CREATING VISION AND ESTABLISHING

GOALS

Chapter 3: Know where You are Going

ObjectivesObjectives

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At the end of this unit, you will be able to:

1.0 List the characteristics of a powerful reengineering vision.

2.0 Write a vision for a reengineered organization.

3.0 Define goals; the purpose of goal setting.

4.0 Explain the visioning and goal setting process.

5.0 Describe the problems encountered in the process.

At the end of this unit, you will be able to:

1.0 List the characteristics of a powerful reengineering vision.

2.0 Write a vision for a reengineered organization.

3.0 Define goals; the purpose of goal setting.

4.0 Explain the visioning and goal setting process.

5.0 Describe the problems encountered in the process.

SETTING A DIRECTIONSETTING A DIRECTION

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Setting the direction to improve all products, services, and processes is accelerated if everyone challenges the status quo every day.

Leaders can set the stage for this challenge by developing answers to six fundamental questions:

• Vision: What will we look like in the future? What do want to become?

• Mission: Why do we exist? What is our purpose?

• Goals and objectives: What are the long and short-term accomplishments that will enable us to fulfill our

mission and attain our vision?

Setting the direction to improve all products, services, and processes is accelerated if everyone challenges the status quo every day.

Leaders can set the stage for this challenge by developing answers to six fundamental questions:

• Vision: What will we look like in the future? What do want to become?

• Mission: Why do we exist? What is our purpose?

• Goals and objectives: What are the long and short-term accomplishments that will enable us to fulfill our

mission and attain our vision?

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SETTING A DIRECTIONSETTING A DIRECTION

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• Policy: What guidance will we provide to the many individuals in our organization as to how they should provide products and services to our customers?

• Values: What do we believe in? What do we want everyone to abide by?

• Methodology: How are we going to move toward our vision and accomplish our goals and objectives?

• Policy: What guidance will we provide to the many individuals in our organization as to how they should provide products and services to our customers?

• Values: What do we believe in? What do we want everyone to abide by?

• Methodology: How are we going to move toward our vision and accomplish our goals and objectives?

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SETTING A DIRECTIONSETTING A DIRECTION

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These questions are enormously complex and difficult to answer especially

• when an organization’s traditional products and services are buffeted by new technologies, by competent and aggressive competitors, or by changes in customers’ expectations.

Failure to respond to each of these questions renders the organization incapable of understanding and meeting its customers’ demands, allocating its resources effectively and efficiently, and capitalizing on the talents of its people.

These questions are enormously complex and difficult to answer especially

• when an organization’s traditional products and services are buffeted by new technologies, by competent and aggressive competitors, or by changes in customers’ expectations.

Failure to respond to each of these questions renders the organization incapable of understanding and meeting its customers’ demands, allocating its resources effectively and efficiently, and capitalizing on the talents of its people.

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Creating a VisionCreating a Vision

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What makes a vision powerful?

• Specificity: concreteness

• Customer focused: recognized the future of business relies on strategic role of customers.

• Integrates process, people, and technology

• Bedrock changes (fundamentals)

• Projects are proactive

• Create a new reality: “Believing is seeing”

• Express the desired value of the new organization.

What makes a vision powerful?

• Specificity: concreteness

• Customer focused: recognized the future of business relies on strategic role of customers.

• Integrates process, people, and technology

• Bedrock changes (fundamentals)

• Projects are proactive

• Create a new reality: “Believing is seeing”

• Express the desired value of the new organization.drmasanom

Creating a VisionCreating a Vision

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Examples of Vision Statements: (Canadian National Railway)

As we accomplish our mission, CN Rail will be a long-term business success by being:

Close to our customer

• First in service

• First in quality

• First in safety

• Environmentally responsible

• Cost competitive and financially sound

• A challenging place to work.

Examples of Vision Statements: (Canadian National Railway)

As we accomplish our mission, CN Rail will be a long-term business success by being:

Close to our customer

• First in service

• First in quality

• First in safety

• Environmentally responsible

• Cost competitive and financially sound

• A challenging place to work.drmasanom

Establishing GoalsEstablishing Goals

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• Goals provide top-down guidance and work priorities.

• Studies prove that success can be tied directly to goal commitment.

• Problem: People do not know how to set goals.

• Goals specify expectations around performance and give direction to the individuals and teams for achieving the

reengineering vision and to the executives who are sponsoring the reengineering and providing funding.

• Goals provide top-down guidance and work priorities.

• Studies prove that success can be tied directly to goal commitment.

• Problem: People do not know how to set goals.

• Goals specify expectations around performance and give direction to the individuals and teams for achieving the

reengineering vision and to the executives who are sponsoring the reengineering and providing funding.

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Establishing GoalsEstablishing Goals

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Goals frame and focus the reengineering effort by:

• Specifying the expected business outcomes – the tangible products and services to be produced by the reengineered operation; these outcomes must be customer focused.

