1. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 1 Welcome Creating a Process Based Management System for ISO9001:2000

2. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 2 Outline of the day What is a process based management system? Introduction to process approach Designing the management system Process design & process management Key performance indicators Implementing process management

3. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 3 Session one What is a process based management system? Learning points: To understand the 8 quality principles of ISO9001:2000 To understand what is meant by the term management system To be able to put process management in context

4. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 4 The management system Definitions Management: The action or manner of managing ….. the conduct of affairs, administration, direction, control System: A whole composed of parts in orderly arrangement according to some scheme or plan

5. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 5 Is the human body a system ?

6. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 6 –an orderly arrangement of parts? –all parts have specific deliverables? –all parts contribute to required outcome? –all parts required for full performance? –sub-optimal performance if any part is not fully functioning or properly ‘connected’ ? Is the human body a system ? does it have?

7. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 7 Is a business a system ? Does (Should) a business have - –an orderly arrangement of parts? –a definite scheme or plan? –all parts with specific deliverables? –all parts contribute to required outcome? –all parts required for full performance? –sub-optimal performance if any part is not fully functioning or properly ‘connected’ ?

8. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 8 The management system Business structure defines the detail of the management system i.e. the ‘parts’ to be managed ‘parts’ are defined by the management

9. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 9 Quality (business) principles Customer focus Leadership Involvement of people Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships.

10. ISO 9001:2000 process model Continual improvement of the management system Customer Requirements Satisfaction Management responsibility Resource management Measurement, analysis and improvement Product realisation Product output input

11. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 11 System management Inputs Outcomes / results Learn Change Law Society Economic Products & Services Customer satisfaction Environmental Regulations

12. The big picture ‘setting off in the right direction is critical’ ISO 9001:2000 Systems & process thinking Management systems development Management skills development Learning and change Corporate Social Responsibility / Corporate Governance Based on

13. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 13 Session two Introduction to the process approach Learning points: To understand the ‘high performance cycle’ and its links with ISO9001:2000 To understand what processes are and why they operate across the organisation and not in department silos To understand the ‘system’, ‘process’ and ‘procedure’ relationship. (The difference between ‘What’ we do and ‘How’ we do it)

14. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 14 High performing organisations Determine customer & stakeholder needs Agree business objectives Define business processes Establish KPI’s Monitor KPI’s & improve

15. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 15 Processes v silos Deliver the service? Service design & development? Business planning? Dept 1Dept 2Dept 3Dept 4 Customer focused Communicating & winning business?

16. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 16 Departmental - ‘silo’ thinking KPI 95% EnvironmentEngineeringPlanning Local Land Charges 95% SLAs What the business sees

17. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 17 Processes - ‘Joined up’ thinking New Efficiency and Effectiveness KPIs (stakeholder / customer needs) 95%90%85%81% EnvironmentEngineeringPlanning Local Land Charges What the customer sees

18. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 18 Management system structure Owner – Head of scope Management system A process Owner - Process Owner ‘the what’ A procedure ‘the how’ measure efficiency and effectiveness measure business performance finance, customer, process Training Guide Photograph

19. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 19 1. What are the potential benefits of having processes that run cross functionally? 2. What cultural issues does this raise within the organisation? EXERCISE ONE

20. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 20 Session three Designing the management system Learning points: To learn how to scope your management system and identify the ‘key’ business processes

21. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 21 Management system structure Owner – Head of scope Management system A process Owner - Process Owner ‘the what’ A procedure ‘the how’ measure efficiency and effectiveness measure business performance finance, customer, process Training Guide Photograph

22. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 22 A typical system? Understanding the market Monitor & measure performance Winning business Design / enhance services Business planning Bringing about change Deliver services Managing assets Managing people Managing finance Supporting ? Core? Enabling? Managing after sales

23. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 23

24. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 24 Points to remember Don’t use functional / departmental names for processes Use organisational jargon not management jargon Has to be understood by everyone, including customers Organise processes to reflect the ‘high performance cycle’ Think business first then the standard Cover all areas of the business Don’t forget processes that cover stakeholder needs, business planning and bringing about change etc. Use the 8 quality principles to check everything is included

25. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 25 Designing a system 1. Design a management system for a large independent Supermarket EXERCISE TWO

26. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 26 System design session Facilitated half day for identification of processes Cross-functional senior management team Introduce business process management Focus on business performance not ISO9001:2000 Cover all activities Add in others (best practice, ISO9001 etc) Get feedback from outside the meeting.

