New Best Practice Report Reveals How Successful Organizations Put Process Measures and Analytics to
11 November 2008:
HOUSTON, Nov 11, 2008 (BUSINESS WIRE) – A new best practices report, "Process Measures and Analytics: The Right Data for the Right Decisions," showcases how premier organizations overcome the barriers; develop broad analytics programs; and apply such leading-edge practices as predictive analysis, unstructured analysis, and data visualization. The executive summary and details are available at http://www.apqc.org/analytics.
Many organizations are increasing investments in analytics across their enterprise in areas such as credit scoring and terms, customer targeting and loyalty, fraud detection, regulatory compliance, and market-channel efficiency. While most organizations are capable of producing the reliable and timely analysis required to drive process efficiency and control, leading organizations attain peak performance through the ability to quickly respond to the changing environment and anticipate, or even predict, future business events and scenarios.
It can, however, be difficult to overcome the challenges encountered in developing and maintaining a dynamic analytics program. This frequently results in increased costs, a failure to mitigate risk, and limited competitive insight. Worst-case scenarios can result in the dissemination of flawed information, the illusion of control, and impaired decision making.
The study, conducted by non-profit APQC, a leader in benchmarking and best practices, and its research partner Ernst & Young, a global leader in assurance, tax, transaction and advisory services, reveals that the sustained and effective use of process measures and analytics is increasingly a key differentiator separating leading organizations from the rest of the pack.
"The goal was to learn how leading enterprises develop and apply proactive approaches and methods that allow them to successfully matrix processes, measures and analytics," said APQC Program Manager Angelica Wurth. "What we've learned by studying best practice organizations is that by connecting process measures to business measures, they have tied process ownership to the ownership of business results. Although processes and results are not always owned by the same individuals, the tight linkages drive cooperation that goes beyond simple understanding and facilitates the end goal of creating value for a shared customer."
Paul van Kessel, Global Leader of Ernst & Young's Technology and Security Risk Services, comments: "This study provides insight into how organizations can more successfully compete by making better informed and accurate business decisions."
The following best practice partners were distinguished from a large group of potential partners by their exceptional performance and innovative approaches for identifying the need for change and managing it across their enterprise. They include Caterpillar Financial Services, GE Global Business Services, ING Australia, Marriott International and Wyeth Pharmaceuticals.
Throughout the study, the best practice partners revealed a number of key best practice measures:
Caterpillar Financial Services: At Caterpillar, process owners, managers, continuous improvement consultants, and Six Sigma Black Belts all work together to identify, measure, and act on process measures and analytics. The measures are tied directly to the organization's critical success factors and customer/stakeholder requirements.
GE Global Business Services: At GE, the CEO initiated the drive for integrated measures and analytics. Given GE's background as a Six Sigma leader, he was surprised that the organization had not institutionalized strong process-based measures. The shared services organization was tapped to set an example for the entire business. With a CEO mandate in hand, GE Global Business Services leveraged a process framework and Six Sigma skills by linking process owners, product-line leaders, and quality/Six Sigma experts to establish global performance measures. GE's leader mandate and collaborative approach has stimulated cooperation and enabled the organization to demonstrate value across the business.
Wyeth Pharmaceuticals: The company's early focus was on cycle time reduction, and it has been able to achieve 50 percent reductions in cycle times for quality control testing and manufacturing through the definition of standard cycle time metrics and the establishment of minimum, target, and stretch performance goals.
The best practices report, "Process Measures and Analytics: The Right Data for the Right Decisions," including full case studies and best practice results, is available for purchase at http://www.apqc.org/analytics.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 135,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
For more information, please visit www.ey.com.
About APQC
A global resource for process and performance improvement, APQC discovers improvement methods, identifies benchmarks and best practices, disseminates findings, and connects individuals. The global Open Standards Benchmarking CollaborativeSM (OSBC) research helps leaders benchmark comparable business processes. APQC is a member-based nonprofit founded in 1977 and serves more than 75 percent of Global 1000 organizations. For information, visit www.apqc.org or call 800-776-9676.
Source: APQC and Ernst & Young
