CHAPTER 7
The Process Improvement Organization (PIO)
Process Improvement Organizations (PIOs) are a core component of any company’s quality system. The fundamental purpose of establishing a PIO is to increase an organization’s efficiency and the quality of its products and services in order to better manage stakeholder and customer demands. As such, it is prudent for any organization to follow a disciplined approach to improvement activities in order to respond effectively and rapidly to stakeholder needs. The PIO is a service-driven organization within a corporation and is responsible for providing Process Improvement oversight and ensuring that all Process Improvement activities are accurately aligned with stakeholder needs and expectations. This chapter is a guideline and companion for Process Improvement professionals as they build out a Process Improvement function within an organization. It outlines the various roles, behaviors, services, management controls, and techniques used to deliver value to stakeholders. Furthermore, this chapter describes the structure and makeup of a Process Improvement Organization (PIO).
This chapter is organized around the following topics:
• Charter of a PIO: What are the primary objectives of a PIO and what is the department’s mandate?
• Process Improvement Services: What services does the PIO provide? What are the estimated timelines associated with each service?
• Roles and Responsibilities: What are the fundamental roles that make up a PIO?
• Process Improvement Governance Structure: How are Process Improvement projects governed and what role does the PIO play in this process?
• Department Controls: What controls are in place to ensure a consistent delivery experience for Process Improvement stakeholders?
Charter of a Process Improvement Organization
Process Improvement Organizations (PIOs) are assigned various responsibilities associated with the centralized and coordinated management of Process Improvement efforts and projects across an enterprise. A PIO’s vision is to continually improve all aspects of the enterprise’s environment (process, structure, workforce, technology) in order to improve organizational performance. This vision is put into action through various Process Improvement programs along with a focus on process stewardship, activities to eliminate waste, a commitment to building customer value, and a dedication to sustaining enterprise operations. Ultimately, the PIO is responsible for optimizing processes to achieve more efficient results while ensuring alignment with an organization’s strategic objectives. Using disciplined and systematic approaches such as Lean Six Sigma, Kaizen, and Rummler–Brache, the PIO strives to improve operations on behalf of customers and shareholders.
Specifically, the PIO focuses on five distinct areas (Figure 7-1):
FIGURE 7-1 Process Improvement Organization Focus Areas
• Enterprise understanding: Ensuring proper business architecture exists and all processes are documented and understood. Managing any changes to an organization’s Process Ecosystem and considering the complete enterprise before any process changes are implemented.
• Workforce engagement: Mentoring and guiding stakeholders and improvement teams as they learn and adopt Process Improvement techniques. Providing training to all levels of an organization so that supervisors, middle managers, and executives understand their roles in making Process Improvement a success. Educating the organization on Process Improvement activities and publicly praising accomplishments to reinforce improvement actions. Ensuring employees and process operators are considered in any process decision and proper change management activities occur.
• Project management: Managing the Process Improvement project portfolio and maintaining and publishing a master project listing. Ensuring appropriate methods and tools are used in Process Improvement efforts. Participating in governance activities and serving as an honest broker on all issues brought forward to the PIO by business stakeholders.
• Process Improvement: Designing and implementing standardized or improved processes. Reducing unprofitable or wasteful activities such as defects, overproduction, transportation, duplication, waiting, and unnecessary motion or processing. Ensuring Process Improvement activities align with strategic objectives.
• Continuous assessment: Implementing critical performance measures and performance measurement systems. Ensuring that proper monitoring of performance occurs and that any variation is assessed and improved if necessary. Serving as the organization’s authority on Process Improvement Practices by setting the standard, providing the tools and templates, and then being a resident advocate and model for good Process Improvement practice.
Process Improvement Services
A PIO provides a number of professional services to assist organizations in achieving process excellence. These services range from directly managing Process Improvement projects, to implementing and modeling business process architectures, to simply providing Process Improvement support to business customers by way of guidance and education. These activities form the backbone of the Process Improvement group and enable organizations to improve performance in a coordinated, centralized, and disciplined manner. This section provides a comprehensive overview of the services offered by a PIO along with a description of the service, an outline of standard activities, and any key deliverables. Estimated time frames or service-level agreements for fulfilling each service are also provided.
NOTE Timelines for the various Process Improvement services vary among organizations depending on a variety of factors such as the complexity of the process in question; the nature, quantity, and magnitude of process disconnects; the state of the process (a documented or undocumented process); the ability to dedicate resources to the effort (an item which can drastically alter time lines) and whether there are any other competing or conflicting Process Improvement goals within the organization. These estimates are provided as a baseline for discussion. Ultimately, whether a Process Improvement endeavor is multiday, multiweek, or multimonth, there is always a benefit to conducting the effort. Incorporating agility into traditional Process Improvement life cycles can help improve the speed of value delivery.
Project Intake
The Project Intake process exists in order to ensure all Process Improvement service requests are properly assessed for prioritization, resourcing, and execution. This service includes formal triaging/investigation to properly define the problem statement of the request, formally documenting the request, and ensuring adequate preparation for governance and executive or steering committee review.
For this service, the PIO will
• Register the Process Improvement idea into a master project list or repository
• Investigate the improvement idea
• Document the problem, business case, and proposed benefits of the proposed improvement
• Ensure strategic alignment of the idea with departmental Hoshin Kanri and strategic goals
• Estimate the effort required to execute the proposed improvement
• Select an appropriate project method for delivery
• Obtain approval to proceed with the improvement request and estimate a timeline for completion
A typical baseline for completing analysis of a Process Improvement idea is as follows:
• Low-complexity request: 5 days
• Medium-complexity request: 10 days
• High-complexity request: 15 days
Process Improvement Project
A Process Improvement Project is a large-scale initiative that involves complex processes that include multiple stakeholders across the enterprise, multiple inputs and outputs, and solutions that often require significant time and investment to implement. This service offering includes structured sets of activities designed to improve the performance of business processes in order to fulfill organizational goals. Throughout the project life cycle, participants verify the current state model of a process (As-Is) and propose designs for the future state model (To-Be). It provides diagnostic information on issues to be improved and opportunities for beneficial change. Moreover, Process Improvement resources provide guidance and delivery execution throughout the various improvement phases.
