20090901 London Enterprise Session V3 Colour

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20090901 London Enterprise Session V3 Colour

  1. 1. What is a Business Process Architecture & Why Is It Important? Roger T. Burlton, Dir Of Consulting Services T Dir. rburlton@bptrendsassociates.com Paul Harmon, Chief Methodologist pharmon@bptrends.com BPTrends Associates www.bptrends.com ©2009 BPTrends Associates. All Rights Reserved
  2. 2. Notice of Confidentiality All materials you are given in this class are copyrighted by BPTrends Associates. The materials must not be copied, duplicated, or reproduced in any manner, or transmitted to others without the written consent of BPTrends Associates. BPTrends Associates may be contacted at 88 Waban Park, Newton, MA 02458 USA info@bptrendsassociates.com +1 617 964 4753 2 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  3. 3. Session Description This seminar will look at corporate efforts to create Business Process Architectures, the uses of process architectures, the tools t l and techniques available t f ilit t process dt h i il bl to facilitate architecture development, and the pitfalls to avoid. It will consider business process architectures in a comprehensive manner and include consideration of enterprise process modeling, KPIs and the alignment of processes with strategic goals and enterprise capabilities. Process governance and the role of a BPM Center of Excellence will also be introduced. It is based on the BPTrends Associates BPM methodology gy which enables the concepts described. 3 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  4. 4. Facilitators Reference Materials Roger Burlton’s Business Process Management www.amazon.com www.amazon.co.uk www.amazon.ca Paul Harmon’s Business Process Change 2nd Ed. 4 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  5. 5. Business Process Architecture Agenda 1. Some Process Principles 2. Understand Enterprise Context p 3. Model Enterprise Processes 4. Define Performance Measures 5. Establish Process Governance 6. Align Enterprise Capabilities 7. Prioritize and Manage Change 8. Conclusion 5 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  6. 6. Section 1 S ti Some Process Principles ©2009 BPTrends Associates. All Rights Reserved
  7. 7. What Do People Think BPM Means? BPTrends Survey: 2007. 274 Responses from throughout world. 7 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  8. 8. The Focus of Process-Centric Enterprises For Enterprises with Multiple Lines of Business p p 8 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  9. 9. BPM is Widely Applicable Way of Managing Performance and Change Versatility = able to do many things with your BPM, EA, capabilities SOA cover Adaptability = able to renew your capabilities quickly all 3 Our Future To Challenges Rapid Change will be here Dynamic Invention and Variation Products & Services To Stable Business as B i Continuous C ti Usual Improvement Most Improvement Techniques do not Kaizen and Lean question the Stable Dynamic from Toyota, Six Product or Service Sigma from Capabilities Motorola Develop environments that assume & enable variation and change 9 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  10. 10. Enterprise Performance Requires Strategic Alignment of Capabilities & Traceability of Decisions Business Strategic Intent Performance Drivers Results Business / Stakeholder Strategy Business Strategy St t Org/HR Information Strategy Architecture Business Process Architecture Technology Other Architecture Strategies Program of Change Migration Project Capability p y Strategy Portfolio Architecture 10 Copyright © 2009 BPTrends Associates. All Rights Reserved. 10
  11. 11. SEI’s Capability Maturity Model (CMMI) 11 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  12. 12. Different Perspectives on a Business Process A process is a repeatable series of activities performed to produce a result of value for one or more stakeholders. • S Scoping (E i (Event) Vi t) View: – Is initiated and terminated by one or more business events. • Relationship View: – Delivers outcomes of value to relevant stakeholders of the process process. – Always connects to other processes in a value chain (our own or other stakeholders’). Business P B i Processes are enterprise assets and must b managed as such. t i t d t be d h 12 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  13. 13. Different Perspectives on a Business Process • Processing View: –Transforms inputs into outputs, according to policies and rules employing reusable resources resources. • Performance View: –Has performance indicators for which measurable Has objectives can be set and actual performance evaluated. • Functional / O ga u ct o a Organizational View: at o a e –Contains activities requiring a set of functional competencies often found in disparate organizational units. units Business Processes are enterprise assets and must be managed as such such. 13 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  14. 