The Organization
Relationship Map
Frank Murdock
Session D2
March 8, 2010
fkmurdock.kobalt@gmail.com
The Organization Relationship Map
Purpose
• Show how to construct an Organization
Relationship Map
• Show how to use the Organization
Relationship Map to
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–
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Identify key stakeholders
Set organizational scope
Involve team members
Engage everyone in the process
March 8, 2010
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The Organization Relationship Map
Outline
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What is an Organization Relationship Map?
Construction
Setting organizational scope
Identification of key stakeholders/ sponsor
When to use
Exercise
Examples
Summary
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The Organization Relationship Map
Example Process Diagram
Voice of Customer
•Delivery performance
Voice of Process
•Daily production
Inputs
Outputs
Packing slip
Payment
Invoice
Purchase
order
Methods
Paying for
parts used in
production
Supplier
Remittance Advice
Environment
Customers
Trigger:
Trigger: Approved PO
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The Organization Relationship Map
Packing slip
Material
Control
(Plant)
Request for bid
Price for parts
Parts release
Approved
purchase
order
Receipt
Purchasing
Approved purchase order
Approved purchase order
Parts
Accounts
Payable
Supplier
Invoice
Payment with remittance advice
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The Organization Relationship Map
Construction
1.
2.
3.
Define the problem or opportunity
Identify the process (e.g. Process Diagram)
Draw the organizations involved as boxes
4.
Starting with the Trigger (the event, activity or document
which initiates the process), connect each organizational
box with arrows representing data, documents or physical
objects moved between organizations.
Label each arrow with whatever is transmitted from one
organization to the others.
Whenever you discover a missing organization, add it as a
box.
Finish when the final output of the process is delivered to the
customer.
Check for completeness
Leave plenty of space between them
5.
6.
7.
8.
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The Organization Relationship Map
Construction
Packing slip
Material
Control
(Plant)
Request for bid
Price for parts
Parts release
Approved
purchase
order
Receipt
Purchasing
Approved purchase order
Approved purchase order
Parts
Accounts
Payable
Supplier
Invoice
Payment with remittance advice
March 8, 2010
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The Organization Relationship Map
Key Stakeholders
Definition: The leaders of organizations that will have
significant impact on or will be significantly
impacted by changes in the process.*
Without the involvement of their organizations, the
improvement project is likely to fail.
They are not necessarily friendly to or in favor of the
project.
They provide the resources for the team.
* Adapted from www.asq.org/glossary
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The Organization Relationship Map
Sponsor
Definition: The person who supports a team’s plans, activities
and outcomes.*
The one key stakeholder who has the most to gain (or lose) from
the success (or failure) of the improvement effort.
They have the “fire in the belly” to achieve the results.
They have the organizational influence to lead the key
stakeholders to anticipate, identify and address the barriers
the team are likely to face.
The other key stakeholders do not necessarily report to the
sponsor.
* From www.asq.org/glossary
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The Organization Relationship Map
Who are the Key Stakeholders?
Packing slip
Material
Control
(Plant)
Request for bid
Price for parts
Parts release
Approved
purchase
order
Receipt
Purchasing
Approved purchase order
Approved purchase order
Parts
Accounts
Payable
Supplier
Invoice
Payment with remittance advice
March 8, 2010
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The Organization Relationship Map
Who is the Sponsor?
Packing slip
Approved purchase order
Approved purchase order
Material
Control
(Plant)
Request for bid
Price for parts
Parts release
Approved
purchase
order
Receipt
Purchasing
Parts
Accounts
Payable
Supplier
Invoice
Payment with remittance advice
March 8, 2010
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The Organization Relationship Map
When to use
•
Starting any process improvement effort
–
–
–
–
–
•
•
•
•
Discussions with Six Sigma Champions
Planning for a Lean Rapid Improvement Event
To begin to define the scope of the effort
To identify who the key stakeholders are
To confirm the sponsorship
At team kick-off to help team members
understand why they are on the team
To operationally define the organizational scope
To show the number of hand-offs and complexity
In implementation by engaging everyone in
understanding their relationships in the process
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The Organization Relationship Map
Exercise
For a process in which you are involved:
1. Draw a simplified Process Diagram, identifying elements of a
process: Trigger, Customer, Outputs
2. Begin drawing the Organization Relationship Map by drawing the
organizations as boxes - leave plenty of room between them.
