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July 2008

Online Version of This Newsletter

Welcome

This issue’s BPM section highlights the importance of Process. One of the articles highlights that while Process won’t be found on the balance sheet, in the new Information Age world it should be regarded as a key corporate asset. What is important is “what, how, when and who”, and a process centric approach captures and documents that information. In another article, researchers from Australia highlight their learnings from the BPTrends community on the issue of moving from a functional to a more process centric organization. While the need for process is clear to most, other articles focus on the need and benefits in establishing a separate business process department; managing the risk in new processes; and, bringing structure and standardization to knowledge work.

Interesting articles in the Outsourcing section include one by Ajira on Harnessing Technology for Effective Collaboration in KPOs; applying Six Sigma to sales and marketing efforts can result in even bigger payoffs that applying this approach to operations processes; reducing wait times in processes; and applying six sigma to measure the sigma level of customer complaints. Other relevant news includes how some of the BPOs are now launching operations and establishing bases in their clients’ backyards.

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



Human Processes: The $650 Billion Problem
Keith Harrison-Broninski, BPTrends Newsletter and Website, July 01 2008.
Keith Harrison-Broninski contends that globalization, reduction in labor demand, and worldwide recession are leading to a sea change in collaborative knowledge work. Read his compelling analysis of the impact these major market forces will inevitably have on knowledge workers and what managers can do to optimize the performance of their staff in this challenging business environment.

Transitioning From Functional Silos to Process Centric - Learnings from Australian Organizations

Tonia de Bruin, Gaby Doebeli, BPTrends Newsletter and Website, June 03, 2008.
Tonia de Bruin and Gaby Doebeli, along with other members of the BPTrends FORUM in Brisbane, Australia, wanted to know how organizations have gone about transforming from functional to process centric organizations. They conducted workshops and research among organizations from a cross section of industries representing both large and small organizations, and organizations in both the public and private sectors. Read their Article to learn the results of their work and, perhaps more importantly, the questions that were raised.

The Five Implementation Options to Manage the Risk in a New Process

Daniel J.Madison,Value Creation Partners, BPM Institute Website and Newsletter,May 20, 2008.
How do you manage the risk and uncertainty concerning a new process design? Below are five options ranging from low-risk suggestions to ones that imply higher risks.

Process as an Asset
Christine Dicken, Kirk Gould, BPTrends Website and Newsletter, July 01, 2008.
Kirk Gould and Christine Dicken ask, “Where is the tipping point in moving from Industrial Age values to Information Age values?” They present a strong argument that people and processes should replace buildings, machines and equipment as the more valuable assets in an organization. This Article is a must read for anyone interested in this timely topic.

Do you need a Business Process Department?
Ricardo Puzaro, BP Trends Newsletter and Website, July 01, 2008.
To meet the potential promised by BPM, Ricardo Fuzaro proposes that organizations establish a Business Process Department, Here he describes the services such a department would perform to benefit the entire organization. Read his Article for useful suggestions regarding how to establish a BPM team in your company.

Case Studies of Excellence through Management by Process
John Jeston, Johan Nelis, BPTrends Website and Newsletter, July 01, 2008 
John Jeston and Johan Nelis have elaborated previously on their thesis that high performance is sustained through two inextricable components—managing business processes and inspiring leadership. They continue their discussion this month by presenting four case studies that illustrate this principle. You can learn the process challenges each organization faced and how they worked through them to arrive at highly successful outcomes.

Don't Underestimate the Importance of the Business Process Model to Your System Replacement
Sandra Lusk, BPM Institute Newsletter and Website, June 05, 2008.
The reasons to replace an existing system may be technical in nature such as upgrading the platform or notice that key software will no longer be supported by the vendor. Or, it may be due to changing business conditions and the need to respond quicker in an increasingly more dynamic market and customer demands. In these cases, the decision to replace the system is often accompanied by a mandate that there be no change to the underlying business process. The intent being that the user will perform essentially the same tasks but with a different tool. This focus on the technology could lead to the assumption that analysis and documentation of the underlying business processes need not be performed.