14. Business Processes as Aligner of Capabilities Local Resturant Finance & Marketing & Sales Operations Transporation Legal Sevices Administration Information Faciliticies Customer Service Logistics Systems Management Catering Accounts Human Banquet Services Receivable Resources Delivery Accounts Payable Food Preparation Purchasing Credit Organization BPM: the discipline that Business improves measurable business Business process performance through Performance ongoing optimization of enterprise-wide processes and Processes their capabilities. Facilities 14 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  15. 15. What is a Business Process Architecture There’s no broad agreement on this term. Here’s our definition. A Business Process Architecture (BPA) • is a set of models and documents that provide information about the organization’s business processes • consists of models and documents that describe the organization s organization’s processes and the various relationships among them. • describes the relationship of the processes to the organization s organization’s strategic intent and stakeholders stakeholders. • defines how the processes are measured • describes how the processes are aligned to other p g organizational resources, including Business Rules, IT assets and Human Resources. 15 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  16. 16. The BPTrends Associates Pyramid 16 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  17. 17. The BPTrends Associates BPM Methodology 17 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  18. 18. Undertake Enterprise Level Process Work to Support Ongoing Management Goals 18 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  19. 19. A Quick Evaluation of Your Enterprise BPM Gap 19 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  20. 20. Section 2 S ti Understand Enterprise Context ©2009 BPTrends Associates. All Rights Reserved
  21. 21. Architecture Development Activities 21 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  22. 22. Strategic Intent: Mission, Vision, Goals, Objectives • Organizations use different names for the concepts – but most have some description of what they are trying to accomplish • The organization strategic intent is usually defined by an executive committee • It is key to process work that we align our processes to our organization’s intent • In most cases this primarily involves examining documents that already exist • In some cases you may find documents that are vague or ases o ma do ments a e ag e o that don’t cover everything you will need to drive your process architecture work 22 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  23. 23. A Basic Organizational Vocabulary 23 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  24. 24. Understanding an Organization • Mission: We aim to produce something of value* for customers. • Vision: We want to produce something of value for customers in some way better than we do now • Goal: We want to break our vision into a set of more definitive accomplishments to support our Vision • Objective: We want to be able to set a measurable target to evaluate our attainment of our goals • Key Performance Indicator: We want to establish the performance indicator that lets us monitor our progress towards our objective * V l i determined by customers Value is d i db 24 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  25. 25. Define Organization Boundaries 25 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  26. 26. Define Organization Value Chains (Lines of Business) 26 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  27. 27. Define Stakeholders for Value Chains 27 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  28. 28. Analyze Each Stakeholder Relationship Understand or Determine what does the successful future look like at the end of the planning horizon: • The Goals for future of Value Creation (Stakeholder Expectations) • The Measurement Indicators of success (KPIs) for ( ) each Relationship Type • The Objectives (Target Levels) for performance Improvement during the Planning Timeframe p g g • Those Capabilities that must be in place and Critical Success Factors that must be addressed to attain the Stakeholder value goals, expectations and KPI targets g , p g • Together these are Evaluation Criteria for Business, Process, Technology and Human Change 28 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  29. 29. Workshop You have been asked to take on responsibility for the entire ‘Santa’s North Pole’ enterprise process architecture. • What are 3 external drivers and pressures today? • Set a planning horizon for change • Briefly discuss the business strategic intent • Identify 10 main stakeholders of the business? • Identify for 1 of the stakeholders – 2 future expectations you want them to have – 2 KPIs and target levels you want to achieve – 2 Critical Success Factors that must be satisfied • Guidelines – Make up your situation – There are no thinking constraints – Have fun 29 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  30. 30. Section 3 S ti Model Enterprise Processes ©2009 BPTrends Associates. All Rights Reserved
