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The Process Audit and The Process Audit and Maturity ModelMaturity Model

Kenneth WebberKenneth Webber

MBA 731MBA 731

November 5, 2007November 5, 2007

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Process ReengineeringProcess Reengineering

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Processes and Reengineering Processes and Reengineering ProcessesProcesses

ConsistencyConsistency PredictablePredictable ControlControl EffectiveEffective Reinventing the WheelReinventing the Wheel Constant improvementConstant improvement Changing Business environmentChanging Business environment

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Process Assembly LineProcess Assembly Line

WhoWho TasksTasks Specific OrderSpecific Order LocationLocation CircumstancesCircumstances

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ResultsResults

Removes Non-Value Adding TasksRemoves Non-Value Adding Tasks Reduces ErrorsReduces Errors Reduces DelaysReduces Delays Reduce ad hoc & inconsistently Reduce ad hoc & inconsistently

performed practicesperformed practices

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Questions?Questions?

Did we start with the right thing?Did we start with the right thing? How do we know we are making How do we know we are making

progress?progress? What will the organization look like What will the organization look like

when we are finished?when we are finished?

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Process Audit and Maturity Process Audit and Maturity Model DefinitionModel Definition

Evaluate the existing processesEvaluate the existing processes Evaluate redesigned processesEvaluate redesigned processes Evolutionary ImprovementEvolutionary Improvement Deliver High Performance ProcessesDeliver High Performance Processes A maturity framework for improving an A maturity framework for improving an

organization. organization. Toward mature, disciplined, and Toward mature, disciplined, and

continuously improving development of the continuously improving development of the knowledge, skills, motivation and business knowledge, skills, motivation and business performance. performance.

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Process AuditProcess Audit Process EnablersProcess Enablers

Top Level Process OwnersTop Level Process Owners ImplementationImplementation PerformancePerformance

Enterprise wide CapabilitiesEnterprise wide Capabilities Management Support the ProcessesManagement Support the Processes Employees Value CustomersEmployees Value Customers TeamworkTeamwork Personal AccountabilityPersonal Accountability

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Five Process EnablersFive Process Enablers

DesignDesign

PerformersPerformers

OwnersOwners

InfrastructureInfrastructure

MetricsMetrics

KnowledgeKnowledge SkillsSkills BehaviorBehavior

PurposePurpose ContestContest DocumentationDocumentation

IdentityIdentity ActivitiesActivities AuthorityAuthority

Info SystemsInfo Systems HR SystemsHR Systems

DefinitionDefinition UsesUses

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Process Enabler’s Four Process Enabler’s Four Levels Levels

P1 through P4P1 through P4 Each has a definitionEach has a definition Definition builds on lastDefinition builds on last Above 80% True is Above 80% True is GREENGREEN 20% to 80% is 20% to 80% is YELLOWYELLOW Below 20% is Below 20% is REDRED

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WorksheetsWorksheets

Hammer Evaluating Worksheet

Hammer Assessing Worksheet

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Performers – Skills Performers – Skills

P1 - Performers are skilled in P1 - Performers are skilled in problem solving process problem solving process improvementimprovement

P2 - Performers are skilled P2 - Performers are skilled at teamwork and Self-at teamwork and Self-managementmanagement

P3 - Performers are skilled P3 - Performers are skilled at business decision makingat business decision making

P4 - Performers are skilled P4 - Performers are skilled at change management & at change management & change implementationchange implementation

Hamburger AssemblyHamburger Assembly

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Hamburger Assembly Hamburger Assembly EnablersEnablers

  P-1P-1 P-2P-2 P-3P-3 P-4P-4

Design Design        

Purpose Purpose        

Contest Contest        

DocumentationDocumentation        

Performers Performers        

knowledge knowledge        

Skills Skills        

BehaviorBehavior        

Owner Owner        

Identity Identity        

Activities Activities        

AuthorityAuthority        

Infrastructure Infrastructure        

Info Systems Info Systems        

HR SystemsHR Systems        

Metrics Metrics        

Definition Definition        

UsesUses        

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Process AuditProcess Audit

Process EnablersProcess Enablers Top Level Process ownersTop Level Process owners ImplementationImplementation PerformancePerformance

