BOOZ ? ALLEN

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BOOZ ? ALLEN HAMILTON Management Consulting
Better Business Through Better Decision Making
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Presentation Outline
1 2 3 4
Introduction Overview of Booz Allen
Hamilton Reengineering Methodology Deliverables

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Introduction
Introduction
Why youre here
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What were going to accomplish today
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Presentation Outline
1 2 3 4
Introduction Overview of Booz Allen
Hamilton Reengineering Methodology Deliverables

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Overview of BAH
BAH Business Solutions
Pricing Fee Structuring
Business Decision Analysis
Cost Estimating Modeling
Performance Measurement

• Contract Price Negotiations
• Cost Realism / Should Cost Realism

• Business Case Analysis
• Cost/Benefit Analysis
• Cost/Performance Trade
• Feasibility Studies
• Business Process Reengineering
• Lease/Purchase Trade-offs
• Return on Investment

• Cost Risk Analysis
• Independent Cost Estimates
• Life Cycle Cost Estimates

• Activity Based Costing
• Earned Value Management
• Outcomes-based Performance
  Measurement / Benefits Capture

Economic Analysis

• Infrastructure Assessments
• Outsourcing / Privatization

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Presentation Outline
1 2 3 4
Introduction Overview of Booz Allen
Hamilton Reengineering Methodology Deliverables

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Reengineering Methodology
Reengineering Methodology Overview
Implement
Start
Analyze Issues and Drivers
Diagnose and Plan
Design and Blueprint
Departmental Review
Adjust Efforts
8
Reengineering Methodology
Methodology - Divisional Input

• Participate in team meetings
• Baseline current processes (as-is
• analysis)
• Reengineer processes (to-be
• analysis)
• Identify service productivity
• measures
• Recommend the Most Efficient
• Organization (MEO)

Start
Analyze Issues and Drivers
Diagnose and Plan
Departmental Review
Design and Blueprint
Implement
Adjust Efforts
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Reengineering Methodology
What is a Process Map?

• it is a picture of a business process or system
  sufficiently detailed to facilitate meaningful
  improvements
• Process A series of interrelated activities
  which convert inputs into results processes
  consume resources and require standards for
  repeatable performance processes respond to
  control systems which direct quality, rate and
  cost

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Reengineering Methodology
Grocery Shopping Process
Generate Shopping List
Plan Next Weeks Menu
Inventory Pantry Cabinets and Refrigerator
Enter Grocery Store
Buy Fruits and Vegetables
Repeat this step as necessary
Check Out with Cashier and Groceries Bagged
Buy Meat and Dairy Products
Buy Bread and Miscellaneous Snacks
Restock Pantry Cabinets and Refrigerator
Update Shopping List
1
4
Mandate - Biological Requirement - must feed
children
Total - 8,912/Labor - 1,912/Overhead -
1,500/Other - 5,500
Quality Measures - trips with 100 complete
list, weeks able to complete menu without a
return trip, saved per week with coupons
5
2
Output - Stocked pantry, cabinets, and
refrigerator
Time - Normal trips average 2 hours Special
holiday trips average 3 hours Return trips
average 1.1 hours
6
3
Frequency - 60 in FY 98 (once per week plus eight
trips for holidays)
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Reengineering Methodology
Uses of Process Maps
Gather data for measuring improvements
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Identify barriers/potential problems at interfaces
2
Identify causes of bottlenecks
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Identify points to fix/develop action plans
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Reengineering Methodology
Steps in Process Mapping
Identify a specific start and stop for the process
1
Identify the process owner
2
List all activities that occur between those two
points
3
Copy all activities on sticky notes
4
Arrange activities in sequential order
5
Identify decision points and alternate paths
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Reengineering Methodology
Steps in Process Mapping
Check for completeness and accuracy
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Understand your process
8
Define your process
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Look for invisible processes
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Reengineering Methodology
Caveats
Map the as-is process not the to-be or
should-be
1
Need consensus from stakeholders
2
Dont expect one session to be enough
3
Check all shifts and locations for any anomalies
4
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Reengineering Methodology
Methodology - Divisional Input

• Participate in team meetings
• Baseline current processes (as-is
• analysis)
• Reengineer processes (to-be
• analysis)
• Identify service productivity
• measures
• Recommend the Most Efficient
• Organization (MEO)

