Service Review FundamentalsLG Pro - Continuous Improvement Forum

October 2019

Paul Emes,

Business Systems and Innovation Manager

What is a ServiceThe provision of an intangible product that fulfils a need in

the form of a deliverable resulting from a process of

resource transformation

SIPOCSupplier Inputs Processes Output Customer

CouncilDepartments -

Business Units and Teams

Resources required by the process -

Plant and Equipment,

Enterprise and Human Resources

Process of -Coordination and Transformation of

Resources

Deliverables from –Resource

Transformation(Processes)

Needs/RequirementsInternal/External

CustomerOutcomes

Functional Hierarchy

Business Function

Hierarchy

Programs

Services

Processes

Procedures

What is a Service Review

Program or Service ??

Its a formal and systematic assessment of a

service with the intention of instituting change if

necessary

• Usually results in changes to Processes and

Procedures

Key Benefits

• Bridge gaps between revenue & expenditure

• Better align services with needs

• Reduce variation & waste in processes

• Drives a culture of Continuous Improvement

• Builds current & future capacity

• Promotes critical thinking and innovation

Service Review FundamentalsFoundation

Building Blocks

Set Up & Define the

Project

Measure –Data &

Information

Analyse Service

Performance

Engagement &Identify

Improvements

Implement -Change

Control –Evaluate and

Drive CI

BPM

People

I.T.C

Service Review

Framework

Step 1 - The Foundations

• Executive Buy In

• Whole of Organisation Approach

• Commitment to Stakeholder Engagement

• Continuous Improvement Culture

• Understanding of Resource RequirementsOutputs – Documented Framework and Commitment from the Organisations Leadership Group

Step 1 - The Foundations

Executive KPI’s

Commercial Acumen

Service Improvement

GroupService Register

Service Review Framework

Step 2 - Project Set Up

Define Project Objective, Scope and Resourcing

Establish the Review Team

Identify Stakeholders and Engagement Strategy

Service Review Process Evaluation Framework

Communication Strategy

Outputs – Project Charter, Communications & Engagement Plan, Budget & Evaluation Framework

Step 3 – Information & Data

Define the Service - type, owner, inputs/outputs etc.

Establish Service costs

Income/Expenditure

Net costs

Ratio of Fixed to Variable costs

Inputs – Plant & Equipment Enterprise Resource & FTE’s

Service Standards, Demand, Customer Satisfaction

Outputs – Service Definitions, Costs Statement and Performance Data

Step 4 - Analyse

Data & Process Capability / Flow Analysis

Value Stream Mapping

Value and Risk Analysis

Gap Analysis - Problem/Opportunity Definition

Root Cause Analysis & 5 Why’s

Benchmarking - Process Cycle Efficiency (PCE)

Scenario Modelling and Hypothesis Testing

Statistical Analysis – Control Charts, ANOVA, Linear Regression

Outputs – Performance Statement, Problem Definition, Risk Assessment & Analysis Evaluation Report

Step 5 – Identify Improvements Document Potential Opportunities for Change/Improvement

Engage Stakeholders – Create Ownership of Future Outcomes

Brainstorm Improvement Options

NVA/Waste Reduction, Fishbone & Affinity Diagrams, Design Thinking, Special Cause Response, FMEA

Test Options - Focus Groups, Beta & MVP Testing

Document and seek endorsement for an Implementation Plan

Outputs – Cost/Benefit Analysis, Risk Assessment, Endorsed - Implementation - Action Plan,

Generate Potential Solutions

Assess Potential Solutions

Select Preferred Solutions

Test Preferred Solutions

Develop Implementation

Plan

Step 6 – Implement Change

Change Management Plan/Strategy

Consider the need for professional Change Management Input??

Communicate with Key Stakeholders and Staff

Document Changes - Policy, Processes, Procedures

Promote Benefits, Empower Staff, Mitigate Fears

Act and Implement – Make the Change!! Outputs – Change Management Plan, Revised Position Descriptions, Policies, Process Maps and SOP’s

Step 7 – Evaluate and Control Assess & Confirm Benefits Realised

Report and Celebrate Outcomes

Embed Changes and Control – Maintain the Gains

Evaluate Review Process and Share Key Learnings

Plan the Next Review & Drive Continuous Improvement

Close the Service Review Project and Debrief

Outputs – Service Review Report, Media Release, Elected Members Briefing, All Staff Communique

Step 1. Foundation – Building Blocks Step 2. Define and Project Set Up Step 3. Measure –Information & Data

Objective: To establish the corporate environment empowering staff to pursue Service Reviews and a culture of Continuous Improvement.

Output: Documented Framework & commitment from the Organisations Leadership Group.

Objective: Define the project, establish the review team, engagement strategy, communications and evaluation.

Key Requirements: Agree on Project Objective/ScopeIdentify Key StakeholdersEstablish Review Team & CharterConfirm Review Framework and EvaluationAccess to Budget and Resourcing

Output: Project Charter, Communications & Engagement Plan, Budget & Evaluation Framework.

Objective: Define the service, inputs/outputs, costs, baseline performance and quantify the opportunity.

Key RequirementsDetermine the MeasuresUnderstand the CostsUnderstand the VariationCurrent Service Standards

Output: A quantified picture of the current costs, performance (current state) and service definition.

Step 4. Analyse Step 5. Engage and ID ImprovementsObjective: Identify process capability, root cause(s), service gaps & measure variation.

Key Requirements:Analyse Data and ProcessRisk AssessmentDetermine Root CausesForm & Test HypothesisGap Analysis

Output: Performance Statement, Problem Definition, Risk Assessment & Evaluation Report

Objective: Determine possible improvement opportunities that address root cause(s) to problems and inefficiencies.

Output: Cost/Benefit Analysis, Risk Assessment, Endorsed - Implementation - Action Plan

Step 6. Implement Change Step 7. Evaluate & Control POST- Service Review– Future PlansObjective: Document and Implement changes. Communicate with stakeholders, promote benefits, empower staff & mitigate fears.

Objective: Embed the changes, confirm benefits realised and maintain the gains.

Key Requirements:Standardise the changesEvaluate the review processConfirm the benefits realisedShare learnings & close the project

Output: Service Review Report, Media Release, Elected Members Briefing, All Staff Communique

Objective: Closely monitor performance to promote continuous improvement & schedule the next review

Key Requirements:Reinforce accountability and changed behaviorsPromote learnings and benefitsI.D and act upon further opportunities to improve

Output: Recommendations for the future projects &.

Key Requirements:Executive Buy InAll of OrganisationCI CultureResourcing

Team Charter

Flow Chart

Collaboration

Goals

Communication

AgendasPareto Chart

Control Chart

Cause and Effect Diagram

Pareto Chart

Checksheet

Problem

Apparent cause

Root cause

Counter measure

Key Requirements:Engage StakeholdersID Potential SolutionsUnderstand Cost & VariationTest/Pilot Preferred SolutionDevelop Implementation Plan

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Potential Solutions

Action Plan

Key Requirements:Document policy & process Implement changesCommunicate & promote benefits

Before After

Output: Change Management Plan, Revised Position Descriptions, Policies, Process Maps and SOP’s

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Questions

Paul Emes,

Business Systems and Innovation Manager