Manage Process Maturity Assessment Tool Guidebook September 2008 by xumiaomaio


									     Manage Process
Maturity Assessment Tool


     September 2008

                                  Strathclyde Institute for Operations
                                      James Weir Building, 75 Montrose Street
                                                         Glasgow G1 1XJ, UK

                                                  Tel: + 44 (0) 141 548 2015

                                                       Professor Umit S Bititci
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Introduction to the Manage Processes Maturity Models
Where should an organisation start when considering how to improve management
effectiveness? There is no shortage of courses, books and experts prescribing
particular approaches to managing a business. There can be value in such
approaches in particular situations; however, the research team behind the
investigation into Management processes described in this document takes the view
that context is of critical importance. “What matters” will vary from business to
business and an appropriate management approach in one organisation can lead to
failure in another. Also, things change and actual practice can sometimes be slow to
be reflected in literature.

This guidebook has been created to explain how, through using the Maturity
Assessment tool, businesses can identify their management strengths and
development opportunities. The tool has been created from patterns and themes in
observed practices of almost forty organisations from around Europe.

The tool is intended to steer organisations when self-analysing rather than offering a
prescriptive “how to” guides. If used correctly, it will provide an organisation with an
evidence based snap shot of how the business is directed and controlled and where
the relative strengths and weaknesses lie. This in turn can provide a logical platform
from which to create specific management improvement action plans with
confidence. At worst, completing the maturity assessment will leave the organisation
better informed as to what is currently read and observed as best practice in
managing organisations.

The Manage Process team at the Strathclyde Institute for Operations Management is
happy to help businesses seeking to build on the output of maturity model
assessments and also welcomes feedback about this work. We hope you find this
document interesting, useful and of benefit to your organisation’s future.

Structure of the Guidebook
This guidebook begins with a brief summary of the research project, highlighting the
key findings and conclusions. It then goes on to explain the maturity assessment tool
that has been developed and outlines, step-by-step, its application. The assessment
tool has been developed using Microsoft Excel and Visual Basic and so is accessible
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to anyone with Microsoft Office. Since the assessment is subjective, it is suggested
that a number of members of the management team carry out the assessment
independently and compare results. Thus will allow the management team to both
understand the different perceptions of individuals and allow consensus to be
reached about the current maturity of the organisation.

1.0 Background to the Project
The research project started by asking two main questions:
   •    What are the key management processes?
   •    How do these processes contribute to a company’s ability to sustain
        competitive advantage?

In order to answer these questions, two approaches were adopted. The first was to
carry out a number of case studies to understand what managers actually do and
what impact this may have on the success of the organisation. The second approach
was to investigate the extant body of literature on management processes to identify
the key processes suggested here. Both approaches are explained below.

        1.1    Case Study Approach
Almost 40 case studies across a range of sectors in the UK, Italy, Germany, Poland,
Malta and Czech Republic were conducted by the research team. Process thinking is
not necessarily adopted across all organisations; many do not understand ‘processes’
or use process terminology, even though they execute processes on a daily basis.
Therefore, in order to identify the management processes in organisations, it was
first necessary to understand what constitutes a process, i.e. how processes are
constructed. It is well accepted that a process is a logically related set of activities
which are carried out to achieve a particular outcome as illustrated in Figure 1 below.


                 Activity 1                Activity 3
Input                                                                      Outcome

                              Activity 2                  Activity 4

                           Figure 1 – Structure of a process
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Through interviews with management personnel in each case study company, the
research team identified the management activities and reasons why they are carried
out (outcomes) and built the management processes from these. Aggregating the
interview data from all case studies resulted in 36 management activities being
identified (the complete list of activities is presented in Section 3.0).    The data
analysis also identified five key management process (constructed from combinations
of the 36 activities) which were:

   1. Manage Performance
   2. Manage Decision Making
   3. Manage Communication
   4. Manage Culture
   5. Manage Change

       1.2     Literature Approach
Through a review of the literature published in the area of management processes,
five key processes were defined:

   1. Set Direction
   2. Manage Strategy
   3. Scan External Environment
   4. Manage Performance
   5. Manage Change

To allow comparison between these literature processes and those from the case
studies, they were deconstructed into their constituent activities and aligned with the
corresponding activities identified from the company data. The ‘Set Direction’ process
is essentially the first step in the ‘Manage Strategy’ process so rather than repeating
these activities the two processes were merged, resulting in four literature-based

2.0 Explanation of Manage Processes
From the case studies, the five Manage Processes are defined as:
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 Process                             Description
 Manage Performance                  Measure and control company performance

 Manage Decision Making              Make choices about the organisations activities

