f we'd hesitated. Instead, improvements are being made daily.

34. Don't use just functional organizations to define processes- they tend to replicate existing paradigms

Don't tolerate having processes designed to fit the current organization structure, or even specific people. Use cross-functional teams, with outsiders, internal and external process customers and suppliers.

35. Phase implementation to reduce risk and optimize rate of benefit gains

Full reengineering of a company may take much time. Most companies can't/won't wait for the pot of gold at the end of the rainbow, so it is necessary to provide payback at regular intervals, preferably starting soon. Create a phased implementation plan allowing the overall effort to self-fund itself before completion, if possible. Individual processes may have early due dates.

36. Use cellular and self-directed work teams

Get away from functional organization. Organize for processes. Cells are usually designed to handle an entire process, product, or even product line. Set up the organization to serve the customer, mission, product, process - in that order.

37. Avoid building a new bureaucracy/theocracy of Reengineering high priests/ priestesses

It seems like it's only a matter of time after a new concept, such as TQM, MIS, etc., comes along, before a corps of arrogant technocrats materializes, spouting acronyms, rules, regulations, forms, and methodologies. Reengineering is proving to be no exception to this. Don't let them gain a foothold. Make sure BPR stays with the people, by holding them accountable, organizing accordingly, and providing needed resources.

38. Use flow diagrams, dictionaries, business rules, to define system—avoid lengthy prose and technical documentation.

Define your system with simple statements, pictorial charts, tables, and where necessary, algorithms. If these can't be used for training purposes, consider tearing them up and starting over, until you can. People should be able to use them to help perform their jobs.

39. Maintain master running issues status lists

Issues really drive a BPR project. Track all suggestions, disputes, problems, guidance from management. Keep them on "issues lists." Categorize, group and prioritize them. Develop/solicit suggested approaches to these. Use these lists to guide the BPR project, and to track resolution and implementation.

40. New process designs will win by default if not contested by a set deadline.

A corporate, bureaucratic approval process moving at a snail's pace swallows up ideas, innovation and enthusiasm. Consider radical changes to yours. Use the "book club trick." Some book clubs will automatically send you books and bill you for them, unless you object or specify different books.

Your company might use this idea too. Publish suggested approaches, maybe as part of the issues list. If nobody objects or comes up with better ideas, the suggestions are automatically assigned to be developed and implemented.

41. Employ the living flow chart approach to model systems

We have pondered the best approaches for documenting as-is and to-be systems configurations, and developed the following conclusions:

• KIS (Keep It Simple). The more complex methodologies confuse and intimidate the very people you most need to involve. The tools can bog down the effort, and rapidly result in diminishing returns.
• People are inhibited from making changes to the more complex models, because of the sheer amount of work of constructing and maintaining the more complex modeling tools.
• Simple methods are more likely to be utilized and to bear fruit more rapidly.
• People think better in chart or pictorial format. Chart the process using actual documents or likenesses of forms, screens, reports, etc. Record issues, defect occurrences, delays, contradictions, cycle times, responsibilities, procedure/policy references, right on the charts.
• Go down to the level that people understand the process.
• Start with company level and process summary level charts. Do a mission statement for each process and sub-process before you get into the details.
• Use the charts as a diagnostic and design tool. Identify and correct non-value-added activities, bottlenecks, defect and delay producing points, organizational constraints, gaps, overlaps, etc.

42. Deliver more than you promise.

42 out of 40 hints promised ain't bad.

This article is also available on our website: PROA

Leveraging Employees to Increase Retail Store Sales
A retail store is only as effective as the productivity of its employees. Your employees are critical to the operation of your store and by providing a work environment that is conducive to success, you will increase the level of productivity within your retail business. Not only will your employees be more satisfied while they work, but your customers will also form favorable impressions of your business from the employees they interact with while shopping. It is important that your employees create a favorable image that will encourage your customers to return.There are three areas where you can affect your employees' productivity.1. Employees should be reliable and practice good time management skills. Time clocks will aid in tracking the time that your employees are working and will provide accurate records for your payroll. A wide selection of time clocks and time recording systems are available today and most provides accurate and indisputable time records that are key to preventing time theft. Both manual or electronic models or multi-function time clock/document stamp will help track and monitor employee work. In addition to time clocks, time clock accessories including time cards, time card racks and ink refill cartridges are crucial to making sure that your operations are running smoothly and without interuption. By having the right tools and processes to accurately measure workflow and time management, your retail business will be better suited to grow and expand with positive word of mouth advertising.2. Responsible and trustworthy employees help to create a friendly environment throughout your store. Drug and alcohol use among employees leads to an increase in accidents, insurance costs, excessive tardiness and absenteeism. To assure that your employees are contributing to your business at their full potential consider the benefits of on-site testing kits. The use of on-site drug testing kits will aid you in hiring responsible employees and help to ensure that your employees will continue to keep your business environment safe and profitable. A variety of testing kits are available for any budget and any type of retail operation.3. Employees who are comfortable in their working environment are likely to be more productive. Provide your employees with anti-fatigue floor mats at their workstations to relieve tired legs and feet. Anti-fatigue mats are especially important for employees who are on their feet in a stationary position all day, such as cashiers and checkout clerks. The matting provides a cushion on hard floor surfaces that reduces shock and pressure on feet and joints. Less stress to the feet and legs leaves workers less fatigued and more alert. Studies also show that changes in worker position will also aid in reducing fatigue among your employees. A wide variety of mat sizes and styles are available in today's growing retail supplies market. Also, consider offering your e

Introduction

Business Process Reengineering (BPR) principles have been around for a long time, piecemeal and under other labels. In recent years they started coming together as a discipline, incorporating world class business principles and focusing on quantum improvements- not merely continuous gradual improvement.

BPR is the complete or partial "reinventing" of how business processes are done, to attain major performance improvement. It questions the underlying assumptions and principles, including what, why, by whom, and even, if—things should be done.

This presentation will contribute by stating and helping to clarify a number of important principles, plus some useful insights, techniques and hints – 40 in all!

Basic Concepts

1. Start with clean sheet of paper, mission statement, and vision

It is probably best to initially start with a high level analysis, and then concentrate on a small number of processes initially.

We recommend a five step design approach:

• Make a list of what you like and don't like about the existing system, and what you'd like to see. Feel free to consult others- process owners, users, customers, suppliers, auditors, whatever. Then lay this aside for awhile.
• Look at alternatives; learn about what else is available, benchmark, etc. Read books, take seminars, courses, read reports/success stories, make pilgrimages to hallowed sites of success. Talk to experienced people.
• Brainstorm approaches. Agree on mission, vision, and focus. Set some overall improvement targets. Identify non-value-added activities.
• Then, construct an abbreviated "as-is" process map to determine what is happening now, and where the waste and delays are occurring. Use this to better understand the process, generate issues lists and target more specific improvements than from the previous steps.
• Construct a "to-be" model of the proposed process, including flow diagrams, organization, forms, procedures, etc., before transitioning to implementation.

2. "Reinvent" how the business is run, don't just make incremental changes, don't automate the mess you already have

If you're not careful, the new process becomes merely an incrementally improved old process, or worse yet, an automated version of the old one. If possible, come up with a whole new, much better way to run the business or perform the process.

It's really important to get a critical mass of FRESH thinking, so that the company doesn't merely take the path of least resistance back to the old ways. There is an unseen force that tries to make almost every change effort spring back to the way it was done before. Find the forces of reaction and deal with them early. Put enough people with the right beliefs, experience, and training, in key positions to help effect change.

3. Customer-driven, anticipate customer needs, and. . .

4. Involve customer early in the process

Find out from customers/prospects what they want. Ask them before they tell you what they don't like or worse yet, take their business elsewhere. This is mysterious and frightening to many internal employees who wouldn't know a customer if they were bitten by one. Take employees out to meet customers or customers in to meet employees. Have them talk on the phone, exchange views. It usually improves both sides, and forms valuable bonds. Involve customers early in the process to build "ownership", and to avoid false starts.

