Tips & Pointers for Conducting Process

Improvement Projects

Tom Sonde
PIHRA 2012 Annual Conference
Tuesday, August 28, 2012
Tips & Pointers for Conducting Process
Improvement Projects

Agenda

Introduction

Conducting Process Reviews

What to Look For

Designing the Future State

Other Keys to Success

Process Improvement Methodologies

Business Process
Reegineering
Management (BPM)

Six Sigma Process Lean

Improvement

Total Quality Enterprise Process

Management (TQM) Management (EPM)
Improvements are can be Achieved Across your
Organization

Human Resoures Processes

Benefits
Payroll Administration
Compensation

Processes

Training
Talent
Management Recruiting

Time & Sucession

Attendence Planning
Is this Occurring in your Organization?

Evidence Process Improvements are Needed

 Simple tasks take too long to complete

 Too much time is spend validating data
 Employees constantly complain
 Too much paper is being used
 Backlogs exist
 There is a significant amount of manual keying and
rekeying of data
Is this Occurring in your Organization?

Evidence Process Improvements are Needed

 Information is not easily accessible

 Senior management information requests result in
constant fire drills
 System workarounds and renegade processes exist
 Excessive use of spreadsheets
 External databases / data warehouses supplement the HR
system
Does senior management even realize
how many inefficiencies exist?
Tips & Pointers for Conducting Process
Improvement Projects

Agenda

Introduction

Conducting Process Reviews

What to Look For

Designing the Future State

Other Keys to Success

Obtain an Understanding of the Underlying Cause of
Process Issues by Conducting Process Reviews

Process Reviews

The key to resolving process issues is to:

Obtain an Understanding of the Underlying Cause of
Process Issues by Conducting Process Reviews

Process Reviews

The key to resolving process issues is to:

Address the end-to-end process.

Addressing the End-to-End Processes is the
Key to Success

AP and
Disbursement
transactions

Payroll - Salary and Benefits Expenses General Fund

Salary and Quarterly
Benefit Summary Report
Expense (2)
available for
Payroll System
transfer VAC
system Excel Spreadsheets
Risk Management - Life, Health, Dental Expenses are turned into a text RollOver Monthly
file then transferred Report sent to
Report of all Departments Changes are input into the VAC departments
enrollment is sent Spreadsheet VAC System is
return hard copies on Excel Disbursement System (5)
Health Enrollment to departments for is sent to updated
to Risk Spreadsheet
Database with all update/correction Controllers
Management for which calculates
employee health, office
changes chargebacks
life and dental data
Telecommunications - Phone MOD Budget
Expense Report used to
Telephone bills are Total for each Each department Department prepare MQ
received from Nynexl, receives an Any disputes are
department is sends (1)
Nextel, Sprint, Arch itemized list of reported to the
entered on Excel spreadsheets
wireless, and Ameritech charges to their Telecommunication
Spreadsheets. to the Controller net
(3) department s dept. and a credit
One sheet per of any
is granted.
company adjustments
( 1) Report shows MTD and YTD Expenses,
Encumbered-unpaid expenses, $ Free
Fleet Management - Gas and Maintenance
Expenses
Balance, and % Free Balance. This report is
Work Orders are One copy is sent to John Murphy uses used to create MQ.
At month end, Printed report is
generated as work is the department, the report to record (2) Report shows General Funds
work orders are sent to each expenses and transfer
done in Fleet other is used to Departments, account #, recommended
summarized by department and funds between
Management record expense/ budget, current appropriations, YTD
department and Controllers office departments
(4) billing
entered into Excel expenses, and YTD % budget used.
Attachment also includes Outside General
Payroll - Mileage Expense Funds with all categories plus estimated
Department
revenue, YTD revenue received, and YTD
Departments Report is returned Payroll inputs Green Bar Report
completes mileage printed from
% collected. Report generated by
Specials receive blank by 9th of month to mileage, system
and total calculates Specials Database Controllers office and given to John
Account report listing Payroll
department reimbursement. The data from these Murphy (12th Floor room 1243) for
maintains
mileage
reimbursement reports are manually review. The report is reviewed with the
entered into an CFO by the staff and Controller.
Payroll - Medicare Expense Excel spreadsheet, (3) Other daily phone bills are sent through
Medicare Expense Report printed by
Medicare Expense on an AP voucher to be paid
adjustments are department/
from Payroll (4) Fleet Management supports 3
posted after account
Payroll System departments and generates approximately
payroll run
100-150 work orders each month.
Central Supply - Xerox, Postage, and Supplies Expenses (5) This report shows monthly receipts and
Departments Postage, and expenses by departments. Any request for
Manual log of copy Supply Expense adjustments are sent via hardcopy to the
request supplies Postage machine
requests by report sent bi-weekly Controllers office.
via phone/fax and tracks postage by Supply and postage
department (+10%
they are tracked Department expenses per
surcharge)
via VAC system department are entered
into VAC system
Conduct Process Reviews to Obtain an Understanding
of the End-to-End Processes

