Decision Modeling: Foundation for Process Reengineering

1. Decision Modeling:Foundation for Process Reengineering Gemini Consulting June 1998

2. Objectives • To define Decision Modeling and provide the context of how it is different from traditional process modeling • To provide a step-by-step approach for building decision models

3. What is a Decision Model? The Decision Model shows a chronological sequence of major decisions, in a To-Be mode, with the knowledge needed to support them Gemini intends to start using modeling, uniformly, as a new foundation for process reengineering

4. 1 2 4 3 1 2 3 4 1 3 New The Decision Model is a foundation for the To-Be process As-Is Process: Decision Model: To-Be Process: Decisions will always have to be made no matter how the tasksare carried out.

5. Depicts “how” the work is done . . . often highlighting decisions An excellent place to start, especially in an “As-Is” state Focuses on “what” needs to be accomplished An excellent bridge to the “To-Be” phase Provides focus on the undergirding decisions . . . the work that MUST be done 1 2 4 1 2 3 4 3 Decision Modeling focuses on the “whats” instead of the “hows” Process Modeling Decision Modeling An “As-Is” process model should identify key decisions.

6. Gemini intends to start using Decision Modeling as the new foundation for process reengineering Decision Modeling . . . • Helps abstract away from the often cluttered “As-Is” process • Provides focus on what’s essential and builds consensus among participants on areas to be tackled • Makes it easier to design the “To-Be” process rather than having to initially deal with many small steps • Focuses on the purpose of each group of process steps • without any constraints related to current work practices, technology or client specific policies.

7. Decision Modeling jump starts the “To-Be” phase . . . Decision Modeling • Client workshops can start immediately and are very productive • Initial focus is rational . . . a good decisionmodel is one where EVERYONE agrees • Immediately developing “To-Be” process modeling can be painfuland extremely unproductive • “We need to do it this way because we have always done it this way” • Can get too detailed, too quickly • Can be difficult uncovering non-value- adding work Rational Political Emotional . . . often allowing for the Results Delivery to be shorter in length.

8. Decision Modeling - A step-by-step approach 1. Build the “As-Is” process flow (brown paper mapping), identifying both activities and decisions. 2. Identify decisions from the “As-Is” process in a chronological order. 3. Evaluate the decisions and determine knowledge required for making them. 4. Work decision points by adding, removing, re-sequencing, grouping and splitting as needed. 5. Agree on the “To-Be” decision model. 6. Use the Decision Model as the framework for the “To Be” design. Client Workshops should be used extensively.

9. As-Is Process Client Requestfor Proposal ActiveReferral ForwardRequestto RM ContactClient toDefineNeeds Internal Network Recommen-dations DevelopSolution EstablishPricing Yes Yes Pass InitialScreening? Pursue? AnalyzeCustomerBase toDetermineLeads ContactSpecialist toUnderstandNeeds ClientInitiatedOpportunities No No ArchiveRequest ArchiveRequest Send Proposalto client No Meetwith Client and ProductGroup PrepareInitialProposal ReviewProposalInternally ResolveQueries ProvideServiceSupport Yes FormalPresent? Win? No Yes Present toClient ArchiveProposal PrepareFormalPresentation Step 1: Build the “As-Is” process flow identifying activities and decisions

10. As a starting point, chronologically order the decisions Does RFPa. pass initial screen? Should we pursue RFP? Should we prepare a formal presentation? Did we win proposal? Why or why not? Interbanken Pass InitialScreening? Pursue ? Formal presentation? Win Proposal? Step 2: Identify decisions from the “As-Is” process in a chronological order As a group, are there any other decisions that should be considered? a. Request for proposal (request for bid)

11. XXXXX XXXXX XXXXX XXXXX Step 3: Evaluate the decisions and identify knowledge required to make these decisions For Example: Does RFP Pass Initial Screen? Identify Possible Enablers (Knowledge Requirements) Qualify Prospect We have a decision to make Evaluate Decisions • Is it congruent with our Marketing strategy? • What are our chances of winning? • Marketing Objectives • Post-Mortems • Prospect specific • Win/Loss Ratio The undergirding decisions that need to be made are knowledge intensive

12. XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX Step 4: Work decision points by adding, removing, re-sequencing, grouping and splitting as needed Decision Model Re-sequenced Grouped Split Should we have internal compliance standards before we screen? Do we have any promising leads? Group intelligence from: - Client requests - Relationship Managers - Customer database Should “Response Strategy” be split into multiple decisions? - Compliance (respond according to their outline)? - Scope (respond to all parts)? - Price (price high, low, fixed price)? Like classical Reengineering, Decision Modeling is a combination of Art and Science.

13. Step 5:Agree on the “To-Be” Decision Model Decision Model CompliantRFP QualifyProspect Bid /No Bid DetermineResponse Strategy • Is the RFP compliant? • Enough info • Comprehensive • Strategic fit • Congruent with our marketing objectives? • Do we have the internal capabilities? • What are our chances of winning? • Internal capacity • Are we fully utilized? • Do we have the specific expertise available? • Compliance • Do we respond according to their outline? • Scope • Do we respond for all or part? • Pricing • Do we price high or low? DevelopSolution GainApproval AssembleDeliveryTeam • What resources are required? • What solution areas do we emphasize? • How much of the solution do we provide? • How would our competition respond? • Does it pass internal QA / QC? • What timeframe? • How do we ensure victory? • Do we amend our response? • What did we do good/bad (internal)? • What was the client’s feedback? (external) • Who? • What? • when? • Where? • How Long?

14. AssessAgainstGuide-line MarketingObjectives. InternalCapabilities Step 6: Use the Decision Model as the framework for the “To-Be” design “To-Be” CompliantRFP RFPMatchesGuideline From the “To-Be” . . . • Establish Measures • Build RACI • Determine knowledge enablers and supporting technology Y CollectInformation Y N N “DecisionModel” CompleteRFP QualifyProspect Bid / No Bid DetermineResponseStrategy Keep it high level

15. In Summary, Decision Modeling: • Starts with an “As-Is” process flow • Requires extensive use of client workshops • Provides an excellent framework for the “To Be” design For more information, please access the AKM Centre of ExcellenceKnowledge Base.

16. Exercise - Develop a Decision Model Use your Brown Paper to develop a Decision Model, following step 2 to 4.(You have already done step 1 making the Brown Paper) 1. Identify decisions from the process (your Brown Paper) in a chronological order. 2.a) Evaluate the decision and b) determine knowledge required for making each of the decisions. 3. Work decisions by adding, removing, re-sequencing, grouping and splitting as needed. Agenda • Prepare for a debrief in the large group.