For this service, the PIO will
• Produce the Project Charter, Project Plan, and As-Is Process map
• Define and collect supporting data and measurements
• Perform Root Cause Analysis (RCA)
• Identify potential solution(s) and create a To-Be Process Map
• Confirm the proposed solution fits process architecture
• Execute identified quick wins
• Engage technology teams to assess any proposed process automation solutions
• Obtain approvals from management for solution selection and prioritization
• Create a Change Management plan where applicable for Process-related changes
• Complete and execute a training plan for process change adoption
• Update the Process Ecosystem and associated process components such as procedures
• Identify measures and create a process control dashboard
• Prepare for and present to stakeholders and management at Tollgate Reviews (these occur at various stages of a Project)
Typical deliverables for a Process Improvement Project include
• Measured improvements to business processes that meet customer requirements and organizational objectives
• Documented Voice-of-Customer, Critical-to-Quality, and success measures
• Reports and/or dashboards that measure business performance
• Trained workforce on new processes and procedures
• Implemented, validated, approved, and documented solutions including process maps and procedures
• Response plan for resolution of potential process issues
Common timelines for executing Process Improvement projects are as follows:
• Low-complexity project: 40 days
• Medium-complexity project: 80 days
• High-complexity project: 120 days
Figure 7-2 outlines the activities typically contained in a Process Improvement project using the Lean Six Sigma DMAIC (Define-Measure-Analyze-Improve-Control) method.
FIGURE 7-2 Process Improvement Project Activities
Kaizen Event
A Kaizen Event is a focused effort to make rapid improvements over a brief period of time. Cross-functional teams are assembled for three- to five-day periods in order to focus on improving a particular process. Kaizen Events are
• A short burst of intense activity and effort (three to five days)
• Biased toward action over analysis to achieve improvements in a short time
• Focused on defining activities, improving supplier/customer connections, and achieving flow
• Driven to resolve a specific problem or achieve a specific goal
• Committed to a specific area or process
• Guided with daily reviews of progress
With this service offering, the PIO provides guidance and assistance throughout the planning and facilitation of Kaizen events as well as any solution deployment activities post Kaizen.
For this service, the PIO will
• Identify the needed participants
• Gather applicable/available performance data
• Schedule the event and prepare the agenda
• Map the As-Is process
• Identify process disconnects and determine root causes
• Design and propose solutions
• Confirm that the proposed solutions fit the process architecture
• Obtain change management approvals
• Implement the process changes
• Update process map(s), procedures, and documentation
• Analyze the results
• Summarize and present what was learned to management
• Develop a Process Monitoring plan
Typical deliverables for a Process Improvement Project include
• Implemented, validated, approved, and documented solution(s) including process maps and procedures
• Report(s) and/or dashboard(s) to measure ongoing business performance
Kaizen Planning, Facilitation, and Implementation are usually completed within 15 days as follows:
• 5 days for Kaizen planning
• 5 days for Kaizen event an implementation
• 5 days for post implementation activities
Figure 7-3 outlines the activities typically contained in the Kaizen event service.
FIGURE 7-3 Kaizen Event Activities
Process Change Request: Just Do It
This service offering provides assistance with the implementation of a Just-Do-It process change. Just-Do-It changes require little effort to implement, and root causes and appropriate solutions are well known. Examples of Just-Do-It scenarios include simply transferring a series of activities to a new department, retiring a particular activity or series of activities, and renaming or rebranding various process attributes.
For this service, the PIO will
• Validate the problem or concern
• Confirm that the proposed solution fits process architecture
• Prepare a change management plan
• Update process map and procedures
• Obtain approvals for the plan
• Implement the solution
• Update any documentation, reports, or other process artifacts
• Communicate the results to stakeholders and management
Just-Do-It Scenarios are typically completed in less than five days.
Figure 7-4 outlines the activities typically contained in a Just-Do-It or Process Change Request scenario.
FIGURE 7-4 Just-Do-It Activities
Process Mapping (As-Is or To-Be)
Process Mapping is essential for understanding all aspects of an organization’s workflows and processes, including departments, activities, owners, and hand-off points. This documentation assists with standardization activities and helps ensure tasks are executed in a consistent manner among process operators. In addition, it is a helpful tool when disseminating information and training employees; and in many cases, it may be required by regulatory entities. With this service offering, the PIO assists stakeholders with mapping either the As-Is or To-Be state of a named process; documenting any related process components such as associated business rules, measures, dashboards, procedures, or systems; and properly deploying the process into the organization’s Process Ecosystem.
For this service, the PIO will
• Identify the start and end points of the process in question
• Identify the operators and Subject Matter Experts (SMEs)
• Schedule and facilitate workshops/interviews
• Document the process map
• Document the Process Profile
• Document any Process Components
• Update the Process Ecosystem and Process Repository
• Validate the process map and profile with stakeholders
• Conduct training with stakeholders and SMEs, as needed
• Communicate the results to stakeholders and management
• Conduct retrospective
Typical deliverables for a Process Mapping engagement include
• Documented As-Is and/or To-Be Process
• Process Profile
• Implemented, validated, approved, and documented process components
• Updated view in the centralized process repository
Common service-level agreements for a Process Mapping engagement are as follows:
• Low-complexity process: 5 days
• Medium-complexity process: 10 days
• High-complexity process: 15 days
Figure 7-5 outlines the activities typically contained in a Process Mapping Exercise.
FIGURE 7-5 Process Mapping Activities
Root Cause Analysis
There are times when there are symptoms or indicators of a process problem; however, the validity or cause of the performance fluctuation is unknown. Root Cause Analysis (RCA) is a problem-solving method that is used to identify the root causes of process fluctuations or problems that cause operating events that affect performance. With this service offering, the PIO assists process stakeholders with completing formal RCA of process issues or performance disturbances and facilitating the design of any needed improvements.
For this service, the PIO will
• Identify appropriate analysis methods to use and gather data
• Schedule workshops and interviews to determine the root cause of an issue
• Facilitate problem identification and conduct RCA
• Prepare and document the findings
• Recommend potential solutions and methods for deployment
• Communicate results to stakeholders and management
In many cases, process breakdowns require immediate attention and root cause efforts should be conducted within hours of any incident. However, for noncritical events, common service-level agreements for Root Cause Engagements are as follows:
• Low complexity: 1 day
• High complexity: 3 days
Figure 7-6 outlines the activities typically contained in RCA efforts.
FIGURE 7-6 Root Cause Analysis Activities
Consulting
Continuous Improvement can provide various types of consultation services for business customers within an organization. Services include providing advice regarding quality control, process mapping standards, improvement methodologies, industry best practices, strategy alignment, as well as providing support for System Development activities in order to prevent needless development and automation.