Review the end-to-end process

Understand 80 / 20 Multiple
Data / Paper
Current Processes Rule Departments

Meet with Follow the data Remember the Follow the

Individual and/or paper trail 80/20 rule process from
process owners • Obtain an • Address all department to
• Obtain an understanding of processing department
understanding of the content and procedures • Review the
how day-to-day requirements for especially the process end-to-
activities are each piece of exceptions end both
accomplished data/paper internally and
• Conduct externally
workshops,
benchmarking
and/or surveys
Conduct Process Reviews to Obtain an Understanding
of the End-to-End Processes

Review the end-to-end process

Non System System

Inputs / Outputs Be Observant
Data Utilization

Identify all inputs Identify data Pay careful Understand what

and outputs being stored or attention as to all procedures are
• Examples analyzed outside the steps that go accomplished by
include: manually the system into a process the system
keyed data, • Examples • Look for the • More
electronically fed include: unusual one-off importantly
data, reports, spreadsheets, processes identify manual
payroll checks, databases, index processes that the
benefits cards, etc. system should be
statements, etc handling
Conduct Process Reviews to Obtain an Understanding
of the End-to-End Processes

Review the end-to-end process

Policies and Current Develop

P Future State
Procedures Requirements Process Maps

Review existing Document Create current Develop a future

policies, current state process state
procedures and requirements maps (if • Develop future
user manuals • Identify what necessary) state process
• Obtain an processes need to • There is no need maps that
understanding of be accomplished, to create a document process
what is what data needs process map for steps and
documented and to be generated, every process – requirements
then compare it etc. the focus should • Document
to what you have be on the future depending on the
observed requirements level of detail
required (Visio,
PowerPoint)
Key Steps when Sitting with a Process Owner -
Question Every Activity

Always Ask Why Don’t Assume

End-to-End
Processes

Understand the Need

for all Inputs and
Outputs
Key Steps when Sitting with a Process Owner -
Question Every Activity

Always Ask Why

 What is the activity trying to accomplish?

End-to-End
Processes

 Is it is necessary
 Does it add value?
 Question why
 Always ask and then continue to ask
 Why a process or procedure is being
performed?
 Why isn’t the system performing it?
 Why an output is needed?
Key Steps when Sitting with a Process Owner -
Question Every Activity

Don’t Assume

 Don’t assume anything

End-to-End
Processes

 Ask “dumb” questions

 Politely challenge
 Validate what you have been told
 Compare it to the data or paper trail and/or
documentation
 Check with other process owners /
departments
 Check with other staff performing the
same or similar tasks
Key Steps when Sitting with a Process Owner -
Question Every Activity

Understand the Need for All Inputs and Outputs

 Review all inputs and outputs

End-to-End
Processes

 Question what the data is needed for

 Determine it’s accuracy
 Question what users or other departments
do with the data
 Ask the user what they would like in the
ideal world
 Question if the frequency is appropriate
Key Steps when Sitting with a Process Owner -
Question Every Activity

Question Every Activity

End-to-End
Processes  Identify the root cause of problems rather than
the symptoms
 Question whether the activity is necessary
 Question if the frequency is appropriate
 Determine if the activity could be
accomplished in another fashion
 Always question why a manual process is not
being performed by the system
Tips & Pointers for Conducting Process
Improvement Projects

