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Fagan Draft 2011. MLD-601 Tool Kit. Fall 2011. Fagan Draft 2011. Took Kit. “ Who & What ” Value Estimator Value Estimator Zone of Tolerance Quality Categories Deming ’ s 14 Quality Principles Quality Readiness Test Moments of Truth Success factors 4Ps 5 Whys

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Mld 601 tool kit

Fagan Draft 2011

MLD-601 Tool Kit

Fall 2011


Took kit

Fagan Draft 2011

Took Kit

  • “Who & What” Value Estimator

  • Value Estimator

  • Zone of Tolerance

  • Quality Categories

  • Deming’s 14 Quality Principles

  • Quality Readiness Test

  • Moments of Truth Success factors

  • 4Ps

  • 5 Whys

  • Mapping Value-added

  • Mapping Basics

  • Mapping Cards

  • Mapping with Facts

  • Business Process Reengineering

  • Performance Indicators

  • Public Sector Reengineering

  • Challenges

  • Production Systems

  • Making Change Stick

  • People Power Strategies

  • Workflow Options Matrix

  • Capacity Management Strategies

  • Waiting Truths

  • Capacity Analysis and Utilization

  • Bottleneck Analysis

  • Long-term Capacity Factors

  • Classification of Peaks

  • Peak Management Strategies

  • Peak Demand Prioritization

  • Inventory Processing Strategies

  • Logistics Cycle Components

  • Supply Chain Performance Indicators

  • Disaster to Chaos Red Flags

  • Rapid Response Supply Chain

  • Systems Thinking Feedback Loops


Took kit con t

Fagan Draft 2011

Took Kit (con’t)

  • Up/Down/Up Performance Measurement Design

  • Fagan’s 8 Rights of Measurement

  • The 7 Deadly Sins

  • Statistical Process Control Chart

  • Pros, Cons, and Cautions of SPC

  • Forward Looking Performance Pyramid

  • Forward Looking Performance Measurement Criteria

  • Johnsen’s Performance Model

  • IT’s Role in Process Innovation

  • IT’s Impacts on Process

  • IT Benefits

  • E-Business Core Capabilities

  • Technology Reach Success Factors

  • Technology Adoption Rate

  • Business Plan Framework

  • System Dynamics Framework

  • 5 C’s of Successful Scaling

  • Pilot Strategy


Mld 601 tool kit1

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Value Creation Through Operations (Class #1)

Tool:“Who & What” Value Framework

Description: Identifying who received value from public services and the nature of the benefits.

Example: TSA

References: Creating Public Value: Strategic Management in Government, Moore, Mark, (Cambridge: Harvard University Press 1995), Chapter 2


Mld 601 tool kit2

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Value Creation Through Operations (Class #1)

Tool:Value Estimator

Description: Estimating the value created through the delivery of

cost-effective, quality public services.

Example:

References: The Accenture Public Sector Value Model, http://www.issa.int/pdf/cracow04/2Annex-Younger.pdf

Value of Improved Public Services: An Application of the Choice Experiment Method

to Estimate the Value of Improved Wastewater Treatment Infrastructure in India,

Birol and Das, 2010, http://www.mse.ac.in/pub/working%20paper%2051.pdf

  • Value of Air Passenger Safety – Annual Costs Avoided

  • Cost Categories

  • Loss of life

  • Loss of property

  • Loss of economic activity

    • Direct

    • Indirect

  • Emotional costs

  • Estimation Options

  • Bottoms-up calculation

    • Component based estimation

    • Willingness to pay modeling

  • Benchmarking

  • Bounding


Mld 601 tool kit3

Outcome

Process

Expectations

> adequate

performance

= adequate

performance

< adequate

performance

Source: Drawn from Johnson, 1995, pp. 46-61

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality Service Delivery (Class #2)

Tool:Zone of Tolerance

Description: Understanding the relationship between desired service and adequate service based on exceptions, process and outcomes.

Example:

References: Service Operations Management, Christine Hope and Alan Muhlemann


Mld 601 tool kit4

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality Service Delivery (Class #2)

Tool:Quality Categories

Description: Looking at quality through different lens to focus the organization on the most important aspect for its stakeholders.

