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Complex Service
Delivery Processes
Strategy to Operations
Third Edition
Jean Harvey, PhD

ASQ Quality Press
Milwaukee, Wisconsin

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American Society for Quality, Quality Press, Milwaukee 53203
© 2015 by ASQ
All rights reserved.
Printed in the United States of America
20 19 18 17 16 15   5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Harvey, Jean, 1950–
  Complex service delivery processes : strategy to operations / Jean Harvey. — Third
edition.
  pages cm
  Includes bibliographical references and index.
  ISBN 978-0-87389-916-1 (alk. paper)
  I. Service industries—Management. 2. Organizational effectiveness. 3. Industrial
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To my wife and lifetime companion Carole, to my daughters Eve Julie and Marie-Claude,
and to my grandchildren Charlotte, Malcom, Arthur, Nellie, Rosie, and Sofia,
listed here in their order of appearance in my life, which they have incrementally
transformed from a black-and-white feature into a multicolored, high-definition,
4-D, emotionally rich, and deeply satisfying one.

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. . . . . . . . . . . . . . . . . . . . . List of Videos. . . . . . Exercises. . . . . . . . .1  The Execution Challenge and the Need for Rigor . . . . . . . . . . . . 69 69 90 97 vii H1490_Harvey. . . . . . . . . . . . . . . . . . . . . . . . . . 31 32 41 45 56 62 63 63 67 Chapter 3  The Nature of Processes. . . .Table of Contents List of Figures and Tables. . . . . . . . . . . . . . . . . . . .3  The Dimensions of the Learning Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes. . . . . . . . . . . . . . . . . . . . . . Notes. . . . . . . . . . . . .4  Managing Processes in Complex Services. . . . . . . . . . . . . . . . .2  Exploring the Process Space. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7  Summary. . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . . . . . . . . . .3  Chain of Commitment. . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Chapter 1  Toward Value and Strategic Advantage through Rigorous Execution. . . . . . . . . . . . . . . . . . . . . . . . . . or Sailing. . . . . . . . . .3  Positioning in Professional Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreword.2  The Customer Value Equation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2  Whether You Are Rolling. . . Good Processes Are Required for a Smooth Ride. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1  What Is a Process? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Summary. . . 2. Preface to the First Edition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Major Abbreviations. . . 1. . . . . . . . . . . . .6  How to Use the Book.5  Structure of the Book. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 5 10 21 23 25 28 28 30 Chapter 2  The Nature of Value. . . . . . . . . . . . . . . . . . . xi xix xxi xxiii xxv xxvii xxxiii Part I  The Conceptual Framework Linking Strategy and Operations . . . . . . . . . . . . . . . . .indd 7 7/9/15 8:35 AM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flying. . . 2. . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . Preface to the Third Edition. . . . . . . . . . . . . . . . . . .1  Quality of Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5  Managing the Shareholder Value Equation—EVA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . 1. . . . . . . . . . . . . . . . . . . . .4  Positioning in the Labor Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exercises. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . 4.1  Selecting the Right Process. . . . . . . . . . . . . Exercises. . . . . . . . . . . . . . . . . . . 5. . . . . . 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2  Process Control—A Systems View. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . . . . . . . . . . . . . . . . Exercises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes. . .viii Table of Contents 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2  Service Strategy: The Process Connection . . . . . . . . . . . . . . . . . . . . 145 145 148 151 153 162 172 172 Part II  Methodologies and Techniques to Achieve Operational Excellence . . . . . . . . . .1  Variation and Process Control . . . . .1  The Learning Cycle: “Moving” Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1  Business Model and Strategy in Professional Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes. . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . . . . .4 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3  Leadership and Respect at the Moment of Truth . . . . . . 7. . . . . . . . . . . . . Act Locally . . . . . . . . . . . . . . . . . . . . .3  Better Understanding Processes to Ensure Strategic Fit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .indd 8 7/9/15 8:35 AM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2  Identify Processes and Evaluate Their Impact on Key Metrics. . . . . . 5. . . . 6. . . . . . . 8. . . .4  Process Mission: A Hinge between Strategy and Operation. . . .4  Processes: At the Heart of Value Creation and Learning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5  The Match. . . . . . Notes. . . . . . . . . . 7. . 5. . . . . . . . 6. . . . . . . . . . . . . . . . . . . . .4  The Kaizen Event. . . . . . . . . . . 7. . . . . . . . . . . . . . . . .6 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 210 211 214 220 222 238 239 240 Chapter 8  The Learning Cycle and the Kaizen Event. . . . . . .5 Summary. . . . . . . . . . Note.2  The Professional Service Experience. . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . 7. 173 Chapter 6  Managing a Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 108 108 110 Chapter 4  Think Globally. . . . . . . . . . . . . . . . . . . .1  Classifying Professional Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5  Three Short Cases. . . . . . . . . . . Exercises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . . . . . . . . . 5. . . . . . 7. . . . . . . . . . . . .5  Scoping a Process for Improvement or Design. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4  Delivering the Professional Service Experience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3  Process Control in Professional Services. . . . . . . . . . . . . . . . . . .3  Change Vehicles. . .5 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 175 184 188 205 206 208 Chapter 7  Connecting Value to Processes: The Techniques. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . .2  Process Problems. . . . . . . . . . . . . . . . . . . . . . Exercises. . . . . . . . . . . . . . . . . . . .3  Select Processes on the Basis of Salience and Performance. . . . . . . . . . . . . 241 241 243 247 249 260 H1490_Harvey. . . . . . . . . . . . . . . .4  The Learning Organization. . 111 111 119 128 137 139 140 144 Chapter 5  Professional Service Delivery Processes. . .6 Summary. . . . . . . . . . . . . 5. . . . . 4. . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . 7. . . . . . . Exercises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3  What to Do about These Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 Chapter 11  The Approaches to and Practice of Continuous Improvement. . . . . . . . . . . . . . . . . . . . . . . . .1  High-­Level View of the Design Methodology and Project Setup. . . . . . . . . . . . . . . .2  Approaches to Continuous Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Note. . . . . . . . . . . . . . . . . . . . . . . . .2 Background. . . . . . . . . . . . .5 Verify . . . . . . . . . . . . . . . . . Table of Contents ix 8. . . . . . . . . . . 9. . . . . . . . . . . . . . . . Exercise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. . . . . . .1  High-­Level View of the Improvement Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 349 351 360 361 371 374 374 374 Chapter 12  Personal Processes: Wellness and the ­One-­Person Business . . 10. . . . . . . . . . . . . . . .7 Control. . . . . . . . . . . . . . 9. . . . . . . . . . . . . . . . . 9. . . . . . . . . . . . . . . . . . . . . . . 12. . . . . . . . . . . . . . . . . . 10.4 Design . . . . . . . . . . . . .6  Understanding the Design Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Conclusion . . . 9. . .1  The Practice of Continuous Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 Notes. . . . . .6 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. . . . . . . . . . . . . . . . 262 Chapter 9  Doing Things Better: Improving an Existing Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Note. . . . . . . . . . . . . . 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. . . . . . . . . . 10. . . . . . . . . Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Characterize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Measure. . . . . . .5 Analyze . . . . 9. . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . . . . . . Exercise. 10. 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 263 267 267 272 276 295 302 303 304 305 305 Chapter 10  Doing Things Right the First Time: Designing a Process That Works . . . . . . . .1  The ­One-­Person Business. . . . . . . . . . . . . 12. . . . . 10. . . . . . . . . . . . . . . . Exercise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . .8 Summary. . . . . . . . . .2 Define. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. . . . 9. . . . . . . . . . . .indd 9 7/9/15 8:35 AM . . . . . . . . . . . . . . . . . . . . . . . . 9. . . Exercise. . . . .3  Changing Other Personal Processes . . .8  Understanding the DMAIC Methodology. . . . . . . . . . . . 261 Exercises. . . . . . . . . . .6 Improve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Define. . . . . . . . . . . . . . . . . . 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 377 380 389 391 394 394 H1490_Harvey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Summary. . . . . . . . . . . . . . . 11. . . . . . . . . . . . . . .5  Charting a Course toward Becoming a Learning Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 307 312 314 323 340 341 344 345 345 346 Part III  Ingredients and Recipes for Corporate and Personal Change Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7  Comparing DCDV and DMAIC. . . . . . . . . . . . . . 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes. . . . . . . . . . . . . . . .4  Emerging Paradigm—The Learning Organization. . . . . . . . . . . . . .2 Wellness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . .x Table of Contents Appendix A  Preparing an “I” Chart. . .indd 10 7/9/15 8:35 AM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 Appendix B  Specifying the Effect of Each Offering on the Client: The Kano Model. . . . . . . . . . . . . . . . . . . . . . 407 H1490_Harvey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Index. . . . . . . . . . . . . . . . . .

. . . . . .3) . . . . . . . . . . . . . . 53 Figure 2. . . . . . . . . . . . . . . . . . . . . 39 Figure 2. . . . . . . . . . . .9 Selling the house: high-level customer process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Jack and Linda’s activity cycle. . . . . . . 55 Figure 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Customer satisfaction and technical quality. . .1). . . . . . . . . 37 Figure 2. . . . . . . . . . . . . . and technical quality in professional services . . 24 Figure 1. . . . . . . . .16 Dual positioning in the market and in the labor market . . . . . . . . . . . . . . . . . . . . . . .4 Comparing needs of two couples selling their houses. . . . . . . . . . . . . . . . . . . .1 Videos associated with Chapter 1 .1 Value creation: the mirror image . . . . . . . . . . . . . . . . . . . . . . . . . . . . perceived quality. . 56 Figure 2. . . . . .3 Customers’ reactions to various satisfaction conditions. 48 Figure 2. . . . . . . . . . . . . . . . . . . . 26 Figure 1. . . . 55 Figure 2. . . . 32 Table 2. . . . . . . . . . . .12 Positioning: illustration of segmenting and targeting. . . . . . . .2).indd 11 7/9/15 8:35 AM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Zoom in: sell the house . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Logical flow and precedence relationship between some of the end-of-chapter exercises . . . 41 Figure 2. . . . . . . . . . . . . . . . . . 61 Figure 2. . . . . . . . . . . . . . .4 Time evolution of the relationship between expected quality. .18 Affinity diagram of customer needs (exercise 2. . . . . . . . 64 Figure 2. . . . . . . . . . . . . . . . . . . . . 42 Table 2. . . . . . . 46 Figure 2. 47 Figure 2. . . . . 70 Figure 3. . . . .17 Customer activity cycle and needs (exercise 2. . . . . . . . .1 Key concepts discussed in Chapter 3 . . . . . . . .11 Service concept: discount real estate agency . . . . . . . . . . . . . . . . . . .2 Structure of the book as it relates to the learning organization. . . 34 Table 2. . . . . . . . . . . . 27 Figure 2. . . . . . . . . . . . . . . .2 Components of value—two examples . . 47 Table 2. . . . . . . . . . . 66 Table 3. . . . . . . . . . . . . . . . . 33 Figure 2. . . . . . . . . . .10 Service concept: full-service real estate agency. . . . . . . . . . . . . . . . . . 57 Figure 2. . . . . .13 Positioning: formulating a superior value proposition. . . . . . . . 49 Figure 2. . . .15 Positioning in the labor market: giving more value than the competition does to employees of choice. . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Selling the house: FAST diagram. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Weighted customer needs (exercise 2. . . .1 Key concepts discussed in this chapter. . . 65 Figure 2. . . . . . . . . . 60 Figure 2. . . . . . .List of Figures and Tables Part I Figure 1. . . . . . . . . 71 xi H1490_Harvey.14 The personal value equations. . . . . . . . . . . . 44 Figure 2. . . . . . . . . . . . . . . . . .1 Videos associated with Chapter 3 . . . . . . . . . . . . . . . . . . . . . . . . .5 The value equations. . . . . . . . . . . . . . . . . . . . . .2 Video associated with Chapter 2 . . . . . . . . . . . .

