贝恩行业分析方法分析方法Reengineering5012.ppt

Reengineering,March 1998,2,Agenda,ObjectivesReengineering IntroductiondefinitionsignificanceBains reengineering practiceReengineering ProcessExampleDefense Co.Exercise,3,Objectives,Explain what reengineering is aboutwhat is reengineering and why is it important?Convey Bains experience and unique approachhow does Bain add value?Overview the process and toolswhat does a reengineering project look like?,4,Agenda,ObjectivesReengineering IntroductiondefinitionsignificanceBains reengineering practiceReengineering ProcessExampleDefense Co.Exercise,5,What Is It?,“If I were re-creating this business today,given what I know and given current technology,what would it look like?”,Reengineering means going back to the beginning and inventing a better way of doing work,6,Definition,Yet another TQM or XYZ projectRepackaged cutbacks/downsizingAutomation of existing inefficient processesReorganization/restructuring,Reengineering is not.,The fundamental rethinking and radical redesign of an entire business system(core processes)Achieving substantive improvement in critical performance measures(cost,customer service,capital,etc.)Enabling dramatic breakthroughs/full potential byarticulating a vision of improvementtearing down organizational boundariesleveraging use of enabling technologyProviding a holistic approach to building competitive advantage and a framework for future decision making,Reengineering is.,See Related Topic:Alternative Process Improvement Approaches,7,Reengineering Example:Toll Collection,New Process,7,500 cars per hour$2.00 toll collected in one direction,Old Process,5,000 cars per hour$1.00 toll collected in both directions,8,Reengineering Example:Auto Assembly,New Process,Body exits paint shop,begins final assembly,Old Process,Door sub-assembly;offline,in sequence,Lower quality from scratches and dingsTime lost working around doorsDifficult to insert big items like seats and instrument panel,Higher qualityLess wasted effortParallel work flow,Assembly workers build inefficiently around doors,Finished car rolls off line,Body exits paint shop,remove doors at start of final assembly,Assembly workers build out car without doors,Re-attach doors in sequence(at end of line),See Additional Example:Taco Bell Example,9,Agenda,ObjectivesReengineering IntroductiondefinitionsignificanceBains reengineering practiceReengineering ProcessExampleDefense Co.Exercise,10,Significance of Reengineering,Levi Strauss&Co.$850 million reengineering program haltedadditional$14 million allocated for a two-year education effort to calm unhappy employees,Unsuccessful Reengineering Programs(2/3 of all programs),Pacific Telesis/Pacific Bell$XB saved over Y yearsFederal Expresspackage delivery shortened from 4 days to 1 dayGeneral Electricproductivity doubled in order fulfillmentTexas Instrumentsorder fulfillment went from 25 weeks down to 4 weeksUnited Airlinesplane turnaround shortened from 40 minutes to 25 minutes,Successful Reengineering Programs(1/3 of all programs),Reengineering efforts have enormous potential,but are very difficult to implement successfully.,Our clients hire us to ensure that their reengineering effort is successful,Examples from Public Sources:,11,Reengineering Success Factors,Objective,outsiders perspectiveCreative“out of the box”thinkingExperience in reengineering and corporate transformationCoaching and trainingDedicated team to ensure that process continuesGroup moderating skillsAnalytical horsepower,Bain Value-Added,Compelling case for actionfact-based analysisvision for the future“Clean slate”options available to redesign teams:challenge the status quoFocus on delivering value to customers:Clear and consistent sense of purposeTop management leadership commitmentThe right process owners/managers:Bridge organizational boundariesExplicit targets for success,Critical Success Factors,Bains value-added enables our clients to successfully design and implement reengineering programs.,12,Agenda,ObjectivesReengineering IntroductiondefinitionsignificanceBains reengineering practiceReengineering ProcessExampleDefense Co.Exercise,13,The Bain Approach to Reengineering(1 of 2),Bain goes beyond the traditional definition of reengineering to return maximum value.,The holistic and radical redesign.of the entire business system/core processesto achieve full potential.in building strategic competitive advantage,Bain Approach,The radical redesign.of business processesto achieve dramatic improvements.in critical measures of performance,Traditional Reengineering,14,The Bain Approach to Reengineering(2 of 2),Experience,Bains Approach to Strategic Reengineering,Strategy,Results,Breadth of relevant experienceacross all functional areasvariety of industriesStrong and proven process management skills in large scale projectsExtensive change management experience,Comprehensive,strategic approachlinks reengineering efforts to clients strategic perspectiveUtilizes Bains complete toolkitImplementation support to ensure