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October 2008

Online Version of This Newsletter

Welcome

A number of articles in this month’s newsletter highlight the importance of Operational Business Intelligence, and how role-based sharing of this information enables different stakeholders in a business process leverage them for their own purposes. Six Sigma and ITIL (Information Technology Information Library) are two sides of the same Process Improvement coin as the three part article from Linh. C.Ho , a Six Sigma expert, demonstrates.

In the BPO section, a number of articles explore in detail, the typical pitfalls and mistakes made in Offshore Outsourcing of Business Processes. The Hidden Costs of Outsourcing are explored in detail. This can help both buyers and providers of BPO services highlight the true costs of Offshore Outsourcing and potentially, still prove the benefits that Offshore outsourcing may bring.

Your suggestions for other topics, articles and news to be covered are always welcome. Please send them to newsletter@ajira.com. Please forward this to others in your organization and elsewhere, if you feel this newsletter may be of interest. We value your privacy and for any reason if you wish to unsubscribe, the instructions are at the end of this newsletter.

Thanks for your time and attention,

Anil Rewari
President
Ajira Technologies, Inc.
www.ajira.com

 


Business Process Management Articles



Discovering & Hiring Collaborative Leaders
David Spann, Agile Adaptive Management, BPM Institute Newsletter and Website, August 26th, 2008.
Many companies which have begun applying lean or agile practices in their work place are now finding they need to reconsider who they hire to fill the more collaborative and facilitative roles required by those methodologies. It takes new leadership behaviors in concert with the innovative technical practices to really make these methodologies work well.

The Service Portfolio of a BPM Center of Excellence

Michael Rosemann, Queensland University of Technology, BPTrends Newsletter and Website, September 2, 2005.
Managers newly in charge of the setup and delivery of the enterprise-wide Business Process Management (BPM) capabilities in an organization often struggle with the identification of theactivities as being part of their role. A set of fifteen distinct BPM services is described; from this, managers can select the potential services on offer by a centralized BPM Center of Excellence (aka BPM Support Office).

Process Architecture: Seven Essentials

Karen Tricomi, BPM Institute Website and Newsletter, August 19, 2008.
An Enterprise Process Architecture provides the context and cross-functional glue within which the work that has already been done can be leveraged to gain efficiencies and contribute to the bottom line.

Detail Process Charts – A Common Ground forBusiness and Development
Ben Graham, Ben Graham Consulting, BPTrends Newsletter and Website, September 2, 2008.
When our processes are transparent, the problems become apparent. As our processes became more dependent on technology and organizations we became increasingly enamored with that technology, we lost track of the fundamental characteristic of process mapping, which was the charting of real things. We backed off from the detail and tried to understand processes with charts that were high level arrangements of functions that did not enable us to see the delays, redundancies, complexity and confusion that our well-intended systems were creating in our processes.

10 Mistakes To Avoid in a Business Intelligence Delivery
Lalitha Chikatur, DM Review Newsletter and Website, September 16, 2008.
Every data warehousing (DW) and business intelligence (BI) project, whether successful or not, teaches us something. It is generally on failures that we base our new success. Having said that, it’s not always necessary that you fail to learn; you can also learn from other’s failures, 10 of which are discussed here.

Role-Based Business Intelligence Enables Independent Analysis
Jeremy Dean,DM Review Website and Newsletter, September 9, 2008 
People, not technology, are the decision-makers in a business. Therefore, business intelligence (BI) technology should make it possible for people - the actual end users - to acquire role-specific data upon which business decisions can be based.

Operational Performance: What Sets Best-In-Class Companies Apart?

David Hatch, Aberdeen Group, Intelligent Enterprise Newsletter and Website, September 22, 2008.
Businesses thrive or fail based on their ability to identify, define, track, and act upon Key Performance Indicators (KPIs). Executives and line-of-business management are increasingly feeling the pressure to enable timelier and more accurate decisions in order to improve operational efficiencies. The faster and more accurately KPIs can be accessed, reviewed, analyzed, and acted upon, the better an organization can manage day-to-day operations and customer interactions. Companies are focusing on obtaining solutions that address specific business pressures driving operational performance today.

