Seven Deadly Sins of
Business Process
Improvement
Gregory C. Oberland
Sr. Vice President
Insurance Operations
Business Process Improvement
VERY LARGE
multiple jobs, processes
and functions
VERY HIGH
multiple jobs
and processes
multiple
jobs
SMALL
Savings
Opportunities
VERY LOW
Change Management
Complexity
Seven Deadly Sins
#1
• Lack of a continuous process
improvement culture at all levels in the
organization.
Seven Deadly Sins
#2
• Failing to determine whether a business
process is a competitive advantage before
implementing solutions.
Key Decisions
• Look at work process
improvements first
• Use PeopleSoft financial modules unless
proven otherwise
• Do not customize software
(configure is OK)
• Financial process is generic (vs. core)
Principles
• Drive down costs (vs. control increase)
• Reduce cycle time (speed matters)
• Keep it simple
– Easier to use (more intuitive)
– Lowers cost
– Makes it faster
• Continuous improvement
• Keep score (measurement)
Business Decision Support
Financial Reporting
Transaction
Processing
High
Analytical/
Decision
Support
Low
High
Cost/Cycle Time
Low
Seven Deadly Sins
#3
• The inability to take an enterprise view on
certain business process issues/projects.
Seven Deadly Sins
#4
• Engaging in complex business process
projects without having a long-term
plan/vision.
Seven Deadly Sins
#5
• Not having the right people with the right
resources working on business process
improvements.
Profiled Companies Change
Management Team Structure
Company
Size
Location
Structure
History
A
9
HR
Matrix
4 yrs
B
30
HR
Matrix
2 yrs
C
70
Prod. Line
Decentralized
3 yrs
D
23
Corp.
Decentralized
2 yrs
E
4
Corp.
Matrix
1.5 yrs
F
8
Finance
Ad Hoc
3 yrs
Reporting Structure
CEO / High level management
Division A
Division B
Division C
Division D
Division E
Champion
Champion
Champion
Champion
Champion
Four business improvement staff
Seven Deadly Sins
#6
• Underestimating the amount of time,
energy and work involved with
successfully implementing change.
“Faced with the choice between
changing ones mind and
proving that there is no need to
do so, almost everybody gets
busy on the proof”
John Kenneth Galbraith
American Economist
Clean Air Policy Transition
• Research/Benchmarking
• Survey of Employees
• Task Force/Discussions with Union
• Transitional Policy
• Final Policy
• Communications (included CEO message)
• Support Programs
• Changes to Building/Procedures
Preparing for Change
• Clear Vision
– Succinctly describe change and why it must happen.
• Sponsorship
– Get commitment from the “top dog”.
• Understand/Address Organization Impact
– Assess who’s losing what? Address losses.
• Plan
– Develop detailed change plan.
• Communication
– Frequently communicate: purpose, goal, plan, role.
• Training/Integration
– Assess how behavior has to change. Provide training.
• Support
Sell Problems, Not Solutions
“[People] let go of outlived arrangements
and bygone values more readily
if they are convinced that there is a
serious problem that demands an ending.”
Managing Transitions - Making the Most of Change
William Bridges
Seven Deadly Sins
#7
• An absence of high-level leadership in
business process improvement initiatives.