Implement
Start
Analyze Issues and Drivers
Diagnose and Plan
Departmental Review
Design and Blueprint
Adjust Efforts
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Reengineering Methodology
Process Improvement
There is nothing so useless as doing efficiently
that which should not be done at all. Peter
F. Drucker
Goal To do the right things right!
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Reengineering Methodology
Grocery Shopping Process
Generate Shopping List
Plan Next Weeks Menu
Inventory Pantry Cabinets and Refrigerator
Enter Grocery Store
Buy Fruits and Vegetables
Repeat this step as necessary
Check Out with Cashier and Groceries Bagged
Buy Meat and Dairy Products
Buy Bread and Miscellaneous Snacks
Restock Pantry Cabinets and Refrigerator
Update Shopping List
1
4
Mandate - Biological Requirement - must feed
children
Total - 8,912/Labor - 1,912/Overhead -
1,500/Other - 5,500
Quality Measures - trips with 100 complete
list, weeks able to complete menu without a
return trip, saved per week with coupons
5
2
Output - Stocked pantry, cabinets, and
refrigerator
Time - Normal trips average 2 hours Special
holiday trips average 3 hours Return trips
average 1.1 hours
6
3
Frequency - 60 in FY 98 (once per week plus eight
trips for holidays)
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Reengineering Methodology
Grocery Shopping Process - Detailed
Inventory Pantry
Plan Which Stores to Visit and in What Order
Compare Inventory to Menu Requirements
Inventory Cabinets
Plan Next Weeks Menu
Enter Store
Buy Fruits
Buy Vegetables
Inventory Refrigerator
Repeat this step as necessary
Buy Candy
Pay Bill
Determine Approval Requirements
Cashier Rings Up Bill
Buy Meats
Buy Dairy Products
Buy Bread and Chips
Enter Check Out Line
Load Car
Bag Groceries
Buy Ice Cream
Restock Pantry
Update Shopping List
Restock Cabinets
Restock Refrigerator
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Reengineering Methodology
Process Improvement
Identify potential bottlenecks, barriers, and
breakdowns
1
Cycle time analysis
2
Analysis of wait time
3
Inspection possibilities
4
Assessment of customer expectations/requirements
5
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Reengineering Methodology
Bottlenecks, Barriers, and Breakdowns
At each process step (activity) answer the
following questions
1

• What could go wrong?

• What is going wrong?

• How is this activity affected by previous
  activities?

• How does this activity affect subsequent
  activities?

Use this analysis to develop an extensive list of
possible reengineering candidates
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Reengineering Methodology
Cycle Time Analysis
Which activities take the longest to complete?
1
Why?
2
Is staffing adequate?
3
Is training adequate?
4
Can the activity be simplified, combined with
another activity, or eliminated?
5
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Reengineering Methodology
Analysis of Wait Time (Queues)
Where do delays occur?
1
Why?
2
Is capacity sufficient for peak demand?
3
Should it be? (cost effectiveness)
4
Can you develop contingency plans or resources to
satisfy peak demand?
5
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Reengineering Methodology
Inspection Possibilities
Where are problems discovered?
1
Where do they actually occur?
2
Would a formal inspection early in the process be
helpful?
3
Can problems be prevented?
4
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Reengineering Methodology
Customer Expectations/Requirements
What are our customers needs?
1
Are they being met?
2
Does the customer think they are being met?
3
What is most important to our customers?
4
What is least important to our customers?
4
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Reengineering Methodology
Methodology - Divisional Input

• Participate in team meetings
• Baseline current processes (as-is
• analysis)
• Reengineer processes (to-be
• analysis)
• Identify service productivity
• measures
• Recommend the Most Efficient
• Organization (MEO)

Implement
Start
Analyze Issues and Drivers
Diagnose and Plan
Departmental Review
Design and Blueprint
Adjust Efforts
26
Reengineering Methodology
Why Measure Service Productivity?
Gain Insights and make judgements about
effectiveness and efficiencies
1
Measure Progress Toward Meeting Strategic Goals
and Objectives
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Drive Continuous Improvements in the Organization
3
Translate Strategy into Action
4
Support Resource Allocation Decisions
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Support Process Reengineering Decisions
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Support Annual Performance Planning
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Reengineering Methodology
The Service Productivity (SP) Process Model
Strategic Plan
Improve Processes
Establish and Update SPMs
Evaluate and Use Information
Establish Accountability
Measure Service Productivity
Analyze and Review Data
Service Productivity Feedback Loop
Customers Input
Service Productivity Reporting
Stakeholders Input
Management Priorities
Management Decisions
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Reengineering Methodology
Establish and Update SP Measures

