PART II SOLUTIONS FOR EMPLOYEE PERFORMANCE
CHAPTER 1: SOLID FOUNDATION FOR SUCCESSFUL EMPLOYEE
2. How to build the process system properly?
Learning from the mistakes that AGM has made in building processes for the last 5 years is a must. Unlike their way, there is no need to write all processes that many of them surely do not add value, which only exhaust, demotivate and bore all employees.
Here are the proposed steps for building process system:
Form an improvement/ process team specialized only to build and improve processes to start the project without interfering employees’
daily tasks
Define and map out core processes, classify different types of processes
Start to build first core processes as it is most important and shall be priority.
The core business processes describe what actually is or needs to be done so that the organization meets its CSFs.
Defining processes types
The defining and classification are critical because we build, treat, control different kinds of processes in different ways.
According to Viewpoint Training and Consulting:
“Core processes are end-to-end, cross-functional processes that directly deliver value to external clients or intermediaries. Core processes are often referred to as "primary" processes as they represent the essential activities an organization performs to achieve its goals and objectives, fulfil its mission and attain its vision.
These processes make up what is called the value chain, which is the set of high level, interconnected core processes each of which adds value to the product or service. The value chain creates and delivers the product or service, which ultimately delivers value to customers. Core processes are the engines of the value chain and need to work seamlessly together to achieve real customer value”.
AGM really needs to clearly identify and manage its core processes is a strategic capability for the company. Also, this creates the linkage among cross- functional departments to the eventual results, which AGM’s processes lacked.
“Support processes are enabling processes designed to assist the value- delivering core processes by providing the resources and infrastructure required by primary processes. The main difference between support and core processes is that support processes add value to internal customers and do not directly deliver value to external customers, while core processes do.
Management processes are designed to plan, measure, monitor and control business activities. They ensure that a core or support process meets operational, financial, regulatory and legal requirements. Management processes do not directly add value to customers, but are necessary in order to ensure the company operates effectively and efficiently”.
In this case of AGM, and in lines with the PMS that I will propose in the next chapter, core processes should be those that AGM needs to be excel at to achieve their stated strategic objectives. We can come up with this process mapping for AGM as Figure 7.
Figure 7: Process Mapping – value stream map
Management Processes
Strategy Development/ Target Plan/ Communication Strategy/ Decision-Making
Purchasing Operations Sales
Training Accounting IT/ AX Maintenance
HR
Support Process Core Processes
CUSTOMER DEMANDS/ SUPPLIERS CUSTOMER SATISFACTION
Reports Objectives
Resources Information
MKT
With the same method, we start from the output, meaning that we start from the results or outcome that we want. Process must always be focused on the customers (external or internal), this help to solve the low team spirit and poor customer service culture – should be connected and oriented in the same direction.
This applies to all functional or cross-functional process. In order to make the core processes run smoothly and bring expected results, we will need to strengthen interfaces (supplier – customer relationship) each process in the chain.
Figure 8: Strengthen Interfaces among Processes
Customer/
Supplier Internal
Supplier
Internal Customer Input
Needs/ Requirements Needs/ Requirements
Information Feedback Information Feedback Out
In
Out
In
Output
E.g.: The output of inventory checks is inventory data of the quantities of products remain in the warehouse, which will be the input of buyer team. So, the requirements of the input should be stated clearly as types of items, name. quantity, expiry date, location, alerting out of stock or slow-moving items, etc.
The method to strengthen interfaces consists in formalizing the customer/
supplier relationship thanks to:
An accurate definition of the product/ service expected by the customer (outputs)
A close cooperation about the requirements upstream and downstream
The implementation of metrics to measure the quality of the outputs By answering these questions:
What is the nature of the outputs to provide? What is my added value?
Who are my customers? What are their needs/ requirements? (what, when, how)
Are their needs/ requirements satisfied? (outputs to be assessed)
Who are my suppliers? What are my needs/ requirements?
Do they know them? Have my expectations been met (input)?