Find out what your successful competitors are doing and see if it makes sense. Don't slavishly copy it—leapfrog it. There may now be better ideas or new technologies that you could use. Try looking at how companies in other industries solve analogous problems.

Better yet, think of something nobody has thought of yet. Overnight air delivery of packages, disposable razors, and eyeglasses in one hour, were all breakthrough ideas that made fortunes and thrilled customers.

Do this before you do your expensive BPR program without sufficient improvement criteria.

5. Achieve continuous, rapid improvement—gradual improvements may not suffice

The Japanese Kaizen, or continuous improvement philosophy, is an extremely powerful concept, and it has taken them, and others who practice it effectively, a long way. But, if you're ten years behind, Kaizen won't even maintain the same gap. Stronger medicine is needed. Business Process Reengineering can be such a tonic, to allow huge leaps forward, and can be used in conjunction with Kaizen. Even if you're not ten years behind, maybe BPR can be a way to get ten years ahead.

How could one suddenly leapfrog another company to become more successful? … by making accelerator pedals instead of buggy whips. By doing something not just better, but truly different.

6. Challenge existing approach

Start out with an assumption in the back of your mind that the old way can be improved enormously—the odds are with you. Allow yourself to be proven wrong in some areas, but don't count on it. This forces more critical thinking. Compare the results of the current process to your ideal mission statement and note the differences. Then brainstorm how it can be improved significantly.

It's hard to get people to challenge existing approaches, unless you:

• Remove possible threats to them for doing so. This can best be done by demonstrating that company people can do it and survive. Ensure that people are rewarded, not punished for making improvements. One company encountered was in the habit of laying off team members after improvements were made. A real motivator.
• Expose teams to alternative models for doing business. This can be accomplished through education, site visits, reading, participation in professional societies, and group discussions.
• Assign leadership or lead the charge yourself—set the example by challenging the status quo and soliciting better ideas. Encourage others to do this as well.

7. Use benchmarking, get ideas from other industries

No need to be totally original in your thinking. Find out what "best practices" are in your and other industries with transferable concepts. Possibly even collaborate with other companies in developing better processes (void where prohibited by law).

8. Define product/process relationships, avoid functional "silos"

Try to disregard the existing organization structure when developing the ideal process. Look at the objectives that need to be accomplished, the processes that are needed to support it, and finally, at the resources (including organization) needed to accomplish them.

9. Set a hierarchy of: customer, product, process, function, activity

The chart below depicts some important relationships:

Objectives

10. Compress time

Faster is almost always better, if it's done right. More speed means more cycles, which means more output per unit time, faster turnaround, which usually improves service and reduces costs. Simply trying to speed up the existing process, however, might actually increase costs, and cause quality problems. This is why "old school" people usually tell you that it will cost more, hurt other priorities, or reduce quality if your request to do something faster is granted.

11. Eliminate bottlenecks

Find the slowest activity in a process. Speed it up. This speeds up the entire process and is usually the cheapest way to do it.

12. Reduce number of steps, complexity, levels, people

The more moving parts that anything has – a machine, system, process – the more it costs, the more that can go wrong, and the longer it takes. Reduce number of steps, operations, people, parts, and improve performance.

13. Reduce defects

Most processes take much longer and cost more due to defects and exception handling. Defects are the worst form of waste. They usually force more expensive exception activities to correct them, slow down cycle times, rob capacity, and force increased capital investment (for inventory, space, equipment, working capital). It has been said that defects cause 5 to 10 times their apparent costs.

14. Increase flexibility

Being adaptable to change enables introduction of new products, services, processes, schedules. Try to envision the parameters of possible change when designing the process. Increase flexibility by using adaptable people, training them, and designing processes to accommodate future change.

Philosophies

15. Empower people, but with strong leadership, clear mission & beliefs

Empower doesn't mean to abdicate management leadership, but to provide to employees the direction, skills, authority, and tools they need to accept as much delegated responsibility as possible. However, even in this era of oncoming "self directed work teams", there is still a very great need for leadership. A lot of it needs to come from management, as well as other team members. One cannot overemphasize the value of enthusiastic, strong, informed leadership to energize a reengineering effort. People tend to respond quite positively to this.

16. Make education a way of life

There are just so many new things to learn social, technical, philosophical, specific details, that a significant portion of employee time needs to be dedicated to education and training. This is not just an expense if used wisely, but an excellent investment in the company's future. There needs to be an overall education plan. Employees need to be tasked with education objectives, and tested for improvements. When you send someone to a 3 day seminar on set-up reduction, jointly develop objectives, in advance, for this investment in time and money. This is not a 3 day paid vacation. Debrief the employee afterward- make sure the company gets a return on this investment. If not, learn why. Employees who consistently fail to deliver results here may cease to be candidates for upcoming educational opportunities.

17. A "System" consists of missions, leadership, goals, objectives, metrics, policies, procedures, education, training, organization, personnel, tools—not primarily a computer project

Address all of the system ingredients shown above to reengineer a business system, and its processes.

18. "Ownership" is important

It's better to have even a mediocre approach that has consensus and support than the best idea in the world that no one likes or understands. The first will at least work in a mediocre fashion.

Build ownership by involving people in the new approach so that their intelligence and egos become intertwined with it.

Approaches

19. Focus on eliminating non-value added activities/ assets/costs

Eliminate waste in the company. Cut back on non-productive assets. Use Shingo's "7 Wastes of Production" as a tool to help identify waste. Waste is anything that is not absolutely essential to design, produce, and get the product/service to the customer. Employ some of the various analysis techniques to help identify waste and weigh improvement priorities.

20. Use simple approaches, not complex sophistication

There are already dozens of new, complex methodologies, software packages, etc., purporting to be "magic bullets" to reengineer your company. Most of them are too complicated, and will generate more money for their purveyors than for you. Don't spend more time learning and wrestling with the tools than solving business problems. Be especially wary of complex matrices and mathematical models. Don't get much more complex than a moderate Quality Function Deployment (QFD) matrix.

The key is to understand the requirements of the process, and what is wrong with the existing process, and what tools/resources are available/needed to do the job. Then, design/improve the new/revised process.

21. Decentralize, unless there are compelling reasons to do otherwise

Delegate downward and move resources to forward positions where they might be used to more rapidly and flexibly serve the customer. Move back and consolidate where there are compelling reasons to do so because of economies of scale, critical resources. Make sure this doesn't compromise service, quality, or flexibility.

22. Streamline, Simplify, automate, integrate, in that order

Don't spend big bucks on automation until you know what it is you'll be automating, and there is a simplified approach for running the business. Often, simplification of the existing system can pay for some or all of the subsequent automation. Scope out the entire effort before automating anything. Automation and integration should be a logical culmination of a well thought-out plan.

23. Employ the conference room pilot approach

In spite of everyone's best efforts, processes may still be complex. Therefore, it is extremely important to have tools for testing, refining, and training to ensure best results, with minimum risk. The conference room pilot approach is such a tool, and works by running off-line tests of the system, manually, and with proposed operating computer/software systems, prior to live implementation. Mistakes are made, and education/training occur, in the conference room, not in the heat of battle in the office or on the factory floor. Project leadership uses mission statements, objectives, and issues lists to design test scenarios, and then leads the group through these for training, debugging and problem solving purposes.

Techniques

24. Selectively implement policies, procedures, checkpoints, controls, accountability, metrics

Don't generate any more rules and paperwork than are needed. Well educated people with clear missions need less of this. Where it's not enough, well written and simple policies will often provide adequate guidance. Where that's not sufficient, one may need to add specific procedures. Install checkpoints, logs, controls, only when they are really needed to gain control of a tricky situation.

Have clear lines of accountability. Accountability can only result when there is authority, responsibility, and adequate resources to get the job done.

Utilize a small number of simple metrics, linked to mission, goals, and objectives. Communicate the results, and take corrective actions, if warranted.

25. Use "discontinuous thinking" techniques

Some people would have you believe that inductive, rational thinking is the best way to reengineer a process. It ain't necessarily so. Alfred Nobel invented dynamite, which funded the Nobel Prize, mostly by accident. Federal Express was based on an idea to transfer Federal bank funds overnight. Brainstorming sessions may take half-baked or unrelated ideas and transform them into powerful, creative change concepts.