Coach-like Mentors Achieve Greater Effectiveness
Julie English, Lynn Lanoue, Leadership Cooperative, iSixSigma Newsletter and
Website, September 22 2008.
Many people suggest that coaching and mentoring are one and the same. But when looking at the definitions for the two positions, it is clear there are some differences in the focus of their work. The bottom line: coaching is not telling, and mentoring is not coaching. But as a mentor, Black Belts have the experience and the map - and it can pay off to experiment with the value of being a coach-like mentor. Using a coaching perspective will increase the effectiveness of the team and the impact of the solutions.

 


Business Process Outsourcing Articles


7 Sins of Offshore Outsourcing
Geraldine Fox, Nigel Hughes, Baseline Magazine and Website, September 2, 2008.

Earn While You Train - A New Mantra?
ValueNotes Newsletter and Website, August 20,  2008.
Many BPO vendors have realized that the current Indian educational system is ineffective in meeting the demand for quality manpower. Thus, large part of the training provided by IT-BPO companies deals with training people to a minimum quality standard. The common prerequisites for entry level services across domains coupled with the ease of isolating training requirement has created opportunities for outsourcing of training activities.

Indian BPO Sector Plugging into New Growth Areas
Harsimran Singh, Economic Time Newspaper and Website, August 17  2008.
It’s a success story whose plot may see some sudden turns. India’s BPO industry is set to see a logjam as it braces up for tough times owing to lack of new business additions, economic slowdown in the US and increasing competition from other countries such as Vietnam and the Philippines.

Top 10 Hidden Costs of Outsourcing
David Brown, CIO Insight Newsletter and Website, September 9,  2008

Part 1 - How to Apply 6 Sigma Quality Practices to Your Business
Linh C. Ho, eWeek Newsletter and Website, Jan 4, 2008.

Part 2. Six Sigma Techniques For IT Management
Linh C. Ho, eWeek Newsletter and Website, Jan 28, 2008.

Part 3. How to Use Six Sigma to Complement ITIL v3
Linh C. Ho, eWeek Newsletter and Website, Jan 28, 2008.


Notable News



The Impact of the Credit Crunch on BPO
John Willmott, CIO Mid-Market Newsletter and Website, September, 2008.
The first reaction of most commentators is that the credit crunch will automatically lead to increased outsourcing as organizations seek to reduce their cost bases. NelsonHall CEO John Willmott looks a little deeper.

Whether You Agree With Globality Or Disagree, Don't Ignore It
Knowledge@Wharton Newsletter and Website, August 20, 2008.
If business is supposed to slacken during the sweltering days of August, that message has failed to reach Embraer, the aircraft maker based in Sao Jose dos Campos, Brazil. Earlier this month the company -- it is the world's fourth largest plane manufacturer -- said it had doubled its net income in the second quarter to $134 million and delivered 52 aircraft, compared with 36 during the same period last year. At a time when airlines all over the world are reeling from the double whammy of high oil prices and a faltering economy, Embraer expects to deliver an impressive 200 aircraft. Its backlog of orders stands at a robust $20.7 billion.

Remember Common Cause Variation in Fight Against Waste
How Tzek Chong
, Hitachi Global Storage Technology, iSixSigma Newsletter and Website, September 29, 2008.
Ideally, practitioners want an error rate to be at 0 percent. But if an error rate is steadily hovering at about 2 percent, it is fair to say that the errors are due to common cause variation. If the error rate suddenly surges beyond its usual level, however, it is probably due to some change to the product, such as variations in material, workmanship or test codes. This change is called special cause variation.  Practitioners typically approach these forms of variation differently, with special cause variation taking priority. But it may be profitable for practitioners and company leaders to reconsider their focus and pay closer attention to variation stemming from common causes.

