Business Process
Transformation
at Harley-Davidson
Craig Greenwood
Director, Business Process Strategy
ASQ Milwaukee Section 1202
May 21, 2012
Topics for Tonight
 Business Process Management Defined
 Harley-Davidson Business Process
Transformation Group Structure
 Example of Managing a Process
 Answer Your Questions
Our History
Function
Plan
Function
Plan
Begin
Implement
Change
Process
Change
Process
Change
Org
Complete
Implement
Change
Org
Complete
Implement
Issues:
Plan
Begin
Implement
Change
Process
Change
Org
Complete
Implement
Continuous
Improvement
Begin
Implement
Function
Plan
• Business processes requirements are
not defined before projects begin
• Implementations are costly and do not
deliver intended results
•Work is not standardized and
improvements are not transferred to
other business units
• Continuous improvement in one
function can sub-optimize a downstream
function
• Opportunities for transformational
change are minimal
Where we are headed
Function
Function
Function
Business Process
Plan
Standardize Processes
Improve Processes
Prepare
Develop Metrics
Align Organization
Deliver
Continuous Improvement
Why Did We Do This?
• To standardize work across functions and business
units
• To connect internal suppliers and customers in an endto-end business process
• To build a template for ERP implementation across
businesses
• To deliver high quality implementations cost effectively
which deliver business objectives
Benefits
• Align functions to create a world-class customer
experience
• Rapidly deliver new products and services
• Respond to the changing market and business
environment
• Build transparency into how the business operates
• Increase organizational flexibility
Aspects of Business Process
Management (BPM)
Harley-Davidson’s
Process Transformation
BUSINESSES
(Business Unit, Region, focused on P&L’s & Markets)
Business units own the results
FUNCTIONS
(Departments,
Centers of Excellence)
Functions own executing
the process
Business Units own
customers and
profitability
Functions own the
people and cost
centers
Global Process Management:
A 3rd Dimension in Management
BUSINESSES
(Business Unit, Region, focused on P&L’s & Markets)
Business units own the results
FUNCTIONS
(Departments,
Centers of Excellence)
Functions own executing
The process
PROCESSES
(Source, Make, Fulfill, etc.)
Process owners own the process
Business Units own
customers and
profitability
Functions own the
people and cost
centers
Process Owners own
work designs, flow and
integration (including
managing the white
space)
Harley-Davidson Business Process
Transformation Group Purpose
 Provide strategic alignment and prioritization of
overarching global processes for standardization and
improvement
 Lead the development of the Enterprise Capabilities
Roadmap (i.e. ERP, PLM, HDDS) in alignment with
Company priorities
 Define, standardize and improve global processes
 Prepare business units for implementation
 Lead and execute ERP initiatives
 Continuously improve our capabilities and processes for
implementation
Harley-Davidson Business Process
Transformation Group Mission
We provide leadership in process thinking and deliver robust
end-to-end global business solutions. Our employees engage
our stakeholders to ensure standardized work is planned,
designed, and implemented with operational silence.
•
We are responsible for Process Ownership in the following areas:
• Sales and Operations
Planning
• Demand Chain Processes
• Global Pricing
• Data Management
• Enterprise Continuous
– Plan, Source, Make, Deliver Improvement
• Data Management
More than a “systems” implementation
All Work Centered Around
Integrating the “Four Gears”
New Structure to Support
Process Transformation
Business Process Transformation Group
BPTG
General Manager
(Reports to President/COO)
PLAN
Strategic Vision
PREPARE
Source/Deliver/
Data
DELIVER
Implement
CI
Continuous
Improvement
Change Management
Change Management / Training / Communication
BPTG
General Manager
PLAN
PREPARE
DELIVER
CI
Change Management
Plan Function
Purpose:
• Develop and manage the process of mapping the company’s
strategies to major business processes (e.g. Supply Chain,
Sales, Finance) and identify a sequence of projects aimed at
developing or enhancing the set of capabilities to deliver the
strategies.
