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Analyzing the Transformation Process

Why Is Analysis Important?
Before a department can improve its work, it must understand how its work would be
ideally accomplished and understand how its work is accomplished today - it must
analyze the steps in each of its key processes in order to identify opportunities for
The purpose of analyzing the transformation process of a department is to:

develop a clear, shared understanding of the current and future work processes;

discover the major problems or variances that detract from the effective operation of
the work system;

look for ways to redesign the organization to improve performance. Improvements
typically include:
⇒ elimination of waste: Organizations can be redesigned to eliminate or minimize
waste or loss in such areas as materials, time, money and effort or energy
⇒ elimination or control of variances: Most quality problems are systems problems.
Many variances cannot be eliminated within the operation of a system and
therefore must be controlled at their source: the redesign of the work system
⇒ increased self management: Learning is the result of a system that is designed to
provide knowledge, particularly data-based feedback on recent performance and
on the reaction by the customer to the output of the system. An organization can
be redesigned to result in the creation of a learning organization where learning
and continuous improvement are valued and supported by the system
⇒ increased employee control and elimination of frustration: Many efforts are
made to motivate employees – to offer them awards, praise and promotions and
tell them constantly why they should be motivated. Most employees are
motivated if they feel they have control of their work, if they can improve their
work. Work within an organization can be redesigned to add elements of control
that will reduce frustration and allow employees to remain motivated
⇒ increased speed and elimination of interruptions: Organizations that consistently
produce high quality are fast. Cycle times have been minimized by eliminating
interruptions and non value-adding work. Speed, quality and low cost go hand-inhand.

Restructuring Associates Inc. © 2008


the more opportunity there is for improvement. The process cannot be improved by blaming. Efforts to improve quality and productivity by exhorting people to work more carefully and to care about their customers will not produce significant long-term advantages unless the fundamental process of work is analyzed and redesigned. We will be focusing on the core processes. However the ability to improve the organization is often beyond the capacity of one person. not the Person Most people want to do a good job. Studying the process creates knowledge which increases improvement efforts. Not all Processes Most organizations have many processes. punishing or rewarding. Focus on the Process. © 2008 . Today’s work system is the result of an accumulation of habits and ideas over the past several decades. its requirements and the major factors which cause disruptions to smooth operation. In order to identify the core processes we must first ask the question: “Why does this particular service/department exist? What processes fulfill that purpose?” 2 Restructuring Associates Inc.Analyzing the Transformation Process The better everyone understands the work system. Focus on the Core Processes.

Technical Core Process Support Processes .Analyzing the Transformation Process CORE PROCESSES Support Processes . © 2008 3 .Social Restructuring Associates Inc.

© 2008 . it is useful to ask the following questions:  Which processes are related to our core business today and will be essential to staying competitive?  What is the primary source of customer complaints? Which whole process is responsible for that work?  Which process consumes the greatest amount of employee time and cost to the organization?  Which work process produces the greatest amount of frustration for employees?  Which process will become more important in the future?  Which processes are most important in support of the primary work process? Before commencing the process of technical analysis it will be important to agree on a list of core processes.Analyzing the Transformation Process Identifying Core Processes In order to ascertain which are the organization’s core processes. 4 Restructuring Associates Inc.

Output Analysis What do we produce/provide? What do we know about our customers and how well our products/services meet their expectations? 2. their causes. Developing solutions: recommendations for change Based on what we know about key variances. what recommendations would we make for redesigning the organization in order to resolve/better control these variances? Restructuring Associates Inc. go through the following steps: 1. © 2008 5 .Analyzing the Transformation Process THE STEPS INVOLVED IN TRANSFORMATION PROCESS ANALYSIS In analyzing the transformation processes of departments and services. Transformation Process Mapping What are the steps involved in each core process? What occurs at each step of the process? 3. and their control. Key Variance Identification and Analysis How does each process vary from standard or ideal? Which variances significantly disrupt the transformation process? Why do the key variances occur? What are their root causes? How are the variances controlled today? 4.