process management

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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.

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Page 1: Process management

www.mindtrain.in ACHUTHAN RAJAGOPALwww.mindtrain.in

Page 2: Process management

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

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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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