  31. 31. Architecture Development Activities 31 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  32. 32. Some Process Architecture Principles • The Architecture is built from the perspective of a clear “Organization in Focus” (OIF) • E Everything coming i hi i into the OIF must come from at l h f least one external stakeholder and be received by at least one process • E Everything l thi leaving th OIF must go to at l i the t t t least one t external stakeholder and be produced by at least one process • Internally a chain of processes move stakeholder relationships through a lifecycle of state changes - from unawareness through termination • Internally a chain of processes move OIF assets through a lifecycle of state changes - from conception through retirement 32 32 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  33. 33. The Role of Value Chains, Value Streams and Processes • Value Chain: A complete set of value streams and their processes that an organization performs to produce a complete set of value added outputs for its external customers. t f l dd d t t f it t l t – eg: Core Customer Value Chain • Value Stream: A subset of the value chain that supports the delivery of a specific product service or result that contributes product, to customer value. – eg: Acquire Customer Value Stream, Provide Insurance Solutions Value Stream • Process: A set of activities that transforms process inputs into defined outputs to contribute towards the value stream’s goals and objectives. – eg: Identify and Qualify Needs, Secure the Business Needs 33 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  34. 34. An Organization Diagram with Three Value Streams (High Level Processes) 34 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  35. 35. As We Drill Down We Keep Expanding the Effort Involved Level 1 Level 2 Process Process Value Chain Level 1 Level 2 Process Process Level 1 Level 2 Organization Value Chain Process Process Level 1 Level 2 Process Process Value Chain Level 1 Level 2 Process Process 1 Organization g 3 Value Chains 3x5 = 15 Level 15x5 = 65 Level 2 1 Processes Processes 35 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  36. 36. Core, Management and Support Processes 36 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  37. 37. Business Process Frameworks • A Business Process or Reference Framework is a template that prescribes a set of high level processes and measures that stereotypical companies use with those processes • A company can use a BP Framework to quickly define an initial cut at parts of a Business Process Architecture • You would not expect a framework to be implementable “off the shelf” to cover an entire enterprise in all it does • Several different professional g p groups are working on BP p g Frameworks. – Generic Enterprise Models – Industry Specific Models Industry-Specific – Domain-Specific Models – Process Lifecycle and Value Chain Models 37 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  38. 38. Some Business Process (or OR) Frameworks • Generic Enterprise Models intended to describe organizations of all types in all sectors. – APQC’s Process Classification Framework APQC s • Industry-Specific Models aiming to describe an industry in whole. – ACORD Insurance Framework (Being developed) – TeleManagement Forum’s eTOM • Domain-Specific Models geared towards particular functions within the organization and the processes within them – OCG’s ITIL (Info. Tech. Infrastructure Library) – ISACA’s COBIT (Control OBjectives for IT) • Process Lifecycle and Value Chain Models to examine all work in a connected process chain across and within enterprises. – Supply Chain Council’s SCOR – Canada Government (Treasury Board Secretariat) GSRM (Governments Strategic Reference Model) 38 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  39. 39. APQC’s Process Classification Framework 39 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  40. 40. ITIL Framework 40 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  41. 41. SCOR Example: Level 2 Processes Supply Chain Plan Source Make Deliver Return 41 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  42. 42. SCOR Example: Level 3 Processes in Source ETO Product • Each of the Level 2 processes comes in one of three “stereotypes;” • Off-the-Shelf • Made to Order • Engineered to Order. Order • In the example above, Source describes an Engineered to Order Source process. • There are few variations in the Level 3 process, no matter which stereotype is involved. 42 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  43. 43. Process Decomposition Diagram for VRM* * Value Chain Group’s Value Reference Model: Only Core Processes 43 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  44. 44. Some Frameworks Provide Measures, Benchmarks Priorities: SCOR Example 44 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  45. 45. Business Process Semantics: Rules for Naming a Process Strict Naming Non–verb structures disallowed: Structure: NO stand alone nouns or gerunds:  Anything that ends in A process is  …ing described by an  …tion active verb-noun  …ent structure.  …al Verbs to be wary of: The intended  Anything that is lazy and not clearly result purpose of the focused  manage process must be in  handle the name of the  process process.  do 45 45 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  46. 46. The Process Architecture must Support Relationship Lifecycles All Stakeholder Relationships go through a progression from unawareness through termination What relationships do we have to manage? 46 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  47. 