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Conceptual Design Statement
The main Report contains the following Sections and Appendices:
Section Page
1 Executive Summary
2 Reason for Process Improvement
3 Objectives
4 Current Processes
5 Target Processes
6 Issues and Opportunities
7 Assumptions
8 Potential Benefits
9 Design Approach
10 Related projects and dependencies
11 Impact of not changing
12 Other Options
13 Risks
14 Next Steps
1. Executive Summary::The summary should be completed last and provide a high level overview of the process improvement objectives, deliverables, scope, issues and benefits. It can be written by summarising the key points arising in each of the sections below.It should also provide a brief background focused around the ‘trigger’ ie. why the process improvement is being considered. This answers the question, “What is the issue or problem?” by providing historical and strategic context for the project.This section should provide the answer to the question, “Is the process improvement worth doing?”
1 Reasons for Process Improvement::Typically there is one over-arching aim associated with a project, which is the business need that the project is intended to satisfy.Process Improvement is the activity of changing processes and procedures to improve the outcomes for the business. There are a number of reasons why organisations try to improve processes and procedures:
The business strategy requires changes to the way the business currently operates.
Another business area is making a change to their processes that will impact the processes in another area.
There is an opportunity to make existing process more efficient.
The current processes are not delivering the right outcomes for business.
There is a change to the current computer systems that support the process.
There is a need to reduce the costs within the business
There is a change to the current organisation structure.
2 Objectives::There may be several objectives associated with the process improvement reason. The objectives answer the question, “How will we know when we have satisfied the reason?” Each objective must be described such that their achievement can be determined at the end of the process improvement. This is how we measure the success of the process improvement. The objectives provide focus for the processes to be improved.
3 Current Processes::In order to change the current processes they must be understood. The level of detail required depends upon the nature of the process improvement. A complete redesign requires knowledge of the current processes, whilst simpler process improvements require a more detailed understanding of the current processes.
3.1 High-Level Process Map::Insert a high-level process map of the affected processes.
3.2 High-level Process Activities
Activity Description Responsibility
Activity # Detailed description of the activity Who is responsible for the activity
4 Target Processes::A high-level view of the target processes should be described to identify the improvements required.
4.1 High-Level Process Map::Insert a high-level process map of the target processes.
4.2 High-level Process Activities
Activity Description Responsibility
Activity # Detailed description of the activity Who is responsible for the activity
5 Issues and Opportunities::There will be issues with the current processes that need to be identified to ensure that they are resolved in the target processes. These issues provide opportunities to improve the business.
5.1 Issues::List the issues with the target processes and the impacts to the business of the issues.
Issues Impact
Issue statement Impact to the business of the issue
5.2 Opportunities::One of the most common reasons for process improvement is to save costs or take advantages of opportunities. Examples of opportunities for process improvement are:
A new computer system or capability being implemented
There are clear problems when handing-off work between business areas:
There is considerable rework (manual, duplication, etc) to deliver an outcome:
A process does not comply with industry benchmarks
Resources are not really utilised on a full time basis or contract resources are used
A process has escalating costs for reasons that are outside the control of the business area
There is a strategy based mandate to acquire and report on different information
There is a perception that a process can be done at a lower cost or improved outcome
These are only indications of when there may be an opportunity for process improvement. Quite often it is a combination of these opportunities that will represent a real opportunity for process improvement
6 Assumptions::Always state any assumptions that may affect the process improvement reaching its objectives.
The assumptions are required to make the target process possible. These can include:
Systems capabilities>People skills>Jobs>Tools and documents>Related processes.
7 Potential Benefits:State the potential benefits and the timescale that they are likely to arise..
7.1 Quantifiable benefits:: Quantify cost savings, revenue increases and any other potential improvements (these may not be financial, e.g. end of month reports available earlier).
7.2 Intangible benefits:: List intangible benefits – although these are difficult to measure directly – and when will these be realised.
8 Design Approach:
escribe the design approach to developing and implementing the target processes.This section sets out how the process improvement will be conducted. Include key milestones and key resources.An example of a lifecycle is included below. (Delete guidelines and complete lifecycle and table below)
Activity Description Responsibility Output Timing
Activity # Detailed description of the activity Who will undertake the activity What is the output of the activity When will the outputs be completed
9 Related Projects and Dependencies::Most projects or initiatives will be about making changes to processes, computer systems and organisation/jobs. This means that it is quite likely that other projects or initiatives will impact any process improvement you may be making. An important step of any process improvement activity is to check if there are any other projects or initiatives that may affect your project
Related Projects Dependency Actions
Name of the related project Nature of the dependency of the process improvement on the related project Actions that will be undertaken to manage the dependency
10 Impact of Not Changing
Describe the continuing impacts to the business of not undertaking the process improvement. This could include:
Continuing with the current issues
Missed opportunities
Even greater issues and impacts in the longer-term.
11 Other Options
Describe any other potential options to resolve the issues. These options could include:
A smaller, more targeted approach
Expanding the scope of the process improvement if any constraints were removed.
12 Risks
Any risks to not achieving the objectives need to be considered in the activity planning. State here any major risks, plus any mitigation plans.