Example:

References: Service Operations Management, Christine Hope and Alan Muhlemann

Category Concept

Transcendent Innate excellence

Manufacturing-based Conform to specs

User-based Fit for purpose

Product-based More is better

Value-based Cost - benefit


Mld 601 tool kit5

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality Service Delivery (Class #2)

Tool:Deming’s 14 Quality Principles

Description: Providing a set of principles that underlie Total Quality Management.

Example:

References: Total Quality Management in Humans Service Organizations, Lawrence Martin

1. Create consistency of purpose toward improvement

2. Awaken to the challenges of the new economy

3. Cease dependency on inspection

4. Stop rewarding business on the basis of price

5. Consistency improve the system

6. Institute training on the job

7. Institute leadership

8. Drive out fear

9. Break down barriers between departments

10. Eliminate slogans and targets toward zero-defects and productivity

11. Eliminate quotes

12. Eliminate barriers to pride of workmanship

13. Institute a vigorous program of education and self improvement

14. Put everyone in the company on the job of accomplishing this transformation


Mld 601 tool kit6

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality Service Delivery (Class #2)

Tool:Quality Readiness Test

Description: Determining if your organization is ready for total quality management.

Example:

References: Total Quality Management in Humans Service Organizations, Lawrence Martin

1. We continue to tinker even when things are going well

2. Our entire organization and stakeholders actively participate in

improvements

3. We value cooperation rather than competition

4. We gather the facts on perceived problems before we make changes

5. Our training is on-going

6. We communicate up, down and sideways

7. Managers serve as consultants to the organization

8. Teamwork is more highly valued than individual contribution

9. Our suppliers are partners


Mld 601 tool kit7

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Moments of Truth and Understanding Failure (Class #3)

Tool:Moment of Truth Success Factors

Description: Focusing the organization of the critical factors that determine the customer's experience.

Example:

References: At America’s Service, Karl Albrecht

1. Do the basics flawlessly, always

2. Understand that quality drives profits/success

3. Know your customers/stakeholders

4. Incorporate moments of truth into your operations

5. Have a “what ever it takes” attitude

6. Recover skillfully when errors do occur

7. Internal service quality leads to external service quality

8. Management is an enabler

9. Employees are valued along with customers

10. Always looking to improve performance


Mld 601 tool kit8

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Moments of Truth and Understanding Failure (Class #3)

Tool:4Ps

Description: Exploring the root cause of failure using a structured assessment of people, policy, process and plant.

Example:

References: Total Quality Management in Humans Service Organizations, Lawrence Martin

  • Passionate leaders

  • Field presence

  • Connection with employees

  • Local empowerment and voice

  • Clear accountability

  • Safety is a core value

  • Rules compliance, period

  • Clear consistent

  • response to violations

  • No safety – pay linkage

Policy

People

  • Field driven rule design

  • In-house training

  • Confront bad actions

  • Psychology of actions

  • Keep it fresh

  • Eliminate “condition” uses

  • Automate risks (e.g. pin-puller)

  • Continual health monitoring

  • Preventive maintenance

Process

Plant


Mld 601 tool kit9

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Moments of Truth and Understanding Failure (Class #3)

Tool:5 Whys

Description: Exploring the cause of failure by asking why enough times to get to the true root issue.

Example:

References: Root Cause Analysis Using Five Whys, NHS, Institute for innovation and Improvement, http://www.institute.nhs.uk/quality_and_service_improvement_tools/quality_and_service_improvement_tools/identifying_problems_-_root_cause_analysis_using5_whys.html

“The patient's diagnosis of skin cancer was considerably delayed. Why?

The excision biopsy report was not seen by the surgeon. Why?

The report was filed in the patient's notes without being seen by the surgeon. Why?

It was the receptionist job to do the filing. Why?

The junior doctors were busy with other tasks. Why?

The root cause - that the doctors' other tasks were seen as more important than filing. The system has now  been changed. A copy of all biopsy reports is now sent to the consultant surgeon responsible for the patient and no reports are filed unless they have been signed by a doctor.”


Mld 601 tool kit10

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Process Mapping: The Starting Point for Quality (Class #4)

Tool:Mapping Value-added

Description: Facilitating quality service delivery through structured analysis.