Use customers, consultants, outsiders, games, your spouse, whatever will help generate ideas that break the confines of the existing approach.

26. Insiders lead, outsiders augment

Use outsiders, such as consultants and educators, to teach your people, provide temporary reinforcement, and skills needed only sporadically. Build the core of leadership and ownership internally when permanent resources are required. Think of outsiders as "jumper cables."

27. Small teams, but with a "guiding hand"

The ideal team size seems to be 3-8. More is unwieldy - a "committee", with fewer, it's harder to attain critical mass. If you need others to help gain consensus, provide technical advice, etc., bring them in on an as needed basis, as "consultants". For example, if you're reengineering the purchase requisitioning process, don't have all 117 people who write, process, and approve these on the design team. Assemble a small team of the best and brightest. Have them consult some of the others, and ultimately either review or provide write-ups of the proposed changes to the others for advice and consent.

Don't assume that the teams will be self managing, especially if they don't have a track record of doing so. At a minimum, even very good teams benefit from help with key parameters, such as mission, objectives, metrics. Less competent teams may need help with their own process of accomplishing things, as well as technical subject matter assistance. Seeding teams with well-trained team players is helpful.

28. Develop common processes, where it makes sense. At a minimum, come up with common data attributes, macro processes, data exchange conventions, etc.

29. Bias towards "vanilla" approaches wherever practical

Don't reinvent the wheel. Use packaged software, and standardized approaches.

30. Leverage investment, people, resources

Leveraging means doing more with less. Don't invest when you can use: consigned inventories, well-planned automation, human resource development, education, virtual corporations, cooperative resources, multi-skilled people, contractors, OPM (Other Peoples' Money), OPI (Other Peoples' Ideas), licensed technology and methodologies.

31. Set ambitious "stretch" goals. Don't worry if they are missed. Worry about how much improvement is made

Many organizations intimidate their people into developing overly conservative goals, reducing the perceived probability of failure. Try to remove the fear of failure (easier said than done), and encourage employees to shoot for the moon. Then, help them get the resources they need to achieve these goals, encourage controlled, conscious risk-taking, reward success, and console honest failures that occur as a result of trying hard. It's usually better to achieve half of a 50% improvement goal than all of a 10% goal.

32. Project leaders should lead, not make all the decisions

The ideal project leader is one who can formulate and communicate a mission with inspiration, provide tools that team members need, participate with team members, identify and target opportunities and problems for action.

33. Avoid "Paralysis by Analysis." You'll never have all the facts

One of our associates was leading an inventory reduction program for a client. Some of their employees lamented the fact that up to half of the items to be tracked might lack adequate decision data, so that they felt they could not proceed. He said, "then work on the other half!" We'd still be waiting for all of the data to be right before making a decision if we'd hesitated. Instead, improvements are being made daily.

34. Don't use just functional organizations to define processes- they tend to replicate existing paradigms

Don't tolerate having processes designed to fit the current organization structure, or even specific people. Use cross-functional teams, with outsiders, internal and external process customers and suppliers.

35. Phase implementation to reduce risk and optimize rate of benefit gains

Full reengineering of a company may take much time. Most companies can't/won't wait for the pot of gold at the end of the rainbow, so it is necessary to provide payback at regular intervals, preferably starting soon. Create a phased implementation plan allowing the overall effort to self-fund itself before completion, if possible. Individual processes may have early due dates.

36. Use cellular and self-directed work teams

Get away from functional organization. Organize for processes. Cells are usually designed to handle an entire process, product, or even product line. Set up the organization to serve the customer, mission, product, process - in that order.

37. Avoid building a new bureaucracy/theocracy of Reengineering high priests/ priestesses

It seems like it's only a matter of time after a new concept, such as TQM, MIS, etc., comes along, before a corps of arrogant technocrats materializes, spouting acronyms, rules, regulations, forms, and methodologies. Reengineering is proving to be no exception to this. Don't let them gain a foothold. Make sure BPR stays with the people, by holding them accountable, organizing accordingly, and providing needed resources.

38. Use flow diagrams, dictionaries, business rules, to define system—avoid lengthy prose and technical documentation.

Define your system with simple statements, pictorial charts, tables, and where necessary, algorithms. If these can't be used for training purposes, consider tearing them up and starting over, until you can. People should be able to use them to help perform their jobs.

39. Maintain master running issues status lists

Issues really drive a BPR project. Track all suggestions, disputes, problems, guidance from management. Keep them on "issues lists." Categorize, group and prioritize them. Develop/solicit suggested approaches to these. Use these lists to guide the BPR project, and to track resolution and implementation.

40. New process designs will win by default if not contested by a set deadline.

A corporate, bureaucratic approval process moving at a snail's pace swallows up ideas, innovation and enthusiasm. Consider radical changes to yours. Use the "book club trick." Some book clubs will automatically send you books and bill you for them, unless you object or specify different books.

Your company might use this idea too. Publish suggested approaches, maybe as part of the issues list. If nobody objects or comes up with better ideas, the suggestions are automatically assigned to be developed and implemented.

41. Employ the living flow chart approach to model systems

We have pondered the best approaches for documenting as-is and to-be systems configurations, and developed the following conclusions:

• KIS (Keep It Simple). The more complex methodologies confuse and intimidate the very people you most need to involve. The tools can bog down the effort, and rapidly result in diminishing returns.
• People are inhibited from making changes to the more complex models, because of the sheer amount of work of constructing and maintaining the more complex modeling tools.
• Simple methods are more likely to be utilized and to bear fruit more rapidly.
• People think better in chart or pictorial format. Chart the process using actual documents or likenesses of forms, screens, reports, etc. Record issues, defect occurrences, delays, contradictions, cycle times, responsibilities, procedure/policy references, right on the charts.
• Go down to the level that people understand the process.
• Start with company level and process summary level charts. Do a mission statement for each process and sub-process before you get into the details.
• Use the charts as a diagnostic and design tool. Identify and correct non-value-added activities, bottlenecks, defect and delay producing points, organizational constraints, gaps, overlaps, etc.

42. Deliver more than you promise.

42 out of 40 hints promised ain't bad.

This article is also available on our website: PROAC

Successful Call Centers Don't Need High Technology
I walked into a call center the other day, a small one, and something amazing hit me.There is absolutely no high technology present in the calling areas.Sales reps use paper printouts of customer names, make chicken scratches to note who says yes, no, maybe, call back later, and not in.No one is served by an auto-dialer.This is a bare bones operation, and definitely a throwback to the 80’s, if not earlier.Yet it is successful.Let me repeat that.It is successful, and instead of putting its extra cash flow into machinery, the company is investing in its people, in the form of training and coaching. The goal is to create better sellers, not faster typists or data entry clerks.How refreshing. No computer screens, except in the managers’ offices.I’ve wondered, of late, whether we’ve become a nation of nonstop screen watchers.Tonight, at the mall, I picked up a pair of new sunglasses at one of those kiosks that’s smack in the middle of the walking area. An early 20s-ish fellow rang-up my order, and I noticed a flat screen with some show running on it. Very thin and about five inches long, it was bolted to his writing area, next to the charge card terminal.Apparently, when he’s working, he’s watching TV or some video. People used to carry paperback books to fill the gaps when working at places like this.Screens are now fixed in front of us at supermarket check out areas. Containing the worst programming known to humanity, watching these images and babbling heads will make you lose five or ten I.Q. points per shopping trip.I don’t have to tell you about the convergence of TV and cell phones. More screens, more of the time.Technology doesn’t do our selling for us. People do, yet we’re suckered into thinking that we need all of these high definition ditties.Ask yourself if your screens are serving you, or are you serving them?The answer may surprise you.

to get ten years ahead.

How could one suddenly leapfrog another company to become more successful? … by making accelerator pedals instead of buggy whips. By doing something not just better, but truly different.