 Manage Communication                Collect and disseminate internal and external
                                     information relevant to the organisation
 Manage Culture                      Influence the organisation’s behaviours and
 Manage Change                       Creating the future state of the assets, resources
                                     and procedures of the organisation

From literature, the five Manage Processes are defined as:
 Process                             Description
 Manage Strategy        (inc   Set   Development of vision, mission and values of the
 Direction)                          business and translate this into long-term goals
                                     and objectives
 Scan External Environment           Monitor changes outside the organisation and
                                     determine significance
 Manage Performance                  Measure and control company performance
                                     against set objectives
 Manage Change                       Plan, implement and review internal changes to
                                     the business

The same basic 36 activities make up these processes and so by assessing the
maturity of your company for these activities, you can compare your organisation’s
practices to any of those listed above depending on your interests or needs.

3.0 Maturity Assessment Tool
       3.1     What does the Maturity Assessment Tool give you?
In any particular company, not all of the Manage Processes will be important and
equally the particular activities within these processes will differ in importance or
interest. Every company is operating within its own set of constraints as well as the
context of its sector and so not all activities will be relevant. What the processes and
activities allow, however, is for the company to see through the specifics of its
context and pinpoint the areas of management that are critical to its operations,
highlight strengths and identify where improvements can be made.
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Further to an individual company analysis, the assessment tool also allows for
comparisons to be made between your company and the case study companies
involved in the research project (anonymously). These companies have been
classified into “high” “medium” and “low” performing groups according to a range of
performance criteria.

In short, the maturity assessment tool provides:
   •   A framework for assessing your current position in terms of the Manage
       Processes (both from case studies and literature)
   •   An idea of key areas for improvement
   •   A point of departure to make decisions about improvement plans which suit
       your business
   •   The opportunity to compare your company’s process maturity with those of
       the ‘more successful’ companies

       3.2     What does it not give you?
The aim of the maturity assessment tool is not to suggest a ‘one-size fits all’ solution
but to act as a diagnostic tool for understanding areas of weakness and present
current best practices to act as a destination point for improvement. This allows your
company to make any improvements that are relevant to its own situation and
culture, maximising the overall effectiveness of these improvements.

In short, the maturity assessment tool will not provide:
   •   Prescriptive direction about how to run your business
   •   All the answers

       3.3     Structure of the Maturity Assessment Tool
As mentioned above, 36 management activities have been identified as constituting
the Manage Processes. These activities have been classified into ‘Plan’ ‘Do’ ‘Check’ or
‘Act’ activities for ease of reading, and are listed in Table 1 below.
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Table 1 – Management Activities
         Develop vision mission and values
         Develop business goals and objectives
         Develop business activities plan
         Develop KPIs

         Plan resource requirements
         Identify external factors that impact on business
         Plan short term activities
         Plan short term perform ance targets
         Plan change program
         Com municate com pany performance
         Com municate change
         Com municate strategic objectives
         Com municate general
         Implement activities plan
         Implement change

         Com municate suppliers
         Com municate custom ers
         Com municate com petitors
         Interact with trade unions
         Check staff perform ance
         Check financial perform ance
         Check KPIs

         Monitor suppliers
         Monitor custom ers
         Monitor competitors
         Monitor macro environment
         Review vision mission and values
         Review business goals and objectives
         Review business activities plan
         Review KPIs

         Revise business m easures
         Define improvem ent activities
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         3.4   Using the Maturity Models
Step 1:
The interface for the assessment tool is accessed through the Excel file. You will be
prompted with the following window:

Choose ‘Enable macros” otherwise the tool will not function. Please ensure that the
macro security for your Excel program is set to ‘medium’ or less to allow macro
enabled working. Macro security options are available through the ‘Tools’ menu in

Step 2:
Type your organisation’s name in the box provided. Click on ‘File’ and ‘Save As’ and
save the Excel file with an appropriate file name. If more than one person in the
company is completing the assessment it is sensible to use your initials. Click the
‘Launch’ button as shown below.
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Step 3:
The following window will appear:

The top of the window states the management activity, as indicated by the red box.

To assess the maturity of the activity, read the statements in the basic, intermediate
and advanced areas.
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   •   If the statement describes the practice in your company fairly well, choose
       the score in the middle of that range (i.e. 2 for Basic, 5 for Intermediate or 8
       for Advanced).
   •   If the practice in your company is quite like the statement, but slightly better,
       choose the score at the end of the range (i.e. 3 for Basic, 6 for Intermediate
       or 9 for Advanced).
   •   Similarly if the practice is quite like the statement but slightly worse, choose
       the lower score (1 for Basic, 4 for Intermediate or 7 for Advanced). If the
       activity is not relevant to your company, choose the ‘Not Applicable’ option.