Example:

References: Better Faster: Streamlining Recruitment in the APS, Australian Public Service Commission, Australian Government, 2007, http://www.apsc.gov.au/publications07/betterfaster.pdf

1. Explore why things are done as they are

2. Identify and represent breakdowns and inefficiencies in

information flows or activities

3. Identify the bottleneck

4. Highlight unproductive utilization of resources

5. Reengineer processes for greater quality


Mld 601 tool kit11

Beginning and End

Tasks

Decisions

Work Flows

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Process Mapping: The Starting Point for Quality (Class #4)

Tool:Mapping Basics

Description: Guiding the comprehensive mapping of processes.

Example:

References: Total Quality Management in Humans Service Organizations, Lawrence Martin

1. Identify all steps

2. Order by time sequence

3. Label with simple descriptors

4. Lay out the process from top to

bottom on left to right

5. Use standard symbols

6. Link all tasks

7. Decisions are binary – yes or no


Mld 601 tool kit12

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Process Mapping: The Starting Point for Quality (Class #4)

Tool:Mapping Cards

Description: Simplifying the creation of process maps and the evaluation reengineering opportunities.

Example:

References: Better Faster: Streamlining Recruitment in the APS – Card Set, Australian Public Service Commission, Australian Government, 2007, http://www.apsc.gov.au/publications07/betterfastercardset.pdf


Mld 601 tool kit13

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Process Impact on Quality (Class #5)

Tool:Maps with Facts

Description: Incorporating data into process maps to more comprehensively understand outcomes.

Example:

References: Client Project, City of Boston Moving Permit Process


Mld 601 tool kit14

Process Steps

1. Understand business vision

2. Map process and identify gaps

3. Redesign process and pilot

effectiveness

4. Implement change

5. Monitor performance and refine

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality via Process reengineering (Class #6)

Tool:Business Process Reengineering

Description: Analyzing and redesigning and implementing new process to enhance service quality delivery.

Example:

References: Business Process Reengineering in the Public Sector: The Case of the Housing Development Board in Singapore, Thong, Yap and Seah, 2000.

Best Practices

1. Simple, clear vision

2. Full time, co-located team

3. Doers and new eyes

4. Steering committee oversight

5. Under way today is done

6. Streamline to the vision

7. Understand the human impacts

8. Align incentives

9. Measure, monitor, refine…


Mld 601 tool kit15

Singapore Housing Reengineering Performance Measures

Customer Service

- Waiting time

- Unanswered calls

Lease and Tenant Services

- Processing time

- Applications pending

Financial Services

- Processing time

- Manual adjustments

- Prepaid vouchers

General and Administered

- File retrieval time

- Daily volume

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality via Process reengineering (Class #6)

Tool:Performance Indicators

Description: Establishing clear measures of process performance.

Example:

References: Business Process Reengineering in the Public Sector: The Case of the Housing Development Board in Singapore, Thong, Yap and Seah, 2000.


Mld 601 tool kit16

Public Organization Challenges vis-à-vis the Private Sector

Issue Implication

Less market exposure Less incentive for redesign

More procedural constraints Fewer degrees of freedom

Broad array of stakeholders Harder to satisfy all

Use of governmental power Monetary and sovereignty costs

Less autonomy Longer sell cycle

Cyclical leadership changes Resell of not implemented, inertia

“Employment for life” Need creative incentives

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality via Process Reengineering (Class #6)

Tool:Public Sector Reengineering Challenges

Description: Understanding he unique reengineering challenges faced by public sector.

Example:

References: Business Process Reengineering in the Public Sector: The Case of the Housing Development Board in Singapore, Thong, Yap and Seah, 2000.


Mld 601 tool kit17

  • The NUMMI Production System

  • Objectives

  • Reduce cost by eliminating waste

  • Assure product quality

  • Worksites able to change quickly

  • Respect, mutual trust, and support of team members

  • Concepts

  • Through removal of waste

  • Just-in-time production

  • Quality assurance

  • Full utilization of worker capabilities

  • Techniques

  • Production leveling

  • Kaizen

  • Visual control

  • Team concept

  • Standardized work

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality via Employee Engagement (Class #7)

Tool:Production System

Description: Establishing the philosophy and processes that support quality service delivery.

Example:

References: The ‘Learning Bureaucracy’: New United Motor Manufacturing, Inc, Paul Adler, 1993, (Sourced to M. Hogan, Stanford University, 1987).


