© Warwick Business School 2007
Nigel SlackWarwick Business SchoolUniversity of Warwick, UK
© Warwick Business School 2007
What today is about
What is happening in operations and process management?
Overcoming some of the major challenges?
How technology can impact on process performance
Performance improvement through e-marking, how one organisation made it work
What helps to ensure effective process change
© Warwick Business School 2007
The power of process .
The way we manage our processes indicates how serious we are about adding value for our clients, our stockholders and ourselves(Dan McHugh, Global Head of Operations and Product Control, CSFB)
© Warwick Business School 2007
© Warwick Business School 2007
The operations function is fashionable!
The consultancy services market
% of world revenues of 40 largest firms
Marketing/sales2
Operations and process management
31
Corporate strategy17
IT strategy17
Benefits/Actuarial16
Organizational design
11
Financial6
© Warwick Business School 2007
© Warwick Business School 2007
Processes excellence
What do you get from great process management .
Enhanced service
Secure revenue
Lower costs Process
efficiency
Reduced errors, better resilience
Lower operational risk
Higher capacity utilisation
Lower capital requirements
Capabilities for future innovation
Opportunities for process learning
© Warwick Business School 2007
Q On what aspects of performance does process management most impact?
Cost / savings / efficiency etc.
89%
Service to clients /
customers
47%
Risk / resilience / franchise protection
29%
Little / no impact
11%
L/T capabilities / innovation etc.
7%
© Warwick Business School 2007
© Warwick Business School 2007
Differences within sectors are usually greater than the differences between sectors
Financial services
An account management centre at a large retail bank
Financial analyst advising a client at
an investment bank
Furniture manufacturing
Mass production of kitchen units
Craft production of reproduction
antique furniture
Hotels
Value-for-money hotel
Lobby of an international luxury hotel
© Warwick Business School 2007
What really matters are such factors as .
For example ......
Volume
Variety
Variation
Visibility
And .....
Risk
Complexity
Discretion
etc.
Volume and variety are particularly influential in the way processes are managed
The sectoral context is less important than you think
© Warwick Business School 2007
© Warwick Business School 2007
New approaches can easily be misinterpreted