Delete guidelines above and complete the table below
Risk Description Mitigation
Risk statement Description of the risk and its impacts Actions that will be undertaken to manage the risk
13 Next Steps
This section should list the next steps to be undertaken. These could include:
Approval to continue
Release of funds
Assignment of resources
Formation of Stakeholder Group
The main Report contains the following Sections and Appendices:
Section Page
1 Executive Summary
2 Reason for Process Improvement
3 Objectives
4 Current Processes
5 Target Processes
6 Issues and Opportunities
7 Assumptions
8 Potential Benefits
9 Design Approach
10 Related projects and dependencies
11 Impact of not changing
12 Other Options
13 Risks
14 Next Steps
1. Executive Summary::The summary should be completed last and provide a high level overview of the process improvement objectives, deliverables, scope, issues and benefits. It can be written by summarising the key points arising in each of the sections below.It should also provide a brief background focused around the ‘trigger’ ie. why the process improvement is being considered. This answers the question, “What is the issue or problem?” by providing historical and strategic context for the project.This section should provide the answer to the question, “Is the process improvement worth doing?”
1 Reasons for Process Improvement::Typically there is one over-arching aim associated with a project, which is the business need that the project is intended to satisfy.Process Improvement is the activity of changing processes and procedures to improve the outcomes for the business. There are a number of reasons why organisations try to improve processes and procedures:
The business strategy requires changes to the way the business currently operates.
Another business area is making a change to their processes that will impact the processes in another area.
There is an opportunity to make existing process more efficient.
The current processes are not delivering the right outcomes for business.
There is a change to the current computer systems that support the process.
There is a need to reduce the costs within the business
There is a change to the current organisation structure.
2 Objectives::There may be several objectives associated with the process improvement reason. The objectives answer the question, “How will we know when we have satisfied the reason?” Each objective must be described such that their achievement can be determined at the end of the process improvement. This is how we measure the success of the process improvement. The objectives provide focus for the processes to be improved.
3 Current Processes::In order to change the current processes they must be understood. The level of detail required depends upon the nature of the process improvement. A complete redesign requires knowledge of the current processes, whilst simpler process improvements require a more detailed understanding of the current processes.
3.1 High-Level Process Map::Insert a high-level process map of the affected processes.
3.2 High-level Process Activities
Activity Description Responsibility
Activity # Detailed description of the activity Who is responsible for the activity
4 Target Processes::A high-level view of the target processes should be described to identify the improvements required.
4.1 High-Level Process Map::Insert a high-level process map of the target processes.
4.2 High-level Process Activities
Activity Description Responsibility
Activity # Detailed description of the activity Who is responsible for the activity
5 Issues and Opportunities::There will be issues with the current processes that need to be identified to ensure that they are resolved in the target processes. These issues provide opportunities to improve the business.
5.1 Issues::List the issues with the target processes and the impacts to the business of the issues.
Issues Impact
Issue statement Impact to the business of the issue
5.2 Opportunities::One of the most common reasons for process improvement is to save costs or take advantages of opportunities. Examples of opportunities for process improvement are:
A new computer system or capability being implemented
There are clear problems when handing-off work between business areas:
There is considerable rework (manual, duplication, etc) to deliver an outcome:
A process does not comply with industry benchmarks
Resources are not really utilised on a full time basis or contract resources are used
A process has escalating costs for reasons that are outside the control of the business area
There is a strategy based mandate to acquire and report on different information
There is a perception that a process can be done at a lower cost or improved outcome
These are only indications of when there may be an opportunity for process improvement. Quite often it is a combination of these opportunities that will represent a real opportunity for process improvement
6 Assumptions::Always state any assumptions that may affect the process improvement reaching its objectives.
The assumptions are required to make the target process possible. These can include:
Systems capabilities>People skills>Jobs>Tools and documents>Related processes.
7 Potential Benefits:State the potential benefits and the timescale that they are likely to arise..
7.1 Quantifiable benefits:: Quantify cost savings, revenue increases and any other potential improvements (these may not be financial, e.g. end of month reports available earlier).
7.2 Intangible benefits:: List intangible benefits – although these are difficult to measure directly – and when will these be realised.
8 Design Approach:
escribe the design approach to developing and implementing the target processes.This section sets out how the process improvement will be conducted. Include key milestones and key resources.An example of a lifecycle is included below. (Delete guidelines and complete lifecycle and table below)Activity Description Responsibility Output Timing
Activity # Detailed description of the activity Who will undertake the activity What is the output of the activity When will the outputs be completed
9 Related Projects and Dependencies::Most projects or initiatives will be about making changes to processes, computer systems and organisation/jobs. This means that it is quite likely that other projects or initiatives will impact any process improvement you may be making. An important step of any process improvement activity is to check if there are any other projects or initiatives that may affect your project
Related Projects Dependency Actions
Name of the related project Nature of the dependency of the process improvement on the related project Actions that will be undertaken to manage the dependency
10 Impact of Not Changing
Describe the continuing impacts to the business of not undertaking the process improvement. This could include:
Continuing with the current issues
Missed opportunities
Even greater issues and impacts in the longer-term.
11 Other Options
Describe any other potential options to resolve the issues. These options could include:
A smaller, more targeted approach
Expanding the scope of the process improvement if any constraints were removed.
12 Risks
Any risks to not achieving the objectives need to be considered in the activity planning. State here any major risks, plus any mitigation plans.
Delete guidelines above and complete the table below
Risk Description Mitigation
Risk statement Description of the risk and its impacts Actions that will be undertaken to manage the risk
13 Next Steps
This section should list the next steps to be undertaken. These could include:
Approval to continue
Release of funds
Assignment of resources
Formation of Stakeholder Group