Overview Making changes to improve processes is a powerful and necessary step in building competitive strength, but organizations must ensure that their (current and new) processes are capable of sustaining higher performance over time. To do that, they must develop two kinds of characteristics: process enablers, which pertain to individual processes, and enterprise capabilities, which apply to the entire organization. To help in this endeavor, it is useful to leverage a proven model or “framework.” One of the most effective models is the Process and Enterprise Maturity Model (PEMM). 1
In the final component of your Operations Management Course Project, you will leverage PEMM to create a “scorecard” that will help you to assess your organization’s process and enterprise capabilities to support and sustain the improvements you have targeted. Specifically, you will assess and evaluate the:
Five process enablers of…
Design: The comprehensiveness of the specification for how the process is to be executed
Performers: The people who execute the process, particularly in terms of their skills and knowledge
Owner: A senior executive who has responsibility for the process and its results
Infrastructure: Information and management systems that support the process Metrics: The measures the company uses to track the process’s performance
Four enterprise capabilities of…
Leadership: Senior executives who support the creation of processes
Culture: The values of customer focus, teamwork, personal accountability, and a willingness to change
Expertise: Skills in, and methodology for, process improvement and design Governance: Mechanisms for managing complex projects and change initiatives
1) Assess your value stream and your organization using the PEMM Scorecard exhibit on the last two pages of the Hammer article, “The Process Audit” (HBR), provided in Week 1 and Week 9
2) Discuss your findings, and highlight the strengths and opportunities for improvement
3) Develop actionable recommendations for presentation to senior management
Since this is the part of the Operations Management Course Project where you will assess the capability of the organization to proceed and make the case for your recommendations (and requirements) for moving forward, your assignment should be written in the form of a recommendation report delivered to senior management
Your focus must be squarely on moving forward and include recommended actions and explanations of how success will be measured.
As you gather your information and craft your report around the PEMM scorecard, put yourself in the position of someone who has not been as close to the process as you have been. Help them to focus on what really matters, specifically:
1. The opportunity for wins if the improvement is successful
2. The risks to the organization if the initiative is not implemented (or not implemented successfully)
3. What conditions need to be in place to provide the greatest likelihood of success
Scorecards are powerful tools for providing easy-to-understand snapshots, so make sure your scorecard tells the story you want it to tell.
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