Mld 601 tool kit18

Fagan Draft 2011

MLD-601 Tool Kit

  • Topic: Quality via Employee Engagement (Class #7)

  • Tool:Making Change Stick

  • Description: Implementing a program that lasts

  • Example: Leading Change

  • Demonstrate urgency

  • Establish a coalition of the powerful

  • Link the change to the overall vision

  • Empower the organization and individual for change

  • Focus on short-term wins to build momentum

  • Scale up the changes

  • Institutionalize the new model

  • References: Leading Change, John Kotter, Harvard Business Review, 2006.


Mld 601 tool kit19

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Quality via Employee Engagement (Class #7)

Tool:People Power Strategies

Description: Creating value and advantage through people.

Example:

References: Competitive Advantage Through People, Unleashing the Power of the Workforce, Jeffrey Pfeffer, HBS Press, 1994, pp. 27-65

.

  • 16 People Power Strategies

  • Employment security

  • Selectivity in recruiting

  • High wages

  • Incentive pay

  • Employee ownership

  • Information sharing

  • Participation and empowerment

  • Teams and job redesign

9. Training and skills development

10. Cross utilization and training

11. Symbolic egalitarianism

12. Wage compression

13. Promotion from within

14. Long-term perspective

15. Measurement of practices

16. Overarching philosophy


Mld 601 tool kit20

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Organizing Work Flows (Class #8)

Tool:Workflow Options Matrix

Description: Providing alternative approaches for processing inventory.

Example:

References: Production and Operations Management, Martin Starr, 2004, p. 165

Workflow Options

Option Variety Volume

Customized Extensive Individual

Job Shop Moderate Moderate

Assembly Shop Limited High

Continuous Flow Very limited Very high

Flexible System Wide range Wide range


Mld 601 tool kit21

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Work Processing Strategies (Class #9)

Tool:Capacity Management Strategies

Description: Determining the “right” approach for setting capacity.

Example:

References: Service Operations Management, Hope and Muhlemann, 1997, p.265

Capacity Management Strategies

Level Demand-based

Focus Process efficiency Customer satisfaction

Outcomes Cost effective Happy customers

but but

queues and angry customers flexibility at a cost

Actions Schedule demand Change processes first

Hold some excess capacity then technology then

infrastructure


Mld 601 tool kit22

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Work Processing Strategies (Class #9)

Tool:Waiting Truths

Description: Waiting’s impacts on customer service.

Example:

References: The Psychology of Waiting Lines, HBS 9-684-064, rev. 1984

  • Principles of Waiting

  • Unoccupied time feels longer than occupied time

  • Pre-process waits feel longer than in-process waits

  • Anxiety makes waits feel longer

  • Uncertain waits are longer than know, finite waits

  • Unexplained waits are longer than explained waits

  • Unfair waits are longer than equitable waits

  • The more valuable the service, the longer I will wait

  • Solo waiting seems longer than group waiting


Mld 601 tool kit23

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Capacity Utilization (Class #9)

Tool:Capacity and Utilization Calculator

Description: Calculating the capability of a system to generate outputs and the degree to which this capacity is utilized.

Example:

References: Victoria Station Teaching Notes, Fagan


Mld 601 tool kit24

62%

“No Worries”

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Capacity Utilization (Class #9)

Tool:Bottleneck Identifier

Description: Determining the binding constraint in a process.

Example:

References: Victoria Station Teaching Notes, Fagan


Mld 601 tool kit25

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Capacity Utilization (Class #9)

Tool:Long-term Capacity Management Factors

Description: Determining the binding constraint in a process.

Example:

References: Service Operations Management, Hope and Muhlemann

Factors Examples

Markets growth, competitive environment

Competitors markets, offerings

Economy growth rates, interest rates

Social Employment, green

Political taxation, international relations

Technical new technology


Mld 601 tool kit26

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Managing Demand Peaks (Class #10)

Tool:Classification of Peaks

Description: Waiting’s impacts on customer service.

Example:

References: Peak Management, Ronen, Coman, Schragenheim, Int. J. Prod., 2001, p. 3187

Classification of Peaks

Peak Occurrence

Expected Unexpected

Firm’sPrepared Classical Rapid response

Condition

Unprepared Unexpected Opportunity or

Christmas Crisis mgt.