47. The Process Architecture must Support Asset and Capability Lifecycles All assets and capabilities go through a progression from concept identification through retirement What things do we have to manage? 47 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  48. 48. Financial Services Example Core Define Manage Improve & Govern the EDC Strategic External Develop Policies Transform the Ensure Compliance value chain Business Intent Relationships Business in Manage the Understand Design Develop Plan & Manage corporate Markets & Products Business Core Business Customers & Services Strategy Operations context Create Identify and Develop Monitor & Awareness & Develop the Secure the Core Customer Interest Qualify Value Solution Business Administer Needs Proposition Value Chain Solution Acquire Customer Provide Insurance Solutions Value Provide Financing Solutions Streams Provide Bonding Solutions P id B di S l ti Customer Provide Advisory Services Customer Manage Manage Customer Relationships Assets Manage Partner Relationships Optimize Financial Assets Enable the Provide Provide Manage Financial Provide Manage Manage Facilities & Legal Human Business B i Supplies IT Services Resources Services Knowledge Relationships (Budget) 48 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  49. 49. Sample IT Level 1 and 2 Processes 49 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  50. 50. Group Workshop • Looking back on the frameworks mentioned, identify the types that may work for Santa’s business. • Identify the processes in lifecycle of the child • Identify the processes in the lifecycle of a gift • Identify some Management and Support Processes of the North Pole? • Guidelines – Verbs please – 5-10 core processes – 16 20 total processes 16-20 50 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  51. 51. Section 4 S ti Define Performance Measures ©2009 BPTrends Associates. All Rights Reserved
  52. 52. Architecture Development Activities 52 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  53. 53. From Strategic and External to Internal Performance Measures as we Decompose • Strategic and External Measures tell us about the results achieved by the value chains or business processes in delivery to stakeholders • Internal Measures tell us about the results achieved by contributing processes, sub-processes or activities 53 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  54. 54. Ensuring Traceability of Process Measures up and down Process Levels Organizational Financial Customer Measures Measures Measures Internal Learning & Process Growth Measures Measures Value Chain Financial Customer Measures Measures Measures The goals and measures of Internal Learning any given Level Process Process Measures & Growth Measures should be a subset of their Level 1 higher level goals and Financial Customer Process Measures Measures M Measures M measures Internal Learning Process & Growth Measures Measures 54 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  55. 55. A Balanced Scorecard With Goals and Measures 55 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  56. 56. Knowledge of Stakeholder Goals Drives Process Goals and KPIs Products and Services 1 Original Documents 2 Copies Financial Customer 3 Payments 4 Paper and Ink 5 Invoices Goal - KPI 3 Goal - KPI 5 6 Copy Machines 7 Licenses 8 Taxes Process Learning 9 Jobs 10 Time / Experience Goal - KPI 9 Goal - KPI 12 56 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  57. 57. Section 5 S ti Establish Process Governance ©2009 BPTrends Associates. All Rights Reserved
  58. 58. Architecture Development Activities 58 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  59. 59. Governance vs. Management • Governance and Management are NOT the same thing. • Governance is concerned with goals, principles and structures that define who can make what decisions, frameworks, policies, decisions frameworks policies rules, and processes that define or constrain day-to-day management activities. • Management responds to daily circumstances and performance by taking daily actions. Managers should be guided or constrained by established governance documentation. 59 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  60. 60. Organizational Governance Structures CEO VP Finance VP IT SVP Divisons SVP SVP Manufacturing Sales & Marketing VP Asian VP US Name SV Europe SV Americas VP EMEA VP Sales Manufacturing Manufacturing Title • At the organization level, we h h l l have people who are clearly l h l l in charge and responsible for functional performance • As we develop our process architecture we will need to determine who will be responsible for the results achieved by the value chain, value streams and composite processes 60 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  61. 61. A Typical Functional Organization CEO Sales S l Manufacturing M f t i Delivery D li Department Department Department VP VP VP Sales Manufacturing Delivery Manf. Supervisor Delivery Sales Supervisor (Operational Process Manager) Supervisor • Who is responsible for cross functional Sell Manufacture Deliver performance and the advocacy for cross functional change? 61 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  62. 62. Determine Who Will Govern Each Value Chain 62 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  63. 