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April 2009

Online Version of This Newsletter

Welcome

This issue features a number of articles that highlight the impact of applying Six Sigma techniques, innovation, human and financial resource allocations to Process Improvement efforts themselves. An interesting article on the “Power of Dashboards” highlights how dashboards are about making the connection between execution and strategies, and helping executives to remain focused on the Outcomes that they are driving, and the Tactics that they are pursuing to reach the goals that they have set.

Rapid changes in the India Outsourcing industry and cost pressures, new global outsourcing hot spots, and increasing opportunities in the Newspaper Industry and Research KPO are also highlighted in numerous articles. Several articles focus on the application of Lean Six Sigma techniques in the Healthcare industry, in areas such as surgical services and medical imaging.

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



Doing More with Less
Martin Wurtzel, Wurtzel Consulting, BPMInstitute Newsletter and Website, February 20, 2009.
Today’s challenge to increase productivity with fewer resources has lead to numerous methodologies and toolkits to help organizations meet their objectives and become more profitable and effective. This certainly makes the case for applying two well known and proven methodologies Business Process Management (BPM) and Six Sigma.

Aligning Strategy and Execution
Stephen G. Smith, BPMInstitute Newsletter and Website, March 12,  2009.
Strategy [strat’-i-jee]: a plan, method or series of maneuvers or stratagems for obtaining a specific goal or result. Execute [ek’-si-kyoot]: to produce in accordance with a plan or design. Clearly, the two ideas are closely related; one involves setting a plan and the other involves putting the same plan into motion. Simple enough. Yet, why is it that so many companies fail to make the connection?

The Process Imperative

John Pyke, BPM.com Website and Newsletter, February 15, 2009.
The economic turmoil, globalization and the changes in the New World Order means that organizations cannot afford to waste time, human and financial resources on processes that can rapidly and easily be automated and managed. Businesses need to transform themselves into agile operations capable of turning a constantly changing business environment into opportunities. Process innovation and speed of change are the key opportunities for competitive differentiation moving forwards. Traditional IT solutions are finding themselves under stress as the struggle to meet the demands of the business leaders and customers they serve. 

Lessons from Crusoe on Project Resource Allocation
David Lengacher, iSixSigma Newsletter and Website, March 30, 2009.
A major contributing factor in determining whether organizations thrive or fail is the seriousness with which their management approaches the allocation of resources for improvement projects. Although organizations usually consider the projected savings, timeliness of payback and probability of success when selecting projects to receive resources, they also may benefit from examining and making comparisons to high-performing projects completed in the past. This look at past projects can be aided by data envelopment analysis. An example drawing on castaway Robinson Crusoe and island resources may help practitioners better understand this technique.

Banking: The Interest in BPM
Jyoti Bhat
, Jude Fernandez, Infosys technologies, BPTrends Newsletter and Website, March, 2009
Banking case studies, surveys, and related studies around the globe reveal the popularity of BPM within the banking industry. Banks have reported a 40%-50% improvement in cycle time, efficiency, and cost, due to BPM adoption. Account opening processes, compliance to regulations and standards, and the automation of paper-based processes are some of the more common scenarios for BPM adoption in banks. Adoption of BPM by Indian banks is along similar lines, with some unique characteristics and challenges.

Power of Dashboards: Linking Strategies and Execution
Steve Crom
, Valeocon Management Consulting, iSixSigma Europe Newsletter and Website, March 18, 2009
How does one strike the right balance between setting strategy and driving tactics? An interview with a business leader shows how dashboards were implemented at his company in order to make the connection between execution and strategies.

Six Sigma and Enterprise Risk Management
Michael Young, iSixSigma Newsletter and
Website, March 4, 2009.
Much has been written about the increasing uncertainty enterprises face due to globalization, restructuring, changing markets and increased competition. An increased call for transparency is causing organizations to focus on the benefits of enterprise risk management (ERM). Leading companies are using the methods and tools of Six Sigma to improve existing processes so they can better incorporate and generate information regarding risk.

Continuous Improvement Should Apply to DMAIC Itself
Bryan Carey, DeLeeuw Associates, iSixSigma Newsletter and
Website, April 1, 2009.
All practitioners of Six Sigma - even those new to the methodology - are aware of the basic DMAIC roadmap. The starting point for every Six Sigma program is to explain the acronym and to teach the common principles of DMAIC. "Define, Measure, Analyze, Improve and Control" becomes the mantra for new Green Belts and Black Belts. However, Six Sigma's DMAIC roadmap is a process unto itself that can be - and should be - improved in each organization that uses Six Sigma as a critical component of continuous improvement and quality initiatives.
 