Mld 601 tool kit27

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Managing Demand Peaks (Class #10)

Tool:Peak Management Strategies

Description: Providing a set of approaches to mitigate demand peaks.

Example:

References: CSX and the Fall Peak, Fagan, 2005


Mld 601 tool kit28

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Managing Demand Peaks (Class #10)

Tool:Peak Demand Prioritization

Description: Prioritizing demand during the peak to maximize long-term value.

Example:

References: CSX and the Fall Peak, Fagan, 2005


Mld 601 tool kit29

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Efficient Service Delivery (Class #12)

Tool:Logistics Components

Description: Effectively including the physical aspects of service delivery.

Example:

References: Humanitarian Aid Logistics: Supply Chain Management in High Gear, L.N. Van Wassenhove, The Journal of the Operational Research Society, Vol. 57, No. 5, May 2006, pp. 475-489

Requirements

planning

Procurement

Transportation

Warehousing

Inventory

Delivery

Administration


Mld 601 tool kit30

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Efficient Service Delivery (Class #12)

Tool:Disaster to Chaos Red Flags

Description: Understanding the factors that can lead to chaos after a disaster.

Example:

References: Humanitarian Aid Logistics: Supply Chain Management in High Gear, L.N. Van Wassenhove, The Journal of the Operational Research Society, Vol. 57, No. 5, May 2006, pp. 475-489

Unusual event

Media attention

Disaster

Chaos

Excessive funds

Lost infrastructure

No processes


Mld 601 tool kit31

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Efficient Service Delivery (Class #13)

Tool:Rapid Response Supply Chain Success Factors

Description: Focusing on the right issues and relationships in responding to crises.

Example:

References: Humanitarian Aid Logistics: Supply Chain Management in High Gear, L.N. Van Wassenhove, The Journal of the Operational Research Society, Vol. 57, No. 5, May 2006, pp. 475-489

Rapid, Responsive

Efficient, Flexible

Agility

Alliances

Dynamic

Adaptability

Alignment

Different interests

Risk/resource sharing


Mld 601 tool kit32

-

+

Sales

Accuracy of

Demand

New

Forecasting

Products

R

B

+

+

-

Profits

Inventory

Levels

-

MLD-601 Tool Kit

Topic: Efficient Service Delivery (Class #13)

Tool:Systems Thinking Feedback Loops

Description: Providing a structured approach for examining complex operations and understanding the inter-relationship of processes.

Example:

References: Business Dynamics, Systems Thinking and Modeling for a Complex World, John Sterman, McGraw-Hill, 2000, pp. 3-39


Mld 601 tool kit33

Fagan Draft 2011

MLD-601 Tool Kit

Topic: Performance Measurement (Class #14)

Tool:2011 MLD-601’s Up/Down/Up Performance Measurement Design

Description: Designing a measurement system that aligns process participant input with agency strategy

Example:

Today

Tomorrow

Process

work measures

Agency mission

Individual

work measures

Subprocess

work measures

Agency strategy

Subprocess

work measures

Individual

work measures

Agency measures of success

Process

work measures


Mld 601 tool kit34

Fagan Draft 2011

MLD-601 Tool Kit

  • Topic: Performance Measurement (Class #14)

  • Tool:Fagan’s 8 Rights of Measurement

  • Description: Checklist for designing a performance measurement system

  • Example:

    • Right Focus: Customer oriented; actionable on what matters

    • Right Level: Simple but drillable (think onion)

    • Right Linkage: Process orientation

    • Right People: Value in knowing; accountable for action

    • Right Collection: Automatic, fast, accurate, accessible, embedded in the process

    • Right Incentives: Align with core values and strategy; rewards short and long term

    • Right Culture: Continuous improvement philosophy

  • Right Measures: Control and improvement; end-to-end business focus, balanced, hard to game, facilitates decisions and actions


  • Mld 601 tool kit35

    Fagan Draft 2011

    MLD-601 Tool Kit

    • Topic: Performance Measurement (Class #14)

    • Tool:The 7 Deadly Sins

    • Description: Potholes to avoid when designing a performance measurement system

    • Example:

      • Vanity – make us look good

      • Provincial – org. boundaries

      • Narcissism - Internal not customer focus

      • Lazy – no homework

      • Pettiness – no big picture

      • Inanity – fail to consider human reaction

      • Frivolity – lack of seriousness

  • References: The 7 Deadly Sins of Performance Measurement and How to Avoid Them, Michael Hammer, MIT Sloan Management Review, 2007, Vol. 48 NO 3, pp. 19-28


