Strategic COPIS Workshop - The CPI (Continuous Permanent … COPIS Workshop presentation.pdf · Traditional SIPOC ApproachTakeaways from the Strategic COPIS Workshop 1. The strategic

The CPi CoachCONTINUOUS PERMANENT IMPROVEMENT

Strategic COPIS Workshop

Arun HariharanASQ 2016 World Conference on Quality & Improvement

Workshop W14

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This presentation was created and used by me for my workshop “Strategic COPIS – designing business processes from the Customer’s angle” at ASQ’s World Conference on Quality and Improvement, Milwaukee, WI, USA; May 16-18, 2016.

The presentation may be re-used with proper acknowledgement.

I will be happy to help any organization by facilitating a similar workshop for them or help them to implement Strategic COPIS.

-Arun Hariharan


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Workshop rating by World Conference participants

The World Quality Conference participants rated the workshop 8.7 on a scale of 10.

Some of the comments by participants are given below:1. "This is a practical session that I plan to use right away. Thank

you for providing this."

2. "Companies often talk about the importance of customers but rarely do they ask customers what is important to them. This session highlighted a process for putting the customers first."

3. "The workshop taught me what it really means to put customers first."

4. "This session exceeded my expectations.“

5. “The workshop taught us to see the connection and interaction among business processes – the macro view.”


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Learning Objectives(these are also the outputs of Strategic COPIS)

1. How to put ourselves in the customer’s shoes.

2. How to identify processes from the customer’s perspective.

3. How to identify relevant performance measurements.

4. How to ensure cause-effect relationship between external (customer-related) and internal (process-related) performance measures.

5. How to avoid non-value adding activities.

6. How to facilitate a similar workshop in your own company / organization.


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Traditional SIPOC ApproachSIPOC

Input Process OutputSupplier Customer


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“Quality is not what the supplier puts in. It is what the customer gets out and is willing to pay for”

-Peter F. Drucker


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The fastest way to reach Six Sigma quality (on paper) is to cut out the customer !


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Traditional SIPOC ApproachSIPOC versus COPIS

Traditional 'inside-out' SIPOC Approach

Input Process OutputSupplier Customer

'Outside-In' COPIS Approach

Output SupplierCustomer Process Input


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Tactical COPIS v/s ‘Strategic’ COPIS


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Traditional SIPOC ApproachTakeaways from the Strategic COPIS Workshop

1. The strategic COPIS template.

2. Step by step guidelines on how to use the strategic COPIS template.

3. The experience of putting oneself in the customer’s shoes.

4. Learn how to facilitate a similar workshop for your own company / organization.

5. Examples of long term results obtained by real companies.


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INPUTS SUPPLIERS AUDIT COMPETITIVE EDGE

Inputs Required from Suppliers (could include

other Functions / Departments)

Internal and External Supplier(s)

(Cross Functional Dependencies)

In-process or Input Measure(s) (Internal Service

Level Agreements

required)

Audit check point(s)

Opportunities for Customer Delight

Opportunities for differentiation against

Competition

- INTERNAL MEASURES - - PROCESS -

Process(es) that will deliver these output(s)

Related Internal

Measure(s)

Definition of 'Defect'

Data source

for Defect

Definition of 'Opportunity for Defect'

Data source for

'Opportunity for Defect'

Sigma Level

Frequency of Internal

Measurement

Process Owner

LEG

END

Blue zone represents Voice of the Process & Internal / Process Quality

related measures

Yellow zone represents Voice of Customers & measures related to Product or Service Quality as experienced by Customers

Delight Zone – opportunities for delivering superior Quality that exceed Customer

expectations

The Strategic COPIS ModelST

AR

T 'Verbatim' feedback /

customer-voice related to this

Process

Frequency of Measurement

Data source for Measure

Voice of Customer / Customer

Satisfaction (CSAT) Measure(s)