Measuring Six Sigma Results in the Healthcare Industry
Carolyn Pexton, GE Medical Systems, iSixSigma Newsletter and
Website, June 5, 2008.
In 1998, an oft-cited article asked, "Is Health Care Ready for Six Sigma?" There has been a decade of Six Sigma experience since then, and the short answer is yes. For a more in-depth answer to that question, practitioners should examine: how Six Sigma and related improvement methods have been deployed within the healthcare environment, what kind of results have materialized, which factors might have contributed to the level of success they have seen, and what lies ahead for the industry.
 


Business Process Outsourcing Articles



KPO 2.0: Harnessing Technology For Effective Collaboration
June 2008 Newsletter - Click Here for the Article Alone.
Nari Kannan, Ajira Technologies, Inc.KPO News- LPO Watch Newsletter and Website, June, 2008.
Technology provides a unique opportunity for KPO Service Providers to leverage the Internet to construct Global Collaborative Portals for efficient and effective execution of Knowledge Tasks such as Market Research, Financial Research or Legal Process Outsourcing. However World Class Collaborative Portals need many aspects such as Security, Availability, Reliability to be addressed properly. This article outlines what these issues are and how to get KPO 2.0.

15 Criteria for Selecting a Viable DMAIC Project
Tej Meriyappa, T-Logic Training and Consulting, ISixSigma Newsletter and Website, June 5,  2008.
As anyone involved in Six Sigma knows, selecting the right project is a critical component of project success. If practitioners do not put enough effort into selecting the right opportunity for improvement, a project can end in disaster, or create unnecessary work and complexity for the project team. Selecting projects with just a few obvious inputs or simply selecting the squeakiest wheel are not always the best methods. These strategies may work at times, especially in tackling the low-hanging fruit, but a more structured approach is required when priorities are not so obvious.

Adding Science to the Art of Sales Boosts Effectiveness
Steve Crom, Valeocon Consulting, iSixSigma Europe Newsletter and Website, June 25, 2008.
A predominantly sales- and marketing-driven company shows that not only does Six Sigma apply to sales and marketing, but the benefits are twice as great as one normally experiences in applying Six Sigma to operations processes. Along the way, the author also busts several common myths about what drives sales, including theories about pricing, professional education and sales call planning.

Three Elements of a Deployment Governance Framework

Bryan Carey, iSixSigma Finance Newsletter and Website, June 25, 2008.
The ultimate goal of any Lean Six Sigma program is to achieve operation and execution excellence, which can only come about through a well-thought-out and executed deployment governance framework. A governance framework enables an organization to more rapidly implement positive change by establishing team structure, focusing on knowledge transfer and enabling people.

Finding the Sigma Level of Customer Complaints

J.Ravichandran, iSixSigma Europe Newsletter and Website, June 30,  2008.
In the beginning of a deployment, many companies set a goal of 3.4 defects per million opportunities (DPMO) using Six Sigma quality concepts in production, and later extend this concept to other operational areas. Fewer companies, however, have extended Six Sigma from a manufacturing application to manage customer satisfaction or customer complaints. But it is possible to measure the sigma level of customer complaints, and this information can be valuable when making improvements in that area.

Identify Constraints and Reduce Wait Time in Processes
Kamran Khan, iSixSigma Newsletter and Website, June 23,  2008.
It is important to identify and understand bottleneck resources before making improvement decisions. This can be done by creating simple value stream maps that factor in the average wait time, inventory and the cycle time for each step of a process. Once the value stream map is available, practitioners can choose from several options for eliminating the constraints, including improving bottleneck resources, triaging, processing in batches and limiting the amount of rework.
 


Notable News



Why Don't Managers Think Deeply?
Jim Heskett, Harvard Business School - Working Knowledge Newsletter and Website, June 6, 2008.
What is your organization—and what are you—doing to bring more deep thinking into work and life? According to respondents to this past month's column by Jim Heskett, providing time to reflect, particularly in an era of multi-tasking and the tyranny of technology, was most frequently suggested as an antidote to the dearth of deep thinking.

Reverse Offshoring: Trend Or Strategy?
Tholons Services Globalization Newsletter and Website, June 2008.
As the offshore outsourcing industry continues to mature, a question becomes increasingly relevant, “Are we seeing a trend of geographical reversal in the technology-based services industry, like other technology-oriented businesses have witnessed in the past?” Indian firms who succeeded in offshoring are now hiring employees, launching operations and establishing base in their clients’ own backyards. This paper tries to understand the motive of these firms and this phenomenon.