It is desirable to add some evidence for your selection in the box provided. This
allows you to justify your decision if the assessments are being carried out by a
number of personnel, as well as encourages you to be more objective in your

To continue onto the next activity, click ‘Next’ (green box). To save your assessment
click ‘Save & Close’. If you wish to change an assessment, click ‘Back’ or to begin
again click ‘Beginning’. You can overwrite any assessments you have made by
choosing a new score and clicking ‘Save & Close’. Once you have saved the file, the
scores you gave will always appear when you open the document.
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Step 4:
To view the results of your assessments simply choose from the following tabs:

“MM” displays the scores you provided for each activity along with any supporting
evidence you added. It allows you to get a general idea of the maturity of the
company as the scores are colour coded. Red indicates low maturity, amber indicates
intermediate maturity and green indicates advanced maturity. This is shown below.
Number   Activity                                          Low Level                             Mid Level                            High Level             Evidence
                                                                                   There is a strategic implementation
                                                                                   plan which largely reflects the goals
                                                                                       of the organisation with a few    A strategy implementation plan for
                                                                                     oddities reflecting management      delivering the business goals and
                                              There is no clear plan as to how the    preferences added in. It is not     objectives is formulated which is
                                               business goals and objectives will necessarily achievable/ insufficient realistic, achievable and aligned
                                                    be delivered by the existing    consideration to cultural/resource with the structure and culture of the
                                                             organisation.             issues may have been given                    organisation             We do not translate our goals and objectives
   1       Develop business activities plan                        X                                                                                                           into activities
                                                There are no long term goals for     Long term goals and objectives        Long term strategic goals and
                                                  the organisation - the business      exist but may well have been        objectives for the business are
                                               exists very much in the short term developed without full alignment to     developed which are consistent
                                                 and there is no effort devoted to    the vision mission and values,         with the requirements of all
                                                  setting down objectives for the  resources and current status of the      stakeholders and the vision,
                                                                 future                         organisation                 mission and values of the
             Develop business goals and                                                                                              organisation.                We have a set of quite clear goals and
   2                 objectives                                                                                              X                                                   objectives
                                                   At most, a set of rudimentary     A set of KPIs is developed which     A balanced set of measures are
                                               financial measures are in place to       does meet the needs of the         developed and deployed which
                                               control the business - the concept      business but also contains a      show how the business goals and
                                                   of identifying key performance   degree of redundant or excessive          objectives are being met.
                                                 indicators is not accepted in the               measures
                                                             organisation                                                                                    Some of our KPIs don't seem to be relevant, it's
   3                Develop KPIs                                                                      X                                                       as if we just have them to bulk out the metrics

The table at the top of the worksheet displays a summary of the data you have
entered. It shows the average maturity score and percentage completeness for the
entire set of 36 activities then for groups of activities.

                                                                                Number                      Possibl e                  Average                   Completeness
Activities Scored                                                                                   35                         36                        6.9                           97%
Evidence Provided                                                                                    0                         36 n/a                                                   0%
Plan                                                                                                 9                          9                        6.0                          100%

The aim of the table is to give a brief summary of the results for your company. The
following tabs go into greater detail and are more indicative of the maturity status of
your company and so offer greater insight into areas requiring improvement.
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The summary tab is a graph showing the average maturity scores for each of the five
Manage Processes from the case studies (Manage Performance, Manage Decision
Making, Manage Communication, Manage Culture, Manage Change) and the four
Manage Processes from literature (Manage Strategy, Scan External Environment,
Manage Change and Manage Performance) with each process represented by a bar.
The coloured lines indicate the average maturity score for three clusters of our case
study sample: “High” performing companies indicated by a green line, “Medium”
performing companies indicated by an orange line and “Low” performing companies,
indicated by a red line. Thus, for each Manage Process you can see how the maturity
score of your company matches up against the top performers.

In the example shown below, the company is slightly below the high performing
companies in terms of its process maturity for Manage Performance, Manage
Decision Making, Manage Communication and Manage Culture however for Manage
Change the organisation is much closer to the “Medium” performers and so may
need to focus on improving this process more than the others. The number on top of
the bar relates to the average maturity for the company for that process.