• If a task can be performed,
• it can be measured.
• Edwin Booz
• Measure the right thing
• Choose a measure that is central to the
• process
• Define targets, minimums, or
• maximums for each measure

Strategic Plan
Improve Processes
Evaluate and Use Information
Establish Accountability
Measure Performance
Analyze and Review Data
Establish and Update SPMs
Performance Feedback Loop
Customers Input
Service Productivity Reporting
Stakeholders Input
Management Priorities
Management Decisions
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Reengineering Methodology
Establish and Update PMs

• Common measures
• financial performance
• customer satisfaction
• internal business operations
• employee satisfaction
• community and stakeholder
• satisfaction
• time performance
• quality measures
• efficiency measures
• quantitative measures
• Avoid data overload

Strategic Plan
Improve Processes
Evaluate and Use Information
Establish Accountability
Measure Performance
Analyze and Review Data
Establish and Update SPMs
Performance Feedback Loop
Customers Input
Service Productivity Reporting
Stakeholders Input
Management Priorities
Management Decisions
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Reengineering Methodology
Establish Accountability

• What gets measured, gets done.
• Common Sense
• Foster buy-in from employees and
• managers by establishing ownership
• Formalize ownership of measures
• Establish responsibilities for data
• collection, reporting, and analysis
• Establish a contract
• manager provides a supportive
• environment
• employee provides results
• Empower employees with the authority
• to make decisions and solve problems
• related to the results for which they
• are accountable

Strategic Plan
Improve Processes
Establish and Update SPMs
Evaluate and Use Information
Measure Performance
Analyze and Review Data
Establish Accountability
Service Productivity Feedback Loop
Customers Input
Service Productivity Reporting
Stakeholders Input
Management Priorities
Management Decisions
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Reengineering Methodology
Keys to Success
Collect data for as is service productivity not
should be service productivity
1
Service productivity measures should be accepted
by, and meaningful to, the customer
2
Service productivity measures should be simple,
understandable, and logical
3
Service productivity measures should be
unambiguously defined
4
Service productivity measures should allow for
economical data collection
5
Establish realistic service productivity goals
to avoid de-motivation
6
Good service productivity measures drive
appropriate action
7
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Reengineering Methodology
Methodology - Divisional Input

• Participate in team meetings
• Baseline current processes (as-is
• analysis)
• Reengineer processes (to-be
• analysis)
• Identify service productivity
• measures
• Recommend the Most Efficient
• Organization (MEO)

Implement
Start
Analyze Issues and Drivers
Diagnose and Plan
Departmental Review
Design and Blueprint
Adjust Efforts
33
Reengineering Methodology
Methodology - Departmental Review

• Participate in team meetings
• Compile divisional inputs
• Review of reengineered processes
• Finalize service productivity measures
• Finalize departmental MEO
• Develop the final report
• Deliver the final report

Implement
Start
Analyze Issues and Drivers
Diagnose and Plan
Design and Blueprint
Departmental Review
Adjust Efforts
34
Reengineering Methodology
Methodology - Divisional Input
Implement
Start
Analyze Issues and Drivers
Diagnose and Plan
Departmental Review
Design and Blueprint

• Possible modification of input
• to account for departmental
• perspective
• Detailed instructions from
• departmental review group
• Short notice/quick response
• items

Adjust Efforts
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Reengineering Methodology
Project Schedule
Kick Off Brief
1
Independent Divisional Research
2
Divisional MEOs
3
Departmental Review of Reengineered Processes
4
Finalize Service Productivity Measures and
Standards
5
Finalize Departmental MEO
6
Deliver Final Report
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Presentation Outline
1 2 3 4
Introduction Overview of Booz Allen
Hamilton Reengineering Methodology Deliverables