For this service, the PIO will
• Identify artifacts to be delivered based on consultation needs
• Identify any needed stakeholders, operators, and SMEs
• Schedule and facilitate workshops/interviews
• Prepare and validate deliverables with stakeholders, operators, and SMEs
• Communicate results to stakeholders and management
Most consultations can be completed within a few hours by scheduling or attending various project or department meetings. Figure 7-7 outlines the activities typically contained in a Process Improvement consulting engagement.
FIGURE 7-7 Process Improvement Consulting Activities
Process Training
The PIO is considered a transformation group and as such is often called upon to collaborate with business SMEs to conduct training sessions with process operators prior to implementing process changes. The PIO is also responsible for indoctrinating process culture and Process Improvement practices into the organization it supports. This service can include coaching, mentoring, or, in many cases, training various departments on business process changes, methodologies, and best practices.
For this service, the PIO will
• Create training curriculum and schedules and prepare necessary collateral material
• Schedule and coordinate training sessions
• Train stakeholders, operators, and/or SMEs
• Determine metrics to measure the net benefit of training activities
Common service-level agreements for Process Training engagements are as follows:
• Low-complexity training session: 5 days
• High-complexity training sessions: 10 days
NOTE If existing training assets can be reused, training can often be executed in less than 10 days even for high-complexity training arrangements.
Figure 7-8 outlines the activities typically contained in a Process Improvement training engagement.
FIGURE 7-8 Process Training Activities
Quality and Performance Assessments
Quality Assurance is a service provided by the PIO in order to evaluate operational performance, including the delivery of services, quality of products provided to consumers or customers, and performance of any human resources involved in process execution. The PIO conducts assessments of key business processes in order to ensure transactions are meeting quality benchmarks, thus ensuring that customers receive precisely what is requested. This service helps monitor results in specific process areas and assists with identifying potential areas of concentration for Process Improvement initiatives. Quality Assessments can also assist with employee performance management.
For this service, the PIO will
• Determine critical processes for assessment
• Determine appropriate sample sizes and assess transactions
• Create audit notes to be used to coach process operators
• Perform trend analysis to identify areas of focus for Process Improvement
• Provide feedback for process operators to reduce defect rates
• Ensure performance meets regulatory compliance requirements
Conducting quality assessments on organizational processes should be a continual effort in order to ensure consistent and high-quality outcomes. Figure 7-9 outlines the activities typically contained in Performance Assessment and Evaluation efforts.
FIGURE 7-9 Process Performance Assessment Activities
Other Process Improvement Services
Other improvement services may include performing various activities related to process, governance, or project management as well as:
Organizational Restructuring
Process Improvement organizations often assist with and are an integral part of organizational restructuring activities. Restructuring is a term used to describe the act of reorganizing the structure of a company (Process, People, and Technology) for the purpose of making it more profitable or more efficient. Other reasons for restructuring include organizational ownership changes, responses to process shifts or fluctuations in performance, or major organizational events such as buyouts or mergers. When major organizational events occur, processes should be realigned to meet the organization’s new mandate. Likewise, when organizational processes change, structures, roles, and functions should be realigned with the new process objectives. In many organizations, a common misstep when restructuring is to overlook the change management activities required to ensure employees understand how to operate in the new environment, ultimately undermining effectiveness and previously stated performance targets. The best way to align or realign an organizational structure is to have full visibility and understanding of its processes in order to suggest the most optimal realignment of functions to support the proposed changes. The PIO can assist with designing changes to processes and related attributes as well as facilitate any change management activities to ensure proper alignment at all levels within the organization. The primary assets used in this service are the Process-Oriented Architecture (POA) framework and the Process Ecosystem as they provide both the guidance and visibility needed to properly analyze, design, and manage restructuring changes.
Benchmarking
Benchmarking is the process of comparing business processes and performance metrics with those that demonstrate superior performance in the industry or from other industries. Dimensions typically measured are quality, time, and cost. When benchmarking organizations identify the best firms in their industry or in another industry where similar processes exist, they compare the results and processes of those studied to their own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful. The PIO can use the Process Ecosystem to identify key processes and measures and facilitate the comparative analysis to assist business partners with establishing improvement targets.
Roles and Responsibilities
For a PIO to work at optimum efficiency, each member of the group must understand their roles and responsibilities. Likewise, the PIO’s business customers must also understand the differences and accountabilities of the individuals being assigned to support their Process Improvement efforts. Well-defined roles and responsibilities help build consistency in Process Improvement delivery and result in an economy of repetition that brings a sense of predictability and assurance to business stakeholders. It is important to recognize that there are three common roles that most Process Improvement organizations contain in some form. In its simplest form, a PIO contains the following roles:
• Process Improvement Coordinator
• Process Improvement Manager
• Process Improvement Architect
Process Improvement Coordinator
The Process Improvement Coordinator is responsible for assisting the PIO with all aspects of support including scheduling, facilitating/coordinating meetings, completing process documentation, and administering any Process Improvement Management systems that may be in place. The Coordinator is generally accountable for maintaining any procedural aspects of the Process Improvement group and serves as the designated point of contact for all Process Improvement issues and questions.
The overall aim of the Process Improvement Coordinator’s role is to support Process Improvement efforts; however, the Coordinator may be required to facilitate small Process Improvement initiatives and change requests. The coordinator helps build and maintain the organization’s process library and documentation repository to ensure that tools and templates are standardized and utilized. The Coordinator also ensures that repository permissions are in place, changes to processes are communicated, and any standards that are required for use are documented and distributed. An individual who holds this position is confident, positive, dynamic, an excellent communicator, a self-starter who focuses on quality, and has attention to detail yet still sees the big picture.
Other duties include
• Tracking service requests and actions and capturing progress
• Generating status and summary reports
• Recording as-is and should-be process maps and associated collateral
• Generating process documentation and templates
• Assisting with maintenance and updating of process artifacts
• Working closely with cross-functional departments to ensure requirements are not missed
• Assisting with promoting and maintaining process standards
• Assisting with the planning and organization of multiple process engagements
• Managing short-duration process projects/complex tasks/RCA efforts
• Assisting other members of the department as required
• Ensuring that all Process Improvement initiatives follow department standards and controls and any artifacts are audit ready
• Executing jobs to professional standards using industry methods, tools, templates, and facilitation techniques
• Supporting the organization in all aspects related to process awareness
• Providing recommendations for continuous improvement
Other titles for this role include Process Coordinator, Process Analysis Coordinator, and Process Engineering Coordinator.