. . . . . . . 78 Figure 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . service concept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and societal processes . . . . . . . . . . . . . . . . . . . . . . . . . . . .4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Figure 3. . . . . 133 Table 4. . . . . . . . . . . . . . . . . 124 Figure 4. . . . .3) in a process flow diagram at Medsol Clinic (identifying level 4 processes). . . . . . . . . . . . . . explanation. . . . . . . . . . . . . . 79 Figure 3. . . . . . . . . . 121 Figure 4. 109 Table 4. . . . . . . . . . . . . . . . . 123 Figure 4. . . . . . . . . . 90 Table 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Description of major process representation tools. . . . . . . . 85 Figure 3. . . . . . . . . . . . . . . . . . . 80 Figure 3. . . . . . . . approximate cycle times. . . . . . . . . . . . . . .4 Illustration of personal processes. . . . .: illustration of the links between the target segment. . . . . . . . . . 126 Table 4. . . . .3 Evaluation of various situations with respect to the existence of a process . . . . . . . . . . . . . . .3 “Provide the service to specific customers”. . 82 Figure 3. . and lifetime frequencies. . . . . . .7 Exploding “provide the service to specific customers” (4. . . . . . . . . . . . . . . . . . and the benefits they create for the customer . . . . . . . . . . . . . . . . . . . . . . .1 Videos associated with Chapter 4 . . . . . . . . . . . .indd 12 7/9/15 8:35 AM . . . . . . 84 Table 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.4 Breakdown of APQC’s generic process #4 into subprocesses using a FAST diagram (level 2 and 3 processes) . . . . . . . . . . . . . . . . . . . . . . . . . . . the features of the service. . . . . . .5 Viewing an organization as a system of processes—selected generic processes organized in a flow (input–output) pattern. . . . . . . . . . . . . . . . . . . . . . . . .1 Major concepts discussed in Chapters 4 and 5. . . . . 87 Figure 3. . family. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Body and Mind Inc. . .3 APQC’s processes classification framework (level 1 processes). . . . . . . . . their major challenge. .12 Various ways to classify processes. . . . . 104 Table 3. . 138 H1490_Harvey. . . . . 137 Figure 4. . . . . . .5 Illustration of classification for personal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Figure 4.13 Connections between selected processes of a real estate broker. .2 Major families of processes and their characteristics . . . . . . . . . . . .10 Process mapping: filling a new prescription for an existing customer at Golden Years Drugstore . . . . . . . . . and stakeholders affected. . . . . . .xii List of Figures and Tables Figure 3. . . . . .6 Four generic ways for one to prepare a will . . . . . . . . . . . and coherence (“value-to-process” or V2P model). . . . . . . . . . . . . . . . . .9 Process flow diagram for “provide the service to specific customers” (4. . .6 Circumscribing a (level 3) process: 4.3) for a real estate agency . . . . . . . . . . . . . . . . . . . . . . . . . 88 Table 3. . . . . . 117 Figure 4. . . . . . . . . 112 Figure 4. . . . . . . . . . . . . . . . . . . . . . . . .7 The learning organization: doing the right thing (picking the right process) right (designing or improving that process) as a key organizational routine. . . . . . . . business. 81 Figure 3. . . . . . . . . . . . . . . . . . . . . .14 The SITOC form used to circumscribe a process (exercise 3.3 Potential process dysfunctions at BMI. . . . . . . . . . . 106 Figure 3. . . . . . . . . . . .1). . . 94 Figure 3. . . . . . . . . . . positioning. . . .11 Process mapping symbols used in this book . . . . . . . . . . . . . . . . . . . . 83 Figure 3. . .4.3 The service concept and standards as the linchpin between strategy and operations . . . based on APQC). . . . . . . . . . .4 The three-way fit between operations strategy. . . . . . . .5 Develop and manage human capital: process list (down to level 3. . . . . . and selected processes. . . . . . . .8 Circumscribing a (level 4) process: “Conduct initial service encounter”. . . . . . . . . . . . . . . .2 Functional analysis system technique (FAST) diagram for the process of making a cup of coffee—selective drill-down to level 5. . with their purpose and use. . 76 Figure 3. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Figure 6.1 Weighted clients’ needs for target market segment. . . . . . . .7 Most important service features for the client: weighted using focus groups. . . . . . . . . . . . . . . . . . . . . . . . 146 Figure 5. . . . . . . . . . . . . . . . . . . . . . . . .6 A systems view of Judy’s process control problem. . . . . . . . . . . . . 181 Table 6. . . . . . . . . . . . . . . . . . . . . .1 Videos associated with Chapter 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Areas under the normal curve . . . 202 Figure 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-day sample . . . . . . compared with comfort levels. . . . . . . . . . . . . . . . . . . . . . . . . 143 Figure 5. . . . . . . . . . . . . . . . . . . . . . . . 171 Part II Figure 6. . . . . . . 170 Figure 5. . . . . . . . . . . . .12 Statistical process control chart for response time at Midtown CPS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Different cost structures associated with different operations strategies. . . . . . . . . . . . . .3 A dynamic model of professional–client relation . . . . . . . . . . . . 184 Table 6. . . . . . . . . . . . . . . assessed through brainstorming based on their correlation with the various service features. . . . . . . . . . . . . 176 Table 6. . . and processes at GYD. . . . . . 208 H1490_Harvey. . . . . . . . . . . . . . List of Figures and Tables xiii Figure 4. . . . . . . . . . .14 Illustration of the use of an SPC chart to decide on the presence of “special causes”: four decision rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Temperature and humidity data for 30 days in Judy’s home. . . . . . . . . . . . . . . .8 A systems view of professional and service delivery processes at GYD. . . . . . . . . . . . . . . . . . . . . . . . 192 Figure 6.13 Statistical process control chart at QKM: time required to prepare a proposal. . . . . . . . . 158 Figure 5. . . . . . . . . . . . . . . .10 Hierarchical process control at GYD: filling a prescription. . . . . . . . . 182 Figure 6. . . . . . . . . . . . . . . . . . . . .2 Macro-mapping of the “sell services” process at Quality Knowledge Management. . . . . . . 199 Figure 6. . . . . . . . . . . . 186 Figure 6. . . . . . 191 Figure 6. . . . . 157 Figure 5. . the number of standard deviations away from the mean (prob [X > μ + xσ]). . . . . . . .3 Areas under the standard normal curve for various values of x. . . . . . . . . . . . . . . . . . . .3 Temperature and humidity in Judy’s house: histogram with basic statistics. 179 Figure 6. . . . . 150 Figure 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Table 5. . . . . . . . . . . . . . . . . . . 183 Figure 6. . . . . . .11 Simplified view of intake process (dispatch process) at Midtown CPS. . . . . . . . . . . . . . . . . . . . . 207 Figure 6. . . . . . . . . . . . . . . 196 Figure 6. . . . . .4 Generic illustration of complex dispatch processes to match customers and professionals . . . . . . . . . .4 Illustration of control loops. . . . . . . . .8 V2P overview . . . . .5 The professional core and peripheral processes: cancer service episode in a hospital. . . . . . . . . . . . . . . 190 Figure 6. . . . . . . . . . . . . . . . . . . . . . . . .2 Temperature and humidity in Judy’s house: plot of the voice of the process against the voice of the customer. 142 Figure 4. . . . . . . . process shift. . . . . 183 Figure 6. . . . . . . . . . . . . . . . . .9 V2P clarifications . . . . . . . .7 The three-way fit (V2P model) between the service concept. . . . . . 177 Table 6. . . . . . . . . . . . . . . . . . . . .1 Short definitions of major concepts discussed in this chapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Figure 5. . . . . . . . . . 500-day sample . . . . . . . . and process drift in three personal processes. . . . . 149 Figure 5. . . . . . . . . . . . . . . . . . . . . . . .1 Videos associated with Chapter 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .indd 13 7/9/15 8:35 AM . . . .9 Process control at GYD: filling a prescription . . . the job concept.4 Temperature and humidity in Judy’s house: histogram with basic statistics.8 Most important metrics for the client. . . . . . . . . . .

. 227 Figure 7. 219 Figure 7.1 Prioritization of processes based on salience and performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Modified QFD: illustrative rating of the importance of selected processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230 Figure 7. . 238 Figure 8. . . . . . . . . . . . . . . . . . . .15 Step 3: Identify relevant processes and their functional linkages— accounting firm. . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Figure 7. . . . . . .8 Prioritizing processes for improvement: bird’s-eye view of the methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Figure 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . .indd 14 7/15/15 10:30 AM . .xiv List of Figures and Tables Figure 7. . . . . . . . . . . . . . . . . . . . 252 H1490_Harvey. . . . . . . . . . . . . . . . . . . . . . . . . .18 Step 4: Identify the impact of each process on each metric— accounting firm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Figure 8. . . .1 Video associated with Chapter 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Video associated with Chapter 8 . . . . . . . . . . . . . . . . . . . . . . . . 235 Figure 7. . . . . 214 Table 7. . . . . . . . . . . . . . . . . . . . . 242 Figure 8. 245 Figure 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Figure 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 The four steps in planning process improvement.1 Short definitions or illustrations of problems and change vehicles . . . . . . 218 Figure 7. . . . . . . . . . . . . . . . 210 Figure 7. . . . .10 Step 2: Identify related metrics and their interrelationship—CPS . . . . . . . . . . . . . . . 229 Figure 7. . . . . . . . . . . . . 228 Figure 7.7 Salience and importance diagram: prioritizing processes for improvement or redesign .5 Overview of kaizen event and moments of truth . . . . . . . . .9 SMART problem statement: the big Y at CPS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Step 2: Identify related metrics and their interrelationship—accounting firm. . . . . . . .22 The SITOC form used to circumscribe the process at CPS. . . . . . . . .23 Step 9: Functional analysis (FAST diagram) to identify subprocesses at CPS.19 Step 5: Assessment of current process performance at CPS. . . . . . . . . . 248 Figure 8. . . . . . . . .5 Salience diagram: importance of selected processes for the customer and for strategy. . . . . . . . . . last row). . 225 Figure 7. . . . . . . .3 Typology of process problems . . . . . . . . . . .2 Partial FAST diagram for FPA . . . . . 229 Figure 7. . . . . . . . . .17 Step 4: Identify the impact of each process on each metric— software developer. . . . . . . . . . . .4 Typology of process change vehicles . .24 Step 10: Assessment of current performance of subprocesses at CPS. . . . . . . . . . 212 Figure 7.21 SMART problem statement: the small y at CPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Step 3: Identify relevant processes and their functional linkages—CPS . . . . . . . . . . . . . . . . . . . . . . . . . . 236 Figure 7. . . . . . . . . . . . . . . . . . . .20 Step 6: Cause-and-effect (or Ishikawa) diagram at CPS. . . . . . . . . . . . . . . . . . . .14 Step 3: Identify relevant processes and their functional linkages— software developer. . . . 217 Figure 7. . . . . . . . . . . . . . . . . . . 216 Figure 7. . . 223 Figure 7. . . . . . 231 Figure 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Figure 7. . 226 Figure 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Most important processes in sample (from Figure 7. . 232 Figure 7. . . . . . . .2 Overview of the methodology. . . . . . . . . . . . . . . . . . . 220 Table 7. .11 Step 2: Identify related metrics and their interrelationship—software developer. . . 244 Table 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Figure 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Step 4: Identify the impact of each process on each metric—CPS. . . . . . . . . . . . . . . .6 Evaluating the performance (efficiency and effectiveness) of selected processes . . . . . . . . . . . . . . .3. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . and comments. . . . . 297 Figure 9. . . . . . . . . . . . 283 Figure 9. . . . . . . . . . . . . . . . . . . . . . .1 Videos associated with Chapter 10 . . . . . . . 299 Figure 9. . 271 Figure 9. . . . . . . . . . . . . . . . . . . . . . 270 Figure 9. . . . . . . . . with details of the setup phase. . . . .16 Prescription: high-level description of the solution and explanation of its major elements. . . . . . . . . . . . . . . . . . . and change vehicles. . . . 270 Figure 9. . . . . . . . limitations. . . . . . . .14 Process diagnosis . . . . . 277 Table 9. . . . . . .12 Collating and analyzing partial conclusions from eight techniques: synthesizing a diagnosis. . 308 Figure 10. . . . . . . . . . . . . . and experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CTP variables. .15 Idea evaluation card. . . . . . . . methodologies. . 288 Table 9. . . . . . . . . outputs.2 Critical activities. . . . indication. . . . . . . . . . . . . . . . 281 Figure 9. . . .6 Simplified process mapping of a kaizen event. . . . . . . . . . 287 Figure 9. . .3 Macro map of the PAC at QKM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 Figure 9. . . . . . . . . . . . . .7 Ten moments of truth of the kaizen event. . . . . . . . . . . . . . . . . . . . . . . . . . 273 Table 9. . . . . . and critical path. . . . . . . . . . . . . . . . . CTPs. . . . . . . . 300 Figure 9. . . . . . . . . . . . . . . . . . . .7 Process mapping: pre-course segment . . 254 Figure 8. . . . . . . . . . . . 264 Figure 9. . . . . . . . . . . . respective value-added ratios. . . . . . . . . . . . . . . . . . . . . . .2 The DCDV design methodology: phases. . . . . . . . . . . . . 309 Table 10. . . . . . . List of Figures and Tables xv Figure 8. . . . . . . . . . 292 Figure 9. . . . . . and partial toolkits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 Table 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . boundaries. . . . . . . . . . . . . . . . . . . . .19 Control plan. . . . . . . . . . . . . .4 FAST diagram of the PAC. and challenges involved with each tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Non-value-added activities. . . . .11 Value added: overall and by function. . . . . . . . . . . . . . . . . . . . . . . . . 260 Figure 9. . . . . . 293 Figure 9. . . . 298 Figure 9. . . . . . .1 The analyze toolkit: description. . . . . .13 Diagnostic worksheet . . . . . . inputs. . . . . 290 Figure 9. . . . . . . . .indd 15 7/9/15 8:35 AM . . . . .1 Videos associated with Chapter 9 . . . . . . . . . . . . . . . . . .2 The DCDV design methodology: toolbox. . . . . . . . . . . . . . . . . . . . . . . . . . purpose. . . . . . . . . . . . . . 278 Table 9. . . . 265 Figure 9. . .1 The DCDV design methodology: questions addressed and design principles at each step . . . . . . . . . . . . technical characteristics. . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Elements of the new process: choices already made and decisions to be taken (partial) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 The DMAIC improvement methodology: phases. . . . . . .8 Root cause analysis (five whys) for a “major impact—controllable— unknown” cause from the ICUKU diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and partial toolkits. . . . . .3 ICUKU classification of causes according to impact. . . . . . . . . . outputs. . . . . . . . . . . . . . . . . . . . 302 Figure 10. . . . . . .6 Project scope: customer needs. . . . . . . . . . . . . and process mission. . . . . . . . . . . . . . . . . . . . . . .5 Project scope: SMART problem statement. . . . . . . . . . . . current and alternate controls on activities. . . . . . . . . . . .17 Blueprint of new process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 H1490_Harvey. . . . . . . . . . . . 294 Figure 9. . . . . . . . . . . . . . . . . . . . . . and critical path . . . . . .4 Partial failure mode and effects analysis (FMEA). . .10 Precedence diagram for the six functions. . . . . . . . . 269 Figure 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . controllability. . . . . . . . . . . . . SITOC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Three-way match between process problems. . inputs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 Table 8. . . . . . . . .