63. How is Power & Responsibility Allocated? Sales Department • Who has the budget? VP • Who has bonuses? Sales • Who evaluates the Day-to-Day Manager? o? ty Tw ili e ib es ns Th po • Who cont ols support controls s ppo t n es Plan Pl & Monitor M it & ee R et r & Organize Control B we functions? (e.g. IT w ed o id P iv is D w budget) o H Widget Process Plan & Organize Value Chain Day-to-Day Day to Day Manager Process Manager Monitor & Control Plan & Monitor & • It’s the formal division of power & Organize Control Sell responsibility that p y define BPM governance Widget Value Chain policies 63 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  64. 64. Aligning Process Measures & Process Manager Performance Evaluation Scorecards Organizational A process scorecard Financial Customer Measures Measures Measures system automatically generates a Internal performance Process Learning & Growth evaluation system for Measures Measures process managers Value Chain Measures Financial Customer Measures Measures Financial Customer Measures Measures Internal Learning Process & Growth Measures Measures Internal Learning Process & Growth Measures Measures Value Chain Manager’s Manager s Scorecard 64 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  65. 65. Governance Purpose & Scope Process governance aims to ensure we are good at:  Aligning Processes with Strategic Intent  Controlling Process Performance  Improving and Adapting Processes  Sustaining the Benefits of Process Change g g Scope of Process Governance:  Design the Business Process Architecture and business processes  Define and oversee the process Performance Management Framework  Define and oversee the process Change Management Framework Note: These are intertwined and feed one another 65 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  66. 66. Governance : How many ROLES are needed and Who will perform them? develop & manage Govern all Governance governance processes framework design & Improve and adapt a process Stewardship improve process performance & process approach improvement i t Day to day & guidance feedback Management Execute and control a process specific customer conduct specific customer with specific need instance of with specific solution process Day to day enabling resources Leadership feedback on (human, technical, infrastructural) effectiveness of enablers provide Support enablers 66 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  67. 67. Case in Point: Financial Services Firm Roles and Reporting Roles can rec r at m ltiple levels: recur multiple le els: Executive Value Chain Value Stream Process Coordinator C i Steward Legend: Manager Focus = Change Management Focus = Performance Management Lead Focus = Both Change and Performance Management Mechanisms to elaborate on decisions, synchronize activities, and report on performance f Accountability relationship Collaborative relationship 67 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  68. 68. Section 6 S ti Align Enterprise Capabilities ©2009 BPTrends Associates. All Rights Reserved
  69. 69. Architecture Development Activities 69 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  70. 70. Enterprise Complexity Requires a More Elegant Architectural Model* g Strategy Stakeholders Opportunities Value Chains Principles Mission Goals Constraints Objectives Weaknesses Vision Threats Values Requirements Strengths Organizations Products Processes Events Methodologies Services Triggers Functions Procedures Skills Workflow Responsibilities Business Rules Roles Risks Financial Assets People Projects Jobs Budget Objects Time Facilities Data Information Tax Legal Cost Locations Knowledge Tools Models Applications Systems Databases Middleware Use Cases Hardware From To • TOGAF Framework 70 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  71. 71. Align Processes with Human Resources Organization For example: Align competencies required b t i i d by the processes that require them Value Chain Level 1 Level 1 Level 1 Level 1 Level 1 Process Process Process Process Process Market Product Product Problem Sales Research Engineering g g g Configuration Solving g 71 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  72. 72. Align Processes with Business Rules For example: Align processes with policies and ith li i d Business Rules that are used in the processes 72 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  73. 73. Align Processes with Applications 73 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  74. 74. Align Processes with SOA Services MDA/BPMN Business MDA/BPDM Processes MDA/SBVR ebXML BPEL Interfaces defined by business processes y p MDA/XMI Business Services MDA/UML Interfaces defined by enterprise semantics and requirements WSDL XML Integration UDDI IS IS IS IS IS IS IS SOAP Services TCP /IP MDA/J 2EE MDA/Eclipse Operational Resources Servers Servers Data Data Data Data Mainframes Mainframes Figure After a BPTrends Column by Mike Rosen, Jan. 2006 74 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  75. 75. Section 7 S ti Prioritize and Manage Change ©2009 BPTrends Associates. All Rights Reserved