Business Process Outsourcing Articles



Next Global Outsourcing Hot Spot: Egypt
Bob Evans, InformationWeek Newsletter and Website, February 11 2009.
Indian IT and BPO firms looking for new sources of affordable talent are expanding into Egypt -- Wipro's already doing some IT and BPO work there, as are Microsoft, IBM, Vodafone, Orange, Valeo and Teleperformance. So it's good to know that while Egypt faces significant social challenges, a recent study on economic freedom around the world finds that Egypt's business climate is improving.

Newspaper Industry Creates Offshoring Opportunities
The ValueNotes Newsletter, and Website, March 18,  2009.
Globally, the print newspaper industry has shown varying growth trends across geographies over the last few years. While the Asian economies are registering a growth in consumption, thanks to rising literacy levels, the US and European economies are witnessing a secular downward trend in newspaper circulation. The pressures on newspaper companies in the developed economies have intensified to a point that their fundamental positioning is under a severe threat.

The Indian BPO Industry: Surviving Odds
The ValueNotes Newsletter, and Website, March 4,  2009.
Even as the Indian BPO industry established strong growth trends over the last few years, the journey has not been easy. The industry encountered several hurdles like outsourcing backlash in the US, data security and fraud issues as well as rising cost pressures before gaining a strong foothold on the global outsourcing map. Now with Obama’s announcement to end tax breaks for companies that offshore jobs, the industry is again faced with a major concern.

Offshoring to be an Integral Part of the MRO Value Chain
The ValueNotes Newsletter and Website, March 10, 2009.
Close to two-thirds of the research agencies are already offshoring to companies in India, Eastern Europe and Latin America, according to the recent survey of market research agencies from various international markets released conducted by ValueNotes. While the large multi-national research agencies have always been outsourcing, the smaller firms with revenues typically less than $10 m are rapidly adopting offshoring. The survey revealed that with rising competition, research agencies (especially the smaller agencies) are increasingly using offshoring to gain competitive advantage.

Using DFSS to Improve Offshore Outsourcing Efficiency
Bruce J. Hayes, Six Sigma Advantage, iSixSigma Newsletter and Website, March 11, 2009.
Offshore outsourcing of software development work has been an emerging trend for about a dozen years. Using Design for Six Sigma (DFSS) is one way that software organizations can make better decisions about how, when and how much to deploy offshore.

From Dojo to Office: Training Lessons from Martial Arts
Niraj Goyal,  iSixSigma Newsletter and Website, March 9, 2009.
Failed Six Sigma efforts often are attributed to ineffective training of Black Belts and Master Black Belts. But there is a more fundamental issue at hand: the training and experience requested of Black Belts. It may be time to reconsider the typical certification process in order to produce expert Belts and lower the odds of failed Six Sigma efforts. For comparison, consider what's required of Belts in the martial arts.

Set SMART Goals to Better Manage Time
Julie A. English, E. Lynn Lanoue,  The Leadership Cooperative, iSixSigma Newsletter and Website, March 16, 2009.
Time management is a common sore spot among Six Sigma practitioners. Many feel an imbalance between time spent on daily responsibilities like Six Sigma projects and their personal life. Luckily, DMAIC can help practitioners keep tasks and priorities in check. Using a version of the well known roadmap, they can create goals and a plan of action for a more fulfilling use of their time.
 


Notable News



Can Offshore Outsourcing Vendors Innovate?
Arpit Kaushik, CIO Insight Newsletter and Website, March 23, 2009.
For quite a while, every offshore outsourcing service provider has cited lower costs as a reason to outsource--the latest "news" is innovation as their key differentiators. But, what is their definition of "innovation"?

9 Alternatives to Indian Outsourcing
Ericka Chickowski, CIO Insight Newsletter and Website, March 26,  2009.
India is home to the most mature IT outsourcing companies of all offshore host countries, but no place is perfect. Indian outsourcing firms may not suit a company due to rising costs as the Indian market matures, culture and language issues, and even time zone issues. And some enterprises are looking for a way to diversify their sourcing portfolios. The following ten countries are hotspots of ATI, or alternatives to India.