and comments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Elements of the new training process to be designed (partial) . 363 Figure 11. . . . . . .22 Voice of the customer for key metrics and validation of the measurement system.3 The 15 dimensions of the learning organization. . . . . . . . . . . . . . 362 Figure 11. . . . . . . . . . . .indd 16 7/9/15 8:35 AM . . . . .23 Key functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and combination into process concepts. . . . . . . . . . . . . . . . . . . . . . . 313 Figure 10. . . . . . . . . . . . . . . . . . . .13 Comparison of the four initial process concepts using the Pugh design matrix. . . . . . . . . 335 Figure 10. . . . . . . . . . . . . . 316 Table 10. . . . . 319 Figure 10. . . . . . . . . . . . . . with the potential they hold for various categories of service features (Kano model). . . . . . . . .6 Train/educate the client: FAST diagram. . . . . . . . 318 Figure 10. . . . . . . . .18 Augmented visual macro-blueprint. . .8 The mission of the most important functions identified in house 2. . . . . . . . . . . . . 327 Figure 10. . . . . . . .3 Project scope: SMART problem statement. . . . . . . . . . .9 Initial generation of ideas for key functions. . . . .4 Flow of the characterization phase . . . . . .5 Train/educate the client: house 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Mapping operational improvement initiatives on the dimensions of the learning organization. .20 The design methodology: a series of generators and filters. . . . 361 Table 11. . .10 General description (vision) of each initial process concept . . . . . . 346 Part III Figure 11. . . . . . . . 321 Figure 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Figure 10. metrics impacted. . . . . . . . . . . . 353 Figure 11. . . . 342 Figure 10. SITOC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376 H1490_Harvey. . . . . . . . . . . . . . . . .14 Variation on a theme: generating variants of the best concept (“Club Med”) selected in the first iteration . . .1 Video associated with Chapter 12 . . . . . . . . . . . . . . . . . . . . 322 Figure 10. . 326 Figure 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Five levels of learning maturity. . . . . . . . . . .19 An underlying principle of the design methodology: from quantity to quality. . . . . . . . .1 Defining the dimensions of the learning organization. . . . . . . . . . . . . 336 Figure 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Train/educate the client: house 2. . . . . . . . . . . . boundaries. . . .xvi List of Figures and Tables Figure 10. . . . . . . . . . . . . . . . .4 Generating technical characteristics (metrics) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 Figure 10. . . . . . . . . . . . . . . .1 Video associated with Chapter 11 . . . . . . . . . . . . . . . . . . . . . . . 346 Figure 10. . . .3 Weighted client needs. . . . . . . . . . . . . . .15 Second iteration: comparing the four new concepts using the Pugh design matrix . . . . . . . . . . 339 Figure 10. . . . . . .21 An alternate view of the flow of the design methodology. . .2 Baldrige Criteria for Performance Excellence framework: a systems perspective. . 324 Figure 10. . . . . . . . . . and priorities to consider in design . . . . . . . . . . . . . . . . . . . . . . . .4 Mapping the dimensions of the learning organization by affinity. . . . 364 Figure 11. . . . . . . . . . . . . . . . . . 317 Table 10. . . . . . . . . .16 Illustration of the optimization algorithm behind the Pugh matrix. . . . . . . . . . . . . . . 341 Figure 10. . . . . . . 334 Figure 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 Figure 10. . . 320 Figure 10. . . . . . . 343 Figure 10. . . . . . . . . . . . . . . . . . . . . . . . 350 Figure 11. . . . . . . . . . . . . . . . . . . 373 Figure 12. . . . . . . .12 Completed descriptions for four of the five initial process concepts. . . . . . . . . . . . . . . . . . . . . . . . . . .11 Relationship between service concept and process concept: division and sharing of the service space between the three stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . 385 Figure 12. .2 Order-to-delivery process macro map for Sandra. . . . . . . . . . . . . . . . 386 Figure 12. . . . . . . . . . . . . .indd 17 7/9/15 8:35 AM . . . .6 Weekly number of hours of aerobic training and changes over a 10-year period (I-MR chart) . . . . . . .7 Comparing trends: fitted regression line for aerobics and weight over time. . .1 Classification of some elements of FPA’s service package based on their effect on the customer (modified Kano model). . . . . . .5 Process capability for weight: one year’s data. . . . . . . . . . . . . . . . . . . List of Figures and Tables xvii Figure 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Simplified systemic vision of personal processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . with a zoomed-in view of the last year. . . . 387 Table B. . . . . . . . . . . . . 384 Figure 12. . . . . . . 379 Figure 12. . . . . . .1 Reactions of two market segments to various elements of the service package in a seminar on derivatives. . . . . . . . . . . . . . . . . . . . . .8 Example health process control dashboard .4 Weekly weight over a 10-year period (I chart). . . . . . . . . . . . . . . 400 H1490_Harvey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Figure 12. . . . . . . . . . 398 Figure B. . . . . . . . . . . . . . . 387 Figure 12. . . . . . . . . . . . . . . . . . . . .

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. . . . . . .3 Processes and projects. xix H1490_Harvey. . . . . . . . . . .2 DCDV—Characterize and design: A technical note. . . . . . . . . . . . . . . . . . . . . . . . 264 10. . . .1 So you have a good strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 3. 176 7. . . . . . .3 Supply chain—Complex service version. . . . . . . . . . . . . . . 176 6. . . . . . . . .1 Value and dual positioning. . . 34 3. . . . . . . . . . . . 210 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 High-level overview of the DCDV design methodology. . . . 71 3. . . . . . 71 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Measuring and learning . . . . . . . . . . . . 24 1. . . . . . . . . . . . . .1 Understanding and managing processes. . . . . . . . . . .1 Deploying complex services for maximum value creation. . . . but you have not won yet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Social and human dynamics. . . . . . . . . . . . . 176 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 How to use the book and website. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2. . . .indd 19 7/9/15 4:05 PM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 The power of complex services: foster. . . . . .org/complex-service-delivery-processes. . . . . . . . . . . . . . . . . . . 242 9. . . . . . . . . . . . . . 350 12. 113 4. . . .2 The process view . . . . . . . . . . . . . 308 11.1 An introduction to complex service delivery processes—the airport experience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 V2P model—A technical note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .asq. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Toward operational excellence. . . . use. . and abuse . . . . . . . . . . . . . .1 The pursuit of operational excellence is personal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 The nature of technology .1 The DMAIC methodology . . . . . . . . 113 4. . . . . . . . . . . . . 113 5. . . . . . 146 6. . . .List of Videos* 1. . . . . . . . . 376 *All videos available for free viewing at http://videos. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 3. . . . . . . . .3 Business process outsourcing (BPO)—The evolving challenges and opportunities. . . . . . . . . . . .1 Scoping process improvement in complex services. . . . . . . . . . . . . . . . . . . . . . . . . . .

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8 and 4.9. and verify DMAIC Define. relevant. xxi H1490_Harvey. characterize. transformation. measurable. improve. customer SMART Specific. analyze. and control FAST Functional analysis system technique FMEA Failure mode and effects analysis IT Information technology PFD Process flow diagram PSDP Professional service delivery process PSO Professional service organization QFD Quality function deployment SDP Service delivery process SITOC Supplier. measure. and time-bound VAA Value-added analysis V2P Value to processes. output.indd 21 7/9/15 8:35 AM . input. achievable. Refers to the model shown in Figures 4.Major Abbreviations CTC Critical to cost CTD Critical to delivery CTP Critical to process CTQ Critical to quality CTS Critical to satisfaction DCDV Define. design.

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A major change of the third edition involves the direct link between the book and these videos. Complex services offer the kinds of services that provide the proper methods to help them reach their goals/targets. graphs (diagrams). allowing for a larger readership and making the book suitable for online study. lack the proper tools. translated by the Shanghai Association for Quality and Shanghai Academy of Quality Management. In this new environment. Tang XiaoFen President of Shanghai Association for Quality xxiii H1490_Harvey. Its second edition was published in Chinese in 2013. I believe that the third edition of Complex Service Delivery Processes: Strategy to Operations will benefit all readers. This can be achieved through providing information and suggestions. Professor Harvey. With the development of the Internet of Things. and people and organizations need more and more assistance and services. instruments.Foreword T he release of the third edition of Complex Service Delivery Processes: Strategy to Operations is great to see. or cannot get the proper network.indd 23 7/9/15 8:35 AM . Many people and organizations lack the knowledge or skills that will lead them to reach their goals/targets. These videos aid the reader in understanding the content of the book and serve as practical references. the whole world is moving toward intellectualization and a globalized network. In the meantime. The third edition includes videos on operational strategies that address case studies and technical analysis that meets the requirements of today’s challenges. Professor Jean Harvey’s book is well known in this industry and is used as a reference book in many business schools and MBA or EMBA programs. The whole series is 12 hours in duration and includes many case analyses. This is a fantastic book and is highly recommended regarding complex service and quality management. big data. His presentation was welcomed and received many positive comments from the enterprises and the quality management field. or facilities. developing activities. for sharing this great theory and practical approach to complex services. especially complex services. and explanations of technology. the requirement for services is increasing. Professor Harvey was invited to the Shanghai International Quality Services Forum and conducted a seminar for his book in Shanghai. and mobile internet. Thanks. cloud computing. or providing the matching operation solutions.