realization of full potential,Value-driven attitudeFact-based,data-driven analysisFocused creativityFocus on achieving results,15,Bain Experience/Results,See Related Topic:Evolution of Bain Reengineering,15%reduction in total costs;18%improvement in customer satisfaction,Air freight express,Truck delivery,5 times improvement in revenue,11 times improvement in operating earnings,and 10 times increase in share price,Computers,Distribution,Product permutations decreased from 1 billion to 40,000;order and edit process shortened from 11 to 0 days,scheduling from 26 to 4 days,time vehicle on lot from 71 to 31 days,Automobiles,Manufacturing and distribution,40-65%headcount reduction in finance functions,Aerospace,Budgeting and forecasting,70%reduction in lead time,Consumer products,Marketing and advertising,71%reduction in manufacturing cycle time,Athletic footwear,Manufacturing,3-day pricing decision reduced to 30 seconds,Credit cards,Marketing,50%reduction in headcount,Utility,Engineering,Bain has worked in a variety of different industries and has delivered significant results for its clients.,16,Notes:Percentages are approximate.,Reengineering is a significant portion of Bains business worldwide.,Reengineering represents approximately 20%of Bain case work,Importance to Bain,17,Agenda,ObjectivesReengineering IntroductiondefinitionsignificanceBains reengineering practiceReengineering ProcessExampleDefense Co.Exercise,18,Reengineering Process,See Related Topic:Reengineering Roadmap,Imple-ment and Track Results,Prioritize Sub-Process-es for Redesign,Diag-nose PMO,FMO Rede-sign,Quantifi-cation of Potential,Design TMO,Create Initia-tives,Identify Critical Pro-cesses,Initial Prioriti-zation,Change Management Process,19,Reengineering Toolkit,See Related Topic:Example Fishbone Diagram,Implement and Track Results,Diagnose PMO&Allocate Costs,FMO Redesign,Quantification of Potential,Design TMO,Create Initiatives,Identify Critical Process-es,Initial Prioriti-zation,Change Management Process,Strategy reviewPerformance gaps,competitive benchmarksManagement interviews,Client interviewsCustomer interviewsBusiness definition,Process mappingActivity-based costingRAID analysisCycle-time analysisFishbone diagrams,Prioritization matrixCustomer needs,BDP analysisBrainstormRoot cause analysisIT opportunity assessment,Cost/benefit analysisCycle time impactCustomer surveysservice,value impact,Initiative ideas surveysOpportunity classification,consolidation,Quick hitsProduct metricsProcess metricsFinancial metrics,Reengineering projects utilize a number of different Bain tools.,Prioritize Sub-Processes for Redesign,20,Reengineering Process,Imple-ment and Track Results,Diag-nose PMO,FMO Rede-sign,Quantifi-cation of Potential,Design TMO,Create Initia-tives,Identify Critical Process-es,Initial Prioriti-zation,Definitions,PMO=Present Mode of OperationTMO=Transitional Mode of OperationFMO=Future Mode of Operation,Prioritize Sub-Process-es for Redesign,21,What is a Process?,See Related Topic:Examples of Recurring ProcessesSee Example Core Processes:Telecommunications Services Company;Defense Company;and Electric Utility.,A process is a set of business activities which cross multiple functional boundaries to create value for a customer.,Corporate Staff,Finance,Research and Development,Manufacturing,Marketing,Order Fulfillment,Product Development,Customer Acquisition,Integrated Logistics,Vertical Structure Organizations,Core Business Processes,Traditional Organizations,Process-Oriented,Horizontal View,Example Core Processes,Identify Critical Processes,22,Identifying Process Types,There are four primary types of business processes:,Core Processactivities dedicated to the design,production,delivery,and maintenance of products and/or servicesessential to satisfying customer needse.g.customer acquisition,manufacturingSub-Processan individual process that,when combined,creates a core processSupport Processactivities that support core business processes but are not direct contributors to the core value creating process for customerssupports and enables the accomplishment of core processese.g.human resources,MISManagement Processactivities that guide the strategic direction,manage stakeholder interests,and make key decisions regarding the allocation of human and capital resourcese.g.budgeting,strategic planning,See Example Core Processes:Telecommunications Services Company;Defense Company;and Electric Utility,Begin and end with an external customer,Begin and end with an internal customer,Begin and end with key decision makers and stakeholders,Identify Critical Processes,23,Reengineering Process,Imple-ment and Track Results,Diag-nose PMO,FMO Rede-sign,Quantifi-cation of Potential,Design TMO,Create Initia-tives,Identify Critical Process-es,Initial Prioriti-zation,Definitions,PMO=Present Mode of OperationTMO=Transitional Mode of OperationFMO=Future Mode of Operation,Prioritize Sub-Process-es for Redesign,24,Objectives of Present Mode of Operation Analysis,See