Agenda

Introduction

Conducting Process Reviews

What to Look For

Designing the Future State

Other Keys to Success

 Improvement Opportunities - What to Look For

 Employees should utilize system self-service functionality whenever possible

Self
 Employees should take advantage of vendor provided self-service capabilities
Service

 Question why every piece of paper in a process is necessary

Paper  Wherever possible replace paper with an electronic solution

 Fully integrate all systems

Integration  Require large volume vendors to provide electronic feeds
 Provide electronic feeds to vendors
 Improvement Opportunities - What to Look For

 Obtain a through understanding of the process before developing training

Training  Training should incorporate both process and technology
 Training should be developed with the process owners skill sets in mind

 Anyone that requires access to data should have the appropriate access
 Ideally access should be provided electronically rather then on paper
Access to Data
 Access to data should be timely

 Reports should be developed with the user in mind

 Review how process owners are using their reports
Reporting
 Identify user needs that are not being met by current reports
 Reports for routine activities should include all required data on a single report
 Improvement Opportunities - What to Look For

User Manuals,  Develop user manuals, policies and procedures that cover the entire process
Policies & rather then a “How to use the software” solution
Procedures

 Ideally all data should be fed to the system electronically

Data  Manually input data should never be keyed more then once
Input  Eliminate manual forms by requiring staff to complete electronic forms via the
web or directly into the system using self-service functionality
Potential Clues to Lookout for:
Question Every Activity
 Manual forms
 Multiple reviews and approvals
 Manual tracking of
documentation
 Labor intensive processes
 Excessive handoffs
 Duplication of effort
 Unnecessary use of paper
 Manual file folders
 Huge piles of papers on desks
 Excessive need for file cabinets
 Routine missed deadlines
 Non-value added activities
Always Ask Why
 Errors / mistakes
 Unreasonably long cycle time
 Multiple data entry points
 Manual keying of data
 Duplicate keying of data
 Bottlenecks
 Unnecessary procedures
 Unused data or reports
 Shadow processes
 Excel spreadsheets
 Shadow systems (e.g. data
warehouse)
 Routine Delays
Is your HR System Working the way it’s Supposed to?

HR System Not Delivering

Many system issues are not the result of the software.

Is your HR System Working the way it’s Supposed to?

HR System Not Delivering

Many system issues are not the result of the software.

They were caused by a flawed implementation.

Implementing new technology does not guarantee
efficiency

Teacher
After data is Based on the type Custodial - Plant
completes Principal or Dept. School clerk
entered, Non site-based budget of purchase, Operations
requisition form or Head approves enters data into
requisition will be purchases goes to an requisition is
fills out pre-printed and signs system from Teacher
funneled into the approver initially routed to one of Exceptional After data is Based on the type Custodial - Plant
list for items requisition requisition completes Principal or Dept. School clerk
following the following:(1) Children Division entered, Non site-based budget of purchase, Operations
needed requisition form or Head approves enters data into
requisition will be purchases goes to an requisition is
fills out pre-printed and signs system from
Site-based budget purchases Applied funneled into the approver initially routed to one of Exceptional
list for items requisition requisition
go directly to Finance Technology following the following:(1) Children Division
needed
Career
Purchases from a contract Development Site-based budget purchases Applied
Type A
company or pre-printed list go directly to Finance Technology
Finance Dept. (2) Career
Library Services Purchases from a contract
Purchases not from a contract Type A Development
company or pre-printed list
Type B company or pre-printed list Finance Dept. (2)
regardless of price Chief Academic Library Services
Purchasing Dept/ Officer-Textbooks Purchases not from a contract
Senior buyers Type B company or pre-printed list
Senior buyers
review requisition regardless of price
receives Chief Academic
proof, checks for Teaching &
purchases in Purchasing Dept/ Officer-Textbooks
errors (4) Type 2 Learning Assmt. Senior buyers
"requisition proof" Senior buyers
review requisition
receives
proof, checks for Teaching &
purchases in
errors (4) Type 2 Learning Assmt.
Interscholastic "requisition proof"
Buyer requests Requisition proof
Other purchases
quotes/bids from is generated from
are routed to a Buyer receives