Project Management Plays an Important Role in Six Sigma
Tania Salarvand, Valeocon Management Consulting, iSixSigma Europe Newsletter and Website, September 3,  2008.
While Black Belts are technically advanced in the Six Sigma methodology, this does not automatically translate to good project management skills. Black Belts often are not ready to fill the shoes of project manager. Depending on someone without the right skills to coordinate and manage a project may be detrimental to an improvement effort -- in terms of time, budget, risk and metrics needed to show business results.

11 Geek Visionaries Who Created Technology We Can't Live Without
Diann Daniel, GE Healthcare, iSixSigma Healthcare
Newsletter and Website, September 24, 2008.
Can't imagine life without e-mail, your cell phone, and the Internet? Luckily, these technology visionaries couldn't either.


Insurers Shift To Customer-focused Predictive Analytics Technologies
Nathan Conz, Insurance and Technology, September 02,  2008.
More than a few insurers these days are beginning to think about their businesses in a fundamentally different way. Technology advances outside the industry have not only changed the way people shop for insurance and other financial products, but also raised the bar in terms of service and support. Customers are expecting more from their insurers than they might have even five or 10 years ago

Process First: Achieving Maximum Product Speed-to-Market
Anthony O'Donnell,  Insurance and Technology, September 01, 2008.
Chicago-based property and casualty insurer CNA (approximately $10 billion in annual premium revenue) is not unique in recognizing a market opportunity — if not necessity — in being able to deliver products to market more quickly. The carrier also resembles its competitors in appreciating product configuration technology as a key success factor in speeding the product development process. Where CNA has distinguished itself is in realizing where that technology fits within the larger picture of product development.

Wingspan Portfolio Advisors Launches to Help Mortgage Lenders Deal with Delinquent Loans
Peggy Bresnick-Kendler, Bank Systems & Technology, September 30, 2008.
Dallas-area mortgage servicing specialist, Wingspan Portfolio Advisors (Carrollton, Tex.), has been formed to now lenders and servicers beset by seriously delinquent loans. The service applies a borrower-focused servicing methodology and is aimed at mitigating losses and helping borrowers achieve full payment status. This results in "re-performing" loans for lenders who appeared unable to save the transactions from foreclosure.

 

Related Blog



Lean Six Sigma and Continuous Process Improvement in Outsourcing
Nari Kannan, Ajira Technologies, Inc. Sourcingmag.com
 

Some Recent Entries:

Process Improvement Opportunities for BPO Service Providers
Web Services and Process Improvement
Why is Process Data Collection Important - And Its Challenges
 


Book Reviews



Business Process Change, Second Edition: A Guide for Business Managers and BPM and Six Sigma Professionals (Paperback)
Paul Harmon, Morgan Kauffman, 2007. Reader Reviews in Amazon.com.

Key Performance Indicators: Developing, Implementing,and Using Winning KPIs (Hardcover)
David Parmenter, Wiley, 2007. Reader Reviews in Amazon.com. .

Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results (Hardcover)
Paul R. Niven, Wiley. 2nd Edition, 2006. Reader Reviews in Amazon.com.

Performance Dashboards: Measuring, Monitoring, and Managing Your Business (Hardcover)
Wayne W. Eckerson, Wiley, 2005. Reader Reviews in Amazon.com. . .


 

Notable Events
 

BPM Think Tank 2008
October 6 - October 7, 2008. Chicago, IL. Object Management Summit.

Global Lean, Six Sigma, and Business Improvement Summit & Awards

October 14 - October 17, 2008. Orlando, FL. WCBF.

The Performance Conference 2008
October 20 - October 22, 2008. Las Vegas, NV. ASMI.

9th Annual Business Process Management Summit
October 27 - October 30, 2008. Las Vegas, NV. IQPC

Harnessing the Potential of Business Process Management
October 28 - October 31, 2008. Sydney, Australia. ARK Group

The 2008 Lean Six Sigma Summit for Service and Transactional Environments
December 11 - December 12, 2008. Washington, D.C. ASMI

10th Annual Lean, Six Sigma, and Process Improvement Summit
January 18 - January22, 2009, Orlando, FL. IQPC

 


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