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a video presentation is the next best thing. Even if you do. critique. Your feedback. of course. and share. xxv H1490_Harvey. pause and rewind at leisure. editing. Experience has shown that this method works very well indeed. unless you dispose of a vast budget. When the goal is change.Preface to the Third Edition R eading is one way to get exposed to new ideas and engage the mind. There is an additional benefit: if you come across an explanation that enlightens you on an issue that your organization has been struggling with.com) are essential for the continuous improvement of this admittedly very imperfect material. Failing that. complement. the addition of the videos constitutes a radical change in the learning experience over the previous editions. it is not enough. While this edition also includes many corrections and improvements. Soon after the second edition of the book came out. The videos can be accessed at http://videos. is a superior process. and delays that they introduce. and suggestions (info@complexservice delivery. that will clarify. it can be argued that eliminating intermediaries. illustrate. I started experimenting with video presentations to address questions and requests for clarifications that were often raised by readers. This edition thus comes with an augmented value proposition: as you read and try to understand and experiment with the material. but it is not always possible. however. just as typing your own messages became best practice 25 years ago. biases. as they are exposed to the unadulterated message and spontaneity of the author. or go further than what you are reading. which you can view at your convenience. lasting between 15 and 25 minutes. Users gain much in the t­rade-­offs. you can immediately share it with your colleagues and thereby generate some discussion and movement on these issues. F ­ ace-­to-face interaction with a coach or teacher is clearly a great complement to a book. however. The results. lack the refinements and finishing touch that only experts can produce. Being s­ elf-­sufficient. and uploading of video clips. with the unavoidable dilution. there are 31 such videos. In total.org/complex-servicedelivery-processes.asq. you are invited at various points to view video clips. is the only way to go nowadays.indd 25 7/9/15 8:35 AM . I got some professional help in setting up a small studio and getting started in the producing. representing about 12 hours of viewing. from ideation to distribution.

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Preface to the First Edition P rofessionals are some of the most rigorous and structured people in our advanced economies. a single individual. boundaries do exist and are sometimes very hard to cross. especially multidisciplinary ones. For all their strengths. surgical oncology. and radiation oncology. Processes create the benefits customers want by delivering the service or by making this delivery possible in one way or another. The input is the patient with an active cancer. thus producing the interference that can be so detrimental to the smooth operation of processes. They are trained to understand the relationships in a system of complex notions (such as the human body. Yet. Treating a cancer. Ironically. the legal system. for instance. however. professionals are staunch individualists and often do not function well in teams. Nevertheless. radiology. The transformation (treating the cancer) involves many centers of expertise. and probably because of their training. or simply a lack of coordination. the tasks they perform) in processes. This book means to facilitate such a transfer. This situation is largely attributable to their lack of understanding of how organizations work. they are unable to transfer the systems notions that have become second nature to them in their discipline to the discipline of management. competent as he may be. crisscrossing the organizational chart as if there were no boundaries between functions. The classical image of an organization—conveyed by the ubiquitous organizational chart—as a set of functions linked at the top is very convenient for professionals. reflect the reality of value creation. A process is a system of activities (together with the associated resources) that takes an input and transforms it into an output of greater value for a customer. and it is processes. Processes embody the ­know-­how of an organization. cannot ­single-­handedly bring about the solutions that people and organizations need. medical oncology. and value comes from the synergistic interaction of all these departments. not individual departments (or centers of expertise). The reader will come to view an organization as a complex system of processes. Understanding the DNA of processes is the key to becoming a learning organization. is a process. in whole or in part. It does not. Functions contribute to value creation through the part they play (that is.indd 27 7/9/15 8:35 AM . The desired output is the patient with a cancer in remission. as it reinforces their paradigm. Antagonism. or the laws of physics) and to use different techniques and procedures to intervene and effect desirable changes for the benefit of a client. and thus to value creation. denies that value. such as family medicine. that create value in an organization. xxvii H1490_Harvey.

We need such bodies because these services address very important needs and because the knowledge gap between the client and the professional makes the former vulnerable to malpractice. as professional “bubbles” create a multitude of rigid boundaries: professionals focus on their body of knowledge and on accepted practices in their field. generally requiring compulsory continuing education. Strictly speaking. do not need a college education. Services and Professional Services People need help.xxviii Preface to the First Edition The process view of organizations is far from prevalent in organizations today. technical services involve helping the customer to use complex products or ­technology-­based services. telecommunications systems. Professionals often belong to a professional regulating body. procedures. internet access. and a code of ethics guide professionals in their practice.indd 28 7/9/15 8:35 AM . Insurance brokers. Professional service organizations may be the ones experiencing the most difficulties in managing processes. Complex services fall into three categories: professional services. such as the American Board of Medical Specialties or a state board of public accountancy. the result they want or because they do not have the right tools. All too often they pay little or no attention to the way their actions mesh with those of others in the generation of an overall result for a client. and they are all critical to ­self-­service. or assuming full responsibility for delivering the desired results (that is. we use the word “professional” to designate a university graduate in an applied field such as law. either because they lack the knowledge or skills required to achieve. Quasi-professional services are similar in many ways to professional services. for example. that is. performing some of the required actions on the customer’s behalf. Finally. or they would simply rather have help than do it alone. Compounded by the substantial power wielded by professionals—individually and as a group—this narrow perspective results in poor performance. which can be revoked if they are caught breaking important rules. radiology technologists. A constantly evolving body of knowledge. or architecture (excluding theoretical fields such as mathematics or philosophy). providing a “solution”). services sought because of a lack of knowledge or skills. or technologies. are typically ­shorter-­lived than that of professionals. Their training is typically not at university level and may last between six months and two years. engineering. real estate agents. and satellite dishes are examples of such products. facilities. camcorders. performing some actions jointly with the customer. They do need a permit. Help may take the form of providing information or advice. including suspension or the withdrawal of practice privileges. Computers. except that the service providers receive less training. ­ quasi-­ professional services. They are subject to sanctions by the regulating body for any malpractice. The knowledge and skills they acquire. the capabilities required to avoid them are more procedural than intellectual. by themselves. Perhaps they do not have access to the required network. We exclude from this category the direct repair H1490_Harvey. and electricians. however. and technical services. linked as they are to specific legislation. While the consequences of mistakes may be equally dramatic. or equipment. software. The book focuses on complex services.

Even though the knowledge gap may be very substantial here as well. professionals share a number of characteristics. Using these machines. We include internal services as well. ­quasi-­professionals. and it is very hard for the client to assess their quality. and technical workers laboring in all spheres of human endeavor. from law to medicine. which are quasi-­ manufacturing activities. to the detriment of processes that create more value. the knowledge gap between provider and client gives the former power over the latter and. and other services. technical services. As mentioned earlier. as machines perform many tasks that add less value (such as many manufacturing tasks). This book is also concerned with the many organizations that provide services requiring a mixture of professional and other services to produce the results that customers or clients want. as information technology [IT] increasingly facilitates delocation). but we do include customer support activities (such as training car dealership technicians to service a new model. one that is not immune to international outsourcing. Preface to the First Edition xxix of complex products such as cars. Target Audience We have written this book for professionals. and professional service delivery processes in particular. remain to this day a blur in the literature—a shortfall that needs to be remedied. or home appliances. and thus to make sure he is in competent hands. but solely to their employers. • Professionals represent an increasingly high proportion of the workforce in industrialized countries.indd 29 7/9/15 8:35 AM . cover the spectrum of types of services. Why do these three categories of service deserve special attention? • Professional services1 are centered on the most important human needs. such as the counseling of a dysfunctional couple or helping someone fend off a liability suit. and the tasks that remain are rapidly moving to developing countries. a sector of the economy that is growing very fast (and. such as autonomy and independence. These organizations face the added challenge of managing the ­often-­turbulent interface between professional services. Professional services in general. making a hamburger. such as those offered by the legal or engineering department within an organization. entails the potential for abuse. for example. the management literature has focused excessively on the process of. Hospitals and banks. that separate them from other categories of workers and require a different management approach. for example). however. incidentally. requires assistance. aircraft. the consequences of the service are often more immediate and easier to verify than would be the case for professional and ­quasi-­professional services. • As a class of workers. • Finally. from accounting to engineering. People use these services in order to be able to perform complex tasks themselves (such as using a computer or a camcorder). like any power. Technicians providing such services are generally not responsible to a regulating body. for instance. who are involved or are interested in taking part in H1490_Harvey.

We do not shy away from theory. employees to keep happy. The case studies presented in the book fall into three categories: actual businesses (in those cases. personal situations to which the author was a party. or clerical workers. and achieving superior performance is just as important to them as it is for private sector organizations. as illustrated by the health and social services examples used extensively in this book.indd 30 7/9/15 8:35 AM . and generic (thus fictitious) situations built from a composite of the author’s general experience. While we broadly assume throughout the book the context of a ­for-­profit organization. The notions. as early chapters paint a ­broad-­brush picture of the connection between strategy and processes and later chapters delve into the specifics of designing and improving processes in a professional service environment. and real estate services. their t­ ake-­home income depending on how good they are at it • Managing their own ­one-­person business • Managing what customers do (customers are very much a part of the service delivery process) Processes play a vital role in all these activities. technicians. the latter also have customers to satisfy. most do assume some level of management responsibility through such activities as the following: • Giving instructions to ­quasi-­professionals. much of the discussion is readily transferable to nonprofit organizations. Indeed. we provide ­hands-­on ­end-­of-chapter exercises. financial planning and management. or coordinating the activities of service providers of all kinds • Assuming a responsibility for practice development. Such organizations. can benefit from the book. socially healthy families. and so on) may be.xxx Preface to the First Edition managing their businesses. safe kids.” whatever the socially desirable “bang” (healthy population. Thus. and tools presented in this book offer the reader a perspective on her work that she most likely never envisaged and that could be a source of insights and a lever for innovation. We also draw on a broad spectrum of complex services such as legal. a global picture gradually emerges. One’s own organization and environment constitute the proving ground for the material presented in each chapter. Indeed. methods. Style For the professional or manager interested in learning more about how the process view applies to his own environment. consulting. and so transform knowledge into k ­ now-­how. Most professionals. giving the reader an opportunity to apply the theories she has just learned. even those who do not care about management. The exercises are structured in such a way that the new theory added by each chapter can be immediately applied to work done in earlier chapters. and shareholders looking for the “biggest bang for the buck. but illustrate it abundantly with examples. the company is identified). We first illustrate complex notions with simple examples—often drawn from the personal sphere (processes occur in the home as well) or simple services (such as restaurants H1490_Harvey. are also competing for funds with other service providers. low crime rate.

” it is detailed enough and specific enough to allow experimentation to take place. however. they will be in a better position to select suitable consultants and stay in the driver’s seat throughout the initiative. Senior executives who want to explore the potential of a p ­ rocess-­based strategic initiative in their organization will find it worthwhile to share the book with their associates and compare notes on the e­ nd-­of-chapter exercises. and shaping of an operational change initiative. Of course. as well as vetting of the principles and tools of ­process-­based management in one’s own environment. Preface to the First Edition xxxi or airports)—before adapting them to the more intricate reality of professional services. large organizations should use a consultant to guide them through such an undertaking. and they can all benefit from it. Having experienced the book. Professionals evolving in organizations of all sizes—ranging from the one-­ person firm to the huge professional bureaucracies that constitute large hospitals— will discover that the process view of the organization is universal. H1490_Harvey. Note 1. A term used loosely throughout the book to refer to the three categories of complex services.indd 31 7/9/15 8:35 AM . unless otherwise specified. While this is not a “cookbook.

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He cannot possibly give credit to all of them. He cannot. in more than 10 countries around the globe). claim them all to be his own.indd 33 7/9/15 8:35 AM . however. by every executive that has attended an ­in-­house seminar or executive MBA program (thousands. and by every book and article that he has read during those years of practice. and any limitations or errors that it may contain are his alone. The content of this book has evolved over more than three decades of research. he does most sincerely thank them all. However. It has been influenced—one way or another—by every business with which he interacted during those years as a consultant or researcher. teaching. nor name them all.Acknowledgments T he author has tested all the methodologies and techniques presented in this book. and consulting after obtaining a PhD in management science. xxxiii H1490_Harvey. The result is the author’s own paradigm. This is what we generally call experience.