buyer - based on
assignment
Purchase order is
generated from the
requisition proof
the next day
Purchases orders
printed at
Southside location
and delivered to
Admin Bldg.
New Technology
vendors (fax, mail, information
buyer's copy Supplemental Interscholastic
or phone) Request entered into Buyer requests Requisition proof
Funds-Budget & Other purchases
for Quotation form system quotes/bids from is generated from
Management (3) are routed to a Buyer receives
If errors Type 1 vendors (fax, mail, information
buyer - based on buyer's copy Supplemental
If no errors found are found or phone) Request entered into
assignment Funds-Budget &
on requisition proof for Quotation form system
Management (3)
If errors Type 1
If no errors found are found
Senior buyers will on requisition proof
correct errors and
another proof is
Brown/yellow copy generated Purchase order is Senior buyers will
Finance Dept. generated from the correct errors and
sent to school Vendor receives
matches invoice to requisition proof another proof is
(brown copy is PO and ships
receiver's report the next day generated
receivers report) order to school Brown/yellow copy
Finance Dept.
Buyer signs and sent to school Vendor receives
Senior buyers matches invoice to
Blue copy sent to dates PO; sends (brown copy is PO and ships
separate POs (5 receiver's report
Controllers Office to vendor by mail receivers report) order to school
copies) Purchases orders
or fax Vendor sends Buyer signs and
System generates printed at Senior buyers
invoice to Finance Blue copy sent to dates PO; sends
payment when Southside location separate POs (5
White PO copy Dept. Controllers Office to vendor by mail
both invoice and and delivered to copies)
routed back to or fax Vendor sends
receiver's report Admin Bldg. System generates
original buyer invoice to Finance
are entered into White PO copy payment when
system Dept. both invoice and
Orange copy kept School confirms routed back to
original buyer receiver's report
on file at purchase by
are entered into
purchasing office sending receivers
system
report to Finance Orange copy kept School confirms
Dept. (5) on file at purchase by
purchasing office sending receivers
report to Finance
Dept. (5)

Inefficient New Inefficient

Old Process Technology New Process
Why Doesn’t your System Perform as Promised?

Who’s to Blame

1 Project Implementation Team

2 Process Owners
3 Training
4 Consultants
5 Other
Successful Implementations Address more then
Technology

Best Practices
Technology
Process

The Foundation of a Successful System Includes Process and Best Practices

Best Practices and System Functionality Knowledge

How do you obtain knowledge of Best Practices and

System Functionality?

Best Practices System Functionality

 Professional organizations  User manuals
 Conferences  Vendors web site
 Other companies  Books
 Books  Consultants
 Consultants
Tips & Pointers for Conducting Process
Improvement Projects

Agenda

Introduction

Conducting Process Reviews

What to Look For

Designing the Future State

Other Keys to Success

Developing a Future State

Payroll Process (High Level View) - Pre Software Interface

Visioning

Budget
Provide Account
Codes as needed

Prepare Supp

Field
Prepare T&L
Time Reports &
Reports
Overtime Reports

Prepare Payroll
Review and Notification Forms

HR
approve to process
adjustments

Review and

Payroll
Review and
correct Supp Time Run final calc and Distribute checks
Create Paysheets correct T&L Update Paysheets
Reports and OT confirm and advices
Reports
Reports

Operations-
Strawman Data Entry
Input Supp Time
Reports & OT Input T&L reports
Reports
Operations- IS

Produce checks,
Run Pay & Time advices & DD file
files into PS for bank, and print
reports
PS Project

Reconcile payroll

• This is an example of a to-be process map.

• Process maps may be prepared using Visio, PowerPoint
Whiteboard or on paper depending on the level of sophistication required.