27. A management system

28. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 28 A management system

29. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 29 Session four Process design and process management Learning points: To understand what a process is and how it can be mapped To understand what process management is and how this links to the overall performance of the organisation

30. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 30 Management system structure Owner – Head of scope Management system A process Owner - Process Owner ‘the what’ A procedure ‘the how’ measure efficiency and effectiveness measure business performance finance, customer, process Training Guide Photograph

31. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 31 What is a process? Inputs Output Transformation activity

32. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 32 Extract from HPO process map

34. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 34 What is process management? Inputs Outcomes Organisation as a series of activities Measure against targets, learn & improve

35. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 35 Process management Step 4 Step 1Step 2Step 3 Tar Act Var Inputs Outputs Knowledge Resources Competence Teamwork Budget LearnChange Ownership Training Guide Photograph

36. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 36 Process owners role Identifying the process Identifying process KPI’s Reporting process performance Holding process review meetings Approving and implementing process improvements

37. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 37 Session five ‘Key Performance Indicators’ (KPI’s) Learning point: To understand the importance of KPI’s in a process based management system To understand the importance of selecting the right KPI’s To understand how ‘system’ and ‘process’ KPI’s link together

38. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 38 Linking KPI’s at different levels Stakeholder Needs ISO 9004 Customer Needs ISO 9001 Business (quality) objectives Processes Key performance indicators Monitor Performance & Improve System KPIs Process KPIs ‘shaped by the needs of stakeholders & customers’

39. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 39 What is a KPI? Metric not a target, often percentage Measures efficiency (in the process) - process Measures effectiveness (of the process) - product Allows management by fact Managing processes not procedures Meaningful to those involved Utilise existing KPIs.

40. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 40 Example KPI’s People –% Staff turnover –% absenteeism / sickness –% enjoy working at organisation Process –stock turnover –on time delivery performance –energy consumption Customer –% of market share –% of very satisfied customer –% of existing customer growth Finance –Operating profit –Debtor days –% return on investment

41. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 41 Business objectives + KPI’s Process objectives + KPI’s People objectives + KPI’s The business focussed management information system

42. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 42 EXERCISE THREE 1.Why is the choice of KPI’s so important? 2.How can effective process management influence the performance of the overall organisation?

43. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 43 Session six Implementing process management Learning point: To understand the key steps to be taken in implementing a process based management system To understand the key stages of the ISO9001:2000 assessment process

44. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 44 Project phases Design management system Identify processes Develop processes & KPIs Set up management information system Review / develop procedures Implement changes Carry out process audits Compare with standard Improvement (KPI data & audits) Registration. Education & Change

45. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 45 ISO9001:2000 assessment process Obtain quotes & agree assessment company Pre-assessment option The assessment visit itself –Question the Auditor Decision on the day Follow-up action Continuing assessment visits

46. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 46 Session seven Summary

47. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 47 Management system essentials Adding together all process outputs will deliver the strategic objectives Taking away any one output will not allow all strategic objectives to be met ‘High performance cycle’ is embedded in both the processes and the system It is not just about process mapping It is a communication tool It is a live system - developing over time

48. 15.10.2003 Version 10.0  The High Performance Organisation Ltd Creating A Process Based Management System 48 Guidance, advice & support In partnership with The High Performance Organisation Ltd 01604 470837 enquiries@the-hpo.com www.the-hpo.com