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Discovery for Knowledge Work
1. Measuring Drivers of Process
Efficiency and Effectiveness
AKA’s Discovery Method
May, 2012
2. AKA’s Discovery Method - a rapid “MRI” of any as-is
business process
ANY process or “issue of interest”:
̶ Transactional (Underwriting, Claims, Order-to-cash)
̶ Customer facing (Call centers, customer service, field sales force)
̶ Knowledge Intensive (Systems Testing, Help Desk, Business analysis, etc.)
̶ Issues (e.g. drug rehab program managers, Customer QC, etc.)
Uses existing process models or builds its own
Calculates task frequency and level of effort
At the point of task completion, collects information about task efficiency
and effectiveness drivers
Delivers quantitative and qualitative process data, concurrently collected
An effective resource for process analysis and design, opportunity
discovery and investment justification analyses
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3. How AKA’s Discovery method works
Every time a participant performs a task we care about, we will know:
̶ How long did it take
Thus, how much did it cost
̶ How often was it performed
̶ What initiated the task (project or initiative identifiers)
As tasks are executed, Discovery asks questions about that instance
providing insights beyond simple task timings and costs. For example:
̶ Process Compliance questions allow us to know:
What is the rate of task satisfaction and compliance; what drives exceptions: time
constraints, understanding of the task, acceptance of task’s utility, etc.
̶ Knowledge Management questions allow us to know:
What are the knowledge content requirements of a task; how effectively does the current
process or tools enable use of knowledge; what are the issues resulting in knowledge gaps
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4. Discovery provides hard data to establish opportunities
in real, current, quantitative terms
KM impact thru meeting preparation
Discover & Adapt Internal Best Practices
50% reduction thru KM
Low impact internal meetings
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5. Case Example: Root Cause Discovery & Analysis
Discovery: the 25% of bills were in paper form driving 62% of suspensions. Paper
bills take 2x as long to handle
Was source paper or electronic?
Data Electronic Paper Overall
Average Time 1.14 2.01 1.68
Pct of Units 38% 62% 100%
Num of Units 2,684 4,439 7,123
Avg Cost/unit $ 0.48 $ 0.84 $ 0.70
Quantified the ROI of moving to 85/15 electronic to paper mix from 75/25
Current Future
Suspensions per year total 1,053,000 843,414
From paper 656,223 393,732
From electronic 396,777 449,682
Paper suspend process costs $ 553,005 $ 331,803
Electronic suspend process costs $ 188,829 $ 214,008
Total Process costs $ 741,834 $ 545,811
Savings $ 196,023
Major productivity improvement for 30 person team
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6. Case Example: Reduce cycle time & accelerate loan
funding ($4 million revenue gain)
Time Lag: Application Arrival to Satisfactory Valuation
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Average lag: 9.0 days
12 Median lag: 7 days
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9 Issue: 39% apps need valuation ordered by
8 operator at assessment
8 Too often operator fails to order valuation
Goal: Reduce average lag by 2 days by branch
6 ordering all valuations
5 Gain: loan starts 2 days earlier
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Review Valuation
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Days Lag: 1 2 3 4 5 6 7 8 9 10 11 12 14 15 17 19 22 51 101
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7. Case Example: Knowledge Management leverage
opportunities
80% of legal staff’s hours are spent on tasks with “High” improvement potential via
Knowledge Management
Improvement Opportunities
1. Technologies that reduce the time to do tasks
2. Technologies that combine and collapse tasks
3. Technologies that improve meeting-related productivity and/or necessity of having
some meetings
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8. Discovery Metric Study – Three Step Process
TM
1. Front End Study Engineering: Setup Application (PC)
2. Data Collection: Virtual PDA on PC
1 – 2 weeks
2-3 days
1 hour training
+ Learning curve
3. Results Reporting
Clarifications Group Immediate
100
90
Method Summary – 80
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1. Collect and re-use existing process models or create an as-is 70
process definition 60 22
# Activities Data Transfer Retrieve work item,
Apply the definition of as-is processes in the Discovery Tool 50 Process Item to res
Enter notes
2. Participants self-record process data using the Virtual PDA 40
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application on their PC’s
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Data collection is usually 1 week 14
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3. Collected data is analyzed by Discovery’s powerful reporting 27 26 24
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engine 6
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Pre 8am 8-9 9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 After
5pm
Hourly Time Slot 7
9. Next Steps
Identify processes and functions in need of analysis
Craft scope of a project
̶ As few as 10 to 20 participants, up to 100
̶ Select pilot focus
̶ Engineer, train, deploy, collect data and analyze/present results
Contact AKA Group, LLC to find out how to get started
̶ Ira Feinberg Partner/Practice Lead (917) 705-4148
̶ Doug Brockway Partner (617) 834-0067
̶ Allan Frank CEO (610) 331-8484
̶ www.akaplex.com
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