process management
DESCRIPTION
Michael Hammer is the pioneer of the Process Management concept. He developed Process Enterprise Maturity Model (PEMM). He helped many organisation to go lean and efficient by his concept of Process Re-engineering.TRANSCRIPT
www.mindtrain.in ACHUTHAN RAJAGOPALwww.mindtrain.in
PROCESS MANAGEMENT AND PROCESS
AUDIT QUALITYwww.mindtrain.in
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PROCESS MANAGEMENTBook that Hammer wrote with James Champy, The book sold several million copies.So popular was Process re-engineering that one survey in the 1990s showed it to have been adopted by almost 80% of Fortune 500 companies.
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PROCESS MANAGEMENTDesigning a Process
Design, refers to the specifications: Of what tasks, How it has to be done, In what order, Who is responsible to do it. In what location, Under what circumstances, With what information,
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PROCESS MANAGEMENTCharacteristics of a Business Process The business processes to become more
mature - capable of delivering higher performance - should have two characteristics:
(1) process enablers - which pertain to individual processes.
(2) enterprise capabilities - which apply to entire organizations.
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PROCESS MANAGEMENT Process Enablers :1. Design – Specs for process execution.2. Performers – The people with their
skill and knowledge matrix.3. Owner – The senior executive who is
responsible for the process.4. Infrastructure – Information system
that support the process.5. Metrics – The measure to track the
process performance.
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PROCESS MANAGEMENT Process Enablers Design (a) Purpose - Clearly define the purpose
of the process design.(b) Context – Be aware of the context why
any change in the process is recommended.
(c) Document – Document the process along with context, purpose.
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PROCESS MANAGEMENT Process Enablers Performers (a) Knowledge – (1) aware of the
business processes (2) the interface with other processes.
(b) Skill – (1) in change management,(2) change implementation, (3) decision making.
(c) Behaviour – (1) right attitude to deliver results (2) enable others to achieve their process goals.
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PROCESS MANAGEMENT Process Enablers Owner (a) Identity – A senior management
person to interact with other process owners.
(b) Activity – (1) define the process goals and vision (2) sponsor redesign (3) follow up implementation.
(c) Authority – Should have control over the process, budget, technology.
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PROCESS MANAGEMENT Process Enablers Infrastructure :(a) Information - Comprehensive IT
enabled system.(b) HR System - (1) role definition Process
owner, (2) job description of performer (3) competency profile.
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PROCESS MANAGEMENT Process Enablers Metrics :(a) Definition - performance metrics for
each process.(b) Uses - metrics to compare :
performance to benchmark,best in class performance, target .
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PROCESS MANAGEMENTEnterprise Capabilities :1. Leadership - Top Management
should support.2. Culture –
Teamwork,ownership,accountability,willingness to change development focus.
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Enterprise Capabilities :3. Expertise – Process skills,clarity of methodology,ability to redesign.
4. Governance – Managerial ability & initiatives to launch
a new process or redesign a process.
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PROCESS MANAGEMENT Enterprise Capabilities Leadership (a) Awareness - Senior management is fully
aware of the process management ‘s importance and willing to subject it’s own work into process parameters.
(b) Alignment – The Senior management should support the process management implementation.
(c) Behaviour – commits resources, removes road blocks, support changes to achieve process goals
(d) Style – The senior management is keen to bring about change and use process as a key tool for change management.
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PROCESS MANAGEMENT Enterprise Capabilities Culture :(a) Team work – cross functional project
team in place.(b) Goal orientation – the process owners
should focus on the goal and its achievement.
(c) Responsibility – the Process performers feel the responsibility to achieve the target.
(d) Attitude toward change – performers and owners are ready for change.
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PROCESS MANAGEMENT Enterprise Capabilities Expertise (a) People – Process team has the skill in
process design, implementation, project management, communication, and change management.
(b) Methodology - basic methodology of redesigning should be well known to the process team.
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PROCESS MANAGEMENT Enterprise Capabilities Governance (a) Process model – A total process model for the entire
organization - covering each task should be built.
(b) Accountability – (1) The process team should act as steering committee to achieve progress (2) the process owners are to be made responsible for the success.
Integration – Process management office headed by Chief process officer (1) who has credibility employs all the tools and techniques in an integrated manner (2) coordinating and integrating all the process owners
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AUDIT QUALITY Functions of Auditors : The Business Process Auditor should answer
questions in relation to :Economy, Efficiency and
Effectiveness
Economy Are we acquiring goods and services at the
lowest possible prices whilst maintaining the required quality?
Are we achieving Value for Money? Where else can we save money?
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AUDIT QUALITYEfficiency Can we do this task, activity or process in a smarter
way? Have we eliminated all the waste we can? Could we do this differently? Do we even need this process?
Effectiveness Do we know what our customers' expectations are? Are we meeting our customers' expectations
consistently? Are we positioned to meet our customers' future
needs?
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AUDIT QUALITYSkills for Effective Audit Team Multitasking
Continuous learning
Listen to others view
Negotiate
Not being intimidated by the position
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AUDIT QUALITYSkills for Effective Audit Team : Confidence Building credibility
Sharing and Training
Feedback
Teamwork
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AUDIT QUALITYResponsibilities of Auditors : Review, analyse and evaluate the
organisational processes Assess the accuracy, reliability,
timeliness, of the information Inspect organization's internal control,
risk exposure, theft prevention, data manipulation.
Create checks and balances for financial and operational reporting.
Controls to protect organization's assets.www.mindtrain.in
AUDIT QUALITYResponsibilities of Auditors : strong ethical framework and report on
issues (or anticipated issues) Not to "let things go" as further
investigation may reveal embarrassing processes, performance , fraud.
Not to be intimidated by strong personalities
Professional scepticism, to anticipate ways of potential fraud.
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Thank YOU