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Deliverables
Division Deliverables
Team Membership Current Organizational Chart
Summary of Reengineered Processes Process
Maps (Baseline) Process Maps (Reengineered) Serv
ice Productivity Measures Identification Most
Efficient Organization Recommendation
1 2 3 4 5 6 7
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Deliverables
Team Membership
Team Leader - Mary Smith
1
Administrative Support - Tom Jones
2
Financial Support - Joe Sanchez
3
Field Operations/Customer Interface - Patty Wilson
4
Member 5 - Functional Expertise
5
Member 6 - Functional Expertise
6
Member 7 - Functional Expertise
7
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Deliverables
Current Organizational Chart
Total Authorized Positions 43 Actual
Positions Filled 40 Total Vacancies 3
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Deliverables
Summary of Reengineered Processes
Grading Plan/Check Process - Cost
(Total/Labor/Overhead/Other)
1
Residential Plan/Check Process - Cost
(Total/Labor/Overhead/Other)
2
Grading Inspections Process - Cost
(Total/Labor/Overhead/Other)
3
Electrical, Plumbing, and Mechanical Inspection
Process - Cost (Total/Labor/Overhead/Other)
4
5
Commercial Inspection Process - Cost
(Total/Labor/Overhead/Other)
Residential Inspection Process - Cost
(Total/Labor/Overhead/Other)
6
Commercial Plan/Check Process - Cost
(Total/Labor/Overhead/Other)
7
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Reengineering Methodology
High Level Process Map (Baseline)
Grocery Shopping Process
Generate Shopping List
Plan Next Weeks Menu
Inventory Pantry Cabinets and Refrigerator
Enter Grocery Store
Buy Fruits and Vegetables
Repeat this step as necessary
Check Out with Cashier and Groceries Bagged
Buy Meat and Dairy Products
Buy Bread and Miscellaneous Snacks
Restock Pantry Cabinets and Refrigerator
Update Shopping List
1
4
Mandate - Biological Requirement - must feed
children
Total - 8,912/Labor - 1,912/Overhead -
1,500/Other - 5,500
Quality Measures - trips with 100 complete
list, weeks able to complete menu without a
return trip, saved per week with coupons
5
2
Output - Stocked pantry, cabinets, and
refrigerator
Time - Normal trips average 2 hours Special
holiday trips average 3 hours Return trips
average 1.1 hours
6
3
Frequency - 60 in FY 98 (once per week plus eight
trips for holidays)
42
Reengineering Methodology
Detailed Process Map (Baseline)
Grocery Shopping Process
Inventory Pantry
Plan Which Stores to Visit and in What Order
Compare Inventory to Menu Requirements
Inventory Cabinets
Plan Next Weeks Menu
Enter Store
Buy Fruits
Buy Vegetables
Inventory Refrigerator
Repeat this step as necessary
Buy Candy
Pay Bill
Determine Approval Requirements
Cashier Rings Up Bill
Buy Meats
Buy Dairy Products
Buy Bread and Chips
Enter Check Out Line
Load Car
Bag Groceries
Buy Ice Cream
Restock Pantry
Update Shopping List
Restock Cabinets
Restock Refrigerator
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Deliverables
Detailed Process Map (Reengineered)
Grocery Shopping Process
Repeat this step as necessary
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Deliverables
High Level Process Map (Reengineered )
Grocery Shopping Process
Repeat this step as necessary
Original Cost (Total/Labor/Overhead/Other)
Mandate (Policy/Regs/Convention)
1
4
Output (Product or Service)
New Service Productivity Measures
2
5
Estimated Time Required to Produce Output
Output Frequency (Per Year)
3
6
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Deliverables
Sample Service Productivity Measures
Financial - Cost per Shopping Trip Saved per
Trip
1
Quality - Percent of Shopping Trips Completed
Correctly the First Time
2
Time - Time to Complete a Shopping Trip Time to
Generate a Shopping List Time in Each Store
3
Customer/Stakeholder/Community Satisfaction -
Are Your Children Happy with the Product
Selection Are the Meals Complete and Satisfying
4
Employee Satisfaction - Percentage of Employees
Who Feel They Have Adequate Training to Properly
Perform Their Job
5
Error Rate/Percent Rework - Number of Return
Visits for Items on the List Number of Return
Visits for Items not on the List
6
7
Efficiency - Spent/Time Shopping (Aggregate and
for Each Store)
Other
8
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Deliverables
Sample Most Efficient Organization
Note - Ensure suggested classifications are
included with this generic organization
Total Suggested Personnel 40
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BOOZ ? ALLEN HAMILTON Management Consulting