  76. 76. The BPTrends Associates BPM Methodology 76 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  77. 77. Using a Pain-Gain Matrix for Prioritization 1. Identify Processes 2. Identify Stakeholders you want to prioritize who are interested in the Processes Process Gain Worksheet Process Pain Worksheet Process 10 Weighting Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 Process 9 Process 10 Weighting Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 Process 9 Stakeholders : Stakeholders : 1. 1. 2. 2. 3. 3. 4. 4. 5. 5. 6. 6. 7. 7. 8. 8. 9. 9. Combined Gain: Combined Pain: Process Gain Ranking : 3. Determine how much Copyright © 2008. BPTrends Associates. All Rights Reserved. Process Pain Ranking : Copyright © 2008. BPTrends Associates. All Rights Reserved. each Stakeholder 4. 4 Determine how much each potentially gains from Stakeholder is frustrated by each process Pain-Gain Matrix each process Highest Amount 1 of Pain 2 mproved ? 3 5. 5 Create a matrix that 4 PAIN - How much the process can be im 5 locates each process so 6 7 Processes it you can identify the 8 9 would be best processes that are most 10 11 to focus on value and also frustrate Least Amount of Pain 12 12 11 10 9 8 7 6 5 4 3 2 1 stakeholders the most Copyright © 2008. BPTrends Associates. All Rights Reserved. Smallest Possible GAIN GAIN - Contribution to Strategic Intent Largest Possible GAIN 77 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  78. 78. Alternate Process Migration Strategy (Triage2) Performance Competent Best Practice World Class Gap Commodity Competitive Differentiation pain B 1 1/3 3 i Large g A3 5 Performance g Gap e 15 4 s t 16 8 14 Moderate 1/3 G B3 B2 Performance a p 12 6 13 Gap R a 2 7 n 9 10 No/ Little 1/3 k C3 C2 C1 i Performance n 11 Gap G g gain Inherent 1/3 1/3 1/3 Value Greatest Value Potential to Business Strategy and Performance 78 78 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  79. 79. Scope of the Support Group(s)? Govern Provide Capability Provide Consulting Governance Support CoE CoE CoE Enterprise Process Governance CoE CoE Office or CPO Process Process Governance CoE CoE Office or CPO Technology T h l Process Governance CoE or IT Function? CoE or IT Function? Implementation Office or CPO Human Implementation Process Governance CoE or HR Function? CoE or HR Function? Office or CPO Operations Process Governance Day to day Process Day to day Process Office or CPO Manager Manager 79 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  80. 80. Section 8 S ti Conclusions ©2009 BPTrends Associates. All Rights Reserved
  81. 81. Documentation Required for Each Value Chain, Value Stream and Process  Events  Opening  Closing  Description  Relevant Stakeholders R l t St k h ld  Process Goals  Other Relevant Processes  Process Responsible Parties  Governance  Stewardship  Management  KPIs  Indicator with Unit of Measure  Current Performance  Target Performance  Value Added Rank  Performance Gap  IGOEs  Inputs  Guides  Outputs  Enablers • Sub level Activities  Sub Processes (next level) 81 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  82. 82. Finishing Your Enterprise Architecture • We have described a general methodology for creating the elements needed to organize and manage processes at the enterprise level • In fact, however, we have only been able to approximate the work you will need to do to actually implement the enterprise methodology • Having explored the elements of the methodology, you will need a plan to actually implement it and we want it, to provide some suggestions as to how you might approach it 82 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  83. 83. Maintain Process Architecture • The first issue to face, after initially creating a process architecture, is how to maintain it • A good process architecture is a valuable corporate asset • Every day that passes will introduce changes in the e y a oduce c a ges e architecture • Most days will also generate information that could be captured to enrich your architecture. Every process architecture redesign project, for example, will produce updated and more detailed information about specific processes that make up the architecture • You need a standard, systematic process that gathers information about changes and enhancements and uses them to update the company architecture p p y 83 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  84. 84. Maturity: What Level Do We Want to Reach? And By When? Processes Teams Level 5. Continuously Processes Improve Processes Continuously Improved Processes are Level 4. Measured and Processes Are Managed Managed g Systematically S t ti ll Processes are Level 3. Organized and Redesigned at the Most Processes + Measurement & Organized BS&T Level Governance Processes are Improved at the Level 2. Work Group or Some Organized Departmental Level Processes + Architecture Map & KPIs Level 1. No Organized Cultures Processes of Heros 84 Copyright © 2009 BPTrends Associates. All Rights Reserved.
  85. 85. Process Architecture : It's inevitable - just a matter of time • Process is the b t choice t translate Strategic P i th best h i to t l t St t i Intent into Capability. It’s what we do to get what we want. g • All capabilities must be aligned with the processes and strategies. 1 We have to have a clear language and common target • We must have frameworks that manage and govern our assets. We have to invest in and do the right things 85 Copyright © 2009 BPTrends Associates. All Rights Reserved.

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