  • Mld 601 tool kit36

    Fagan Draft 2011

    MLD-601 Tool Kit

    Topic: Statistical Process Control (Class #15)

    Tool:Statistical Process Control Chart

    Description: Understanding Random versus Systemic Performance

    Example:

    Food Shipments from China Rejected(2 stdev)

    January 2009 – September 2011


    Mld 601 tool kit37

    Fagan Draft 2011

    MLD-601 Tool Kit

    • Topic: Statistical Process Control (Class #15)

    • Tool:Pros, Cons, and Cautions of SPC

    • Description: Understanding the strengths and weaknesses of statistical process control charts

    • Example:

    • Pros Cons Cautions

    • Simple - Unclear rules - Refine UB/LB

    • Data driven - Too simplistic - Screen for gaps

    • Visual - False security

    • Initiative - Reactive

    • Eliminates noise - 1st order concern only

    • Reference: Constructing and Using Process Control Charts, HBS 9-686-118, Rev. January 6, 1998


    Mld 601 tool kit38

    Fagan Draft 2011

    MLD-601 Tool Kit

    Safety Pyramid

    Topic: Forward Looking Performance Management (Class #16)

    Tool:Forward Looking Performance Pyramid Framework

    Description: Defining how outcomes are generated based on foundational metrics

    Example:

    1

    Fatality

    Disabled

    30

    300

    Injury

    Minor accident

    3,000

    Unsafe act

    30,000


    Mld 601 tool kit39

    Fagan Draft 2011

    MLD-601 Tool Kit

    Topic: Forward Looking Performance Management (Class #16)

    Tool:Forward Looking Performance Measurement Criteria

    Description: Examples of how proactive measures can focus attention.

    Example:


    Mld 601 tool kit40

    Fagan Draft 2011

    MLD-601 Tool Kit

    Topic: Forward Looking Performance Management (Class #16)

    Tool:Johnsen’s Performance Model

    Description: Structuring a public sector performance model

    Example:

    References: What does 25 years of experience tell us about the state of performance measurement in public policy and management?, Johnsen, Public Money and Management, Vol. 25. No. 1, pp. 9-17, 2005

    Stakeholders

    Policies and Objectives

    Outcomes

    Process

    Inputs

    Efficiency

    Effectiveness and Equity


    Mld 601 tool kit41

    Fagan Draft 2011

    MLD-601 Tool Kit

    Topic: Technology for Quality and Efficiency (Class #17)

    Tool:IT’s Role in Process Innovation

    Description: Considering the multiple roles of technology in process reengineering.

    Example:

    References: Process Innovation, Reengineering Work through Information Technology, Thomas Davenport, HBS Press, 1993, pp. 37-70

    IT as Enabler

    Process Reengineering

    IT as Implementer

    Non-Tech

    Solutions

    Gaps

    Opportunities

    • Hardware

    • Decision

    • Support

    Constraints


    Mld 601 tool kit42

    Fagan Draft 2011

    MLD-601 Tool Kit

    Topic: Technology for Quality and Efficiency (Class #17)

    Tool:IT Impacts on Process

    Description: Providing a wide view of the impacts of IT on process innovation.

    Example:

    References: Process Innovation, Reengineering Work through Information Technology, Thomas Davenport, HBS Press, 1993, pp. 37-70

    Automation

    Analysis

    Information

    Distance Linkage

    Sequencing

    Integration

    Tracking

    Disintermediation


    Mld 601 tool kit43

    Fagan Draft 2011

    MLD-601 Tool Kit

    Topic: Technology for Quality and Efficiency (Class #17)

    Tool:IT Benefits

    Description: Considering the broad range of hard and soft benefits.

    Example:

    References: Introducing Technology at Transport for London: Oyster’s Multiple Pearls (A), Fagan and Stuart


    Mld 601 tool kit44

    Fagan Draft 2011

    MLD-601 Tool Kit

    Topic: Technology for Quality and Efficiency (Class #17)

    Tool:E-Business Core Capabilities

    Description: Enumerating the core requirements for successful E-Business implementation.