Output required by Customer

Customer Experience Point

CUSTOMER SATISFACTIONCUSTOMER REQUIREMENTS


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Strategic COPIS – detailed template with illustrations (manufacturing industry example)

CUSTOMER REQUIREMENTS CUSTOMER SATISFACTION

(A) Customer Experience Point

(B) Output required by Customer

(C) Voice of Customer / Customer


(D) Data source for Measure

(E) Frequency of Measurement

(F) 'Verbatim' feedback /


ProcessTEM

PLA

TE

1. CSAT score or # of complaints on 'Battery quality'

1. Trouble-free working for minimum 3 years

MA

NU

FAC

TUR

ING

EX

AM

PLE e.g. 'Car-

battery Purchase by Customer'

Surveys, Complaints

data,Mystery

Customer

Continuous / Monthly

e.g. “I was promised hassle-free warranty service at the time of

purchase, but now the dealer has made me

make 4 trips … service is poor …"

2. C-SAT score or # of complaints on 'Warranty service

quality'

2. Prompt & hassle-free warranty service


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Strategic COPIS – detailed template with illustrations (contd.)TE

MPL

ATE

MA

NU

FAC

TUR

ING

EX

AM

PLE


(G) Related Internal Measure

(s)

(H) Definition of 'Defect'

(I) Data source

for Defect

(J) Definition of


(K) Data source for


(L) Sigma Level

(N) Process(es) that will deliver these output(s)

(O) Process Owner

(M) Frequency of Internal

Measurement

% of all batteries made last

month that had a defect

% of all warranty service requests that were NOT

completed on time

Manufacturing process

Function / Department

Head responsible for manufacturing


Head responsible for

warranty service

Each warranty service request that is NOT completed

within … hrs.

Each warranty service request

Measurement continuous; Reporting Monthly

Warranty service Process


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Strategic COPIS – detailed template with illustrations (contd.)


(P) Inputs Required from

other Functions / Departments

(Q) Internal and External Supplier(s) (Cross Functional

Dependencies)

(R) In-process or Input

Measure(s) (Internal Service

Level Agreements

required)

(S) Audit check point(s)

(T) Opportunities for Customer Delight

(U) Opportunities for differentiation against

Competition

TEM

PLA

TEM

AN

UFA

CTU

RIN

G

EXA

MPL

E e.g. Timely availability of

service spares inventory with

service locations /

franchisees / dealers

% stock-outsStores / Service department


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Strategic COPIS – detailed template with illustrations(service example)

e.g. 'Mutual Fund Redemption by

Investor'

1. CSAT score or # of complaints on 'Redemption

timeliness'

2. CSAT score or # of complaints on 'Redemption

accuracy'

Continuous / Monthly

CUSTOMER REQUIREMENTS CUSTOMER SATISFACTION

(A) Customer Experience Point

(B) Output required by Customer

(C) Voice of Customer / Customer


(D) Data source for Measure

(E) Frequency of Measurement

(F) 'Verbatim' feedback /


Process

1. On-time payment

2. Accurate amount

Surveys, Complaints

data,Mystery

Customer

e.g. “I got my redemption

payment late …"

TEM

PLA

TESE

RVI

CE

EXA

MPL

E


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Redemption Process


Head responsible for

redemption

TEM

PLA

TESE

RVI

CE

EXA

MPL

E


(G) Related Internal

Measure(s)

(H) Definition of 'Defect'

(I) Data source

for Defect

(J) Definition of


(K) Data source for


(L) Sigma Level

(N) Process(es) that will deliver these output(s)

(O) Process Owner

(M) Frequency of Internal

Measurement

% of all redemption

requests where

payment was delayed

Each redemption request that

is NOT processed

within … hrs.