• Include the measures that will be used to assess the quality of products and services – time to produce, time to deliver, percentage of resources used, involvement of how many personnel, percent accuracy, etc.

• Stretching the organization to change, proactively creating the future.

Goals frame and focus the reengineering effort by:

• Specifying the expected business outcomes – the tangible products and services to be produced by the reengineered operation; these outcomes must be customer focused.

• Include the measures that will be used to assess the quality of products and services – time to produce, time to deliver, percentage of resources used, involvement of how many personnel, percent accuracy, etc.

• Stretching the organization to change, proactively creating the future.

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Establishing GoalsEstablishing Goals

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• Exploding the perceptions of the past and current beliefs that may not apply to future scenarios

• Assuming that whatever must be done to satisfy customer needs will be done.

Goal setting should emphasize anticipating customer needs rather than process improvement.

The success of the reengineering effort will ultimately be measured by the value created for the customer, as determined by the customer.

• Exploding the perceptions of the past and current beliefs that may not apply to future scenarios

• Assuming that whatever must be done to satisfy customer needs will be done.

Goal setting should emphasize anticipating customer needs rather than process improvement.

The success of the reengineering effort will ultimately be measured by the value created for the customer, as determined by the customer.

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Establishing GoalsEstablishing Goals

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Example of Goal And Measure in IT Department:

Goal: To implement a strategic planning and prioritization process based on customers’

needs.

Measure: Customers will seek direction from the Information Technology department for

business and technology planning.

Example of Goal And Measure in IT Department:

Goal: To implement a strategic planning and prioritization process based on customers’

needs.

Measure: Customers will seek direction from the Information Technology department for

business and technology planning.

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Visioning and Goal Setting ProcessVisioning and Goal Setting Process

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Strip (throw) away the:

• blinders created by old values and attitudes,

•The informal and formal rules that regulate and inhibit change,

•The rigidity built into the structure of hierarchy and roles,

•And the comfort of past experience.

This creates an environment of inquiry and dialogue.

Strip (throw) away the:

• blinders created by old values and attitudes,

•The informal and formal rules that regulate and inhibit change,

•The rigidity built into the structure of hierarchy and roles,

•And the comfort of past experience.

This creates an environment of inquiry and dialogue.

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Visioning and Goal Setting ProcessVisioning and Goal Setting Process

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Steps to facilitate the process:

1.0 Provide training on the characteristics and components of a vision.

2.0 Develop the vision for the business reengineering project.

3.0 Use facilitated workshop sessions, focus groups, or written feedback, gather reactions, comments, and

suggested changes, additions, deletions to the vision from all those affected by the vision.

Steps to facilitate the process:

1.0 Provide training on the characteristics and components of a vision.

2.0 Develop the vision for the business reengineering project.

3.0 Use facilitated workshop sessions, focus groups, or written feedback, gather reactions, comments, and

suggested changes, additions, deletions to the vision from all those affected by the vision.

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Visioning and Goal Setting ProcessVisioning and Goal Setting Process

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Steps to facilitate the process:

4.0 Provide training on goal setting and measurement.

5.0 In facilitated workshops sessions conducted with the reengineering project team:

-Identify the business products and services of the reengineered operation. Use brainstorming, nominal group technique and

consensus building to generate ideas and commitment.

- Develop measures for assessing quality of products and services. Measures should be customer focused and quantifiable and include several targets or standards.

Steps to facilitate the process:

4.0 Provide training on goal setting and measurement.

5.0 In facilitated workshops sessions conducted with the reengineering project team:

-Identify the business products and services of the reengineered operation. Use brainstorming, nominal group technique and

consensus building to generate ideas and commitment.

- Develop measures for assessing quality of products and services. Measures should be customer focused and quantifiable and include several targets or standards. drmasanom

Visioning and Goal Setting ProcessVisioning and Goal Setting Process

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Problems encountered include:

1.0 Vision idolatry: the vision becomes an idol to be worshipped as a result of rigid adherence to a new set of rules.

2.0 Tunnel Vision: Many people believe that what they see is all there is – that the walls of their tunnels are permanent

and impenetrable.

- People must begin to think “outside the box”.

To vision is to see beyond the tunnel to answer the question “What if ………?.

Problems encountered include:

1.0 Vision idolatry: the vision becomes an idol to be worshipped as a result of rigid adherence to a new set of rules.

2.0 Tunnel Vision: Many people believe that what they see is all there is – that the walls of their tunnels are permanent

and impenetrable.

- People must begin to think “outside the box”.

To vision is to see beyond the tunnel to answer the question “What if ………?.

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Visioning and Goal Setting ProcessVisioning and Goal Setting Process

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Problems encountered include:

3.0 Habitual Thinking: is a serious barrier to reengineering. History, culture, experience, and beliefs all come together to create thought patterns that seem to work.

