Monday, October 26, 2015

Armin Cruz Provides insight to Defining the Environment – the First Step to Solving Business Problems

Armin Cruz Provides insight to
Defining the Environment – the First Step to Solving Business Problems

Armin Cruz is a Six Sigma Master Black Belt that specializes in LEAN methodologies in the financial transactional industry.  Armin Cruz received his MBB while serving as a Vice President at Bank of America’s Process Excellence division.  Armin currently serves as Director and Head of Continuous Improvement for a public firm in the financial real estate and property management industry. Armin Cruz earned his MBA from the University of Phoenix, and his BA from the University of Texas at Dallas.  Armin Cruz lives in north Texas with his wife, three dogs and is anxiously awaiting his first baby boy in December.

Armin Cruz dives into detail about the first step of his process as we continue to learn the 4 Step process to solving business problems. The process possesses 4 steps, and Armin Cruz suggests that this process can provide the framework to solve any size issue or problem. 

The first step is to “Define the Environment.”  As the executive of your business unit or line of business, the first question one must answer is “What is the root cause of the issue plaguing my unit?”  One should note the difference between actionable information and root cause in this instance.  A plethora of examples are readily available to display the dangers of creating an action plan based upon the first actionable level of data versus the root cause.  A few tools to consider using to get to the root are surveys, focus groups, interviews, fishbone diagrams, gap analysis, and Pareto charts.

Once the leader of the unit has defined the issue, the next step is to clearly articulate the parameters of the problem.  A clear scope statement and definition will aid in ensuring the business team has the ability to create a laser-focused solution set. This solution set must be based on existing parameters and capabilities.  The system must consider the portals for procedures and process changes in such a way to enact change with a clear business case and defined business outcome.  These outcomes must remain clear and simple to aid in adoption.  Armin Cruz recommends the “3 Ds.”  The 3 Ds (Dollars, Days, Defects) provide the framework for strategic KPIs (Key Performance Indicators) that are universal and transcend business lines and industries.  The focus on revenue or profitably by time and quality ensures a clear, linear, and simple path to the business case, desired results, and measured results from a scope and problem perspective. 

Once you have these steps completed, the next step is to compile and create a gap analysis.  This gap analysis should incorporate the strategic enterprise strategy as a component to drive success.  This inclusion will assist in linking the executive vision for the firm with the operating goals of the front line employees.

To further define the issue and understand the environment, the next step should include an inclusive look at benchmarking as well as a full SWOT (Strengths Weakness Opportunities Threats) analysis to understand the internal and external factors affecting the environment. 

For more information about this topic, please read my Slide Share titled “How to Solve Business Problems, part 2.  How to Scan / Define the Environment” You may also reach out to me on my personal website and request more detailed information.

Point of Contact:

Name: Armin Cruz
Phone: (972) 333 – 9502






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