Each redemption

request

Measurement continuous; Reporting Monthly


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(P) Inputs Required from

other Functions / Departments

(Q) Internal and External Supplier(s) (Cross Functional

Dependencies)

(R) In-process or Input

Measure(s) (Internal Service

Level Agreements

required)

(S) Audit check point(s)

(T) Opportunities for Customer Delight

(U) Opportunities for differentiation against

Competition

e.g. Timely logging of

redemption requests by

Branch offices / Distributors

TEM

PLA

TESE

RVI

CE

EXA

MPL

E % redemption applications not

right the first time

% redemption requests received after cut-off time

Branches / Distributors


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Traditional SIPOC ApproachSample (partial) master-list of business processes

Department Process-Owner Process Number Name of Process

S1 Customer acquisition Process

S2 Lead Management Process

S3 Distributor Query & Complaint Resolution process

S4 Distributor remuneration payout process

Sales Head of Sales

S5 New distributor empanelment process

Products Product-Head P1 New Product Development process

Risk Management Risk Management Head CR1 Underwriting and Credit-risk assessment process

Customer Service Customer Service Head CS1 Customer Query & Complaint Resolution process

O1 Loan Disbursement processOperations Operations Head

O2 Post-disbursement operations Process

C1 Asset repossession processCollection Collections Head

C2 Collection process

H1 Recruitment Process

H2 Payroll Process

H3 Employee separation process

H4 Employee Learning and Development Process

HR HR Head

H5 Performance Management process

Finance & Accounting CFO Finance & Accounting processes

Technology Technology Head Technology processes

… and so on

Traditional SIPOC ApproachHow does strategic COPIS help?

Strategic COPIS provides answers to the following questions:1. WHAT should we do? (Answer: Master list of processes)

2. WHY should we do them? (Answer: Customer requirements)

3. HOW do we know if we are doing it well? (Answer: Performance measurements)

4. What should we stop doing? Strategic COPIS helps us avoid doing anything that is not on the master list of processes, thus cutting out wasteful non-value-adding activities.


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Example of long term business results(Company A’s strategic Quality program – of which Strategic COPIS was the first step - is a

contributor to these results)

COMPANY A

Year ending March 31 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Revenue (US$ Bn) 0.2 0.5 0.8 1.2 1.8 2.8 4.1 5.7 6.3 9.0 10.8 11.7 13.0 13.9

Net Profit (US$ Bn) -0.03 -0.03 0.1 0.2 0.3 0.6 1.0 1.2 1.4 0.9 0.7 0.3 0.4 0.8Customer Base (Mn) 2 3.5 7 12 21 39 64 97 137 221 252 271 296 324

No. of countries where the company operates 1 1 1 1 1 2 5 10 15 18 20 20 20 20

Rank in Industry 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Is among the top 3 companies in the world in its industry by number of customers

-0.020.10.10.02-0.10.10.70.80.5Net Profit (US$ Bn)

1.71.91.91.82.01.92.12.92.6Revenue (US$ Bn)

COMPANY B (a competitor that invested similar capital and resources, but did not practice Excellence)

Year ending March 31st 2007 2008 2009 2010 2011 2012 2013 2014 2015

Customer Base (Millions) 28 46 73 102 136 153 131 119 118

No. of countries where the company operates 1 1 1 1 1 1 1 1 1

20

For Company A, Business Excellence has been a significant contributor to not just the quantum of results, but their long-term sustenance. Notice the relatively higher volatility in Company B, that did not practice Excellence.The CPi CoachCONTINUOUS PERMANENT IMPROVEMENT

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Sample Customer satisfaction scores :Top-2 score comparison factor-wiseCustomer Satisfaction Scores (sample) – Company RM

Year 1 Year 2

RM RM Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Overall Satisfaction score 81 86 83 81 83 84 80

Performance of fund 60 79 65 76 80 80 68

Dividend accuracy & timeliness 87 92 89 85 88 88 82

Account statement 85 90 88 87 89 91 80

Purchase experience 87 93 91 87 89 88 82

Redemption 86 93 89 84 89 92 84

Customer Service/ Call centre 83 90 83 83 86 88 80

= up from previous year= Competitor stronger than RM

= down from previous year= RM stronger than competitor

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Traditional SIPOC ApproachStep by step guide on how to use the strategic COPIS template

1. The application of strategic COPIS is best done through a facilitated workshop attended by the CEO and senior management.