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is highlighted. and weave them together. and shareholders. and dual positioning as adjustment variables. We illustrate these notions with many examples.Part I The Conceptual Framework Linking Strategy and Operations In this part of the book we define many notions such as process. employees. 1 H1490_Harvey. The discussion leads to decisions about quality and positioning. Chapters 4 and 5 put together the preceding elements. and thus in the creation of sustainable competitive advantage. operational. The key role of processes in learning. Chapter 2 discusses value for customers. and organizational points of view. and strategy. Chapter 1 brings out the nature and importance of rigorous execution. profit leverage. relate them to one another. to ensure the viability of the business model. value. using coherence.indd 1 7/9/15 8:53 AM . Chapter 3 explores all aspects of processes from conceptual.

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In the learning organization. It is the “recipe” for how to use these resources. A fter presenting the execution challenge. Some interactions merely require discipline. we illustrate it by comparing three situations related to transportation.” In economics 1. no less important. we present various features that distinguish organizations that learn from those that suffer from a learning disability. Focusing on the “how” is the key to learning. you work in an organization that does not learn. such as 3 One H1490_Harvey. to use a computer analogy—is the real discriminating factor. we prefer the word “process. After discussing process management issues in complex services. In section 1. or “protocols. shared mental models. evidencebased actions. and discipline combine with creativity and innovation to make things work the first time and to continuously find and implement better ways to compete. no matter how” in your organization. logical validity.3. In economics 2.” Some authors call them “routines.” In this book. the authors argue that the major factor that separates ­fast-­developing countries from the one that stagnates is “software. Call that the hardware. and regulations. The discriminating factor between f­ast-­growing and merely surviving organizations is of a similar nature. technology. social norms. Protocols smooth out and speed up interactions between individual and organizational units while leaving the necessary elbow room where it is required.0. we conclude the chapter by presenting the organization of the material in this book. shared values. while others. land. are implicit and deeply ingrained in the social fabric of society itself.1 Toward Value and Strategic Advantage through Rigorous Execution If you keep hearing (or worse. Some of these protocols are written and explicit.1   The Execution Challenge and the Need for Rigor In From Poverty to Prosperity (Kling and Schulz 2009). the basics of rigor. the software—or operating system. repeating) “I want results.” This includes shared ways of doing things based on customs. laws.indd 3 7/9/15 8:53 AM . 1.0—as they call traditional economic analysis—labor. and equipment (capital) are the factors of production that determine productivity and growth.

while others. When the evidence becomes overwhelming. The challenges of coordination have thus grown exponentially. Its practice is neither glamorous nor spectacular. Leadership and “people processes. 11 companies that crossed the chasm from being merely good to becoming great companies (tripling their already good stock return and sustaining this for 15 years) were matched to comparable companies that had failed to become great companies. and even improvisation at times. each with a deep knowledge of his or her narrow field and a very limited understanding of what the other specialties do. It is not rocket science. planning experiments. Interpreting facts. however. This is often a source of contempt for the other. succumb to panic. In short. the disciplined thought process they nurtured. The scientific method.” In a sequel. Arrogance. science has triggered a great leap forward for humanity. intuition. and with it the complexity of what professionals and technical workers do.4 Chapter One showing up on time for the game when you play basketball. they say. Organizations that previously excelled at facing hard facts become complacent in their interpretation of unpleasant data. even after facing major turbulence. practice. either. During this period. He defines discipline in this context as “freedom (and responsibility) within a framework. Collins found that companies that became great stood out for the disciplined people they hired. as they take their dominance for granted. and the disciplined actions they undertook. fully addressing clients’ needs requires the coordinated intervention of many such specialists. During the last two centuries.indd 4 7/9/15 8:53 AM . they return to reality with a shock. as it is not humanly possible for anyone to ­single-­handedly achieve the theoretical and practical mastery (knowledge and ­know-­how) of the various disciplines required to deliver solutions at the level of quality and reliability clients have come to expect. challenges. and managing feedback. and risks as well. while others. is often a factor that triggers wrongheaded decisions or lack of response to ominous events. Atul Gawande (2009) makes this vivid in his description of the tragic case of a ­three-­year-old Austrian girl walking in a H1490_Harvey. strategic thinking. success can breed arrogance and loss of the very discipline that lies at its root.” as Bossidy and Charan call them. complexity. Collins (2009) looks at how some great companies lost their grip and fell into irrelevance. spontaneity. Execution. and learning loops are all predicated on rigor. it brings to the task its own flaws. This in turn has triggered specialization. are complementary roots. thus raising barriers between professionals on whose very cooperation rests the successful outcome sought by the client. In a study. Their perception of reality becomes warped by their unwavering belief that they are unbeatable. change leadership. but because they executed poorly (Bossidy and Charan 2002). But it is often too late in the game. Allied Signal) and Ram Charan make the point that many organizations fail not because they had a bad strategy. measuring results. Dr. While technology has opportunely come to the rescue. and go for the “Hail Mary” pass. is one of the roots of the foundations of learning. Larry Bossidy (General Electric. he finds. They then lose sight of their core strength. team spirit. our knowledge has grown incalculably. control. and flawless execution. Honeywell. like the timely pass or the successful fake. Therefore. recovered and found a path out of their predicament. grasping at any straw. judgment. This does not preclude intuition. but it does involve science and rigor. opportunism. and key differences were isolated (Collins 2001). require a combination of experience. is a discipline in its own right.

surgical team. The reader. Let us first consider the specifics of each situation and then proceed to compare them to isolate lessons. The story ends well: the little girl was resuscitated (that’s not an exaggeration) and fully recovered. This book is about the development. and how failure to do so can go undetected for a long time and eventually lead to disaster. and others thereafter: a checklist. 1989. we go back in time to discuss an event that took place almost a century ago. to gain some further perspective. in the right sequence. While the parents were momentarily distracted. The process of trying to save her life involved the coordinated work of a host of specialists (rescue personnel. however. California. For all the years of study and research. One was an unmitigated disaster. The hard stuff is the soft stuff. or Sailing. its speed was 25 mph and everything was fine for engineers Frank Holland. routine. mechanical ventilator. should not underestimate the challenges involved in developing. Together they span a century and occur on land. operating H1490_Harvey.m. even though the hospital had acquired all this equipment two years earlier with such cases in mind. she had spent 30 minutes underwater by the time she was rescued. What’s remarkable in this story is that.indd 5 7/9/15 8:53 AM . in the air. artificial lung system. Toward Value and Strategic Advantage through Rigorous Execution 5 park with her parents. 24 miles away and 2000 feet up from San Bernardino. 1.2   Whether You Are Rolling. We first present two events taking place in the Southwest and the Northeast of the United States some 20 years apart. Finally. 1. it had learned from its previous failures and finally devised a simple mechanism (part of a protocol. Good Processes Are Required for a Smooth Ride In this section we use three ­transportation-­related events to illustrate how investment in process mastery can allow organizations to rise and respond successfully to apparently insurmountable challenges. implementing. until that case it had always failed at saving any victim’s life. implementation. the little girl ran onto a (barely) frozen pond and fell through the ice. in the right way that “debugged the software” and made the difference between life and death. and various medical specialists) using a battery of complex equipment (heartlung bypass machine.2. on May 12. and CT scan to name but a few). Flying. These episodes are in the public domain and thus well documented. perfusionists. maintenance. and sustaining the use of such checklists. as well as millions of dollars in investment. or process) that made it possible to save the little girl’s life. and the other one an unmitigated success. essentially because of the challenges involved in managing such extreme complexity. emergency technicians.1  Southern Pacific’s Extra 7551 East1 As Southern Pacific’s Extra 7551 East train reached the crest of the pass at 7 a. To improve the flow of the process and avoid errors (two notions that will be explored in this book). Despite the parents’ desperate efforts. it was the simple device of ensuring that all the required steps are performed. and on the sea. and continuous improvement of the “software” that seamlessly glues together individual human action in nimble value chains.

another locomotive had only intermittent power. Lacking clear instructions about what to do in this situation. while neither of them had a complete picture of this. but he assumed that this had already been reported. he left it on the train. He applied all the pneumatic braking power he had. with the same effect. The company’s directions to engineers on downhill braking procedures were inadequate. H1490_Harvey. they would create a downstream situation where critical processes that had always worked were now out of control. 6. Taken together. 2. After a brief stabilization of its speed. rigor.6 Chapter One the four h ­ ead-­end locomotives. By that time Hill was really worried. the train started to accelerate again. 3. It lies with the leaders of the organization. Holland gradually applied braking power. Unbeknownst to either man. Most of the blame does not fall on the two operators. The bubble was waiting to burst. and had not established an operational working relationship. 4. did not proceed from the same fact sheet. assuming that Southern Pacific would know it (it did not). they reflect a “good enough” or “so what” attitude in action that appears to have been endemic in the organization. Hill learned that one of his two locomotives had no dynamic braking capability. had not planned the trip together. however. 5. The damage was estimated at $12 million. The train derailed in the curve. so he used his best guess. and houses in a nearby residential development were destroyed. The shipper had not entered the weight of the mineral. As the train gathered speed. their lack of vision. and Lawrence Hill. however. He applied some more. Maydays were sent and the engineers braced for the inevitable disaster. well short of the actual weight of 9000 tons. However. operating two locomotives at the back of the train hauling 69 cars loaded with a mineral. none of these events appears to be a fatal flaw. The two engineers miraculously survived. Four people died in the crash. The two engineers had never worked together. there had been a number of flaws in the upstream process that led them to that point. and. and coordination. as is often the case. and had had very little communication during the trip. only poorly executed steps of men acting with little forethought. Upstream. He came up with a weight of 6150 tons for the convoy. He did not start to panic until the train reached 45 mph in a straightaway. When the train reached 90 mph (the recorder does not register beyond that). Holland was unable to reach the shipper to confirm the weight. and their poor understanding of the discipline of execution. there was no backup plan. Coordination between the two engineers was nonexistent as they did not have a game plan (braking procedures were not clear).indd 6 7/9/15 8:53 AM . These flaws constituted an unknown liability (a “bubble”) that would prove fatal in the downstream process as they reached the curve at the bottom of the long descent toward San Bernardino: 1. without talking to Holland. 7. Taken individually. No act of God was involved here. it did so in a situation where the organization’s processes were under maximum stress. Holland could not start one of his four locomotives.

with his team. the Airbus A320-214. North Carolina. as Sullenberger himself had the best information to assess the situation and. Getting the flaps out at the right time and hitting the “ditching button” to close openings that would otherwise let the water in were critical actions that were performed “by the book. The Airbus’s f­ly-­by-wire technology somewhat facilitated the handling of the aircraft in these unusual circumstances. allowing them to verify the interoperability of their skill sets and their ability to function as a team at the command of their aircraft. and both engines swallowed one or two birds and simultaneously shut off. this would most probably have meant disaster. The simple instructions—“Brace for impact”—given 90 seconds before ditching were enough for the flight attendants to go through a w ­ ell-­rehearsed lifesaving routine. Toward Value and Strategic Advantage through Rigorous Execution 7 1. even for a cockpit crew that had met just 30 minutes earlier. using equipment designed and maintained with just such an event in mind.” Evacuating 155 very scared passengers is certainly not something that the three flight attendants could have improvised. drills.2 US Airways Flight 1549 Just two minutes after taking off from La Guardia Airport at 3:27 p. under able leadership. Here. was hit in the windshield. Although they were still too low to reach any runway. experienced. allowing for a quick rescue.” Skiles: “your plane”) from his copilot and started assessing the situation and his options as Skiles began to go through a t­ hree-­page checklist to try to restart each engine in turn. 2009. He did not wait for instructions to proceed. Their familiarity with the procedure allowed them to perform quickly and calmly. with 155 people on board.2. they had enough height to clear George Washington Bridge.3  Comparing the Two Events It does not take anything away from the skills and human qualities of Captain Sullenberger to observe that flight 1549 did not simply avoid disaster because of the lone heroic actions of a superman.m. They kept their cool as they peered through the ­blood-­stained windshield in the suddenly frighteningly silent cockpit. Indeed. acting responsibly according to procedures. The two very experienced pilots were flying together for the first time. on January 15. and there were only five serious injuries. It did so because of the disciplined actions of a team of w ­ ell-­trained. The aircraft.2. The plane was fully evacuated in three minutes—by the book again—in standard time. however. There is. again. This was one of the most successful ditchings of an airliner in history. a w ­ ell-­designed protocol. Sullenberger immediately took over (from the cockpit voice recorder— Sullenberger: “my plane. They had become an operational team while going through the ­pre-­takeoff checklist. hit a flock of Canada geese. headed for Charlotte. and well understood by all—when it is time to act quickly and synchronously. 1. The captain’s training led him to pick a location on the Hudson River close to operating boats.indd 7 7/9/15 8:53 AM . His decision to ditch in the Hudson was his to make and to assume. All passengers and crew survived. was in the best position to execute it. His H1490_Harvey. no substitute for the c­ ool-­headed thinking and perfect execution that come only with repeated training. trusted. l­ evel-­headed employees. under Captain Chesley Sullenberger and flown by first officer Jeffrey Skiles. drilled in through repeated training. Thank goodness for a good book—shared. and experience. kicked in when it was required. thereby avoiding panic setting in among the untrained passengers.