Process Improvement Manager
The Process Improvement Manager is primarily responsible for developing an organization’s capability by teaching Process Improvement skills and managing Process Improvement projects. The Manager is involved with various organization-wide cross-functional initiatives to enhance performance and effectiveness and is ultimately accountable for managing all phases of improvement efforts including process discovery, definition, design, simulation, implementation, and monitoring. The Process Improvement Manager ensures that any improvement effort is managed in a disciplined and structured fashion and that all efforts align with the organization’s strategic objectives.
In particular, the Process Improvement Manager assists organizations with building process awareness, establishing a culture of continuous improvement, and developing process solutions that are more robust, customer centric, and lean in design. The Manager is considered an expert in Process Improvement methods and is accountable for the delivery of all process components including process maps, Key Process Indicators (KPIs), Service Level Agreements (SLAs)/Organization Level Agreements (OLAs), procedures, and dashboards. The Manager uses process management systems to create process models that can be simulated, analyzed, and executed by business stakeholders and he or she also facilitates the various workshops required to define, measure, analyze, and improve processes.
In this position, the Process Improvement Manager works with Process Improvement Architects as well as various business units and stakeholders within an organization to define the enterprise process backbone (the critical core processes), their relationships with all external entities, other enterprise value streams, and the events that trigger instantiation. This is done while executing any improvements against this structure using effective project and program management leadership. Ultimately, the Process Improvement Manager’s overall role is to facilitate and manage all Process Improvement initiatives and ensure all proposed changes to an organization’s processes align with both business strategy and business architecture requirements. An individual in the Process Improvement Manager’s role is confident, positive, dynamic, an excellent communicator, a self-starter who focuses on quality, and has attention to detail but still sees the big picture.
Other duties include
• Providing leadership and expertise throughout the design and improvement of processes
• Generating status and summary reports
• Modeling and mapping as-is and should-be processes and associated collateral
• Creating process documentation and templates
• Performing RCA and providing recommendations for improvement
• Ensuring that all Process Improvement initiatives follow department standards and controls and that any artifacts are audit ready
• Executing jobs to professional standards using industry methods, tools, templates, and facilitation techniques
• Mapping and Modeling business processes
• Leading large-scale transformations of complex business processes
• Designing and organizing workshops, facilitating group sessions, and working with teams to gain crucial input from key contributors
• Leading teams of SMEs through all phases of process redesign
• Communicating and executing change management activities at all levels of the organization
• Conceptualizing solutions that address customer opportunities and issues
• Understanding the latest process architecture, technology, solutions, and industry trends
• Meeting with business and technical leaders to identify and scope opportunities, outline potential value and return on investment (ROI), and identify risks and constraints
• Acting as a mentor or coach to business stakeholders by providing training and guidance
• Analyzing data for trends and recommending possible improvements and solutions
• Project Managing process improvement projects and ensuring goals are achieved on time, on budget, and within scope
Other titles for this role include Process Engineer, Workflow Engineer, Business Process Modeler, and Process Analyst.
Process Improvement Architect
A Process Improvement Architect typically performs the task of architecting and designing an organization’s processes and related components. He or she is responsible for executing and maintaining POA principles and building the organizational ecosystem model needed to support the organization’s operations. A Process Architect works as a change agent with business stakeholders and plays a key role in shaping and fostering continuous improvement and business transformation initiatives. The Architect has deep business knowledge as well as broad technology knowledge, combined with large-scale, cross-functional process expertise and skills in industry methodologies and standards such as Capability Maturity Model Integration (CMMI), International Organization for Standardization (ISO) 9001, and Lean and Six Sigma. The Process Architect has a rare combination of business domain knowledge, process experience, transformation talents, methodology skills, and a winning personality that helps with communication and business change management. A Business Process Architect must not only see the big picture when looking across multiple process improvement initiatives, he or she must also have business strategy talents, wide-ranging process discipline skills, architecture knowledge, and technology know-how.
The Process Architect also analyzes the organization’s activities and makes recommendations pertaining to the business processes in each area, in addition to relevant and timely corrections to process components and the structuring of business information. This person illustrates the alignment, or lack thereof, between strategic goals and key business decisions regarding products and services. This individual works to develop an integrated view of the organization, using a repeatable approach, cohesive framework, and available industry standard techniques. The Process Architect plays a role in driving program teams to achieve consensus about the concept and design of a solution and he or she works with leadership on the right approach. The Architect is also responsible for ensuring traceability of features back to requirements and scenarios, so that all features can be seen to provide business value and the impact of any feature changes can be assessed.
In addition, the Process Architect works with individuals at every level of the organization to solicit strategic imperatives from senior leaders and executives as well as supporting business unit managers as they leverage business architecture artifacts to execute their business processes. The Process Architect may provide direct input into the governance cycle for the funding, oversight, and realization of business projects. In that governance role, the Process Architect helps to ensure that business and information technology projects are aligned to support the achievement of key goals, that specific business scenarios are considered, and that the overall business architecture is considered. Ultimately, a Process Architect leads efforts aimed at building an effective architecture for the Process Improvement projects that make up the business change program.
Other duties include
• Developing a process architecture strategy for business units and organizations based on a situational awareness of various business scenarios and motivations
• Applying a structured process architecture approach and methodology such as the POA for capturing the key views of the organization
• Capturing the tactical and strategic business goals that provide traceability through the organization and mapping them to metrics that provide ongoing governance capability
• Enumerating, analyzing, cataloging, and suggesting improvements to the strategic, core, and support processes of the business unit
• Defining the data elements shared between the various business units in the enterprise and defining the relationships between those data elements and processes, people, systems, and other process elements
• Enumerating, analyzing, and suggesting improvements to the structural relationships of the business
• Recognizing structural issues within the organization as well as functional interdependencies and cross-silo redundancies such as role alignment, process gaps and overlaps, and business capability maturity gaps
• Applying architectural principles, methods, and tools to business challenges
• Modeling business processes using a variety of tools and techniques
• Using these models to collect, aggregate, or disaggregate complex and conflicting information about the business
• Conceptualizing solutions that address customer opportunities and issues
• Understanding the latest architecture, technology, solutions, and industry trends
• Meeting with customers, business stakeholders, and technical leaders to identify and scope the business opportunities, outline potential value and ROI, and identify risks and constraints
• Providing architectural advice, planning guidance, quality assurance, and guidance to the project team on project approach and solution
• Managing key strategic internal client relationships with project stakeholders and senior management and interacting at a high level with decision-makers both internally and externally
• Overseeing development and maintenance of critical processes, maps, and related artifacts (Process Ecosystem) using the POA approach
• Infusing expertise in process design, efficiency, and process monitoring across the organization
Other titles for this role include Process Architect, Business Architect, Enterprise Architect, and Business Process Modeler.