3. Starting with the Trigger, draw arrows connecting the boxes with
whatever is transferred between the organizations (data,
documents, physical objects).
4. Label the arrows
5. Add any missing organizations as boxes as they are discovered.
6. Finish with the output(s) of the process going to the customer
7. The key stakeholders are the heads of the organizations shown as
boxes.
8. Think about which of these organizations stands the most to gain or
lose as the result of improving the process or system shown - the
sponsor.
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The Organization Relationship Map
Change in Scope Example
Voice of Customer
•Delivery performance
Voice of Process
•Daily production
Inputs
Outputs
Packing slip
Payment
Invoice
Paying for
parts used in
production
Purchase
order
Methods
Supplier
Remittance Advice
Environment
Trigger:
Trigger: Purchase Request
March 8, 2010
nge
a
h
C
Customers
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The Organization Relationship Map
Change in Scope Example
Purchase Request
Engineering
Packing slip
Approved purchase order
Approved purchase order
Material
Control
(Plant)
Request for bid
Price for parts
Parts release
Approved
purchase
order
Receipt
Purchasing
Parts
Accounts
Payable
Supplier
Invoice
Payment with remittance advice
March 8, 2010
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The Organization Relationship Map
Construction Change Example
Voice of Customer
•Payment, timing, complaints
Voice of Process
•Progress reports
Inputs
Outputs
Budget
Drawings
Contract
Methods
Completed work
Changing
approved
construction
contracts
Plant
Invoice
Environment
Customers
Trigger:
Trigger: Change Request
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The Organization Relationship Map
Construction Change Example
Corporate Finance
Architect
Bulletin for
construction
Approved bulletin
Work authorization
Contractor
Authorized
emergency
release
Emergency
release
Bulletin authorization
Preliminary bulletin
Initial estimate
Quote
Final
quote
Authorized final quote
Change
request
Corporate
Plant
Engineering
Pay
invoice?
Invoice
Initial
estimate
Purchasing
Negotiated
quote
Initial
Approved quote
estimate
OK to
pay
Plant
Finance
Invoice
Contract
amendment
Plant
Engineering
Final
quote
Purchase
Order
Revision
Corporate
Engineering
Estimation
Payment
Completed work
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The Organization Relationship Map
Engineering Example
Voice of Customer
Voice of Process
•Feasibility issues
•Clarification notes
•Final approval
•Wkly reviews
-Feasibility
-Clarification Outputs
Inputs
Die/ Assembly
Process
CAD Model
Creating
Geometric
Dimensions
and
Tolerances
(GDT)
OEM SystemSystemlevel GDT
Software
Design
Standards
GDT Drawing
Assembly
Engineering
Customers
Trigger:
Trigger Product Letter
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The Organization Relationship Map
Engineering Example
Product
Planning
Standards
Group
Product
letter
Design
Standards
OEM
Engineering
Approved
Component
CAD Model
Component
Engineering
System
-Level
GDT
Draft
Component
CAD Model
Draft
GDT Drawing
Draft
GDT Drawing
Approved
GDT
Drawing
Approved
CAD
Model
CAD
Software
March 8, 2010
Process
data
GDT
Analysis
Assembly
Engineering
Approved
GDT
Drawing
GDT
Software
IT Group
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The Organization Relationship Map
Summary
The Organization Relationship Map
• Shows what organizations are involved in a process or business
system and how they are related.
• Is used to identify the key stakeholders for a process
improvement effort
– Six Sigma Project
– Lean Rapid Improvement Event
•
Defines the organizational scope
– Operationally defines what organizations are in scope as well as
not in scope
•
Is used to engage
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–
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Key stakeholders at the beginning
Sponsorship
People as to why they are on the team
In implementation, show everyone how they are involved.
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The Organization Relationship Map
Thank you
Questions?
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