6. Challenge existing approach

Start out with an assumption in the back of your mind that the old way can be improved enormously—the odds are with you. Allow yourself to be proven wrong in some areas, but don't count on it. This forces more critical thinking. Compare the results of the current process to your ideal mission statement and note the differences. Then brainstorm how it can be improved significantly.

It's hard to get people to challenge existing approaches, unless you:

• Remove possible threats to them for doing so. This can best be done by demonstrating that company people can do it and survive. Ensure that people are rewarded, not punished for making improvements. One company encountered was in the habit of laying off team members after improvements were made. A real motivator.
• Expose teams to alternative models for doing business. This can be accomplished through education, site visits, reading, participation in professional societies, and group discussions.
• Assign leadership or lead the charge yourself—set the example by challenging the status quo and soliciting better ideas. Encourage others to do this as well.

7. Use benchmarking, get ideas from other industries

No need to be totally original in your thinking. Find out what "best practices" are in your and other industries with transferable concepts. Possibly even collaborate with other companies in developing better processes (void where prohibited by law).

8. Define product/process relationships, avoid functional "silos"

Try to disregard the existing organization structure when developing the ideal process. Look at the objectives that need to be accomplished, the processes that are needed to support it, and finally, at the resources (including organization) needed to accomplish them.

9. Set a hierarchy of: customer, product, process, function, activity

The chart below depicts some important relationships:

Objectives

10. Compress time

Faster is almost always better, if it's done right. More speed means more cycles, which means more output per unit time, faster turnaround, which usually improves service and reduces costs. Simply trying to speed up the existing process, however, might actually increase costs, and cause quality problems. This is why "old school" people usually tell you that it will cost more, hurt other priorities, or reduce quality if your request to do something faster is granted.

11. Eliminate bottlenecks

Find the slowest activity in a process. Speed it up. This speeds up the entire process and is usually the cheapest way to do it.

12. Reduce number of steps, complexity, levels, people

The more moving parts that anything has – a machine, system, process – the more it costs, the more that can go wrong, and the longer it takes. Reduce number of steps, operations, people, parts, and improve performance.

13. Reduce defects

Most processes take much longer and cost more due to defects and exception handling. Defects are the worst form of waste. They usually force more expensive exception activities to correct them, slow down cycle times, rob capacity, and force increased capital investment (for inventory, space, equipment, working capital). It has been said that defects cause 5 to 10 times their apparent costs.

14. Increase flexibility

Being adaptable to change enables introduction of new products, services, processes, schedules. Try to envision the parameters of possible change when designing the process. Increase flexibility by using adaptable people, training them, and designing processes to accommodate future change.

Philosophies

15. Empower people, but with strong leadership, clear mission & beliefs

Empower doesn't mean to abdicate management leadership, but to provide to employees the direction, skills, authority, and tools they need to accept as much delegated responsibility as possible. However, even in this era of oncoming "self directed work teams", there is still a very great need for leadership. A lot of it needs to come from management, as well as other team members. One cannot overemphasize the value of enthusiastic, strong, informed leadership to energize a reengineering effort. People tend to respond quite positively to this.

16. Make education a way of life

There are just so many new things to learn social, technical, philosophical, specific details, that a significant portion of employee time needs to be dedicated to education and training. This is not just an expense if used wisely, but an excellent investment in the company's future. There needs to be an overall education plan. Employees need to be tasked with education objectives, and tested for improvements. When you send someone to a 3 day seminar on set-up reduction, jointly develop objectives, in advance, for this investment in time and money. This is not a 3 day paid vacation. Debrief the employee afterward- make sure the company gets a return on this investment. If not, learn why. Employees who consistently fail to deliver results here may cease to be candidates for upcoming educational opportunities.

17. A "System" consists of missions, leadership, goals, objectives, metrics, policies, procedures, education, training, organization, personnel, tools—not primarily a computer project

Address all of the system ingredients shown above to reengineer a business system, and its processes.

18. "Ownership" is important

It's better to have even a mediocre approach that has consensus and support than the best idea in the world that no one likes or understands. The first will at least work in a mediocre fashion.

Build ownership by involving people in the new approach so that their intelligence and egos become intertwined with it.

Approaches

19. Focus on eliminating non-value added activities/ assets/costs

Eliminate waste in the company. Cut back on non-productive assets. Use Shingo's "7 Wastes of Production" as a tool to help identify waste. Waste is anything that is not absolutely essential to design, produce, and get the product/service to the customer. Employ some of the various analysis techniques to help identify waste and weigh improvement priorities.

20. Use simple approaches, not complex sophistication

There are already dozens of new, complex methodologies, software packages, etc., purporting to be "magic bullets" to reengineer your company. Most of them are too complicated, and will generate more money for their purveyors than for you. Don't spend more time learning and wrestling with the tools than solving business problems. Be especially wary of complex matrices and mathematical models. Don't get much more complex than a moderate Quality Function Deployment (QFD) matrix.

The key is to understand the requirements of the process, and what is wrong with the existing process, and what tools/resources are available/needed to do the job. Then, design/improve the new/revised process.

21. Decentralize, unless there are compelling reasons to do otherwise

Delegate downward and move resources to forward positions where they might be used to more rapidly and flexibly serve the customer. Move back and consolidate where there are compelling reasons to do so because of economies of scale, critical resources. Make sure this doesn't compromise service, quality, or flexibility.

22. Streamline, Simplify, automate, integrate, in that order

Don't spend big bucks on automation until you know what it is you'll be automating, and there is a simplified approach for running the business. Often, simplification of the existing system can pay for some or all of the subsequent automation. Scope out the entire effort before automating anything. Automation and integration should be a logical culmination of a well thought-out plan.

23. Employ the conference room pilot approach

In spite of everyone's best efforts, processes may still be complex. Therefore, it is extremely important to have tools for testing, refining, and training to ensure best results, with minimum risk. The conference room pilot approach is such a tool, and works by running off-line tests of the system, manually, and with proposed operating computer/software systems, prior to live implementation. Mistakes are made, and education/training occur, in the conference room, not in the heat of battle in the office or on the factory floor. Project leadership uses mission statements, objectives, and issues lists to design test scenarios, and then leads the group through these for training, debugging and problem solving purposes.

Techniques

24. Selectively implement policies, procedures, checkpoints, controls, accountability, metrics

Don't generate any more rules and paperwork than are needed. Well educated people with clear missions need less of this. Where it's not enough, well written and simple policies will often provide adequate guidance. Where that's not sufficient, one may need to add specific procedures. Install checkpoints, logs, controls, only when they are really needed to gain control of a tricky situation.

Have clear lines of accountability. Accountability can only result when there is authority, responsibility, and adequate resources to get the job done.

Utilize a small number of simple metrics, linked to mission, goals, and objectives. Communicate the results, and take corrective actions, if warranted.

25. Use "discontinuous thinking" techniques

Some people would have you believe that inductive, rational thinking is the best way to reengineer a process. It ain't necessarily so. Alfred Nobel invented dynamite, which funded the Nobel Prize, mostly by accident. Federal Express was based on an idea to transfer Federal bank funds overnight. Brainstorming sessions may take half-baked or unrelated ideas and transform them into powerful, creative change concepts.

Use customers, consultants, outsiders, games, your spouse, whatever will help generate ideas that break the confines of the existing approach.

26. Insiders lead, outsiders augment

Use outsiders, such as consultants and educators, to teach your people, provide temporary reinforcement, and skills needed only sporadically. Build the core of leadership and ownership internally when permanent resources are required. Think of outsiders as "jumper cables."

27. Small teams, but with a "guiding hand"

The ideal team size seems to be 3-8. More is unwieldy - a "committee", with fewer, it's harder to attain critical mass. If you need others to help gain consensus, provide technical advice, etc., bring them in on an as needed basis, as "consultants". For example, if you're reengineering the purchase requisitioning process, don't have all 117 people who write, process, and approve these on the design team. Assemble a small team of the best and brightest. Have them consult some of the others, and ultimately either review or provide write-ups of the proposed changes to the others for advice and consent.

Don't assume that the teams will be self managing, especially if they don't have a track record of doing so. At a minimum, even very good teams benefit from help with key parameters, such as mission, objectives, metrics. Less competent teams may need help with their own process of accomplishing things, as well as technical subject matter assistance. Seeding teams with well-trained team players is helpful.