4.0 Practical Thinking: is one of the most cunning and seductive enemies of business reengineering. It is often disguised as “we need to get results quickly,” or “this is going to cost too much”, and other realistic objections.

Vision building and goal setting for BR demand people escape the confines of today’s practicality or pragmatism.

Problems encountered include:

3.0 Habitual Thinking: is a serious barrier to reengineering. History, culture, experience, and beliefs all come together to create thought patterns that seem to work.

4.0 Practical Thinking: is one of the most cunning and seductive enemies of business reengineering. It is often disguised as “we need to get results quickly,” or “this is going to cost too much”, and other realistic objections.

Vision building and goal setting for BR demand people escape the confines of today’s practicality or pragmatism. drmasanom

Sizing the ProjectSizing the Project

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What should we include in the BR project?

• Determining the size of reengineering project, is not just a practical matter but one critical to its success.

• To properly size a project, the following issues must be addressed:

a. Scoping the project

b. Setting project boundaries

c. Time available to complete the project

d. Resources for the Project

e. Project Sizing Critical Factors

f. A special note on Root Cause Analysis

What should we include in the BR project?

• Determining the size of reengineering project, is not just a practical matter but one critical to its success.

• To properly size a project, the following issues must be addressed:

a. Scoping the project

b. Setting project boundaries

c. Time available to complete the project

d. Resources for the Project

e. Project Sizing Critical Factors

f. A special note on Root Cause Analysis

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Sizing the ProjectSizing the Project

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Define Processes:

Processes are what the business does, not who performs the work.

A process must meet these criteria:

• Produces or manipulates data or physical materials.

• Adds value to distinctive business outcomes (work products).

• Can be performed by one or more individuals or teams of people.

• Is triggered (started) by one or more events.

• Consumes resources.

A business process contains typically contains four to seven sub-process

Define Processes:

Processes are what the business does, not who performs the work.

A process must meet these criteria:

• Produces or manipulates data or physical materials.

• Adds value to distinctive business outcomes (work products).

• Can be performed by one or more individuals or teams of people.

• Is triggered (started) by one or more events.

• Consumes resources.

A business process contains typically contains four to seven sub-processdrmasanom

a. Scoping the project (Critical Stage)a. Scoping the project (Critical Stage)

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Six rules to define clearly the scope of the project are:

1. Limit the project to no more than seven and no fewer than four interrelated processes.

2. Scope should not exceed the control or influence of the highest-level person sponsoring the project.

3. Processes included in scope must relate directly to the vision.

4. Include only those processes that are broken; that is, not working.

5. All processes included in scope must share inputs and outputs.

6. Processes included in scope will share a common culture.

Six rules to define clearly the scope of the project are:

1. Limit the project to no more than seven and no fewer than four interrelated processes.

2. Scope should not exceed the control or influence of the highest-level person sponsoring the project.

3. Processes included in scope must relate directly to the vision.

4. Include only those processes that are broken; that is, not working.

5. All processes included in scope must share inputs and outputs.

6. Processes included in scope will share a common culture.

Sizing the Project

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b. Setting Project Boundaries

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I. Easy to identify the units responsible for performing the processes and supplying inputs or receiving output through the interface.

II. People within the units directly affected by the BR project.

III. Easy to identify and select executives, managers and professionals to be members of the BR project.

Sizing the Project:

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C. Time available to complete the Project

C. Time available to complete the Project

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Depends upon the following factors:

I. Number and complexity of business processes.

II. Severity of the changes.

III. Number and size of organizations directly involved and impacted.

IV. Amount and type of new technology applied.

V. Resistance of the culture to change.

Depends upon the following factors:

I. Number and complexity of business processes.

II. Severity of the changes.

III. Number and size of organizations directly involved and impacted.

IV. Amount and type of new technology applied.

V. Resistance of the culture to change.

Sizing the Project:

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d. Resources22

3 key resources:I.FinancialII.Facilities & EquipmentIII.Human

Sizing the Project:

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e.Project Sizing Critical Factorse.Project Sizing Critical Factors

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I. Number of Business processes

II. Diversity of business processes

III. Number of organization units

IV. Organizational relationships to processes.

V. Organizational politics

VI. Risk-aversion nature of the culture.

I. Number of Business processes

II. Diversity of business processes

III. Number of organization units

IV. Organizational relationships to processes.

V. Organizational politics

VI. Risk-aversion nature of the culture.

Sizing the Project:

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Sizing the ProjectSizing the Project

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Root Cause Analysis

• The goal is to look systematically beyond the symptoms of a problem to find its actual cause.

• It is fundamental to TQM methodology as well as BPR. Problem Originated/

Caused Here

Root Cause Analysis

• The goal is to look systematically beyond the symptoms of a problem to find its actual cause.

• It is fundamental to TQM methodology as well as BPR. Problem Originated/

Caused Here

PROCESS

A

PROCESS

B

PROCESS

C

Symptoms Occur Here

Upstream processes cause downstream symptoms

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