Areas of Focus:
 Manage the Enterprise Business Capabilities (EBC) Roadmap process
 Facilitate the governance process to deliver the EBC Roadmap
 Provide process ownership for the enterprise process framework
BPTG
General Manager
PLAN
PREPARE
DELIVER
CI
Change Management
Prepare Function
Purpose:
• Identify and develop the future state Processes, Data, and
People Skills aligned with Enabling Technologies to deliver or
advance the capabilities identified in the EBC Roadmap.
Areas of Focus:
 Establish global process ownership and governance to drive process
standardization and alignment across regions, business units and functions
 Facilitate decision making with Executive Business Process Owners
 Ensure the processes, data and people aspects are prepared before the
systems work begins
BPTG
General Manager
PLAN
PREPARE
DELIVER
CI
Change Management
Deliver Function
Purpose:
• Specify, develop and deploy the future-state processes
and information technology specified in a prior Prepare
project.
Areas of Focus:
 Complete detailed design of business and data processes
aligned with enabling technologies.
 Lead deployment teams to ensure organizational readiness
 Provide oversight of testing processes
 Launch and support new business processes
BPTG
General Manager
PLAN
PREPARE
DELIVER
CI
Change Management
Continuous Improvement
Function
Purpose of a Centralized CI Department:
 Establish common thinking, integration, tools and evaluation to
drive a sustainable CI culture.
Areas of Focus:
 Provide a foundation for standardized work (ISO/QMS)
 Provide support to Global Process Owners & HDMC prioritized
strategic initiatives
 Embedded support in HDMC SG&A functions to support
projects and drive the CI Culture
 Provide CI assessments and action plans
 Knowledge management and Six Sigma training
BPTG
General Manager
PLAN
PREPARE
EXECUTE
CI
Change Management
Change Management
Function
Purpose:
 Prepare our people for the change through a comprehensive change
management plan that moves them up the change curve from
awareness to understanding to adoption to ownership.
Areas of Focus:
 Change Management
 End User Training
 Communication
Stakeholders:
 Leadership, End Users (people
impacted by change) and Project
Team Members
Managing a Process
Sales & Operations Planning
(S&OP) Process
S&OP Definition and Key Concepts
S&OP is a decision-making process that
balances demand and supply and integrates
financial and operations plans
• The purpose of S&OP is:
–
–
–
–
–
To meet business objectives
Set/steer the company game plan
Ensure tactics align with strategy
Make tough decisions
Analyze business performance
• Process is not an event or computer program
• Gets agreement on sales and production plans
• Evaluates whether production rates satisfies sales rate
Balancing Supply and Demand
Goal: Make the financial budget. Tops-down Focus.
Desires control and wants predictability of operations.
Forecast definition: The budget
Sales and
Marketing
Demandside
Supplyside
Goal: Factory
optimization,
improve costs
and minimize
demand
Operations uncertainty
Supply
Chain
Forecast
definition:
Sales plan
Finance
Goal:
Maximize
revenue &
market share,
wants
guaranteed
product
availability
Goal: A feasible plan. Bottom-up focus.
Wants to minimize risk and disruption
Forecast definition: The demand plan
Forecast
definition:
Manufacturing
plan
S&OP Process Management
• Old approach: Had us looking at our jobs in silos
• New approach: Encourages a holistic view (e.g., How
are you impacting internal customers and external
customers?)
• Managing a process means we need to work
horizontally, west to east, manage sideways…
• Process managers understand how all their job activities,
in their process, fit together and interconnect with other
processes to ultimately serve the customer
• S&OP is a great example of managing the entire process
including the “white space”
S&OP ‘White Space’
• The white space is the handoff or connection points in a
process
• White space is the area where all too often quality
suffers, time slips, costs go up and customer value gets
damaged
• S&OP is the glue that keeps accountability and quality in
the process, especially in the white space
• S&OP white space examples:
– Manage the hand off of the forecast between Sales and
Manufacturing
– Facilitate the creation of a common S&OP dashboard for North
American Sales and International
– Tie the entire process together to produce an operations
schedule that supports Dealer orders
The Bottom Line …
Business Process Transformation comes to
the table with a bias
toward finding integrated solutions
with common processes
that will make the company
—not just a specific function—
more effective overall.
What questions do you have?