Reducing Avoidable Cancellations on the Day of Surgery
Kimberly A.Johns, Deaconess Healthsystem,
iSixSigma  Healthcare Newsletter and Website, March 24,  2009.
With an objective of accommodating continued growth in surgical service without adding new rooms and resources, a Six Sigma team at Deaconess Hospital took aim at reducing the number of same day surgical cancellations. Lean value stream mapping helped the project team to validate areas with the greatest potential, while Work-Out sessions allowed frontline staff to identify the best improvement strategies. As a result of the project, the hospital maximized surgery volume, raised customer (physician and patient) satisfaction and increased annual net revenues by $1 million.

Applying Transactional Lean at Medical Imaging Firm
Benjamin Hahlen, Susan Mahoney, iSixSigma Healthcare Newsletter and
Website, March 10,  2009.
University Medical Imaging (UMI) in Brighton, New York, USA successfully implemented a Lean and Six Sigma transactional process improvement and training program when delays and other issues began to affect patient satisfaction. Through an initial scoping process, report turnaround time surfaced as a key factor affecting delays and satisfaction. A project to address this issue began with the selection of team members and the development of a project charter. Through data, voice of the customer (VOC) information and short brainstorming sessions, the team was able to list, rank and categorize factors that could lead to variation or inefficiencies in the report generation process.

Using Same Base for BPOs not Feasible
Harsimran Singh, Indiatimes Infotech Website, April 6, 2007.
Global and domestic BPO businesses are as distinct as chalk and cheese or night and day. In fact, the differences are so stark that companies hoping to share infrastructure for the twin operations (domestic and global) may find it better to separate the two rather than try to blend the two. Experts point out that the experiment of working international at night and domestic BPO operations in day from the same facility has not worked.


Despite Downturn, Insurers Remain Committed to Core Systems Evolution
Anthony O'Donnell, Insurance and Technology, April 1,  2009.
Despite the gloom that has consumed the financial services industry, most insurance companies remain bullish on technology investment and many are looking to build out policy admin capabilities to position themselves for growth as the economy emerges from the recession.

The Latest Offshoring Destination? The Seychelles
Orla O'Sullivan, Bank Systems and Technology, March 27,  2009.
The Republic of Seychelles, better known as the Seychelles islands, is the latest nation bankrupted by the global crisis—in response to which it is promoting itself as an 'offshoring' destination. Banks, particularly, have embraced the trend to use workers in less expensive labor markets off shore, and offshoring is one of the few areas of business expected to thrive in reaction to the crisis.

KeyBank Cuts Operating Costs Through Better Document Management
Maria Bruno-Britz, Bank Systems & Technology, March 6, 2009.
Cleveland-based KeyBank turned to automation and paper elimination technology from Xerox (Rochester, N.Y.), ultimately saving the bank $6 million in operating costs over six years.

 

Related Blog



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

Some Recent Entries:

Ease of Implementation Vs Payoffs in Lean Improvement
Eliminating Time Wasted Looking for Things
Process Improvement in Tough Times
 


Book Reviews



Offshore Outsourcing: Business Models, ROI and Best Practices
Marcia Robinson, Ravi Kalakota, Mivar Press, 2004. Reader Reviews in Amazon.com.

The Outsourcing Handbook: How to Implement a Successful Outsourcing Process
Mark J.Power,Kevin Desouza, Carlo Bonifazi, Kogan Page, 2006. Reader Reviews in Amazon.com.

Business Process Outsourcing: Process, Strategies, and Contracts
John K.Halvey, Barbara Murphy Melby, Wiley 1999. Reader Reviews in Amazon.com.

Business Process Outsourcing: The Competitive Advantage
Rick L. Click, Thomas Duening, Wiley, 2004. Reader Reviews in Amazon.com.


Notable Events

10th Annual Process Excellence Summit London
April 21 - April 22, 2009, London, UK. IQPC

10th Business Process Management Summit
April 27 - April 29, 2009, Miami, FL. IQPC

9th Annual Shared Services & Outsourcing Week
May 11 - May 14, 2009, Budapest, Hungary, IQPC

Leonardo Process Days  2009
Aug 3 - Aug 6, 2009, Sydney, Australia, Leonardo Consulting

BPM Summit and Awards  2009
Aug 25 - Aug 27, 2009, Johannesberg, South Africa, ITWeb


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