28. Develop common processes, where it makes sense. At a minimum, come up with common data attributes, macro processes, data exchange conventions, etc.

29. Bias towards "vanilla" approaches wherever practical

Don't reinvent the wheel. Use packaged software, and standardized approaches.

30. Leverage investment, people, resources

Leveraging means doing more with less. Don't invest when you can use: consigned inventories, well-planned automation, human resource development, education, virtual corporations, cooperative resources, multi-skilled people, contractors, OPM (Other Peoples' Money), OPI (Other Peoples' Ideas), licensed technology and methodologies.

31. Set ambitious "stretch" goals. Don't worry if they are missed. Worry about how much improvement is made

Many organizations intimidate their people into developing overly conservative goals, reducing the perceived probability of failure. Try to remove the fear of failure (easier said than done), and encourage employees to shoot for the moon. Then, help them get the resources they need to achieve these goals, encourage controlled, conscious risk-taking, reward success, and console honest failures that occur as a result of trying hard. It's usually better to achieve half of a 50% improvement goal than all of a 10% goal.

32. Project leaders should lead, not make all the decisions

The ideal project leader is one who can formulate and communicate a mission with inspiration, provide tools that team members need, participate with team members, identify and target opportunities and problems for action.

33. Avoid "Paralysis by Analysis." You'll never have all the facts

One of our associates was leading an inventory reduction program for a client. Some of their employees lamented the fact that up to half of the items to be tracked might lack adequate decision data, so that they felt they could not proceed. He said, "then work on the other half!" We'd still be waiting for all of the data to be right before making a decision if we'd hesitated. Instead, improvements are being made daily.

34. Don't use just functional organizations to define processes- they tend to replicate existing paradigms

Don't tolerate having processes designed to fit the current organization structure, or even specific people. Use cross-functional teams, with outsiders, internal and external process customers and suppliers.

35. Phase implementation to reduce risk and optimize rate of benefit gains

Full reengineering of a company may take much time. Most companies can't/won't wait for the pot of gold at the end of the rainbow, so it is necessary to provide payback at regular intervals, preferably starting soon. Create a phased implementation plan allowing the overall effort to self-fund itself before completion, if possible. Individual processes may have early due dates.

36. Use cellular and self-directed work teams

Get away from functional organization. Organize for processes. Cells are usually designed to handle an entire process, product, or even product line. Set up the organization to serve the customer, mission, product, process - in that order.

37. Avoid building a new bureaucracy/theocracy of Reengineering high priests/ priestesses

It seems like it's only a matter of time after a new concept, such as TQM, MIS, etc., comes along, before a corps of arrogant technocrats materializes, spouting acronyms, rules, regulations, forms, and methodologies. Reengineering is proving to be no exception to this. Don't let them gain a foothold. Make sure BPR stays with the people, by holding them accountable, organizing accordingly, and providing needed resources.

38. Use flow diagrams, dictionaries, business rules, to define system—avoid lengthy prose and technical documentation.

Define your system with simple statements, pictorial charts, tables, and where necessary, algorithms. If these can't be used for training purposes, consider tearing them up and starting over, until you can. People should be able to use them to help perform their jobs.

39. Maintain master running issues status lists

Issues really drive a BPR project. Track all suggestions, disputes, problems, guidance from management. Keep them on "issues lists." Categorize, group and prioritize them. Develop/solicit suggested approaches to these. Use these lists to guide the BPR project, and to track resolution and implementation.

40. New process designs will win by default if not contested by a set deadline.

A corporate, bureaucratic approval process moving at a snail's pace swallows up ideas, innovation and enthusiasm. Consider radical changes to yours. Use the "book club trick." Some book clubs will automatically send you books and bill you for them, unless you object or specify different books.

Your company might use this idea too. Publish suggested approaches, maybe as part of the issues list. If nobody objects or comes up with better ideas, the suggestions are automatically assigned to be developed and implemented.

41. Employ the living flow chart approach to model systems

We have pondered the best approaches for documenting as-is and to-be systems configurations, and developed the following conclusions:

• KIS (Keep It Simple). The more complex methodologies confuse and intimidate the very people you most need to involve. The tools can bog down the effort, and rapidly result in diminishing returns.
• People are inhibited from making changes to the more complex models, because of the sheer amount of work of constructing and maintaining the more complex modeling tools.
• Simple methods are more likely to be utilized and to bear fruit more rapidly.
• People think better in chart or pictorial format. Chart the process using actual documents or likenesses of forms, screens, reports, etc. Record issues, defect occurrences, delays, contradictions, cycle times, responsibilities, procedure/policy references, right on the charts.
• Go down to the level that people understand the process.
• Start with company level and process summary level charts. Do a mission statement for each process and sub-process before you get into the details.
• Use the charts as a diagnostic and design tool. Identify and correct non-value-added activities, bottlenecks, defect and delay producing points, organizational constraints, gaps, overlaps, etc.

42. Deliver more than you promise.

42 out of 40 hints promised ain't bad.

This article is also available on our website: PROA

Reign On Your Minds Of Your Clients With Promotional Mugs
Achieving your marketing targets is the most important objective for any organization. More important is the path that you choose to achieve these objectives. Getting the right message to the customers is not that difficult…on the contrary, it is unbelievable how simply the right message can be sent.An effective way to send across your marketing message is promotional items. Consider sending a nicely designed pen with a personal marketing message, or a t-shirt, or even a decorative promotional mug. I myself have visited a number of my clients where on their tables I have seen beautifully designed mugs, kept on the desks. I remember a particular mug that I have seen in one of my clients desks. I even remember asking my client about the organization that presented it to him. After all, your marketing endeavor is how you put yourself across to your clients and for how long.There is no point sending very professional emails and letters which you manage to make your client read. In fact, it will be foolish to think that your client will keep it with him. A promotional gift or item will serve this purpose. Decide upon your budget and choose the best option that you can afford. I vote for promotional mugs. Below are the reasons why promotional mugs printed with your marketing message should serve your purpose down to a tee:1. Mugs aren’t too expensive. Varieties of promotional mugs are available in the market. Some are multicolored, some of back and white, some are metal mugs, some are plastic, while some are ceramic, and price starts from a few dollars. Your choice is rather wide. However, though you are free to decide upon your budget, I don’t agree with people who have an inclination for distributing cheap promotional mugs for the sake of cost cutting. Suppose someone gifts you an ordinary looking mug, not fit for use…what will be your reaction? Hence, pay importance to the quality of mugs, which your clients can use and as long as they don’t use your mug, your endeavor is left undone.2. Promotional mugs are big enough to display your marketing or advertising message clearly and effectively. Once you have decided on the quality of the promotional mug, select the marketing message very carefully. The idea is to promote your business, services and image and this you should do ruthlessly, without being too aggressive at the same time. Try figuring out a message which should be enough to generate an element of awe or curiosity among those who look at your printed mugs.The Internet is one of the most popular and effective place to get affordable promotional mugs and other promotional items or gifts. In fact, many companies specialise in promotional materials and you can approach them with your requirements. what makes it more affordable is that most online shops offer promotional merchandise at wholesale prices, which you can use as superb marketing gifts and rise above your competitors with the benefit

e

There are just so many new things to learn social, technical, philosophical, specific details, that a significant portion of employee time needs to be dedicated to education and training. This is not just an expense if used wisely, but an excellent investment in the company's future. There needs to be an overall education plan. Employees need to be tasked with education objectives, and tested for improvements. When you send someone to a 3 day seminar on set-up reduction, jointly develop objectives, in advance, for this investment in time and money. This is not a 3 day paid vacation. Debrief the employee afterward- make sure the company gets a return on this investment. If not, learn why. Employees who consistently fail to deliver results here may cease to be candidates for upcoming educational opportunities.

17. A "System" consists of missions, leadership, goals, objectives, metrics, policies, procedures, education, training, organization, personnel, tools—not primarily a computer project

Address all of the system ingredients shown above to reengineer a business system, and its processes.