The Next Step In Open Innovation
The McKinsey Quarterly Newsletter and
Website, June, 2008. (Free Registration Required)
The creation of knowledge, products, and services by online communities of companies and consumers is still in its earliest stages. Who knows where it will lead?

Coaching Style Matters in Managing Millennials
Tevis Gale, CIO Insight Newsletter and Website, June 24,  2008.
Perks pale in comparison to challenging job responsibilities for Gen Y employees. Learning coaching basics can make the difference between mere compliance and active contribution and problem solving.

The Hiring Manager Interviews: Alan Etterman Shares His Sensible Hiring Practice
Bill Lepiesza, CIO Insight
Newsletter and Website
, June 16, 2008.
The CIO of JDS Uniphase doesn't aim to get the perfect hire every time, and neither should you. In this Q&A, Alan Etterman explains why.


Insurers Seek Energy Efficiency Through Virtualization
Anthony O'Donnell, Insurance and Technology, May 23,  2008.
In the face of energy availability and cost challenges and consumer pressure to be good corporate citizens, insurers are greening their enterprises, with a focus on the area of greatest consumption: the data center.

Banks Must Rely On Their Own Risk Models in Future
Chris Thompson, Tom Mataconis, Accenture,  Bank Systems & Technology, June 24, 2008.
There doesn't seem to be light at the end of the credit crisis tunnel just yet for banks. The rates of new foreclosures and delinquent payments have surged to their highest levels in nearly 30 years, affecting homeowners with prime as well as subprime credit. Federal bank regulators are warning of a new wave of losses in some sectors, particularly residential construction loans.  Bankers, understandably, are focusing on getting through the short term. But longer-term, it's clear that banks will have to provide more transparency into their credit and risk decisions -- and do a lot more of the work themselves.

The Credit Crisis Leaves Far-Reaching Consequences for the Banking Industry
Peggy Bresnick Kendler, Bank Systems & Technology, June 24, 2008.
The global credit crisis is driving more-intense regulatory scrutiny and an increased focus on risk management, which, in turn, will trigger enormous changes in banks' cultures, processes and staffing practices. As a result of the changing environment, banks of all sizes must transform their lending, underwriting and credit risk management practices. What regulatory changes should banks consider as they develop transformation strategies, and how will these changes impact the business? What are some of the likely staffing and workforce issues banks must address? And what types of solutions -- outsourced or otherwise -- are banks likely to deploy to help them adapt to the new landscape?

 

Related Blog



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

Some Recent Entries:

Approach to BPM Adoption - Europe Vs. The U.S
Number 1 Enemy Of Process Improvement - Organizational Reality
Business Process Improvement is #1 Priority for CIOs in 2008!
 


Book Reviews



The Strategos Guide to Value Stream and Process Mapping
Quarterman Lee, Brad Snyder
, Enna Inc., Paperback 2007.

Process Mapping, Process Improvement, and Process Management
Don Madison, Paton Press, Paperback 2005. Reader Reviews in Amazon.com.

Mapping Work Processes
Bjorn Andersen, ASQ Quality Press, 2008, Reader Reviews in Amazon.com.


Enterprise Process Mapping: Integrating Systems For Compliance And Business Excellence
Charles G.Cobb
, ASQ Quality Press, 2004.  Reader Reviews in Amazon.com.


 

Notable Events



The 8th Annual Shared Services for Finance and Accounting
July 14 - July 16, 2008. Cambridge, MA. IQPC

Leonardo Process Days '08
August 12- August 15, 2008. Sydney. Australia. Leonardo Consulting

Shared Services Week Asia Summit 2008
August 19- August 20, 2008. Singapore. IQPC

3rd Annual Service Level Agreements Conference- Operationalizing Your Contract
September 29 - October 1. JW Marriott. Mumbai, India.  Infor-Media India.
Nari Kannan, CEO, Ajira Technologies, Inc will present the topic "A Framework for Business Process Outsourcing Governance" at this conference.

Business Process Management Conference Europe 2008
September 29- October 1, 2008.  London. IRM UK.

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

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

October14 - October 17, 2008. Orlando, FL. WCBF.

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


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