Sustainability of Business Process Improvement

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Sustainability of Business Process Improvement

• Mr. David Francisco
• Executive Vice President, Operations
• Newmont Mining Corporation

Keynote Speech
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Presentation Outline

• Organizational Values
• Strategic Context
• Leadership and Culture
• BPI Evolution

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Organizational Values

• What great organizations value
• Customers
• Employees
• Communities
• Shareholders

• Integrity
• Excellence
• Leadership
• Stewardship

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Organizational Values

• What sustains organizations
• Industry leadership
• Competence and capacity
• Efficiency and effectiveness
• Employee development
• Teamwork
• Problem solving
• Positive change
• Best practices

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Strategic Context
RISK AND OPPORTUNITY MANAGEMENT
PROCESS DESIGN AND METRICS
KNOWLEDGE MANAGEMENT (BEST PRACTICE)
CHANGE MANAGEMENT
DEFICIENCY IDENTIFICATION AND INVESTIGATION
CORRECTIVE PREVENTATIVE ACTION
COMPLIANCE
STRATEGY

• Strategy drives and filters change
• Strategic gaps drive change initiatives from
  corporate level

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BPI Sustainability
Cultural
Tactical
Strategic
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Organizational Culture Definitions

• Corporate Values What the organization
  regards as important
• Corporate Beliefs What the organization
  believes about the world
• Problem-Solving Methods How problems are solved
• Work Practices How people go about their
  daily work

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Organizational Culture
GENERATIVE Improvement is sustained without
threat.
Increasingly Informed
PROACTIVE Potential of all potential future
threats addressed.
CALCULATIVE Potential of known threats results in
change.
REACTIVE Peer pressure and threat stimulate
change.
Increasing Trust and Accountability
PATHOLOGICAL The individual is out for self.
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Personal Commitment

• Permission
• Lip Service
• Passionate Lip Service
• Involved Leadership
• Integration

RAT E OF CHANGE
Lip Service
Passionate Lip Service
Involved Leadership
Permission
Integration
10
Rewards and Recognition
High Performance/ Low Value
High Performance/ High Value
Low Performance/ Low Value
Low Performance/ High Value
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Systems and Structures

• Systems versus heroes
• Proactive management versus firefighting
• Structure to support BPI
• Business Process Management System
• Identify core business activities (CBAs)
• Define core processes and minimum requirements
• Identify process owners for each
• Define key measures of effectiveness for
  processes
• Continually check performance against set
  measures
• Continually manage projects and processes

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BPI Evolution
GE Success with 6
TQM in Japan
TQM in USA

Motorola 6
Mining Industry starts implementation of BPI

1990s
2000
2003
2004
2005
1980s
1950s