Enterprise wide CapabilitiesEnterprise wide Capabilities Management support the processesManagement support the processes Employees value customersEmployees value customers TeamworkTeamwork Personal AccountabilityPersonal Accountability

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Four Enterprise CapabilitiesFour Enterprise Capabilities

LeadershipLeadership

CultureCulture

ExpertiseExpertise

GovernanceGovernance

TeamworkTeamwork Customer FocusCustomer Focus ResponsibilityResponsibility Attitude Towards ChangeAttitude Towards Change

AwarenessAwareness AlignmentAlignment BehaviorBehavior StyleStyle

PeoplePeople MethodologyMethodology

Process ModelProcess Model AccountabilityAccountability IntegrationIntegration

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Enterprise Capabilities Enterprise Capabilities Four Levels Four Levels

E1 through E4E1 through E4 Each has a definitionEach has a definition Definition builds on lastDefinition builds on last Above 80% True is Above 80% True is GREENGREEN 20% to 80% is 20% to 80% is YELLOWYELLOW Below 20% is Below 20% is REDRED

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Culture - ResponsibilityCulture - Responsibility

E1 – Accountability for E1 – Accountability for results rest with managersresults rest with managers

E2 – Frontline personnel E2 – Frontline personnel begin to take ownership of begin to take ownership of resultsresults

E3 – Employees feel E3 – Employees feel accountable for enterprise accountable for enterprise resultsresults

E4 – Employees feel a sense E4 – Employees feel a sense of mission in serving of mission in serving customers and achieving customers and achieving ever-better performanceever-better performance

Hamburger AssemblyHamburger Assembly

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Hamburger Assembly Hamburger Assembly CapabilitiesCapabilities

  E-1E-1 E-2E-2 E-3E-3 E-4E-4

LeadershipLeadership        

AwarenessAwareness        

AlignmentAlignment        

BehaviorBehavior        

StyleStyle        

CultureCulture        

TeamworkTeamwork        

Customer FocusCustomer Focus        

ResponsibilityResponsibility        

Attitude Towards ChangeAttitude Towards Change        

Expertise Expertise        

PeoplePeople        

Methodology Methodology        

Governance Governance        

Process Model Process Model        

AccountabilityAccountability        

IntegrationIntegration        

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Real Life ExamplesReal Life Examples

MichelinMichelin CSAACSAA Tetra PakTetra Pak ShellShell CloroxClorox

2020

Take AwayTake Away

Generic Maturity ModelGeneric Maturity Model Doesn’t specify how the processes Doesn’t specify how the processes

should lookshould look Characteristics that any enterprise Characteristics that any enterprise

should haveshould have IncrementalIncremental SimpleSimple

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ReferencesReferences Hammer, Michael, “The process Audit”, HBR, Reprint R0704H, April 2007Hammer, Michael, “The process Audit”, HBR, Reprint R0704H, April 2007

““Beyond CMMI... PEMM”, Gant Head Web site, Posted: April 17, 2007 02:48 Beyond CMMI... PEMM”, Gant Head Web site, Posted: April 17, 2007 02:48 PM,PM, http://www.gantthead.com/blog/Project-Management-2.0/335/http://www.gantthead.com/blog/Project-Management-2.0/335/> (05 Nov 2007)> (05 Nov 2007)

Hammer, Michael, “The 7 Deadly Sins of Performance Measurement”, MIT Hammer, Michael, “The 7 Deadly Sins of Performance Measurement”, MIT SLONE Management Review, Spring 2007SLONE Management Review, Spring 2007

Harmon, Paul Business Process Trends Newsletter, March 2004, Volume 2, Harmon, Paul Business Process Trends Newsletter, March 2004, Volume 2, No. 3 PP1-11No. 3 PP1-11

““Hammer and Company – PEMM”, n.d.,Hammer and Company – PEMM”, n.d.,http://www.hammerandco.com/pemm.asphttp://www.hammerandco.com/pemm.asp, (05 Nov 2007), (05 Nov 2007)

““CIO as Chief Process Officer, Not Strategic Leader”, CEO Insight Web site, CIO as Chief Process Officer, Not Strategic Leader”, CEO Insight Web site, n.d., n.d., http://www.cioinsight.com/article2/0,1540,2191426,00.asphttp://www.cioinsight.com/article2/0,1540,2191426,00.asp, (05 Nov 2007), (05 Nov 2007)