Process Improvement Governance
Organizations require a purposeful set of mechanisms for managing goals and ensuring processes and Process Improvement projects align with strategic objectives that meet and exceed customer expectations. Furthermore, organizations require a method to ensure that resources and capital investments are directed toward the most critical initiatives and performance-enhancing activities. In order to do this successfully, organizations must develop a governance structure to guide their operations. Creating a Governance model fosters proper decision-making and accountability and ensures that all Process Improvement efforts align with strategic goals.
The term Governance refers to the set of policies, roles, responsibilities, and processes that an organization establishes in order to direct, guide, and control how the organization uses its workforce, processes, and technologies to accomplish business goals. Effective governance anticipates the needs and goals of an organization’s teams and business divisions and properly analyzes any changes to its people, processes, and technology. Governance also provides policies and guidelines that make the deployment of processes and technologies both manageable for process and technology teams and effective for business and operational departments. It can help protect an enterprise from security threats or noncompliance liability and can help ensure the best ROI by enforcing best practices in change management and Process Improvement efforts. Ultimately, Governance encompasses the activity or process of governing; the individuals charged with governing; the decisions made during the governing process; and the manner, method, and system by which a particular organization governs itself.
NOTE Every organization has unique needs and goals that affect its approach to governance. No single approach fits the cultures or requirements of all organizations. For example, larger organizations require more governance than smaller ones. However, all organizations should institute some form of governance to encourage desirable behavior within an organization and outline the set of rules and checkpoints needed to effectively manage Process Improvement activities.
Purpose of Governance
The purpose of Governance is to
• Provide a decision-making framework that is logical, robust, and repeatable to govern an organization’s projects, processes, resources, and investments
• Outline the relationships between all internal and external groups involved in all initiatives
• Describe the proper flow of information to all stakeholders regarding project and process performance
• Ensure that reviews of performance occur on a regular basis
• Ensure the appropriate review of issues encountered within improvement initiatives
• Ensure that required approvals and direction for initiatives are obtained at each appropriate stage of a Process Improvement project
• Assess compliance of the completed improvements with their strategic objectives
• Ensure that investments generate real value for the organization
• Oversee changes to organizational assets such as
Human assets (people, skills, career paths, training, mentoring, aptitudes) Financial assets (cash, investments, liabilities)
Physical assets (facilities, equipment, maintenance, security)
Intellectual property assets (copyrights, trademarks, patents)
Information and technology assets (processes, data, information, knowledge about customers, applications, systems)
Relationship assets (internal relationships, external relationships, brand, reputation, relationships with competitors and regulators)
Governance Structure
An effective Governance structure is a key component of any process-focused organization and enables enterprise-wide process improvement and transformation. Figure 7-10 outlines a baseline governance model for Process-oriented organizations to structure their Governance activities around. In it, the linkage of processes to departments, projects, and Key Performance Measures (KPMs) drives understanding of performance within an organization’s entire ecosystem, enabling better decision-making and enhancing overall performance. The Process Improvement Governance structure ultimately assists organizations as they manage the vast number of processes and projects that exist within their enterprise portfolio and ensures strategic alignment and optimal use of resources and investments.
FIGURE 7-10 Process Improvement Governance Structure
The Process Improvement Governance construct is comprised of the following seven parts:
• Forming an executive committee
• Creating a strategic road map
• Building management steering committees
• Managing the Process Improvement Project Portfolio
• Managing the Process Backbone and Ecosystem
• Executing the organizational governance process
• Monitoring process and organizational performance
Executive Committee
The Executive Committee is the highest level of oversight for the Governance structure and is the driving force behind an organization’s strategic plan. The committee, which is comprised of senior executives from within the organization who are usually C-level executives or vice presidents, intends to achieve alignment between the following organizational levels:
• Organization and executive committee
• Executive committee and business functions
• Business functions and business processes
• Business processes and process operators and performers
The Executive Committee members review the organization’s performance and compare it to strategic plans as well as projects, procedures, systems, and current state risks within the organization’s Process Backbone and Process Ecosystem to determine if strategies need to be revised or additional plans set. They define strategy and direction as well as measures and targets for the enterprise.
Strategic Road Map
Strategic Planning is the process of defining strategy or direction and measures and targets and then making decisions on allocating resources to pursue this strategy, including capital and people through projects. A Strategic road map is the formal consideration of an organization’s future course and is championed by the Executive Committee. Businesses must consider long-term issues in order to achieve success; simply making decisions from one day to the next without a plan can lead to failure. To determine future outcomes and ensure that an organization continuously heads in the right direction, leaders create strategic road maps. This road map serves as a guide toward long-term results in keeping with an organization’s vision. Effective strategic road maps are vision based, incorporate realistic and actionable steps to carry out this focus, and continue to evolve as business conditions change. Following are the five basic steps organizations can take to craft their strategic road maps:
1. Establish a Vision: Describe what the results of achieving the organizational plan will look like.
2. Define Goals: Outline any strategic projects that must be accomplished to achieve the vision.
3. Analyze Gaps: Describe the current state of operations and the desired state of performance. Describe the business, technology, financial, and other factors that are required to bridge the gap.
4. Develop a Plan: Outline the workforce, technology, financial, and other resources, with an accompanying timeline, that are required to bridge the gap.
5. Finalize the Road Map: Circulate the strategic road map to relevant parties and modify it as required.
Steering Committee
The Steering Committee receives overall direction based on the strategies outlined by the Executive Committee. Steering Committee members, typically department managers and process owners, evaluate process performance within their area of responsibility and track progress of projects set forth to improve performance across the organization.
Committee members ensure optimal sequencing of priorities and review their team members’ available capacity and skills to ensure proper assignment to organizational projects. They are the business unit owners responsible for process performance within their domain and ensure close communication among the organization’s business units (horizontal alignment) and the various levels of governance (vertical alignment).
During scheduled Steering Committee reviews, the committee evaluates new requests along with other work that is assigned or in the queue and sequences these priorities optimally.
Project Portfolio Management
Project Portfolio Management is the centralized management of current or proposed projects and processes. It is the combination of planning, monitoring, and controlling the organization’s Process Improvement projects and honors any constraints imposed by customers, strategic objectives, or external real-world factors. Projects directly link to the organization’s strategies and align with a specific backbone business unit or core process. These units or processes are owned and managed by a named head who oversees that unit’s operations and performance. Project reporting is the primary mechanism for tracking progress against annual strategies and targets.