            6.00                                                        5.50






                      Manage         Managing          Manage       Manage Change   Manage Culture
                    Performance   Decision Making   Communication
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This tab goes into the activity level analysis for each Manage Process by showing
which activities are constituents of the processes and their individual maturity levels.
Each column represents a Manage Process and the rows indicate the activities. From
the analysis conducted on the 40 case studies participating in the research project, it
was found that of the 36 management activities 18 of these can be labelled
“Differentiators” in that they appear to make the difference between the higher
performing and lower performing companies. The other 18 management activities,
labelled “Qualifiers” are still important, however both the “high” and “low”
performing groups of companies had a similar maturity score for these. Therefore,
the activities displayed in this tab have been ordered according to whether they are
“Differentiators” or “Qualifiers”. If any of the “differentiators” are less than advanced
in their maturity, it is suggested that the company look at improving these first
before addressing issues with “qualifier” activities.

The cells in this tab are colour coded as follows:
   •   A red cell indicates a basic maturity level for that activity
   •   An amber cell indicates an intermediate maturity level for that activity
   •   A green cell indicates an advanced maturity level for that activity
   •   A grey cell indicates that the activity is not present in the process

At the top of the column the average maturity score for the process is displayed as
an absolute figure. In the example below, Manage Decision Making and Manage
Communication are advanced in their maturity however Manage Performance,
Change and Culture are intermediate. Within these processes the differentiating
activities requiring attention include “Implement Change” and “Invest”. By reading
the advanced description of these activities in the “MM” tab you can see what you
need to achieve in order to bring that activity to the advanced level.
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                                                                                                     MANAGE PROCESSES
                   Average Process Maturity Score                          6.9                    7.0   7.5  5.5  6.4                                                                                      6.5                     7.1

                                                                                                                                                                                                                                       Scan the External Environment
                                                                                                      Manage Decision Making

                                                                                                                                     Manage Communication
                                                                           Manage Performance

                                                                                                                                                                                                               Manage Strategy
                                                                                                                                                                  Manage Change

                                                                                                                                                                                        Manage Culture
                   Develop business activities plan                    M                        M                              N/A                          N/A                   N/A                    M                       M
                   Develop business goals and objectives               H                        H                              N/A                          N/A                   N/A                    H                       N/A
                   Identify external factors that impact on business   M                        M                              N/A                          N/A                   N/A                    M                       M
                   Plan change program                                 M                        N/A                            N/A                          M                     M                      N/A                     N/A
                   Plan resource requirements                          M                        M                              N/A                          M                     N/A                    M                       M
                   Plan short term activities                          H                        H                              N/A                          N/A                   N/A                    H                       H

                   Plan short term performance targets                 H                        H                              N/A                          N/A                   N/A                    H                       N/A
                   Communicate general                                 H                        H                              H                            N/A                   H                      N/A                     H
                   Implement activities plan                           H                        N/A                            N/A                          N/A                   N/A                    H                       H
                   Implement change                                    M                        N/A                            N/A                          M                     M                      N/A                     N/A
                   Invest                                              M                        N/A                            N/A                          M                     N/A                    M                       N/A
                   Check financial performance                         H                        H                              N/A                          N/A                   N/A                    H                       H
                   Check KPIs                                          H                        H                              N/A                          N/A                   N/A                    N/A                     H
                   Monitor macro environment                           H                        H                              H                            N/A                   N/A                    H                       H
                   Define improvement activities                       H                        N/A                            N/A                          N/A                   N/A                    N/A                     N/A
                   Review business activities plan                     H                        H                              N/A                          N/A                   N/A                    H                       H
                   Review KPIs                                         H                        H                              N/A                          N/A                   N/A                    H                       N/A
                   Review vision mission and values                    H                        H                              N/A                          N/A                   N/A                    H                       N/A

It is envisaged that in using the assessment tool, you will send us your results to add
to our database and so the dataset will continually grow, increasing validity and
allowing for more specific analyses to be carried out.

When assessing the maturity of an activity, bear the following in mind:
                   •   Be honest – the assessment will be a waste of time if it does not accurately
                       reflect the current state of the organisation
                   •   If the maturity of the activity falls between two scores, choose the lower
                       maturity rating.
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4.0 Interpreting the Assessment
Having assessed the maturity of the processes in your organisation, you will now
have coloured reports indicating the areas that require improvement. This will allow
you to prioritise actions and so focus on those areas in most need of attention.

As a first step in the improvement, the advanced practice for the activity (displayed
in the “MM” tab) will let you know what you should be aiming for. How this is
achieved should be discussed with relevant people within the organisation, however
if you would like further guidance you can get in touch with a member of the
research team (details below). As mentioned above, for any specific comparisons you
may wish to carry out please get in touch with us to discuss.

Dave Mackay
t: 0141 548 2834

Catherine Maguire
t: 0141 548 2588

Aylin Ates
t: 0141 548 2588

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