Process Levers that Produce Results

In the last few weeks I’ve discussed the critical components of a process (anatomy), as well as the key reasons why processes are so important to achieve strategic results. While I’ve used examples parenthetically to bring these concepts to life, I want to do more to make it actionable for you.

The late Dr. Michael Hammer, one of the foremost authorities on process re-engineering, highlighted the following ways (and examples) that processes can be re-designed to get different results. Think of these as powerful levers you can use to “dial-in” the desired impact…

Relocate work to customers: from performer to enabler. Ex. retail – customer self-checkout
Relocate work from customers to add more value. Ex. automotive – inventory mgmt. of customer’s product
Make decisions early for efficiency: predict, don’t react. Ex. fast food – order fulfillment (tel # – same as last time?), consumer goods – predict orders based on history
Make decisions late for flexibility: avoid pre-mature choices. Ex. case workers & case teams to eliminate handoffs & iterations
Introduce an integrator to coordinate a diverse set of experts performing very complex tasks. Ex. trucking – network manager, aerospace – contractor management, health care – treatment management
Eliminate non-value added activity
Perform work only when necessary (avoid excessive standardization). Ex. university – cross-charging, credit – only send invoice when there’s a balance
Decrease the range of alternatives: sacrifice precision for simplicity and convenience. Ex. fast food – sell meals combos vs. individual components, insurance – underwriting, medical – materials billing
Increase the range of alternatives: pay for precision. Ex. – pay for customized menu/ingredients/sides, consumer goods – customer segmentation
Employ better information: from historical and forecast to real-time and actual. Ex. consumer goods – product deployment/order patterns