18. "Ownership" is important

It's better to have even a mediocre approach that has consensus and support than the best idea in the world that no one likes or understands. The first will at least work in a mediocre fashion.

Build ownership by involving people in the new approach so that their intelligence and egos become intertwined with it.

Approaches

19. Focus on eliminating non-value added activities/ assets/costs

Eliminate waste in the company. Cut back on non-productive assets. Use Shingo's "7 Wastes of Production" as a tool to help identify waste. Waste is anything that is not absolutely essential to design, produce, and get the product/service to the customer. Employ some of the various analysis techniques to help identify waste and weigh improvement priorities.

20. Use simple approaches, not complex sophistication

There are already dozens of new, complex methodologies, software packages, etc., purporting to be "magic bullets" to reengineer your company. Most of them are too complicated, and will generate more money for their purveyors than for you. Don't spend more time learning and wrestling with the tools than solving business problems. Be especially wary of complex matrices and mathematical models. Don't get much more complex than a moderate Quality Function Deployment (QFD) matrix.

The key is to understand the requirements of the process, and what is wrong with the existing process, and what tools/resources are available/needed to do the job. Then, design/improve the new/revised process.

21. Decentralize, unless there are compelling reasons to do otherwise

Delegate downward and move resources to forward positions where they might be used to more rapidly and flexibly serve the customer. Move back and consolidate where there are compelling reasons to do so because of economies of scale, critical resources. Make sure this doesn't compromise service, quality, or flexibility.

22. Streamline, Simplify, automate, integrate, in that order

Don't spend big bucks on automation until you know what it is you'll be automating, and there is a simplified approach for running the business. Often, simplification of the existing system can pay for some or all of the subsequent automation. Scope out the entire effort before automating anything. Automation and integration should be a logical culmination of a well thought-out plan.

23. Employ the conference room pilot approach

In spite of everyone's best efforts, processes may still be complex. Therefore, it is extremely important to have tools for testing, refining, and training to ensure best results, with minimum risk. The conference room pilot approach is such a tool, and works by running off-line tests of the system, manually, and with proposed operating computer/software systems, prior to live implementation. Mistakes are made, and education/training occur, in the conference room, not in the heat of battle in the office or on the factory floor. Project leadership uses mission statements, objectives, and issues lists to design test scenarios, and then leads the group through these for training, debugging and problem solving purposes.

Techniques

24. Selectively implement policies, procedures, checkpoints, controls, accountability, metrics

Don't generate any more rules and paperwork than are needed. Well educated people with clear missions need less of this. Where it's not enough, well written and simple policies will often provide adequate guidance. Where that's not sufficient, one may need to add specific procedures. Install checkpoints, logs, controls, only when they are really needed to gain control of a tricky situation.

Have clear lines of accountability. Accountability can only result when there is authority, responsibility, and adequate resources to get the job done.

Utilize a small number of simple metrics, linked to mission, goals, and objectives. Communicate the results, and take corrective actions, if warranted.

25. Use "discontinuous thinking" techniques

Some people would have you believe that inductive, rational thinking is the best way to reengineer a process. It ain't necessarily so. Alfred Nobel invented dynamite, which funded the Nobel Prize, mostly by accident. Federal Express was based on an idea to transfer Federal bank funds overnight. Brainstorming sessions may take half-baked or unrelated ideas and transform them into powerful, creative change concepts.

Use customers, consultants, outsiders, games, your spouse, whatever will help generate ideas that break the confines of the existing approach.

26. Insiders lead, outsiders augment

Use outsiders, such as consultants and educators, to teach your people, provide temporary reinforcement, and skills needed only sporadically. Build the core of leadership and ownership internally when permanent resources are required. Think of outsiders as "jumper cables."

27. Small teams, but with a "guiding hand"

The ideal team size seems to be 3-8. More is unwieldy - a "committee", with fewer, it's harder to attain critical mass. If you need others to help gain consensus, provide technical advice, etc., bring them in on an as needed basis, as "consultants". For example, if you're reengineering the purchase requisitioning process, don't have all 117 people who write, process, and approve these on the design team. Assemble a small team of the best and brightest. Have them consult some of the others, and ultimately either review or provide write-ups of the proposed changes to the others for advice and consent.

Don't assume that the teams will be self managing, especially if they don't have a track record of doing so. At a minimum, even very good teams benefit from help with key parameters, such as mission, objectives, metrics. Less competent teams may need help with their own process of accomplishing things, as well as technical subject matter assistance. Seeding teams with well-trained team players is helpful.

28. Develop common processes, where it makes sense. At a minimum, come up with common data attributes, macro processes, data exchange conventions, etc.

29. Bias towards "vanilla" approaches wherever practical

Don't reinvent the wheel. Use packaged software, and standardized approaches.

30. Leverage investment, people, resources

Leveraging means doing more with less. Don't invest when you can use: consigned inventories, well-planned automation, human resource development, education, virtual corporations, cooperative resources, multi-skilled people, contractors, OPM (Other Peoples' Money), OPI (Other Peoples' Ideas), licensed technology and methodologies.

31. Set ambitious "stretch" goals. Don't worry if they are missed. Worry about how much improvement is made

Many organizations intimidate their people into developing overly conservative goals, reducing the perceived probability of failure. Try to remove the fear of failure (easier said than done), and encourage employees to shoot for the moon. Then, help them get the resources they need to achieve these goals, encourage controlled, conscious risk-taking, reward success, and console honest failures that occur as a result of trying hard. It's usually better to achieve half of a 50% improvement goal than all of a 10% goal.

32. Project leaders should lead, not make all the decisions

The ideal project leader is one who can formulate and communicate a mission with inspiration, provide tools that team members need, participate with team members, identify and target opportunities and problems for action.

33. Avoid "Paralysis by Analysis." You'll never have all the facts

One of our associates was leading an inventory reduction program for a client. Some of their employees lamented the fact that up to half of the items to be tracked might lack adequate decision data, so that they felt they could not proceed. He said, "then work on the other half!" We'd still be waiting for all of the data to be right before making a decision if we'd hesitated. Instead, improvements are being made daily.

34. Don't use just functional organizations to define processes- they tend to replicate existing paradigms

Don't tolerate having processes designed to fit the current organization structure, or even specific people. Use cross-functional teams, with outsiders, internal and external process customers and suppliers.

35. Phase implementation to reduce risk and optimize rate of benefit gains

Full reengineering of a company may take much time. Most companies can't/won't wait for the pot of gold at the end of the rainbow, so it is necessary to provide payback at regular intervals, preferably starting soon. Create a phased implementation plan allowing the overall effort to self-fund itself before completion, if possible. Individual processes may have early due dates.

36. Use cellular and self-directed work teams

Get away from functional organization. Organize for processes. Cells are usually designed to handle an entire process, product, or even product line. Set up the organization to serve the customer, mission, product, process - in that order.

37. Avoid building a new bureaucracy/theocracy of Reengineering high priests/ priestesses

It seems like it's only a matter of time after a new concept, such as TQM, MIS, etc., comes along, before a corps of arrogant technocrats materializes, spouting acronyms, rules, regulations, forms, and methodologies. Reengineering is proving to be no exception to this. Don't let them gain a foothold. Make sure BPR stays with the people, by holding them accountable, organizing accordingly, and providing needed resources.

38. Use flow diagrams, dictionaries, business rules, to define system—avoid lengthy prose and technical documentation.

Define your system with simple statements, pictorial charts, tables, and where necessary, algorithms. If these can't be used for training purposes, consider tearing them up and starting over, until you can. People should be able to use them to help perform their jobs.

39. Maintain master running issues status lists

Issues really drive a BPR project. Track all suggestions, disputes, problems, guidance from management. Keep them on "issues lists." Categorize, group and prioritize them. Develop/solicit suggested approaches to these. Use these lists to guide the BPR project, and to track resolution and implementation.

40. New process designs will win by default if not contested by a set deadline.

A corporate, bureaucratic approval process moving at a snail's pace swallows up ideas, innovation and enthusiasm. Consider radical changes to yours. Use the "book club trick." Some book clubs will automatically send you books and bill you for them, unless you object or specify different books.