Your Logo
Tips & Pointers for Conducting Process
Improvement Projects

Agenda

Introduction

Conducting Process Reviews

What to Look For

Designing the Future State

Other Keys to Success

Key Success Factors

Successful Tips for Delivering Process Improvements

 Build cross functional teams that include representation

from all appropriate functional areas
 Place process owners in project lead positions
 Make the process owner responsible for the budget
Understanding Project Dynamics

Communicate
Politics • Communicate positive
results
• Understand the political
• Communicate as
landscape
appropriate – Remember
• Use politics to your
the who, what, where,
advantage
when and why
Change • Communicate regularly

Management
Build Alliances
Quick Wins
• Fix the easy things first • Win over adversaries
• Gain traction • Make IT part of the team
• Get Finance involved

Resources
• Make sure the proper resources are on
the team and that there is an adequate
budget with realistic timelines
Executive Sponsorship Plays a Key Role

Support Leadership
Provides funding, Provides direction, advice
appropriate resources and and credibility
opens doors when
necessary

Executive
Sponsorship
Values Stick
Sets the tone, Provides the appropriate
communicates the leverage when necessary
importance of the project
to the organization

Carrot
Provides rewards and
incentives for success
It is important to Understand why People are
Resistant to Change

Potential
Threat
It is important to Understand why People are
Resistant to Change

Potential
Threat

Fear of the
Unknown
It is important to Understand why People are
Resistant to Change

Potential Threat of
Threat Obsolescence

Fear of the
Unknown
It is important to Understand why People are
Resistant to Change

Potential Threat of
Threat Obsolescence

Fear of the Loss of

Unknown Kingdom /
Status
It is important to Understand why People are
Resistant to Change

Potential Threat of Fear of

Threat Obsolescence Something
New

Fear of the Loss of

Unknown Kingdom /
Status
It is important to Understand why People are
Resistant to Change

Potential Threat of Fear of

Threat Obsolescence Something
New

Fear of the Loss of Change May

Unknown Kingdom / Uncover
Status Hidden Issues
It is important to Understand why People are
Resistant to Change

Potential Fear of Changes

Threat of May Result
Threat Obsolescence Something
New in Additional
Workload

Fear of the Loss of Change May

Unknown Kingdom / Uncover
Status Hidden Issues
Return on Investment - ROI
A Positive ROI is Essential to Obtaining Project Approval

Clearly Articulate Benefits Quantify Savings

The better you can articulate Quantify potential savings in
benefits and real dollar savings order to: Free up resources
the more support you will (e.g. process owners, IT staff)
receive Gain executive buy-in and
obtain funding
ROI

Focus on Savings Justification

Focus on savings, not cost At a minimum on a small project
you want to justify the need for
dedicated resources to focus on
your project
Improvements are Easier to Address then Many
Believe

The Time Required For Improvement Varies

 Improvements can be accomplished within a day or can

take months
– Quick hits
– Process adjustments / realignment
– Significant changes

Implement quick wins to gain credibility and traction.

I Challenge You to Try This!!

You’ll be Amazed at What You Find!

Set aside five to ten hours over the course of a week or two
and see what you can uncover!
 Free “How to”
Helpful Hints for Improving the
Productivity of HR

Tom Sonde, Principal

(973) 722-9304
tsonde@silverroad.net
SilverRoad.net
Thank you for
your attention!
Any Questions?
Tom Sonde Biography

Tom Sonde
T is a principal with Silver Road Solutions, a management consulting firm specializing in helping HR
organizations be more productive. He began performing process improvement work while at The Dun &
Bradstreet Corporation. He subsequently worked at KPMG Consulting and was VP Global Business
Transformation at Misys where he redesigned their global HR processes during an SAP implementation.

Tom has extensive experience in helping organizations improve productivity. He has written several articles
on this topic including: Finding the Hidden Values in HR Systems, which appeared in Human Resources
Executive magazine.

For additional information regarding improving the productivity of HR system please visit SilverRoad.net

Tom Sonde, Principal

SilverRoad Solutions
1362 Tamarack Road
Manasquan, NJ 08736

(973) 722-9304
tsonde@silverroad.net
http://www.silverroad.net/

Copyright © 2012 SilverRoad Solutions.

About Us
SilverRoad Solutions is an innovative management consulting firm specializing in,
Human Resource Optimization, Expense Reduction, Process Improvement and Business
Process Management services. We assist HR organizations in successfully implementing
transformational change.

To learn more about how we can lower your costs while improving the productivity of your
organization please contact us at info@silverroad.net or by calling (973) 722-9304.

Copyright © 2012 SilverRoad Solutions.