This is nothing new. H. Designing and operating a quality system requires a thorough understanding of the nature of the task. even though they had never worked together prior to that day. with no loss of life. Taking resources away from daily operations—with the immediate pain that this inflicts on the organization—to dedicate them to this ­long-­term task. Again. and to coordinate seamlessly. including processes and the people factor.indd 8 7/9/15 8:53 AM . who had organized and led the expedition that set out to perform the first land crossing of the Antarctic continent. rigorous efforts over time to think risks through. 1. the Endurance. but dedicated. some 1300 kilometers away. Through wonderful execution allowed by w ­ ell-­honed reflexes and splendid resolve. to act effectively. the boat had indeed been crushed by the ice. with no immediately visible benefits. learn from variations and defects. However. Nothing else could have produced such a positive outcome. leaving the remaining 22 members of the British expedition stranded on the island waiting for the relief that the Caird would hopefully send back when it reached the Norwegian whaling station on South Georgia Island. strength. The NTSB’s detailed investigation of the event. This was obviously not the case at Southern Pacific at the time. wisdom. the James Caird left Elephant Island near the South Pole with a crew of six. The coordination system with his teammates and the air traffic controllers never broke down. The success of the expedition hinged on the hardware (or infrastructure) and the software. the ice does not surrender. the crew had succeeded in escaping the melting ice pack the following summer and reaching Elephant Island on three lifeboats. and use these lessons to continuously improve processes. Airbus. A failure from which you learn is a step forward toward becoming a better organization. The single most important difference between the two situations is that much effort and resources have been dedicated over the years at US Airways. Shackleton. provided Southern Pacific with a wealth of information about how to avoid a recurrence. as the next example illustrates. This investment and the resulting quality culture allowed all the players involved to communicate clearly and economically. In fact. this does not require a stroke of genius. and the National Transportation Safety Board (NTSB). and of the best way to deal with such emergencies.” In the middle of the Antarctic winter. H1490_Harvey. leaving the crew stranded on the ice pack. 1916. and as Shackleton put it. a system to ensure that desired customer outcomes are delivered reliably and flawlessly. among others. even in the face of rare events. this is learning the hard way. of what could go wrong (failure modes). their ship. hundreds of miles from the nearest land. toward building and continuously improving a quality system. “What the ice gets.4 Going Back Farther: The Trip of the James Caird 2 On April 24. Facing a particularly harsh winter. however. that is. Reaching South Georgia Island before the new winter set in was their only hope of survival. and it comes too late to do any good for the four victims.8 Chapter One actions were totally in line with his training and best flying practice. and leadership. had been caught in the ice pack that had formed. requires vision.2. the Federal Aviation Administration (FAA). the “framework” responded perfectly to the full and appropriate exercise of his freedom. The boat was skippered by E.

He monitored the crew’s situation on board continuously and took appropriate measures. with numerous regressions and forgetting. While we may be better able nowadays to name the various phenomena ­ igh-­performance processes. they took several readings until the mean reading stabilized. then highly emotional reaction of the first witnesses of one of the most phenomenal feats of exploration and navigation in history. human history is about getting better at producing results. the human qualities and compatibility of character among the crew. Such meticulous focus on reducing variation in critical processes is a distinctive feature of ­high-­performance organizations. The path of improvement. when he detected a human situation that needed to be dealt with. such as having hot drinks prepared for everyone. blinding snowstorms. Shackleton picked his crew carefully (people processes). To reduce variation to a tolerable level when taking a sight. as the men had already lived in proximity and depended on each other for survival for the last 14 months since they had left civilization. From Phoenician involved in h sailors to Roman engineers and medieval artisans. glaciers. Calculating the angle of the sun with the horizon using a sextant requires some stability. Shackleton also paid careful attention to the people factor. and giving instructions to set sails. They successfully landed the craft on South Georgia Island after a 16‑day voyage that stretched the limits of human endurance. cliffs. would stabilize him at the hip. They reached the whaling station totally exhausted on May 21. has been anything but linear. Consider navigation error. “My name is Shackleton” was the bearded man’s simple reply to the ­at-­first incredulous. the ice. sailing endlessly in the South Atlantic. dead reckoning. and plotting a course • Sailing—“reading” the sea. a very small error when taking a sight or dead reckoning would mean missing South Georgia Island. like bookends. obviously.indd 9 7/15/15 10:26 AM . that is. and running short of drinking water within a few days. performing this with the required precision is an amazing feat. adjust to conditions. steering the ship. and correct course • Bailing the water to keep the boat afloat A flaw in any of these processes would mean certain death for the six men and their mates waiting for rescue on Elephant Island. trim sales as required. assess progress. 1916. foresee what’s coming. As they were on the wrong side of the island. Captain Frank Worsley developed an approach whereby two fellow crew members bracing him on both sides. In a ­seven-­meter lifeboat navigating the most turbulent sea on earth under a cloudy sky. for instance. and the weather. including: • Navigation—taking a sight with the sextant. and treacherous ice. The crew managed several vital processes. making sure he had all the expertise on board that he would need (process mastery). “Who the hell are you?” asked the incredulous Norwegian station chief as the men appeared out of nowhere. Toward Value and Strategic Advantage through Rigorous Execution 9 One of the lifeboats was improvised by the team’s carpenter as best he could with salvaged material: a combination of naval carpentry processes and improvisation upgraded the infrastructure to the level required for the task. and plenty of H1490_Harvey. To further reduce measurement error. they are nothing new. Because of the distance. they still had to cross unexplored Antarctic terrain by foot through crevasses.

and coopetition. and get everyone to understand it. Clearly. 1911.3 The goal. good infrastructure. instantaneous communication and access to data. The differentiator lies in the “software”—the way the infrastructure is used and deployed to systematically create more value for the organization’s customers. What is different today is the complexity of the world. frame them into a compelling vision. and making choices soundly based on clear priorities and w ­ ell-­understood capabilities. He reached the South Pole on December 14. processes. teamwork. to become a learning organization. there is no good way to execute a bad plan. It is only a qualifier.10 Chapter One superstition meshed with the growing knowledge and ­know-­how. Robert Falcon Scott’s death with his crew in 1912 while trying to make his way back from the South Pole was a source of moral inspiration for the Britons. commitment. the need for quick response and nimbleness. however. organizational. buy into it. the proper material.1  Strategic Considerations: Leadership and a Good Game Plan Based on Capabilities Reaching the South Pole involved raising the necessary funding. It requires getting the facts right. coming back to the boat. equipment. and sailing back home. managing the ingredients of high performance presents new challenges and requires more method. and operational dimensions. assembling the right people. Any flaw in the initial steps could prove fatal later on in the expedition. but in a world that is infinitely more complex.indd 10 7/9/15 8:53 AM . taking a hard look at them no matter how much they differ from what we expected to see (or wished we would see). since any organization can acquire it. however. the right people. crossing the continent to the pole. It is the task of leaders to elaborate such plans. Unfortunately. is not to do better than Shackleton’s Endurance crew did in its time. Being willing and able to adjust the plan as reality unfolds in unexpected ways is no less critical a skill. and provisions by sea to Antarctica. 1. Scott’s rival Roald Amundsen laid out detailed plans based on his team’s mastery of these core processes. and rigor. It was not an example of good planning. Yet. Yet Scott failed either to see the importance of these capabilities or to appreciate the extent to which his team had (or lacked. it was clear that being adept at managing dog sleighs and skiing in difficult terrain were critical capabilities for the success of the expedition. however.3   The Dimensions of the Learning Organization The learning organization has strategic. It is in fact to try to do as well as they did. and then contribute to making it happen. good planning is crucial.3. transporting crew. as it were) the required skills and what it would require to acquire them. 35 days before Scott. cooperation. H1490_Harvey. the new “hardware” available today makes it possible to deal with complexity. and strong international competition. that is. exploring options creatively. This is the subject of the next section. With globalized markets. and provisions. as close as possible to the destination. While the expedition involved many unknowns and great challenges. 1. The three situations just described highlight the importance of having a good game plan that adapts as the game unfolds. Scott and his team never made it back. Thus. his plan assumed those capabilities. phenomenal computing capability. We discuss these in turn. planning the expedition in detail.

1. adaptation. 1. you should first try to deal with someone who is really trying to resolve it. learning.3. and in an international service network. unethical. The bank would then sell the loan to an institution (such as Fannie Mae or Freddie Mac) that would buy a huge portfolio. Now you know whether you can depend on that provider. is predicated on the mastery of a critical set of interrelated processes. “People processes” (Bossidy and Charan 2002. They are inseparable from the discipline required to carry them through. and societies (see section 1. this is a moment of truth (see Chapter 2). No way is this ending soon. Others create frustration and waste resources. Don’t you think you owe it to them? Don’t you think they deserve it? Within 12 months.” As unconscionable. in a small professional service organization (PSO).1 Aligning the Chain of Commitment and Incentives to the Value Creation Flow—A Societal Example The ­so-­called subprime crisis of 2008 was the end result of a ­self-­destructing chain of counterproductive inducements and a commitment to get rich quick. a very low interest rate. Processes are shared. whatever. Organizations with a logical and solid chain of such commitments deliver value. sell it to cash in. and keeping them motivated and working harmoniously together are among these. This is equally true when you are trying to resolve an issue with an internal service provider or supplier. the lender would then proceed with the loan. And it will keep going up. create a derived financial product (derivative) that would be sold in unit shares. and learning. mostly to institutional investors. The narrative would go more or less as follows: “What have you got to lose? You move into this beautiful new house with your family. and process management structures that ensure such quick mutual adjustment. Toward Value and Strategic Advantage through Rigorous Execution 11 The success of complex projects. at any cost to others.” that is. just to be on the safe side. and low payments that the borrower could afford . and “securitize it. the credit department would approve it. Is the person actually listening to me or is her mind somewhere else? Is she looking for solutions or merely protecting herself—telling me I am at fault or someone else is at fault—and trying to close the episode by sending me somewhere else so that she can get back to her work as soon as possible? The body language tells it all. There is such demand out there. .3.3. like the success of ongoing organizations (see Box 1. repeatedly. quick correction.2. 22–27) such as recruiting people with the right skill set and the right ­mind-­set. sharing common mental frameworks. You can then borrow on the value of the house. and disbursement would proceed without a hitch. and ­well-­controlled ways of doing things together (see Chapter 3 for a detailed discussion). feedback mechanisms. and unsustainable as the loan was. This is easy to ascertain.1).2  Organizational Considerations: Commitments As a customer trying to resolve an issue with a service provider.2). The challenge for organizations is to design logical chains of commitment. H1490_Harvey. with a ridiculously low down payment. Daily operation of these processes requires close monitoring. When you reach a conclusion about this. the house will have gone up at least 10% in value—and I am being very conservative right now. .2. and improvement.indd 11 7/9/15 8:53 AM . clearly defined. for a while. The mortgage lender would try to find anyone willing to buy a ridiculously big house. pp. pool the mortgages. value networks (see Box 1. We now turn to three examples of processes gone awry in society at large. early detection of defects.1) as a whole.