Process Backbone and Ecosystem
The Process Backbone represents an organization’s core process at its highest level. This includes all process touch points required to successfully deliver products or services to end customers. Each touch point contains a series of processes or activities along with several process attributes such as KPMs, business rules, activities, procedures, and dashboards that make up an organization’s process ecosystem. Each backbone pillar is owned by named business unit heads who are responsible for day-to-day project and process performance as well as the roll-up of key metrics to the executive level.
Governance Process
The Governance Model includes a Governance Process to evaluate process changes, propose new project ideas, and suggest process improvements. Given that resources are finite, only the most beneficial initiatives in terms of business value should be selected for implementation. The Governance Process is divided into the following seven stages: Proposal, Intake, Steering Committee Review, Executive Committee Review, Execute, Monitor, and Closeout. Figure 7-11 outlines a basic governance process. The purpose of the governance Process is to provide a consistent and well-defined method for implementing change to an organization’s processes and technology. The process focuses on delivering business value to stakeholders from the moment a request is submitted to the implementation and completion of the process or technology change.
FIGURE 7-11 Process Improvement Governance Process
Proposal The driving force behind the proposal of a new project or process is the strategic plan. To foster a culture of continuous improvement, any employee may submit a project or Process Improvement proposal that will assist the organization in attaining strategic objectives. Project or Process Improvement proposals may also be derived from monitoring organizational performance at the Business Unit, project, or process level. The Executive Committee, Steering Committee, Business Leaders, Process Improvement team, or individual worker may initiate a proposal. These projects or ideas may be related to the creation or revision of processes, procedures, training, quality, compliance, reporting, or services typically offered by a PIO. Proposals are fielded by the Process Improvement team and channeled through the Intake process.
Intake PIOs should have a defined process to evaluate service requests for documenting and improving processes. This process allows the team to centralize and track all requests, including requests to document, redesign, or create new processes. Intake processes usually consist of two main streams: one for Change Requests and one for Project Requests. Change Requests are more frequent, simpler, and follow a more expedited path for completion and execution, while a Project Request requires additional rigor and follows a more defined path. Both paths ensure projects are delivered according to the organization’s needs and priorities. Improvement opportunities sent to the Process Improvement team are regularly reviewed by a Steering Committee to determine feasibility, resourcing, and prioritization against other efforts.
The purpose of an intake process is to
• Organize and prioritize new Process Improvement requests
• Allocate resources to critical process efforts and reduce excessive resource multitasking
• Set achievable and visible time frames to meet customer objectives
• Encourage the setting and attaining of mutual goals
• Provide predictable and consistent project estimating
• Register all intake items to ensure timely investigation, prioritization, and completion
• Triage project and process requests to ensure alignment with strategic plans
• Define project and process requests to ensure clarity of scope, timelines, resources, and budget
• Centralize and track all requests for new projects and updates to processes in order to ensure all proposals are managed in a timely manner
Figure 7-12 outlines the typical activities needed to properly triage and evaluate Process Improvement requests.
FIGURE 7-12 Process Improvement Intake Process
Steering Committee Review Project and Process Improvement proposals are taken to the Steering Committee and reviewed regularly by business and process owners to determine feasibility, resourcing, and prioritization against other strategic initiatives. The sponsoring business owner and/or Process Improvement Manager assigned to the initiative presents information and recommendations gathered throughout the intake process to the Steering Committee. The Steering Committee then evaluates the request against the other work that is assigned and the backlog within the organization and sequences these priorities optimally. The Committee also reviews the team’s available capacity and skills to determine if the work can be started immediately, if the new request should be placed on the backlog list for future assignment, or if the new request should be cancelled. Proposals are fielded by the Steering Committee and escalated for Executive Committee review.
Executive Committee Review The Executive Committee serves as the final review stage for major projects or process initiatives. Approval from the executive committee ensures complete alignment to an organization’s Strategic Plan and Road Map and signals the start of the Execute phase of the project or process improvement effort. Reviews of project and process performance metrics also occur at the Executive Committee level so that the intended benefits of initiatives are reviewed or reevaluated if unsuccessful. Revisions to the Strategic Plan and Road Map may be required based on business conditions inside or outside the organization as well as performance and key metrics from processes or projects. The Executive Committee makes revisions to the strategic plan as required.
Execute The execution of the project or initiative begins upon executive committee endorsement. Depending on the scope and effort required to complete the initiative, this effort follows one of the methodologies or techniques outlined throughout The Process Improvement Handbook. These include
• Just Do It
• Kaizen
• Lean Six Sigma
• Rummler–Brache
• Root Cause Analysis
• Process Mapping
The purpose of the execution phase is to successfully implement all improvements. It is also to ensure that all individuals, teams, and/or departments across the business that are impacted by the change are trained and made aware of the process and technology changes made during execution.
Monitor Upon completion of the Execute phase, the warranty and monitoring phase begins. The warranty period describes a predetermined length of time during which performance after project implementation is measured against the expected target. Measurement and evaluation techniques are selected during the project execution stage, and any projects that fail to recognize the benefits set out in the project charter may be reviewed by the Steering Committee for resolution.
Closeout When the process changes or enhancements are completed and validated, business customers signify their approval. The project or process improvement request is then moved to a closed queue that tracks these requests for historical purposes. The purpose of the Project Closeout phase is to complete the project and finish any final project tasks. This is done in a way that
• Allows for learning opportunities for future projects
• Ensures that project deliverables met business expectations and requirements
• Ensures that business value was realized as expected
This stage also includes the transition of monitoring KPMs to the business unit. Business Owners and Business Leaders are trained to notice irregularities in process performance, project performance, business unit performance, and/or overall organizational performance. These irregularities are identified through KPMs and dashboards within the Process Ecosystem and can result in a review of the strategic plan and subsequent improvement efforts.
Performance Monitoring
Key Performance Measures A set of measurements must be established at each level in the Governance Model. High-level strategic measurements ensure the organization is delivering value to customers and shareholders, while lower-level measurements ensure project or process initiatives are delivering improvements as intended. High-level strategic performance measures for the organization may include customer satisfaction, on-time delivery, or perfect order fulfillment. These high-level measures are then subdivided into measurements specific to Process Performance, Project Performance, and Business Unit Performance.
Process Performance The monitoring of processes and procedures within the Process Ecosystem provides indicators as to whether an organization’s strategic goals are on track or need review. Process Performance is measured using two tools, Dashboards and KPMs. These tools provide at-a-glance views relevant to processes and procedures. They illustrate summaries, key trends, comparisons, and exceptions. By monitoring weekly cadence and using real-time dashboards, out-of-control processes can be identified quickly. Dashboards support Business Owners and Business Leaders at any level in the organization and provide a quick overview of the organization’s health and opportunities.
