1. Agenda
• Facts of the old world
• Background
• The four changing areas
• The customers role
• Changing from worker to
professional
• From manager to process
owner
• The end of the org chart
• Process centering
• The design
• The process view
• The customers role
• The organisational
changes
• Reducing non-value
adding work
• Rethinking strategy
• The corporate soul

2. Contents
• The Customer's Role in a
Process
• How to Focus on Process
• From Worker to Professional
Role Shifts
• What Does It Mean for the
employee?
• From Manager to Process
Owner
• The Process Owner
• Coach and Advocate
• The End of the
Organizational Chart
• The Soul of the Company
• Rethinking Strategy
• The Process of Change
• Picking Tomorrow's
Winners Company
Character

3. Facts
• Aetna Life & Casualty
– Twenty-eight days to process applications for homeowner's
insurance
– Twenty-six minutes of real productive work.
• Chrysler
– When buying even small stationery items costing less than $10,
incurred internal expenses of $300 in reviews, sign-offs, and
approvals.
• Texas Instruments
– 180 days to fill an order for an integrated circuit while a competitor
could often do it in thirty days.
• Pepsi
– 44 percent of the invoices that it sent retailers contained errors,
leading to enormous reconciliation costs and endless squabbles
with customers.

4. Food for thought
• How much time does your processes take?
• How accurate are your processes?
• How efficient are your processes?
• How much does it cost you for internal
purchases?

5. Background
• Realisation that managers and workers were
applying task solutions to process problems
– A task is a unit of work, a business activity usually performed by
an individual while a process is a related group of tasks that
together create value for the customer

6. The four areas
1. In Work, as every employee is transformed into a
professional.
2. In Management, as managers shift from being
supervisors to being process owners or coaches.
3. In the Enterprise, as the business transforms its
strategic planning to develop strategies based on
processes.
4. In Society, as the changes in work and
organizations will reshape the world around us

7. The process view
• all people in the company recognize and
focus on their processes
• A process perspective sees not individual
tasks in isolation, but the entire collection of
tasks that contribute to a desired outcome
• Processes are concerned with results, not
with what it takes to produce them

8. Steps to process centering
Identify processes e.g. order fulfilment, product development,
order acquisition, provide after sales support
Ensure that everyone in the company is aware of these
processes and their importance to the company
Process measurement - e.g. cycle time, accuracy, process cost,
Asset utilisation etc
Process management – continued focus on processes to
Cater to changing business environment
1
2
3
4

9. The customers role
• A process perspective on a business is the
customer's perspective
• The customer does not see or care about the
company's organizational structure or its
management philosophies
• The customer sees only the company's
products and services, all of which are
produced by its processes

10. Organisational changes
• Replace simple and
complex processes
with simple processes
and complex jobs
• Autonomy and
responsibility are
integral to process-
centered jobs
• Work is classified as
Value-adding work, or work
for which the customer is
willing to pay.
Non-value-adding work,
which creates no value for
the customer but is
required in order to get the
value-adding work done.
Waste, or work that neither adds nor
enables value
Non-value-adding work is the glue that binds together the value-adding work in conventional
processes. It is all the administrative overhead—the reporting, checking, supervising,
controlling, reviewing, and liaisoning. It is work that is needed to make conventional processes
function, but it is also the source of errors, delay, inflexibility, and rigidity.
It adds expense and complexity to processes, and makes them error-prone and hard to change.

11. Reducing Non-Value Adding
Work
• More the number of people involved more the
need for coordination, communication, and
checking
• Even when one person cannot perform an entire
process, it is still possible to have every person
who is involved in the process understand it in its
entirety and focus on its outcome
• Consequences
– frees people from administrative hassles
– Jobs become bigger and more complex
– changes the boundaries of traditional jobs

12. From worker to professional
• Worker - does what he
is told
– Boss
– Activity
– Task
• Success depends on
– Pleasing the boss
– Keep doing your task
to keep the activity
levels up
• Professional - does
what it takes
– Customer
– Result
– Process
• Success depends on
– Knowledge
– Perspective
– Attitude

13. Addressing employee concerns
• Will I succeed in this new world of work?
– Success depends on knowledge, perspective & attitude
• What title will I have?
– titles that people have will describe their professions
rather than their ranks in some pecking order
• What sort of future can I expect?
– Instead of being promoted from one job to a more
senior one, your career is about personal growth, about
doing more and doing it better

14. From Manager to Process Owner
• A manager is someone who does the things that
workers cannot do for themselves
– In a process world the workers have the ability to work
without supervision
• The process owner owns the
– Design, documentation & training process performers
in its structure and conduct
• The process owner should be a guide and a
facilitator not boss
• The process owner must have a broad knowledge
of the process, an intuition of the needs of
customers

15. End of the Org Chart !
Who is your boss ?
• Who is your boss? In a process-centred organization there are five possible
answers.
• Perhaps the first person for the boss's title is the process owner. He or she
defines your work and specifies how it should be carried out. You may
have considerable latitude in execution, but at the end of the day he or she
designs the process.
• Your coach is also something of a boss. He or she is responsible for hiring
and firing you and for training and developing you. Counselling, raises,
etc are all delivered by your coach.
• When it comes to making operating decisions, you are your own boss..
• Team-mates are your bosses because their evaluations of you and your
performance are the most important. They're the closest to you, they know
when you're performing well and have a vested interest in informing you
when you're not.
• Finally, you could reply that the customer who ultimately pays your salary
is your boss. In the sense of setting your priorities and determining where
you should be directing your energy, the customer definitely has the most
clout.

16. Rethinking Strategy
• Intensification:
improving processes to
serve current customers
better
• Extention: using strong
processes to enter new
markets
• Augmentation:
expanding processes to
provide additional services
to current customers
• Conversion: taking a
process that you perform
well and performing it as a
service for other
companies
• Innovation: applying
processes that you
perform well to create and
deliver different goods or
services
• Diversification: creating
new processes to deliver
new goods or services

17. The corporate soul
• Open inquiry
– Can it accept unpleasant
news and reject
conventional wisdom? Does
politics rear its ugly head?
• Morale
– Do the employees believe
in the company or do they
suffer from corporate
cynicism?
• Humility
– Do people take their
success for granted? Do
they behave as if their past
triumphs guarantee the
future?
• Learning
– Are learning and
experimentation organized
disciplines in the company
or are they haphazard
practices?
• Sustainability
– Are these virtues the
creation of one individual
or are they an intrinsic part
of the organization? Will
they last of will they fade?

18. The design
• So process design must begin with the following questions
– What should the process really provide for its customers?
– How much are customers willing to pay for the result of the
process?
– How quickly do they need it?
– How much flexibility do they demand?
– What degree of precision is required?
• In addition to meeting customer requirements
– The design should meet the company's needs: for profitability,
return on assets, growth etc

19. • If I can tell you precisely what
to do, then I don’t need you to
do it. I can tell a machine to do
it, and the machine is cheaper
and doesn’t need vacations