inaccurate asset valuation.” as we will call them later in the book.1 bears many similarities to the 1989 train wreck described earlier. or incompetent management being promoted.2. Slowly drifting processes have a delayed cumulative effect that H1490_Harvey. is that they were all achieved at the expense of institutional investors— and ultimately individual depositors whose money they were investing—who were unaware of it and actually happy to get what seemed to be very good value. It could be growing customer dissatisfaction that has not yet translated into loss of market share. and an invisible. or denial of the fact that processes have been corrupted can only go on for a while. with no immediate visible consequence.indd 12 7/9/15 8:53 AM . indifference. mutually satisfactory local arrangements. The drift occurred through a series of l­ittle-­noticed pairwise mutual adjustments between players. Only rigorous process analysis and control can reveal such misalignments and dysfunctions in processes and allow corrective mechanisms to be put in place before the bubble bursts. that is.3. value was apparently being created as the economy and the stock market grew. and structured investment vehicle (SIV). of course. asymptomatic bubble building up somewhere. with vehicles with arcane names such as collateralized debt obligation (CDO). The beauty of these changes is that they all improved or at least maintained the benefit accruing to each local player in the system. Irrespective of convenient. the rating agency somehow gave it its highest rating. it is often with dramatic and potentially fatal consequences. slowly got bigger and bigger with no noticeable effect until it eventually ruptured. In this case. It was all seen as a tribute to the prescience and vision of free marketeers. pretty much like an aneurysm.” The public that was bilked is still looking for the parties responsible for the mess. unsustainable process can sometimes exist and prosper for years with everyone apparently happy with it.2 A Small PSO Becomes Sloppy The situation described in Box 1. Nobody was in charge of the process. exploiting a wave of government deregulation applauded almost unanimously: bureaucracy decreased. hidden design or execution defects that have not yet been dealt with (such as Toyota’s failure to recognize the importance of the sudden acceleration problem on some models). This macro process failure finds its equivalent within organizations. institutions have lots of margin for creativity. that should have raised a red flag apparently found it more convenient not to. pretty much as a local power fluctuation in an electrical network will trigger waves of adjustments to bring back equilibrium. and legislators are still looking for the fix. 1. “Process controls. Eventually. ignorance.12 Chapter One At that point. and government oversight agencies trusted that all was well. The chain of commitment that should have existed and that investors trusted existed—between the original investment decision and the data they were getting at the time of making their investment decision—was in fact an illusion. cozy. of course. entrepreneurship flourished. The insidious aspect of it. For when it does. A system that was sound 10 years ago had slowly drifted. followed by upstream and downstream ripple effects. it all comes back to bite you with a vengeance. There was no “process owner. An illogical. credit default swap (CDS). All was not well. The changes were subtle. unqualified employees being hired. A rating agency would assess the quality of the investment and set a rating to inform investors of the riskiness of the investment so that they could decide if the yield was appropriate. The consequences were hidden in a bubble that. always preserving a local win–win change.

210f American Productivity & Quality Center (APQC). 267. versus customer. moment of truth. 38 Club Med. category of Kano model. 71. 246 blueprint. See Midtown Child Protective Services (CPS) Churchill. 10 analyze. 369–370 matching to problem. positioning in. and Kano model. 247 Beijing Olympics (2008). 372–373 Basel accords. of process. in processes.indd 407 7/15/15 12:58 PM . 276–295 Apgar. 359 activity-based management (ABM). 343 child protective services. 260–261. 114–116 in professional services. 64–65 activity-based costing (ABC). A body mass index (BMI). 397 basic tool project. 11 challenge. process. 360. 359 adaptability. as process improvement opportunity. 314–323. 133f attribution error. 333 B balanced scorecard. 266. Virginia. 352 basic element. 223t. 210. 126 artisan process. 260t exercise. 95–96 integrating into daily routine. 358 business processes. 196 Carlzon. 336–338. 257 characterize. 19–21 automation. 78f. 384. 244f. 262 changes culture as impediment to. 56 achieved positioning.Index Note: Page numbers followed by f refer to figures. changing (exercises). 95–96 C capability. in the market. 224f. 131–134. 186. Roald. 392 black box processes. 233–234. in continuous improvement. 111–119 business process reengineering (BPR). 259 airport. 358 big Y. in processes. 151 Arthur Andersen. nature of. phase of DMAIC methodology. 48. 307. 397 business model. 279. 97–103 aligning to value creation flow. 29 best practices. 352 capacity. 283. 122 Amundsen. process. 268. phase of DCDV methodology. 16 Apgar scale. 247–249 in learning organization. 50 Achieving Competitive Excellence (ACE). in learning organization. 101 Africa. 337f 407 H1490_Harvey. 367–368 changing. 355–356 activity cycles (exercise). 388–389 bull’s-eye element. 210f. 130 capacity planning. 16. Jan. 71f. 102 benchmarking (exercise). 234f chain of commitment. 180–184 capability maturity model (CMM). 388 client. Winston. 93–94 change vehicles. 146 architecture and design. 114 example. 150 cause-and-effect diagram. of process. development approach. 224. 29 business to business (B2B). (BMI). 72–75. those followed by t refer to tables. Body and Mind Inc. 78 process model.

moment of truth. 350. 126–128 cycle time. 276 Demand Media. of process. 349–351 continuous process. 370 7/15/15 12:58 PM . 307–312 design workshop. 148–151. 65–66. managing processes in. 98 to task or result. 305 underlying principles. 268–271 reactions to service offerings. search for superior value as driver of.408 Index coherence. improve. 354 define phase of DCDV methodology. 66f customer relationship management (CRM) systems. in learning organization. control) improvement methodology. 38 internal. 135–137. 369 dependent variable (big Y). design. and customization. 342 phase of DMAIC methodology. category of Kano model. 323–340. 250–251 in learning organization. 371 customer versus client. 369 versus DCDV methodology. 98–101 personal example. 100 multi-agency process example. 168 exercise. for control charts. 382 diagnosis. 109 eye contact as. conducting (exercise). 94–95 customer experience. in DMAIC. 344–345 high-level view of. 336–340 high-level. 370 correlation diagram. 67 customization. in learning organization. 21–23 continuous improvement approaches to. 277t. 307–312 versus improvement methodology. 133f control. phase of DMAIC methodology. conducting (exercise). 351–360 in learning organization. example of. 224 design detailed. 130 critical to process (CTP) variables. 278–279 critical to satisfaction (CTS) elements. stage of PSDPs. 303–304 double-loop learning. 4 as moment of truth. 368–369 understanding. 154 discipline. 258 dispatch process in PSDPs. formulating. 155–159 in hospitals. as complex process control problem. 48–50 understanding. 395–396 defects. 293f diagnostic. 145. 292–295.indd 408 customer value equation. 397 Delphi method. measure. 371 coordination. 225. 72–75 complex services. 156 dissatisfaction. 34–38 and technical quality. 131. 93 D data. 39–40 customer surveys. and customer involvement. 302–303 control chart. 399 H1490_Harvey. 358 customer satisfaction. 141 commitment exercise. decision rules. identification. of service delivery process. 43–45 customer contact. 263–266 kaizen event. in learning organization. 345 versus DMAIC methodology. in the market. 109 culture changing by creating experiences. 126–128 customer needs (exercises). 41–45 exercise. 323–336 phase of DCDV methodology. and service processes. 18. 341–344 decision rules. 266–267. limitations of. 312–314. 253–254 DMAIC (define. 225f cost-effectiveness. 263–266 understanding. rigor in interpretation of. 344–345 understanding. 45–48 customer behavior. 17–19 DCDV (define. 93. 206 confusion. 97 complex service delivery process. verify) methodology. 204–205. analyze. as waste. in processes. 344 design methodology high-level view of. 132. 172 cross-functional processes (exercise). 365 customer involvement. 250–251 customer focus. 137t exercise. 162–163 Deming wheel. 50 diabetes. characterize. 341–344 desired positioning. 103 consulting services. 365 practice of. 395–396 control system (exercise). 267–272 delighter.

The (1972). aligning to value creation flow. 11–12 indifferent. 216t. 282–284. 48–49. 212f. 156 house of quality. Michael. 126 enterprise resource planning (ERP) systems. 3–5 rigorous. 297f improve. 339f DCDV methodology at. 212f. 355 five whys. 326f. 313f. 212–213. moment of truth. as waste. category of Kano model. 23 I I (individual observations) chart. 95 internal customers. 280–284. Alexander. 268–271 internal professional services. versus design methodology. 350f failure mode. 40–41 Gaines. 6 hospitals. in learning organization. 25. value and strategic advantage through. Frank. uncontrollable. professional (exercise). as commitment. 67 empowerment. 335f. 318–322. 326f. 146f. 100 execution. 292f process design. 350–351. 226. 3 functional analysis system technique (FAST) diagram. 317t. 257 enabling processes. 312–341. unknown) classification tool. 165–171. processes (exercise). 40. 283f. 62–63 Edwards. 324f. 140–141 Huygens. 319f. Christiaan. 316f. 357–358 Information Technology Infrastructure Library (ITIL). 320f. 289 failure mode and effects analysis (FMEA). Inc. 358 eye contact. 48f. dispatch process in. 352 health knowledge base. 255f. 397 influence diagram. 386f incentives. 324f. 128–129 employee value equation. 75. 217f. 58. 11 From Poverty to Prosperity (Kling and Schulz). 330f. 288–292. 14 Godfather. 321f. 307 hazard analysis and critical control points (HACCP). management. 318t. (FPA). 218f. phase of DMAIC methodology. 319f. 320f H1490_Harvey. 102 global value network. 328f. 352 inputs. Lawrence. 327f. 312–345. 322f. 147 inventory. 40. 321f human resources. 107 Endurance. 283f Fleming. See also Financial Planning Associates fishbone diagram. 279–280 five S (5S). 370–371 Freddie Mac. in service encounter. 334f. 130 fortitude. in learning organization. 146f. 102 effectiveness. 13. 339f financial services. 23. 335f. 6 Holland. of process. of process. 281t. 319f. case study. controllable. 368–369 I-MR (individual and moving range) chart. 321f. 17 F fads. 28 Fannie Mae. 334f. 3–29 expectations. 338 family processes (exercises). 214f. 213f. Chryste. 322f. 9–10 engineering. 128 efficiency. 384–385 preparing (Appendix A). 295–302 improvement methodology. 290t. 395–396 ICUKU (impact.indd 409 H Hammer. 24f. to processes. known. 371 Enron Corporation. in learning organization. 211–220. 388–389 Hill. in continuous improvement. 296. 11 Financial Planning Associates. 367 information systems and technology (IS/IT). 251 Golden Years Drug Store example. 226f information flow. 330f. 313f. 386. distilling useful knowledge from. 19 flexibility of process. 188–198 Groundhog Day (1993). 213f. Index 409 E G economic value added (EVA). Torri. 328f. 354 7/15/15 12:58 PM . 296–297 idea evaluation card. 93. insurance claim example.

