Bpm Risk Analysis 10 27 10 30

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  • 1. Identifying and Analyzing the Risks of Business Process Reengineering Projects Kristin M. Howlett Director of Process Improvement DeKalb County, Georgia October 29, 2008
  • 2.
    • Are you gambling with your project?
  • 3. Can you afford to roll the dice on risk?… Develop a formal Risk Management Plan: Consider all vulnerabilities Consider likelihood of event happening Manage and react frequently Consider all actions that can minimize, impact or eliminate event 1. Identify Risk: 2. Assess Risk: 3. Mitigate Risk: 4. Monitor Risk:
  • 4. Risk Identification
    • Categories of Risk for Projects :
      • Technology Risk
        • Hardware/Software Risk
      • People Risk
        • Resources
        • Time commitment for project
        • Change Management
        • Vendor Soft Skills
        • Training
      • Project Risk
        • Sponsorship
        • Scope
        • Cost Estimate and Budgeting
        • Project Management
        • Process Reengineering
        • Political Environment
        • Change Management
    Technology Risk People Risk Project Risk
  • 5. Technology Risk
    • Hardware Risk
      • New purchase vs. existing hardware
      • Maintenance – costs for upgrades
      • Technology redundancy (across different systems), or interoperability (interfaces between systems)
    • Software Risk
      • Custom solution vs. package solution
      • Interfaces
      • User-friendly technology
      • Enhancements to software
      • Software functionality
      • On-going support (when project is complete)
  • 6. People Risk
    • Resources
      • Subject Matter Experts
      • Technical resources
      • Contractors
      • End user management
    • Time Commitment for Project
      • Concurrent projects
      • Other work responsibilities
    • Change Management
      • Acceptance of new process from project team and the rest of the organization
      • Plan in place and owners assigned
    • Training
      • Training on new procedures
      • On-going availability for new training (or retraining if needed)
    • Vendor Soft Skills
  • 7. Project Risk
    • Sponsorship
      • Who is leading the project?
      • How engaged is he or she?
    • Scope
      • Have clearly defined goals and objectives in advance
      • Avoid “scope creep”
    • Cost Estimate & Budgeting
      • Know budget limitations
      • Contingency Fund (add 25% to budget for unanticipated events)
    • Project Management
    • Process Reengineering
      • Is it being performed?
      • Who is responsible for it?
    • Political Environment
    • Change Management
      • Clearly defined process on how requirement changes will be implemented
      • How will changes be institutionalized?
  • 8. Case Study: DeKalb County 311
    • DeKalb County is located in Metropolitan Atlanta
    • Third most populated county in Georgia
      • Population: 737,000
      • Over 100 languages spoken
    • DeKalb is home to…
    • The state’s second largest airport (PDK)
    • Center for Disease Control (CDC)
    • GBI Headquarters, FBI and IRS Regional Headquarters
    • 9 major medical facilities, including
    • Emory University Hospital and Atlanta VA
    • Medical Center
  • 9. Case Study: DeKalb County 311
    • What is 311?
    • An easy to remember three digit phone number to call when contacting your local government for any “non-public safety emergency” matter.
    • Centralized, consolidated call center to relieve the non-emergency call burden from 911 and to provide excellence in customer service
      • “ One-stop Shop” for customer service delivery
    • System-wide technology implementation that provided an opportunity for Dekalb to revisit the way the county does business
      • Streamlined business processes
      • Eliminated redundant activities
      • Improved customer-facing business practices
      • Increased revenue streams
  • 10. Case Study: DeKalb County 311(continued)
    • Some of the benefits of 311 include…
    • Relieving front-end, customer service work load from individual departments across the county, allowing individual departments to better focus on core business functions
    • Assessing county performance
      • Tracks the quantity and status of service requests to improve accountability and service delivery
      • Classify and analyze service requests to locate problem areas
    • Improving service quality and quantity
      • Improves how county services are requested, scheduled, and performed (standardization of practices)
      • Central point of intake and retention of customer information
      • Ability to handle many calls simultaneously with a “live” person
      • Ability to identify service needs in high call volume areas
      • Increases the efficiency of administrative activities by eliminating
      • tasks that add no value
  • 11. Case Study: DeKalb County 311
    • All departments are affected by 311 and will have some changes in their customer facing processes and practices
    • At the onset of the project, the scope was actually too limited – the project overlooked dependence on external departmental involvement
      • Call center implementation became process improvement project
    Project Risk: Scope Basic 311 Call Center Process Flow
  • 12. Managing Risk
    • There are 3 types of risk:
      • Controllable - Risk can be identified and a contingency plan to minimize or eliminate risk is established
        • Plan for alternatives or options from most optimal to least optimal
      • Uncontrollable – Occurs when risk can be identified, but the specific event and/or the timeline for occurrence is unknown
        • Plan for contingencies
      • Unknown – A risk that has not been identified and it occurs
        • Hiring freeze in DeKalb County that threatened 311 “Go Live” date
        • Acquiring the “311” number designation
  • 13. Assessing Risk
    • Determine risk probability that event will occur
      • Give a rating to the event: High, Medium, or Low risk
    Interface availability will impact the SIT/ UAT; potentially the Go Live A week delay in hiring a trainer will cause a week delay in the Go Live, $15K/week Impact / Status
    • Engage vendor early
    • Identify Architecture by Month 1 of the project
    High High New Interface Needed for Hansen Department
    • Information
    • Systems will
    • conduct training
    • classes
    Low Low Hiring of Departmental Trainer Mitigation / Contingency Risk Probability Risk Impact Risk and Description
  • 14. Mitigating Risk
    • Develop a Contingency Plan
      • Determine a back-up plan for an event happening
      • Determine who owns the event if it happens
    • Risk Avoidance: Can you prevent a risk from occurring?
      • Who will be responsible for preventing the risk from happening and when will it be done?
    • Assess severity of impact
      • Whenever possible, relate risk impact in terms of money and time:
      • A 4 week delay in a hardware delivery date would cost $40K per week (or $160K for a month).
    • Budget for Impacts
      • Add 25% to your budget to fund mitigation and contingency plans
  • 15. Monitoring Risk
    • Develop and implement a methodology to manage the risk process
      • Use software tools and risk mitigation techniques to manage risks
      • Develop a formal process for issues management
      • Reassess and add risk items throughout implementation
  • 16. Key Take-Aways
    • Risk cannot be avoided, so don’t take a chance!
    • Follow a Risk Management Plan:
      • Identify risks early in project implementation
      • Assess the potential impact to project (preferably in dollars)
      • Mitigate risk by developing a contingency plan for each risk
      • Monitor risk continuously
  • 17. Questions?