Project Performance Similar to Process Performance, Project Performance monitors the projects within an organization. Through a series of Dashboards and KPMs, an organization and its leaders are able to monitor a project’s overall health and identify any major or minor roadblocks. This information rolls up to the Business Owners and sponsors to alert the Steering Committee to any current state risks to the business and signal whether any strategic goals need to be reviewed.
Business Unit Performance Business Unit Performance measures come directly from the Business Owners and provide an overall health check of the business unit or area. These measures identify any roadblocks within that section, which may come from the process or project performance living within. Any irregularities are reported to the Steering Committee and Executive Steering Committee to review strategic plans and determine if additional goals need to be set.
Enterprise Performance This is the organization’s performance at its highest level. This overarching monitor oversees the Supply Chain strategies for any blocks and routinely monitors identified watch spots. Process, Project, and Business Unit Performance flow up to Supply Chain Performance and provide an overall health check of the organization and its strategic goals. With the established close communication between business units and the levels of governance, improvement efforts can be implemented at the first sign of process disconnect. It is the role of the Business Owners and Business Leaders to inform leadership when processes/procedures/systems go off track and to propose the current state risks.
Governance Roles and Responsibilities
As a Project Request or Change Request moves through the governance process, clarity regarding accountabilities and responsibilities is integral to ensuring a seamless business customer experience. The following section outlines a set of archetypes that describe the roles and functions involved in making process improvement decisions.
Executive Committee The Executive Committee performs the following functions:
• Ensures alignment between all organizational levels
• Defines strategy and direction as well as measures and targets for the organization
• Reviews the organization’s performance and compares it to strategic plans in order to determine if strategies need to be revised or additional plans set
• Sequences and sets priorities as well as resource projects with the necessary staff
• Defines desired business outcomes, strategies, and corporate road maps
• Monitors progress, stakeholders’ commitment, results achieved, and organizational performance
• Acts to steer improvement efforts, removes obstacles, manages critical success factors, and remediates process or benefit-realization shortfalls
• Ensures that decisions support normal business operations and blend with organizational culture
Steering Committee The Steering Committee performs the following functions:
• Evaluates improvement proposals in order to select those that are the best investment of funds and resources
• Sequences and sets priorities as well as resource projects with the necessary staff
• Provides direction on scope and budget of projects
• Monitors progress, stakeholders’ commitment, results achieved, and leading indicators of failure
• Acts to steer improvement efforts, removes obstacles, manages critical success factors, and remediates process or benefit-realization shortfalls
• Ensures that decisions support normal business operations and blend with organizational culture
• Evaluates intake request proposals in order to select those that are the best investment of funds and resources and are within the organization’s capability and capacity to deliver
• Defines the “desired business outcomes” (end states), benefits and value, business measures of success, and the overall value proposition
• Ensures that decisions support normal business operations and blend with organizational culture
Business Customers and Stakeholders The Business Customers and Stakeholders perform the following functions:
• Submit project opportunities and improvement ideas
• Align business unit goals and objectives with new opportunities and improvement requests
• Participate in process/training needs analysis and design
• Support in setting project priorities
• Provide any additional process or improvement information as required
Process Improvement Organization The Process Improvement Organization performs the following functions:
• Evaluates Process Improvement proposals in order to recommend to the Steering Committee those that are the best investment of funds and resources and are within the team’s capability and capacity to deliver
• Proposes project priorities to the Steering Committee for approval and resource projects with the necessary staff
• Summarizes and recommends the project schedule to the Steering Committee for approval
• Ensures the Steering Committee is briefed about project proposals, project statuses, and issues in a timely manner
• Chair the Steering Committee
• Confirms validity of process and improvement requests
• Determines complexity/estimated duration
• Ensures requests align with organizational and strategic goals
• Drives conversations with Business Customers and Stakeholders to ensure accurate scope
• Establishes the basis for process governance, approval, and measurement, including defining roles and accountabilities, policies and standards, and associated processes
• Leads the management review to validate process opportunities and improvement requests
• Leads prioritization efforts
Implementing Governance
Every enterprise is unique and should determine the best way to implement its own governance structure. Following are suggested steps for organizations to consider as they implement governance.
1. Determine principles and goals: An organization should initially develop a governance vision, governance policies, as well as standards that can be measured to track compliance and quantify the benefit of governance activities to the enterprise. For example, at this stage, organizations might outline the individuals who should be included as attendees of any steering committee meetings, outline what the governance process might entail, and publish and publicize the principles, goals, and standards.
2. Develop an education strategy: The governance policies and procedures that are established should be accompanied by ongoing education and training plans. Note that this includes training in the use of any project management tools and templates as well as training in the governance standards and practices. For example, at this stage, organizations might create Frequently Asked Questions Pages, roll out formal training workshops, or publish online tutorials that describe the implementation and use of the organization’s governance system.
3. Develop an ongoing plan: Because successful governance is ongoing, the governance body should meet regularly. Ongoing activities include incorporating new requirements into the governance plan or reevaluating and adjusting governing principles and standards. Conflicts may need to be resolved as competing needs arise between various business divisions. The governance steering committee should also report regularly to the executive committee; this will help foster accountability and assist with enforcing compliance across the organization. The goal of governance is to increase the return on investment in governance, maximize the usefulness of the organization’s workforce, and increase the organization’s overall performance.
Department Controls
Internal control involves the integration of a department’s activities, attitudes, plans, policies, and efforts in order to provide reasonable assurance that the department will achieve its mission. Simply put, internal control is what a department does to ensure that the things they wish to happen do happen and the things they don’t wish to happen don’t happen. Controls within a Process Improvement organization exist to ensure that organizational practices are consistently reviewed and managed and that any internal processes, templates, or artifacts are maintained over time. These controls help foster a culture that is process driven and focused on meeting customer requirements and creating predictable results. Enabling controls within a PIO ensures that
• All processes and procedures are documented and regularly reviewed
• Feasible and timely response plans are created in the event that a problem with a process arises
• Replication opportunities are reviewed and any duplication of effort is removed
• Process quality is linked directly to customer requirements and strategic objectives rather than functional success
• All necessary stakeholders are included in the decision-making process
• Orderly, economical, efficient, and effective operations are promoted
• Quality products and services that are consistent with the department’s mission are produced
• Resources are safeguarded against loss due to waste, abuse, mismanagement, errors, and fraud
• Reliable financial and management data are developed and maintained and reported in a timely manner
• Successes are celebrated
Typical PIO Controls are described in the following paragraphs.
