, the majority of Quick Wins identified as easy solutions inevitably turn out to be 'not-so-quick', because of required changes to internal policies or because complex, hidden interrelationships with other facets of the organization are uncovered.
• Be sure that clients understand that Quick Wins are designed to complement and build support for the overall BPI effort, not to replace it. Do not allow clients to use Quick Wins as an argument for not completing the significant change activities that the BPI initiative represents.
• Guidelines for defining Quick Wins should be developed and agreed to by the client.    Appropriate guidelines may vary depending on the size of the organization and the availability of resources. An example guide­line is 'any oppor­tunity that can be implemented in 30 to 60 days for less than $10,000'.
• Planning the implementation of each Quick Win should include experts from within the client organization as a way of ensuring that the implementation plan is understood and 'owned' by the individual or groups responsible for executing the implementation.

BPI 'As-Is' Human Resource Assessment - Focus Phase

BPI 'As-Is' Human Resource Assessment - Focus Phase

Description

• Analysis and summary of the current Human Resource management strategy and practices and how they support the achievement of the Confirmed Business Vision. It encompasses the following:
• Organization design: including structures, accountability frameworks and job design
• Workforce profile: including staff numbers, classification and salary structure, and the mix of employment status (including outsourcing)   
• Competency development: including critical competencies, leadership and management development, and training and learning systems and processes   
• Performance Management: including performance support, such as     review/appraisal processes, and reward/recognition systems   
• Human Resource Policy: including conditions of employment, industrial policy, equal employment opportunity, and health and safety       
• Human Resource Organization: including the HR roles and accountabilities of     corporate and business units, HR units, line managers and employees.

Client Value

• This assessment provides a 'stake in the ground' for assessing HR management/strategy changes that will ultimately be required, by identifying past and current performance gaps (e.g. underutilization of existing competencies, contradictory reward and recognition policies/practices, low credibility of internal HR specialists). It also highlights many of the organizational culture challenges associated with implementing change in accordance with the Shared Values and Guiding Principles.

Approach

This deliverable draws upon the findings of the parallel information technology and process assessments. The gap between the status quo and the desired future state is then assessed, by taking into consideration quantitative data provided by internal HR specialists and qualitative feedback obtained through surveys, interviews and/or focus groups with employee representatives.

1. Review the conclusions of the Requirements of Process Customers deliverable.        
2. Coordinate activities and findings with those undertaking the As-Is Process Assessment, the As-Is Technology Assessment deliverables.   
3. Meet with internal Human Resource specialists to identify all possible sources of data, both hard data such as employment numbers and costs, and qualitative or narrative data such as surveys, policy documents, training documentation etc.    
1. Build upon data gathered in developing the Internal Organizational Overview to come up with a complete portrait of the status quo.       
4. Gather internal information from client using focus groups, interview or other techniques.    
1. How HR management helps or hinders the achievement of business outcome   
2. The complementary contributions of corporate units, business units, HR units and line managers.       
3. Performance measures for HR used through the organization, such as:   
1. Workforce trends (e.g. numbers, profile per employment category, full-time/part-time status)       
2. Human resource costs, and the percentage of HR total costs, to revenue and to profit.          
3. Rate of employee turnover       
4. Level of absenteeism           
5. Non-standard HR costs, such as workers' compensation       
6. Training costs.   
4. Gather external data on HR performance measures from external sources (Bench marking)
5. Analyze gaps between the current and desired level of performance   
6. Summarize conclusions; review with appropriate personnel for accuracy.

Guidelines

Problems/Solutions

• Exhaustive analysis at this stage is counter-productive. It is not necessary to go beyond the level of detail required to gain a clear picture of the current reality. For example, use random sampling techniques or direct observations to collect data that is not readily available. Throughout this deliverable, balance the need for speed with the need for detail.
• HR management tends to stir up a great deal of emotion within organizations that can hinder the objectivity of assessments. To minimize contentious discussions, structure the debate around a clear, comprehensive model for HR management. Focus discussion and data collection on how current HR management helps or hinders the achievement of business outcomes.   
• Clients often focus on one or two issues, such as pay level, absenteeism and training. Furthermore, internal HR management is often held solely responsible for issues such as poor morale and unproductive, inward looking cultures. Use an Organisational System Model or another 'systemic' framework to ensure a more balanced view is taken.
• Internal HR specialists can be very helpful, but they can also be blockers to change. Spend time developing a sound relationship with them.

Tactics/Helpful Hints

• Use a comprehensive HR management checklist to make sure you have covered all key areas.
• A great deal of HR management work is performed by administrative and line management personnel. Ensure contact with these people is made as part of the As-Is analysis.
• In large organizations there is likely to be a number of 'centres' of HR strategy, frequently at the corporate level and in each major business unit. They may not necessarily operate in a consistent fashion, so it will be useful to visit all of them.

Resources/Timing

• Ensure there is a Human Resource expert on the team, and recognize when specialist expertise may be needed (e.g. for competency development; reward and recognition, and organization design).