Analyzing the Transformation Process

ANALYZING THE TRANSFORMATION PROCESS

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

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

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

look for ways to redesign the organization to improve performance. Improvements

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

Restructuring Associates Inc. 2008

Analyzing the Transformation Process

The better everyone understands the work system, its requirements and the major factors
which cause disruptions to smooth operation, the more opportunity there is for improvement.
Todays work system is the result of an accumulation of habits and ideas over the past
several decades. Efforts to improve quality and productivity by exhorting people to work
more carefully and to care about their customers will not produce significant long-term
advantages unless the fundamental process of work is analyzed and redesigned.

Focus on the Process, not the Person

Most people want to do a good job. However the ability to improve the organization is often
beyond the capacity of one person. The process cannot be improved by blaming, punishing
or rewarding. Studying the process creates knowledge which increases improvement efforts.

Focus on the Core Processes, Not all Processes

Most organizations have many processes. We will be focusing on the core processes.
In order to identify the core processes we must first ask the question: Why does this
particular service/department exist? What processes fulfill that purpose?

Restructuring Associates Inc. 2008

Analyzing the Transformation Process

CORE PROCESSES

Support Processes - Technical

Core Process

Support Processes - Social

Restructuring Associates Inc. 2008

Analyzing the Transformation Process

Identifying Core Processes

In order to ascertain which are the organizations core processes, it is useful to ask the
following questions:

 Which processes are related to our core business today and will be essential to staying
competitive?

 What is the primary source of customer complaints? Which whole process is

responsible for that work?

 Which process consumes the greatest amount of employee time and cost to the
organization?

 Which work process produces the greatest amount of frustration for employees?

 Which process will become more important in the future?

 Which processes are most important in support of the primary work process?

Before commencing the process of technical analysis it will be important to agree on a

list of core processes.

Restructuring Associates Inc. 2008

Analyzing the Transformation Process

THE STEPS INVOLVED IN TRANSFORMATION PROCESS

ANALYSIS
In analyzing the transformation processes of departments and services, go through the
following steps:

1. Output Analysis
What do we produce/provide?
What do we know about our customers and how well our products/services meet their
expectations?

2. Transformation Process Mapping

What are the steps involved in each core process?
What occurs at each step of the process?

3. Key Variance Identification and Analysis

How does each process vary from standard or ideal?
Which variances significantly disrupt the transformation process?
Why do the key variances occur? What are their root causes?
How are the variances controlled today?

4. Developing solutions: recommendations for change

Based on what we know about key variances, their causes, and their control, what
recommendations would we make for redesigning the organization in order to
resolve/better control these variances?

Restructuring Associates Inc. 2008