2. Senior managers leading areas that impact customers must definitely participate.

3. During the workshop, they must all put themselves in the customer’s shoes and pretend that they are the customer(this is often easier said than done, but it is critical for the business and is perhaps the most important part of the whole exercise).


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Traditional SIPOC ApproachStep by step guide on how to use the strategic COPIS template (contd.)

4. Start by completing (as a team), the first column of the template 'Customer experience points'. List down in this column, all key 'touch-points' where your customers experience your business, its products or services. Typical experience points for customers could be the initial purchase-experience, ongoing service interactions, contacting customer-service, online transactions, and so on.

5. Once all common experience points are listed, take one experience-point at a time and go all the way to the right of the template, one column at a time. The facilitator should moderate the discussion and help fill the template for each experience point

6. Once the exercise is complete for customers who buy your company’s products or service, it can be repeated for other stakeholders such as distributors, shareholders, employees or other internal customers, regulators and so on.


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7. The output of the strategic COPIS workshop is the complete 'master-list' of processes that the business needs to have and performance measures related to each process. The performance measures will be at three levels – voice-of-customer, process related output measures and in-process measures

8. Before proceeding further, validate the outputs or findings of the workshop with real customers (maybe a sample of customers). This will help ensure that what we think is important for customers is actually so

9. You now have the answers to two strategic questions “What business processes do we need ?” and “What to measure ?”. This is followed by detailed documentation / mapping and implementation of the processes thus identified. Actual adherence to each process is measured through process-compliance audits. These processes are also the foundation for continuous improvement in future.


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10. Put in place the measurements identified through COPIS.

11. The CEO and their leadership team must regularly review the actual performance trend on these measures. Often, the workshop throws up a large number of measures – the CEO must select the “vital few”measures that they will personally review, while more detailed measures pertaining to each process must be monitored by respective process-owners.

12. Strategic COPIS can be applied with significant business benefit by new businesses at their inception-stage or by existing businesses. For existing businesses, the COPIS workshop output must be used to validate their existing processes and performance measures


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Traditional SIPOC ApproachWhat are the next steps?

Once you have the Strategic COPIS output, the next steps are:

1. Implement the processes in the master-list (or validate if these processes are already in place).

2. Question any activity / process that has “always been done”. if it doesn’t figure in the master-list. Possibly it could be eliminated.

3. Put measurement systems in place for the performance measures identified.

4. Review (monthly) Quality dashboards. The ‘vital few’measures must be reviewed by CEO.

5. Make the same performance measures the KPIs of relevant employees, beginning with CEO and senior management.

Learning Objectives (summary / recap)

1. How to put ourselves in the customer’s shoes.

2. How to identify processes from the customer’s perspective.

3. How to identify relevant performance measurements.

4. How to ensure cause-effect relationship between external (customer-related) and internal (process-related) performance measures.

5. How to avoid non-value adding activities.

6. How to facilitate a similar workshop in your own company / organization.



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THANK YOU

Contact me at:Arun Hariharan

Founder & CEO, The CPi Coachwebsite: cpicoach.webs.com

email: [email protected]: www.linkedin.com/profile/view?id=229756981

Need help facilitating the Strategic COPIS workshop or implementing Strategic COPIS in your organization?

I will be happy to help.

Author of:

1. Continuous Permanent Improvement (ASQ Quality Press 2014)

2. The Strategic Knowledge Management Handbook (ASQ Quality Press 2015)

3. Humor in Quality (KDP 2015)


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Strategic COPIS Workshop - The CPI (Continuous Permanent … COPIS Workshop presentation.pdf · Traditional SIPOC ApproachTakeaways from the Strategic COPIS Workshop 1. The strategic

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