Process documentation: A typical improvement control that is regarded as the most critical component of successful PIOs is to ensure that standard practices and processes within the PIO are documented. Documentation is critical because it
• Describes the flow of processes and standardizes the procedures for operating the process
• Provides approved information for all current and future employees who will need it
• Increases organizational learning and provides training materials
• Is a necessary step to ensure that the knowledge gained via process improvement projects is shared and institutionalized
Centralized process tracking: Any process that spans across an organization requires orchestration and visibility. Additionally, any process that has direct impact on revenue, customer experience, or how employees conduct their day-to-day activities should be tracked in a centrally accessible location.
Often, organizations have several, if not hundreds, of active and in-life processes that have been documented. Centralized tracking ensures that these processes are monitored, controlled, and easily prioritized if improvements are needed. Centralized tracking can take many forms; the most common tools used are comprehensive software programs such as Process Central, a program developed by iGrafx, or LiveLink, a document repository program developed by OpenText.
Benefits of centralized project tracking include
• Transparency: A central process library serves as a repository for all process information, allowing workers and managers to store, manage, and distribute all relevant processes in a consistent and easy-to-use format.
• Consistency: Central tracking offers a consistent presentation format that allows process owners, users, sponsors, and other stakeholders to instantly locate needed information.
• Flexibility: Tracking systems are customizable and designed to meet an organization’s unique tracking needs.
• Manageability: Tracking systems allow managers, executives, and steering committee members to see every process in real time, allowing them to shift workloads and redelegate responsibility as needed.
• Organization: Tracking systems allow processes to be catalogued into the proper category and to be sorted using any number of fields for targeted discussions and planning. They often include text-searching features as well.
• Security: Processes are widely accessible but secure, contain accurate document history, and are easily rolled back to previous versions.
• Link management: Document links are automatically maintained and subprocesses are easily retrieved from master process documents.
• Process sharing: Process sharing makes it possible to reuse process elements across multiple maps and speed-up process development.
Asset security: Security may be physical or electronic or both. Equipment, artifacts, and other organizational assets should be secured and periodically checked.
Organizational structure: Lines of authority and responsibility should be clearly defined so that employees know who to report to regarding performance of duties, problems, and questions related to their position and the organization as a whole. An organization chart can be used to define this structure as long as it is kept up to date. Part of the structure is also the rules that employees must abide by. Rules provide guidance to employees as they carry out their duties, clear rules on allowable and expected performance, and a means for enforcement.
Authorization and approval: Artifacts should be authorized and approved in order to help ensure activities are consistent with departmental or institutional goals and standards. The important thing to remember is that the person who approves transactions must have the authority to do so and the necessary knowledge to make informed decisions.
Writing styles: Process Improvement artifacts should be written in a concise, step-by-step, easy-to-read format. The information presented should be unambiguous and not overly complicated. The active voice and present verb tense should be used. The term you should not be used but implied. Any documentation should not be wordy, redundant, or overly lengthy. Information should be conveyed clearly and explicitly to remove any doubt as to what is required, expected, or being asked.
Review and approval: Process Improvement artifacts should be reviewed by one or more individuals with appropriate subject matter training and experience. Someone at the appropriate level of management should approve the finalized documents when necessary. E-mail or signature approval indicates that the Process Improvement artifact in question has been both reviewed and approved by management.
Revisions and reviews: Process Improvement artifacts need to remain current to be useful. Therefore, whenever processes are changed, associated artifacts should be updated and reapproved. If desired, only the pertinent section of an artifact can be modified and the change date/revision number indicated in the document control notation section.
Process artifacts should also be systematically reviewed on a periodic basis to ensure that the documentation remains current and appropriate or to determine whether certain artifacts are needed. The review process should not be overly cumbersome to encourage timely review. Management should indicate the frequency of review.
Checklists: Many Process Improvement activities can benefit from the use of checklists to ensure that necessary steps are followed. Checklists are also used to document completed actions. Any checklists or forms included as part of an activity should be referenced at the points in the procedure where they are to be used. In some cases, detailed checklists are prepared specifically for a given activity.
Document control: PIOs should develop a numbering system in order to systematically identify and label process documents and artifacts. Generally, each artifact should have control documentation notation. A short title and identification number can serve as a reference designation. The revision number and date are very useful when reviewing historical data and are critical when evidentiary records are needed.
Chapter Summary
In this chapter we presented an outline of the PIO. The chapter described the various services offered by a PIO and the organization’s roles and responsibilities. Process Improvement Governance was also discussed, and a formal structure and model was presented that helps ensure both strategic and tactical alignment for all Process Improvement endeavors. From this chapter, we also learned that
• A PIO typically focuses on the following five areas:
Enterprise Understanding
Workforce Engagement
Project Management
Process Improvement
Continuous Assessment
• A PIO provides a number of professional services to assist organizations achieve process excellence. These services can range from directly managing Process Improvement Projects, to implementing and modeling business process architectures, to simply providing Process Improvement support to business customers by way of guidance and education.
• Most PIOs include the following three roles:
Process Improvement Coordinator
Process Improvement Manager
Process Improvement Architect
• The term Governance refers to the set of policies, roles, responsibilities, and processes that an organization establishes in order to direct, guide, and control how the organization uses its workforce, processes, and technologies to accomplish business goals.
• The purpose of Governance is to provide a decision-making framework that is logical, robust, and repeatable in order to govern an organization’s projects, processes, resources, and investments.
• An effective Governance structure is a key component of any process-focused organization and enables enterprise-wide process improvement and transformation.
• The Process Improvement Governance is comprised of the following seven parts:
Forming an executive committee
Creating a strategic road map
Building management steering committees
Managing the Process Improvement Project Portfolio
Managing the Process Backbone and Ecosystem
Executing the organizational governance process
Monitoring process and organizational performance
• The monitoring of processes and procedures within the Process Ecosystem provides indicators as to whether an organization’s strategic goals are on track or need review.
• As a Project Request or Change Request moves through the governance process, clarity regarding accountabilities and responsibilities is integral to ensuring a seamless business customer experience.
• Internal control is the integration of a department’s activities, attitudes, plans, policies, and efforts in order to provide reasonable assurance that it will achieve its mission.
Chapter Preview
Now that the components of the PIO have been discussed, the next step is to learn the various skills, competencies, and tools demonstrated most often by Process Improvement professionals. Chapter 8 provides a comprehensive dictionary of aptitudes exhibited in Process-focused organizations.