279–280 ISO 9000 standards. 339f O one-person business (OPB). 236. 38–39 leading. 90. example. 305 exercise. 225f. 160–162 line flow process. 286f reasons for performing. 379f in kaizen event. change vehicle. John Maynard. lack of about causality as cause for superstition. 397–400 Keynes. 238f mission. 243 new service. 126–128. of learning organization. 22. in learning organization. 77–78. 362–363 matching. 241–262 learning maturity level. 198–199. 202f. 354–356 learning. 84. 171 evaluating impact of processes on. 227–229 in scoping. 8–10 job concept. 371 Korea. 211–214.410 Index inverse. 10–21 and structure of book. stage of PSDPs. 261 just-in-time (JIT) methodology. voyage of. 339f macro map. 354 MySpace. positioning in. 199f. 261 K kaizen event. 382–383 medical services. 351–353 J James Caird. 137–139. 77–78. 60f. and processes. 102 just do it. 81–83. 375–394 one-worker processes. 19–21 H1490_Harvey. 350f management style. 49f. 221 moments of truth. 233f. 262 learning cycle and. 397 Ishikawa diagram. 198–204. methodologies and techniques to achieve. 131–134. 146f. delivering. 241–262 moments of truth in. 234f. conducting (exercise). 156 metrics. 122–125 job shop process. 353–354. phase of DMAIC methodology. 249–261 DMAIC. 162 N new product. 224–227 Midtown Child Protective Services (CPS). 204–205 Jones. 237f. 374 learning organization. 228f. development approach. 250. 249–250 Kano model (Appendix B). 59–60 leadership at the moment of truth. 173–346 7/15/15 12:58 PM . 151–153 motion. 154 measure. 243 nimble payment system. 61f professional. 150. 338. 272–276 measurement in learning organization. process. 372–373 rating organizational (exercise). 146f. 350. 355 Motorola. 361–374 becoming. 163–165. 110. 134 logical validity. moment of truth. 356 muda. 26f legal services. 284 notary. 268 Malcolm Baldrige National Quality Award (MBNQA). category of Kano model. 247. 133f Quality Knowledge Management example. 40. as process improvement opportunity. 253–259 leadership and respect at. 23–25. 220–221 mission statement. 353f management fads. 259 L labor market positioning in. 248f.indd 410 M macro blueprint. 99 non-value-added (NVA) tasks. Inc. 241–242 and kaizen event. Marion. 389 knowledge base. as process improvement opportunity. 224f. 236f. 251–259 outputs of. 284–288. 366 in wellness. 128–130. 371–374 dimensions of. 40. 103–108 learning cycle. 188–204 Medsol Clinic example. 24f. 235f. in continuous improvement.. 56–61. 230f. 24f. 90f operational excellence. 222–238. 377–380 wellness and. as waste. 249. 131–134. 133f line of visibility. 150f. 151–153 technical quality and. 258 lean operation.

in self-service experience. stage of PSDPs. 222–238 selecting for improvement. 90 changing. 193–195 process. 335. 89 decision to outsource/offshore. 69–89 adaptability of. 102 criteria for. 384–388 personal processes. 36 plan–do–check–act (PDCA) methodology. 263–304 forms of. 217–218 selecting processes on the basis of. 248. 52–56 prescription. 389–391 exercises. exercise. 110 process metrics diagram. anatomy of. Midtown CPS example. establishing. 360–361 operations and process mission. 374 preparing for. 70–75 understanding dynamics of. 369 poka-yoke. designing. 198 definition. 272–275 facilitating by workers. 220–221 and strategy. 325–327 process control Midtown CPS example. 184–188 variation and. as waste. 28–29 improvement methodology. and the functional organization. Nanceen. 125–126 real estate example. 36 personal value equation. 266–267 process blueprint. 175–184 in wellness. 85–86 exercise. 261 process mapping. 140. 301 Midtown CPS example. 102–103 process concept. 210–211 versus system. 195–198 perimeter. 45–56.indd 411 Index 411 prescription fulfillment process. 241–243. in self-service experience. 307–346 process action course (PAC). 243f. 108–109 process improvement. 131–134 exercise. 201–204 professional considerations in. 13 process families. 3. 81–83 preparing (exercise). 50–56 and processes (exercises). 366–367 process management team. Golden Years Drug Store example. 141–144 in professional services. 180–184 process commitment. 57–58 performance category of Kano model. operational improvement initiatives (OII). 336–337 process capability. 392 targeting (exercise). of learning organization. 214–219 physical services system. 175–205 Golden Years Drug Store example. 354 P penicillin. pharmacy example. of processes. 243–247 process management. conceptual framework linking. 118–119 optimization algorithm. 141 process flow diagram (PFD). 102 personal health dashboard. 397 of processes. 188–205 a systems view. 95 overprocessing. 70–78 dysfunctional. 154 H1490_Harvey. 78–83 organizational dimension. as waste. 35–38 outputs. 301 positioning Golden Years Drug Store example. versus service package. managing. in learning organization. 188–191 and profit leverage. exercise. 109–110 7/15/15 12:58 PM . 394 personal service system. 336f organization. 208 in professional services. discovery of. behind Pugh matrix. 350 identifying most helpful (exercise). 56–61 in the market. 83–88. 19 Perry. in selfservice experience. 263–305 managing. 201–204 opportunities. 355 overproduction. 220–221 process model. 1–172 operations strategy Golden Years Drug Store example. 382–383 process drift. 11–16 other providers’ service systems. 198–201 workable. 188–191 in labor market. 77. 31. 375–376 improving an existing. 228–231 process mission. as system of processes. 235 scoping for improvement or design. assessing.

188–205 professionals. 217–218 exercise. 106–108 why to improve. 246 and positioning (exercises). 240 priority. as process improvement opportunity. 103–105. 240 conducting high-level evaluation of. 247 setup. 260–261 exercise. 148–151 delivering. 243–244 number of players in. identifying (exercise). as process improvement opportunity. 335–336. as process improvement opportunity. 118–119 project(s). 69–110 need for good. 5–10 nonexistent. 240 assessing strategic impact of. 92–93 salient. 146 case study. 58–59 professional services classifying. 329–330. 330f. 307–312 Pugh design matrix. 140. 140–141 ineffective. 102–103 connecting value to. techniques. 128–131 exercise. 239 reference systems for. 244 inefficient. 160–162 professional service experience.indd 412 understanding. 145–172 rating. 212–213 quality of service. 141 complex. 336f Q QS-9000 automotive standard. 111–144 and value creation. 211 which to improve. characteristics of. 165–171 professional service workers. 352 quality. 246 categories of. to ensure strategic fit. 77 processes assessing current performance of. 90 with physical flow problems. 262 process space. in wellness. 239–240 selecting on the basis of salience and performance. 231–233 process problems. 59–61 professional service delivery processes (PSDPs). 332–333. 240 professional service delivery. 163–165 professional employee value equation (exercise). in learning organization. 67 professional labor market. positioning in. 260–261 definition. 22.412 Index process performance assessing. importance for clients (exercise). as process improvement opportunity. 147 case study. 125–126 process control in. 105-106 product life cycle management (PLM) systems. 172 professional service firm (PSF). 214–220 H1490_Harvey. 45–56. 129 professional bureaucracy. 157–160 generic view of. 162–171 dispatch process in. 209–240 evaluating impact on key metrics. 245–246 confusion in. 106–107 characteristics of. 381–382 process variable. 92. as process improvement opportunity. 141–144 prioritizing (exercise). 217–218 exercise. 358 productivity. formulating mission of (exercise). 155–157 flows in. of process. 58 profit leverage. 162–163 7/15/15 2:11 PM . 21–23 nature of. exploring. 38 internal. as process improvement opportunity. 147 positioning in. 145–148 exercise. 103–108 managing. 243–247 matching to change vehicle. 103–108 value-adding. 90–97 process thinking. 153–162 exercise. 365 quality function deployment (QFD). in complex services. 244–245 and learning. 128–137 and value. 214–216 black box. 146–147 case study. 211–214 human resources (exercise). 172 diagnosis in. 145–172 case studies. and operations strategy. 90–92 repetitiveness and. 32–41 quasi-manufacturing services. 153–154 legal services example.

). 236 reviewing. 240 Scott. through rigorous execution. 186 ratchet effect. 50–51 self-service experience. 62–63 Shouldice Hospital. 214–220 sampling. 118 service warranty. 33. and processes. 151–153 results. and customer contact. Jeffrey. 29 rigorous execution. 34. 234–235. 268 Southern Pacific railway accident. for processes. 7 small y. time-bound) statement. 140 strategy in learning organization. at the moment of truth. 289–291. customer). 48–50 service package. 351–353 statistical process control (SPC) (exercise). 7 superstition lack of logical validity about causality as cause for. 162 S salience. 356 Skiles. 365–366 subprime crisis of 2008. 51 delivering. H. The (Heskett et al. 263. 94–95 Service Profit Chain. 35 service offerings. 90–92 reliability. 163–165 SITOC (supplier. 190f Six Sigma. 120–122 real estate example. 8–10 shareholder value equation. 180 standards. customer reaction to. 131 repetitiveness. 151 managing processes in. 8 special cause variation. 10 segmenting. 220–221 in professional services. 3–5 personal (exercise). 40–41 service experience. 261 server. 357 support processes. transformation. 92–93 respect. 70 versus process. 16–19. 33. 35–38 semiautonomous work teams. definition. achievable. in continuous improvement. 11–12 Sullenberger. 34 rigor business (exercise). 325–327 specifying effect on client (Appendix B). 32–33 before and after. 135–137 service episode/encounter. 102 system definition. output. 268. 19–21 using quality principles to break free of. for improvement of design. 116. Richard. R random variation. measurable. relevant. 119–128 in learning organization. 302 root cause analysis. 275–276 Sarbanes–Oxley Act of 2002 (SOX). 236–237 scoping process. 178. 3–30 risk identification. 359–360 services complex vs. 1–172 and process mission. 148 service concept. market. E. 351 standard deviation (s). value and strategic advantage through. 235f. 3–30 strategic overview (exercise). 10–11 and operations. coherence of. of process. Chesley. 53 service delivery process (SDP). 170 versus process concept. in Kano model. 352 scope assessing. 267. in customer satisfaction. complicated. 357 systems. 107 Sydney Summer Olympic Games (2000). 70–75 7/15/15 12:58 PM .indd 413 Index 413 service processes. managing. 33. 29 in learning organization. 366 need for. 282–283 Rosenblatt. 186 stakeholders. 222–237 project (exercise). in customer satisfaction. 289 risk priority number (RPN). 249. 206 strategic advantage. 224. in customer satisfaction. 5–6. 397–400 H1490_Harvey. 21–23 Shackleton. Robert Falcon. 399 reference systems. 111–119 strategy-to-process connection. 391 supply chain management (SCM). types. 279 SMART (specific.. 215 standard. input. selecting processes on the basis of. conceptual framework linking. 70.

90 work flow. 264f. as waste. 263. 375–394 World Wide Web. 355 treatment. 356 special cause. 288f value-adding processes. 95 four components of. 103–108 value network. 135 value proposition. 43 H1490_Harvey. Mark. 168–171. 211 value-to-process (V2P) model. 51–52 workers facilitating process mapping by. 248f. 32f and processes. 39–40 and leadership. 103–105. moment of truth. 154 trust. 340 U W understanding.indd 414 7/15/15 12:58 PM . 31–67 and processes. 186 variation coefficient. 146f. 354–356 wellness. 357 togetherness. 135 value creation flow. 183–184. 43 through rigorous execution. 186 and Six Sigma. change vehicle. 256 tools benefits of simultaneous use. 51–52 value stream. 95–96 technology-based services. 3–30 superior. 141–144 value-added analysis. 40 type I error. 43–45 transactional approach to. 353–354 Toyota Motor Corporation. 176f.414 Index targeting. 160 workout. as waste. 37t connecting to processes. 284–288. 200 type II error. 248. 95 in processes. 210f. 50 transportation. 354–355 and lean operation. 7 wait time. 377–380 variation and process control. 368 total preventive maintenance (TPM). stage of professional services delivery processes. 111–144 as a ratio. use of in positioning professional services. 134 categories of. 38–39 technology definition of. 180 verify. 256–257 US Airways flight 1549 emergency. 48–49. 122 for one-person business. 11–12 mirror image. 183–184 voice of the process. and value proposition. 381–382 T V value components of. 113f. 191–193 in wellness. moment of truth. phase of DCDV methodology. 304 use in learning organization. techniques. 180–181. 23. 308f. search for as driver of customer behavior. moment of truth. 258 voice of the customer. 209–240 nature of. visual representation of (exercise). 200 value chain. 24f. 175–184 random. 85–86 number in processes. 34f. 355 waste avoiding. 203. aligning chain of commitment and incentives to. Frank. 71f. 106–107. 51–52 technical quality customer satisfaction and. 41–43 relational approach to. 206 Golden Years Drug Store example. 113f. 9 systems view exercise. in self-service experience. 380–389 and one-person business. 36 vision. 147 theory of constraints (TOC). 180–181. 350f. 253 Twain. 376f virtual service system. 242f. 167–168 real estate example. moment of truth. 52–56 targeting and. 340–341 videos. 355 total quality management (TQM). 261 Worsley.