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Process Management is getting more important.
  • New business opportunities involve new processes.
  • There are many pitfalls of process implementation.
  • The process cost equations are changing.
  • Processes are becoming more distributed and dynamic.
The strategic choice is stark.

Process Management expertise is required.

  • We draw a number of recommendations from our experience of process implementation.
  • To implement new business opportunities, you need a range of process capabilities and skills.

Process Management is getting more important.

Sloppy Processes are ... 

  • Not understood.
  • Likely to be inefficient, unreliable and unsatisfying.
  • No basis for improvement or reward.
  • Likely to be operationally inflexible, difficult to switch technologies.

Pressures for Change are ... 

  • Because your competitors are doing it.
  • Because your customers expect constantly improving service.
  • Because your technology base is changing faster than ever.
  • Because you are losing control of everything. 

New business opportunities involve new processes.

New Configurations

  • Internet / Intranet / Extranet
  • Call centres
  • Joint ventures

New Process Threads

  • New marketing channels
  • New delivery channels
  • e-commerce
  • Integrated channels
  • Mass customization

Business Contribution

  • New revenue stream
  • Enhanced customer satisfaction

The process cost equations are changing.

1. Industrial Cost Model

  • Divide costs into fixed and variable costs.
  • Reduce variable costs to minimum.
  • Increase volumes.
  • Economies of scale from spreading fixed costs more thinly.
  • Improved productivity from learning-by-doing.

2. Post-Industrial

  • Reduce fixed costs to minimum. 
  • Outsource to increase flexibility.
  • Use technology to reduce transaction costs.

3. Network Economy

  • Variable costs reduce to zero.
  • Largest cost element is management & design cost.
  • Must allow for frequent process redesign.
[Based on Kelly]

Processes are becoming more distributed and dynamic.

Likely to span multiple organizations and management structures.

    Therefore more difficult to freeze, more likely to required constant reconfiguration.

Likely to span multiple locations and technology platforms.

    Therefore likely to require negotiation and handoff between autonomous operating units. 

The strategic choice is stark.

Low-key entry into new business opportunity.

  • Technology-driven
  • Cautious / Unambitious
  • Slow
  • Cheap
  • Uncommitted / Half-hearted 

High-key entry into new business opportunity.

  • Process-driven
  • Rapid
  • Flexible
  • Knowledge-based
  • Learning by doing
  • Seize global market share 

There are many pitfalls of process implementation.

  • The new service never reaches critical mass.
  • The new service is difficult for customers to access.
  • There is no mechanism for discovering the customer response.
  • If and when the service takes off, it reaches overload capacity very suddenly.
  • The implementation task is regarded as primarily a technical one.
  • The implementation task is given to a junior manager within a technical department.
  • There is no budget for continual improvement.
  • Other departments are hostile and suspicious of the new process. 
  • ... 
    		•

    We draw a number of recommendations from our experience of process implementation.

  • Implement new processes as fast as possible.
  • Start accumulating the experience.
  • Avoid sequential dependencies.
  • Do as much in parallel as possible.
  • Plan for a rapid improvement cycle.
  • Keep close control of management costs.
  • Keep the technology as simple as possible.
  • Avoid unnecessary technical risk.
  • Ensure you can scale up very quickly when the service takes off.
  • Keep a close watch on customer satisfaction.
  • Be explicit about what you are learning at each stage. 
  • ... 
    		•

    To implement new business opportunities, you need a range of process capabilities and skills.

    Planning

    • Seeking and exploiting opportunities
    • Committing yourself to objectives
    • Making decisions
    • Setting goals

    Process Modelling

    • Experimenting with new ideas
    • Creating new ways of thinking and doing
    • Generating alternative ways of thinking and doing
    • Analysing quantitative data
    • Designing experiments
    • Testing theories and ideas
    • Building conceptual models

    Process Control 

    • Gathering information
    • Organizing information 

    Change Management

    • Being personally involved
    • Dealing with people
    • Being sensitive to people’s feelings
    • Being sensitive to values
    [Based on Kolb]

    How can we help you?

    We manage the implementation of a new process

    • Setting project direction
    • Managing costs, benefits & risks
    • Controlling timescale & schedule
    • Supervising staff and supporting services
    • Provision of systems and infrastructure

    We manage the initial operation of a new process.

    • Interim process management
    • Negotiation with other internal departments
    • Service level agreements
    • Negotiation with third parties
    • Joint ventures
    • Outsourcing & procurement
    • Site management services
    • Establish permanent management team.

    We help you build the capability to manage processes.

    • Process Definition
    • Process Management
    • Process Measurement
    • Creative Process Improvement
    • Effective Process Change 

    We help you build the capability to manage change.

    • Change Vision
    • Change Motivation
    • Cultural Change
    • Project/Programme Management
    • Risk Management 

    Acknowledgements

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    This page last updated on February 4th, 2000
    Copyright © 1999, 2000 Veryard Projects Ltd 
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