Your company might use this idea too. Publish suggested approaches, maybe as part of the issues list. If nobody objects or comes up with better ideas, the suggestions are automatically assigned to be developed and implemented.

41. Employ the living flow chart approach to model systems

We have pondered the best approaches for documenting as-is and to-be systems configurations, and developed the following conclusions:

• KIS (Keep It Simple). The more complex methodologies confuse and intimidate the very people you most need to involve. The tools can bog down the effort, and rapidly result in diminishing returns.
• People are inhibited from making changes to the more complex models, because of the sheer amount of work of constructing and maintaining the more complex modeling tools.
• Simple methods are more likely to be utilized and to bear fruit more rapidly.
• People think better in chart or pictorial format. Chart the process using actual documents or likenesses of forms, screens, reports, etc. Record issues, defect occurrences, delays, contradictions, cycle times, responsibilities, procedure/policy references, right on the charts.
• Go down to the level that people understand the process.
• Start with company level and process summary level charts. Do a mission statement for each process and sub-process before you get into the details.
• Use the charts as a diagnostic and design tool. Identify and correct non-value-added activities, bottlenecks, defect and delay producing points, organizational constraints, gaps, overlaps, etc.

42. Deliver more than you promise.

42 out of 40 hints promised ain't bad.

This article is also available on our website: PROA

How to be a Better Customer
When you give better service, your customers will appreciate you more. But when you give lousy service, your customers can be a pain in the neck.The flip side is also true. If you are an appreciative and considerate customer, service providers will tend to serve you better. If you rant and rave and pound the table, people serve you grudgingly, if at all.Great training programs (like ‘UP Your Service College’®) can help create better customer service providers. But there’s little training on how you can be a better customer!Here’s a list of tips I use to be a better customer and to enjoy receiving better service:1. Always be appreciative and polite. Remember, there is a fellow human being on the other end of your telephone call, e-mail message or just across the counter. I begin the service interaction with a quick comment: ‘Hi. Thank you for helping me. I really appreciate it.’ (This takes about two seconds.)2. Get the service provider’s name, and then use it. I make it short and friendly by asking, ‘Who am I speaking with please?’ or if we are face-to-face, simply ‘May I know your name?’ Once they tell me, I repeat it with a smile on my face and in my voice. ‘Hello (name here). My name is Ron.’ This creates a personal connection. (It takes about four seconds.)3. Be ‘UP’ in your own energy (if you can). Many service providers face customer after customer...all day long. The routine can be a drag. When one customer appears with a genuine smile and positive energy to spare, he or she stands out for special care and treatment. You can be that special customer. Let your enthusiasm be contagious.4. Give your details the way your service provider asks for them. Every service professional has a preferred way of gathering data that fits their forms, computer screen or procedures. Have all your information ready to go, but give it in the order he or she prefers.Simply say, ‘I have my name, customer number, invoice number, telephone, address and product details ready. Which would you like first?’ This lets the service provider know you are prepared and efficient to work with. They appreciate that and can show their appreciation through better service rendered to you. (The time you take getting everything in order will save you even more time once you are in the service conversation.)5. Check each step along the way. Simply repeat or paraphrase what the service provider states or promises to do. This allows you to progress together step-by-step through the service process and catch any questions or misunderstandings early on. Small changes can be made quickly and more easily as you go along, than if you wait until everything has been concluded.6. Confirm next steps. Be sure you understand what will happen next: what they will do, what you should do and what you can both expect from each other. Confirm dates, times, amounts, promises, responsibilities and obligations. Wri

simple policies will often provide adequate guidance. Where that's not sufficient, one may need to add specific procedures. Install checkpoints, logs, controls, only when they are really needed to gain control of a tricky situation.

Have clear lines of accountability. Accountability can only result when there is authority, responsibility, and adequate resources to get the job done.

Utilize a small number of simple metrics, linked to mission, goals, and objectives. Communicate the results, and take corrective actions, if warranted.

25. Use "discontinuous thinking" techniques

Some people would have you believe that inductive, rational thinking is the best way to reengineer a process. It ain't necessarily so. Alfred Nobel invented dynamite, which funded the Nobel Prize, mostly by accident. Federal Express was based on an idea to transfer Federal bank funds overnight. Brainstorming sessions may take half-baked or unrelated ideas and transform them into powerful, creative change concepts.

Use customers, consultants, outsiders, games, your spouse, whatever will help generate ideas that break the confines of the existing approach.

26. Insiders lead, outsiders augment

Use outsiders, such as consultants and educators, to teach your people, provide temporary reinforcement, and skills needed only sporadically. Build the core of leadership and ownership internally when permanent resources are required. Think of outsiders as "jumper cables."

27. Small teams, but with a "guiding hand"

The ideal team size seems to be 3-8. More is unwieldy - a "committee", with fewer, it's harder to attain critical mass. If you need others to help gain consensus, provide technical advice, etc., bring them in on an as needed basis, as "consultants". For example, if you're reengineering the purchase requisitioning process, don't have all 117 people who write, process, and approve these on the design team. Assemble a small team of the best and brightest. Have them consult some of the others, and ultimately either review or provide write-ups of the proposed changes to the others for advice and consent.

Don't assume that the teams will be self managing, especially if they don't have a track record of doing so. At a minimum, even very good teams benefit from help with key parameters, such as mission, objectives, metrics. Less competent teams may need help with their own process of accomplishing things, as well as technical subject matter assistance. Seeding teams with well-trained team players is helpful.

28. Develop common processes, where it makes sense. At a minimum, come up with common data attributes, macro processes, data exchange conventions, etc.

29. Bias towards "vanilla" approaches wherever practical

Don't reinvent the wheel. Use packaged software, and standardized approaches.

30. Leverage investment, people, resources

Leveraging means doing more with less. Don't invest when you can use: consigned inventories, well-planned automation, human resource development, education, virtual corporations, cooperative resources, multi-skilled people, contractors, OPM (Other Peoples' Money), OPI (Other Peoples' Ideas), licensed technology and methodologies.

31. Set ambitious "stretch" goals. Don't worry if they are missed. Worry about how much improvement is made

Many organizations intimidate their people into developing overly conservative goals, reducing the perceived probability of failure. Try to remove the fear of failure (easier said than done), and encourage employees to shoot for the moon. Then, help them get the resources they need to achieve these goals, encourage controlled, conscious risk-taking, reward success, and console honest failures that occur as a result of trying hard. It's usually better to achieve half of a 50% improvement goal than all of a 10% goal.

32. Project leaders should lead, not make all the decisions

The ideal project leader is one who can formulate and communicate a mission with inspiration, provide tools that team members need, participate with team members, identify and target opportunities and problems for action.

33. Avoid "Paralysis by Analysis." You'll never have all the facts

One of our associates was leading an inventory reduction program for a client. Some of their employees lamented the fact that up to half of the items to be tracked might lack adequate decision data, so that they felt they could not proceed. He said, "then work on the other half!" We'd still be waiting for all of the data to be right before making a decision if we'd hesitated. Instead, improvements are being made daily.

34. Don't use just functional organizations to define processes- they tend to replicate existing paradigms

Don't tolerate having processes designed to fit the current organization structure, or even specific people. Use cross-functional teams, with outsiders, internal and external process customers and suppliers.

35. Phase implementation to reduce risk and optimize rate of benefit gains

Full reengineering of a company may take much time. Most companies can't/won't wait for the pot of gold at the end of the rainbow, so it is necessary to provide payback at regular intervals, preferably starting soon. Create a phased implementation plan allowing the overall effort to self-fund itself before completion, if possible. Individual processes may have early due dates.

36. Use cellular and self-directed work teams

Get away from functional organization. Organize for processes. Cells are usually designed to handle an entire process, product, or even product line. Set up the organization to serve the customer, mission, product, process - in that order.