Related Topic:Sample Process Problems,Build a baseline of how the current process works(As is)critical decisionsprocess flowsprocess costprocess effectivenessIdentify major problems/issues and underlying root causeshigh fall-outhigh costslow customer response timemultiple handoffshigh level of re-workmanual translations and paperworketc.Uncover key leverage areas within the processquick hits to improve the process immediatelyinsights for redesignpriorities(sub-processes)for redesign,Diagnose PMO,25,Process Mapping,See Related Topics:Alternative Forms of Process Mapping;Process Mapping Tactics;and Michael Hammers Perspective,Allows a diverse group to create a clear,explicit picture of a complex business processa common languageeasy to understand(visual display)Serves as a starting point to re-design the system,Process mapping is a critical tool for business reengineering.,Building Blocks:,Objectives:,Basic activity steps always begin with an action verb,Nesting detail,Decisions regarding flow,Start or end of process or“Go To”another section or page,Rework loops,Information system,Storage,Movement/transportation,no,yes,Diagnose PMO,26,Example Process Map:AC Slide Design Process,Slide Completed,Fill-out Slide,Schedule Graphics,Perform Research/Run Model,Walk to Graphics,Manager Approval?,no-minor modification,no-radical redesign,Graphics Produces Slide,Questios/Issues?,no,yes,Walk to Graphics,Submit Slide,Wizard Crashes?,no,yes,Errors?,yes,no,Consultant Approval?,no,yes,Proof Slide,Correct Slide,Blank Slide Created,Graphics Calls to Clarify,Swear Profusely,Diagnose PMO,27,Activity-Based Costing,See Related Topics:Defining Costs to be Assigned;and Gathering FTE Headcount Data,Accurately allocate costs within an organization in order to:highlight leveraged areas for redesignestablish a baseline from which FMO savings can be estimated,Activity-based costing provides a data-driven view of the key leverage points for a reengineering program.,Process:,Objectives:,Use PMO process mapsSelect the appropriate level of detail to enable intended analysis,Labortypically the main focusMaterialsServicesFixed cost allocationetc.,Assign to each functionAlso assign to product,etc.as appropriate,Cut(as needed)by:activityjob titleproductcustomeretc.,Diagnose PMO,28,Negotiating/Contracting,100%,80%,60%,40%,20%,0%,Percent of Segment,Percent of Total,81,1,834,651,4,706,8,757,1,133,1,677,Strategic Planning,Budgeting,Financials,Schedules,Configuration,New Business Development,Proposals,Analyze Requirements,Defining,Solutions,Describing Products,Testing,Procure,Build,Deliver,Integrate,Create Manuals,Deliver Manuals,Training,HR,Systems,Security,Facilities,Office Services,Governance,Design,Build,Service,Support,Management,Processes,Core Value Creating Processes,Support,Processes,Equip,Review and Integrate,Diagnose PMO,Example Activity-Based Costing Output,Defense Co.PMO Headcount by Core Process,29,Decision-Making Matrix,Clearly show key decisions and current decision-making responsibilityinput versus authority versus approvalcross-functional scope of decisionsHighlight major issues/concerns with current decision-making processtoo many people involvedfinal accountability(or lack thereof)appropriateness of decision-making authorityIdentify redesign options,e.g.,match decisions with capabilities,knowledge and position within process,A decision-making matrix can highlight problems with the current decision-making process.,Process:,Objectives:,Identify key decisions from process mapsIdentify functions involved in decisions,Levels of involvement:R:ReviewA:ApproveI:Inpute.g.prepare information,recommendD:DecideMake sure process is actual,not official,Consolidate in a 2-dimensional matrixdecisions listed verticallyfunctions and management listed horizontally,Re-interview management as necessary,Diagnose PMO,30,Example Decision Making Matrix,Diagnose PMO,31,Reengineering Process,Imple-ment and Track Results,Diag-nose PMO,FMO Rede-sign,Quantifi-cation of Potential,Design TMO,Create Initia-tives,Identify Critical Process-es,Initial Prioriti-zation,Definitions,PMO=Present Mode of OperationTMO=Transitional Mode of OperationFMO=Future Mode of Operation,Prioritize Sub-Process-es for Redesign,32,Prioritization Factors,There are many dimensions across which problems may be prioritized.,Potential Sources:,Defining Question:,Process mapsIdea surveysBrainstorming,PMO phase of reengineeringbrainstormingsurveyingprocess flowsinterviewsride-alongs,Competitor analysisBenchmarkingCustomer analysisClient interviews,Customer analysisCustomer interviewsFocus groupsClient interviewsparticularly sales force,Which processes can we easily implement to help build momentum for the process?little or no organizational barrierslow cost,What is the financial impact associated with improving the process?lower costhigher revenueless capital,What processes are sources of competitive advantage or disadvantage?,Which processes have the largest actual impact and/or the largest perceived impact