    Example:

    References: Core capabilities for practitioners in achieving e-business innovation, Lin and Hsia, Computers in Human Behavior, 27 (2011) pp. 1884-1891

    Domains Core Capabilities

    Technology Infrastructure and architecture

    Technology-business alignment

    IT sourcing and security

    Management Customer focus and agility

    Reinvention mindset

    Capacity to change

    Collaboration Partnerships

    Co-production

    Gain sharing


    Mld 601 tool kit45
    MLD-601 Tool Kit

    Topic: Technology to Expand Reach (Class #18)

    Tool:Technology Reach Success Factors

    Description: Enhancing the probability of successful technology implementation

    Example:

    References: Designing mobile transfer serivces: Lessons from M-PESA, Mas and Morawczynski, MIT Innovations Journal, Spring 2009.

    • M-PESA Success Factors

    • Leverage brand and simple message

    • Easy to use

    • Management of retail agents

    • Scalable distribution system

    • Assurance of product (cash)

    • Easy registration

    • Registration incentives for agents

    • Simple pricing

    • In and out of network transfers

    • No minimum balance

    • Tie onto other cash outlets

    • Balance growth of customers and agents


    Mld 601 tool kit46
    MLD-601 Tool Kit

    Topic: Technology to Expand Reach (Class #18)

    Tool:Technology Adaption Rates

    Description: Increasing speed of technology adoption.

    Example:

    References: earlywarning.blogspot .com


    Mld 601 tool kit47
    MLD-601 Tool Kit

    Topic: Technology to Expand Reach (Class #18)

    Tool:Business Plan Framework

    Description: Evaluating and prioritizing technology options

    Example:

    References: Outline for a Business Plan, Ernest & Young, 1997.

    Business Plan Outline

    Purpose/Mission (Gap you are filling)

    Market Assessment

    - Industry Overview

    - Customer Needs and Segments

    - Products/Services

    - Target Market

    - Competitive Landscape

    Strategy

    Operations/Service Delivery

    Marketing and Sales

    Capitalization and Financials


    Mld 601 tool kit48
    MLD-601 Tool Kit

    Topic: Systems Thinking in Designing Operations (Class #19)

    Tool:System Dynamics Framework

    Description: Utilizing a systems approach to understanding and modeling process interrelationships and impacts.

    Example:

    References: Business Dynamics: Systems Thinking and Modeling for a Complex World, Sterman, John, (New York: Irwin McGraw-Hill, 2000

    “Causal loops”

    +

    The “+” indicates that “B” goes in the same direction as “A”

    B

    As "A" goes up, "B" goes up

    A

    As "A" goes down, "B" goes down

    -

    The “-” indicates that “B” moves inversely to “A”

    B

    As "A" goes up, "B" goes down

    A

    As "A" goes down, "B" goes up

    The “| |” indicates there is a delay between the time “A” changes and “B” reacts

    B

    Some time after "A" goes up, "B" will go down, or

    A

    Some time after "A" goes down, "B" will go up


    Mld 601 tool kit49
    MLD-601 Tool Kit

    Topic: Building Organizational Capacity (Class #20)

    Tool:The Capacity Builder

    Description: Planning for capability building

    Example: Capacity Building Framework

    • Leading Indicators

    • - New mission

    • Adjacent space

    • Scaling

    • Long-term

    • Added complexity

    • Prioritization

    • Size and scale

    • Degree of difficulty

    • Timing

    • Strategies

    • Needs

    • Challenges

    • Strategies

    Day 90

    Hard

    Easy

    Small

    Large


    Mld 601 tool kit50
    MLD-601 Tool Kit

    Topic: Going to Scale (Class #21)

    Tool:The 5Cs of Successful Scaling

    Description: Planning for effective scaling-up

    Example:

    The 5Cs for Scaling

    Cost – Cost effective strategy

    Commitment – Internal and external

    Capacity – Funds, sources, expertise

    Community – Buy-in

    Culture - Become part of the daily routine


    Mld 601 tool kit51
    MLD-601 Tool Kit

    Topic: Going to Scale (Class #21)

    Tool:Pilot Strategy

    Description: Deciding on how to pilot a program

    Example:

    #2

    Expand the

    “Easy”

    #1

    “Easy”

    #3

    “Hard”

    It’s doable

    It’s saleable

    It’s sustainable