37. Avoid building a new bureaucracy/theocracy of Reengineering high priests/ priestesses

It seems like it's only a matter of time after a new concept, such as TQM, MIS, etc., comes along, before a corps of arrogant technocrats materializes, spouting acronyms, rules, regulations, forms, and methodologies. Reengineering is proving to be no exception to this. Don't let them gain a foothold. Make sure BPR stays with the people, by holding them accountable, organizing accordingly, and providing needed resources.

38. Use flow diagrams, dictionaries, business rules, to define system—avoid lengthy prose and technical documentation.

Define your system with simple statements, pictorial charts, tables, and where necessary, algorithms. If these can't be used for training purposes, consider tearing them up and starting over, until you can. People should be able to use them to help perform their jobs.

39. Maintain master running issues status lists

Issues really drive a BPR project. Track all suggestions, disputes, problems, guidance from management. Keep them on "issues lists." Categorize, group and prioritize them. Develop/solicit suggested approaches to these. Use these lists to guide the BPR project, and to track resolution and implementation.

40. New process designs will win by default if not contested by a set deadline.

A corporate, bureaucratic approval process moving at a snail's pace swallows up ideas, innovation and enthusiasm. Consider radical changes to yours. Use the "book club trick." Some book clubs will automatically send you books and bill you for them, unless you object or specify different books.

Your company might use this idea too. Publish suggested approaches, maybe as part of the issues list. If nobody objects or comes up with better ideas, the suggestions are automatically assigned to be developed and implemented.

41. Employ the living flow chart approach to model systems

We have pondered the best approaches for documenting as-is and to-be systems configurations, and developed the following conclusions:

• KIS (Keep It Simple). The more complex methodologies confuse and intimidate the very people you most need to involve. The tools can bog down the effort, and rapidly result in diminishing returns.
• People are inhibited from making changes to the more complex models, because of the sheer amount of work of constructing and maintaining the more complex modeling tools.
• Simple methods are more likely to be utilized and to bear fruit more rapidly.
• People think better in chart or pictorial format. Chart the process using actual documents or likenesses of forms, screens, reports, etc. Record issues, defect occurrences, delays, contradictions, cycle times, responsibilities, procedure/policy references, right on the charts.
• Go down to the level that people understand the process.
• Start with company level and process summary level charts. Do a mission statement for each process and sub-process before you get into the details.
• Use the charts as a diagnostic and design tool. Identify and correct non-value-added activities, bottlenecks, defect and delay producing points, organizational constraints, gaps, overlaps, etc.

42. Deliver more than you promise.

42 out of 40 hints promised ain't bad.

This article is also available on our website: PROA

Building Customer Loyalty
Years of Gallup Organization polls say consumers believe service quality in the U.S. has fallen and will continue to fall. Brand loyalty has been declining for years. The biggest gripes of customers are failure to do work correctly, slowness, high cost and employees who are unqualified, indifferent or even rude.Some typical examples of poor service:Government agencies that emphasize paperwork rather than personal service. And many federal offices have almost incomprehensible voice mail systems.Hospitals whose first concern seems to be patients' finances rather than healing.Car dealers who are only open for sales and service when their customer have to be at work.The goal of organizations should be to provide value to the customer. But in most organizations, rules and policies are more important than customer needs.Many managers take the wrong approach to building customer loyalty. They work on customer service - defined by the organization. But the emphasis should be on customer satisfaction - defined by the customer. To build customer loyalty, you must focus on customer satisfaction.The only way to know what your customers want is to ask them. Both qualitative and quantitative research is helpful. Build a customer satisfaction model. Ask managers and employees what customers want, and then determine what employee behaviors will deliver it. The next step is to ask customers to review the model and make changes.Often the internal model is not what customers want. A hotel industry story illustrates this. A seminar group was asked to create a model of the service they wanted during coffee break. Then their trainer asked hotel management and service employees what was important in setting up coffee service.Hotel people said coffee should be of highest quality and well brewed, served in polished urns with attractive china on a well-arranged table. What did their customers want? None of the above. They wanted fast service - no long lines. And they wanted phones and restrooms nearby. Not a single item hotel people considered important for good service was valued by their customers!Is customer service worth the trouble? A loyal customer spends about $150,000 over a lifetime with a car dealer. Does it make sense to argue over a $100 part? American Express research says a loyal customer spends about $180,000 over 10 years - employees make extraordinary efforts to keep them happy. Service is so good that U.S. citizens in trouble overseas are far more likely to call American Express than the U.S. Embassy.Poor service causes 42% of customers to switch banks. Only 14% of car owners switch dealers because of the cars - 68% switch because of "indifference" from sales and service employees.Good service creates legends - and profit leadership.Federal Express spawned an industry by providing a new customer service - re

f we'd hesitated. Instead, improvements are being made daily.

34. Don't use just functional organizations to define processes- they tend to replicate existing paradigms

Don't tolerate having processes designed to fit the current organization structure, or even specific people. Use cross-functional teams, with outsiders, internal and external process customers and suppliers.

35. Phase implementation to reduce risk and optimize rate of benefit gains

Full reengineering of a company may take much time. Most companies can't/won't wait for the pot of gold at the end of the rainbow, so it is necessary to provide payback at regular intervals, preferably starting soon. Create a phased implementation plan allowing the overall effort to self-fund itself before completion, if possible. Individual processes may have early due dates.

36. Use cellular and self-directed work teams

Get away from functional organization. Organize for processes. Cells are usually designed to handle an entire process, product, or even product line. Set up the organization to serve the customer, mission, product, process - in that order.

37. Avoid building a new bureaucracy/theocracy of Reengineering high priests/ priestesses

It seems like it's only a matter of time after a new concept, such as TQM, MIS, etc., comes along, before a corps of arrogant technocrats materializes, spouting acronyms, rules, regulations, forms, and methodologies. Reengineering is proving to be no exception to this. Don't let them gain a foothold. Make sure BPR stays with the people, by holding them accountable, organizing accordingly, and providing needed resources.

38. Use flow diagrams, dictionaries, business rules, to define system—avoid lengthy prose and technical documentation.

Define your system with simple statements, pictorial charts, tables, and where necessary, algorithms. If these can't be used for training purposes, consider tearing them up and starting over, until you can. People should be able to use them to help perform their jobs.

39. Maintain master running issues status lists

Issues really drive a BPR project. Track all suggestions, disputes, problems, guidance from management. Keep them on "issues lists." Categorize, group and prioritize them. Develop/solicit suggested approaches to these. Use these lists to guide the BPR project, and to track resolution and implementation.

40. New process designs will win by default if not contested by a set deadline.

A corporate, bureaucratic approval process moving at a snail's pace swallows up ideas, innovation and enthusiasm. Consider radical changes to yours. Use the "book club trick." Some book clubs will automatically send you books and bill you for them, unless you object or specify different books.

Your company might use this idea too. Publish suggested approaches, maybe as part of the issues list. If nobody objects or comes up with better ideas, the suggestions are automatically assigned to be developed and implemented.

41. Employ the living flow chart approach to model systems

We have pondered the best approaches for documenting as-is and to-be systems configurations, and developed the following conclusions:

• KIS (Keep It Simple). The more complex methodologies confuse and intimidate the very people you most need to involve. The tools can bog down the effort, and rapidly result in diminishing returns.
• People are inhibited from making changes to the more complex models, because of the sheer amount of work of constructing and maintaining the more complex modeling tools.
• Simple methods are more likely to be utilized and to bear fruit more rapidly.
• People think better in chart or pictorial format. Chart the process using actual documents or likenesses of forms, screens, reports, etc. Record issues, defect occurrences, delays, contradictions, cycle times, responsibilities, procedure/policy references, right on the charts.
• Go down to the level that people understand the process.
• Start with company level and process summary level charts. Do a mission statement for each process and sub-process before you get into the details.
• Use the charts as a diagnostic and design tool. Identify and correct non-value-added activities, bottlenecks, defect and delay producing points, organizational constraints, gaps, overlaps, etc.

42. Deliver more than you promise.

42 out of 40 hints promised ain't bad.

This article is also available on our website: PROACTION – Generating Best Practices. It is an excerpt of a paper originally written by George Miller, Founder of PROACTION. It has been modified and updated by Paul Deis, PROACTION CEO.