Do you control process scenarios costs?
Usually people that participates in process design, know that it comes a time to propose process changes to someone in the company.
Process team meets and prepares a presentation which summarizes the problems, solutions proposed, benefits, return on investment, etc..
This is a collaborative process that in some companies is presented to the C level for discussion and formal approval of TO-BE process. In general we know that such presentations indirectly evaluate people's work, so there is a special preparation for this purpose.
In these situations some weak process teams tends to increase the detail and execute an endless revision process of the presentation content, thus document drafting becomes high inefficiency process, which is contrary to the spirit of the challenge.
Last week I returned to go through a situation that has not happened to me for some time. The team took two days to prepare a presentation of 6 pages summarizing improvement opportunities of a purchasing process. Six people were involved in the task and were spent eight hours to do six pages. The Process Manager was responsible for presenting it to the Administration and become influenced by two team members that were reviewing the document thoroughly. I joined the meeting in the last 2 hours. For educational proposes I left deliberately go with the flow until in the end.
Than we calculate process improvement cost:
8 hours for 6 pages;
48 men hour for 6 pages;
Average cost men hour: 40€;
Total: 1.920€
Page cost: 320€ !!!
Are you sure you are choosing the right people to work in process teams? In this case the manager was concerned with its image and did not want to put his career at risk but have you thought about optimizing these process with last minute visits by members of the board just to check the status and put them to work efficiently?
Process team meets and prepares a presentation which summarizes the problems, solutions proposed, benefits, return on investment, etc..
This is a collaborative process that in some companies is presented to the C level for discussion and formal approval of TO-BE process. In general we know that such presentations indirectly evaluate people's work, so there is a special preparation for this purpose.
In these situations some weak process teams tends to increase the detail and execute an endless revision process of the presentation content, thus document drafting becomes high inefficiency process, which is contrary to the spirit of the challenge.
Last week I returned to go through a situation that has not happened to me for some time. The team took two days to prepare a presentation of 6 pages summarizing improvement opportunities of a purchasing process. Six people were involved in the task and were spent eight hours to do six pages. The Process Manager was responsible for presenting it to the Administration and become influenced by two team members that were reviewing the document thoroughly. I joined the meeting in the last 2 hours. For educational proposes I left deliberately go with the flow until in the end.
Than we calculate process improvement cost:
8 hours for 6 pages;
48 men hour for 6 pages;
Average cost men hour: 40€;
Total: 1.920€
Page cost: 320€ !!!
Are you sure you are choosing the right people to work in process teams? In this case the manager was concerned with its image and did not want to put his career at risk but have you thought about optimizing these process with last minute visits by members of the board just to check the status and put them to work efficiently?
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