Pmg tag bpm_presentation


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  • Make the point that external processes are often ripe for BPM because of their tendency to be stuck in silos rather than managed across an entire end to end process. When done going through this list, pop up the same list for the internal processes, making the point that the very same principles apply to internal processes that do for external processes.
  • Talk about how internal processes may be even more neglected since they are not customer-facing. Ask audience if any of this sounds familiar. Are there examples in their own companies of internal processes that work this way?
  • Audience participation. Ask the audience.
  • Again, take notes on flip charts
  • Consistency / single interface, standardization.
  • If Service Delivery Management is the opportunity, a Service Catalog is the solution
  • Either use this or the next slide. Probably don’t need both.
  • Take audience through the exercise of high level design of a service catalog for “Request a New Computer” Jot down notes on flip chart – keep it moving really fast. If they have trouble coming up with anything, prime them with some ideas.
  • Mention that you are going back to the Forrester article….
  • Ask participants for their own ideas first – then show them our list after they have already brainstormed 5-10 intangibles
  • Talk through the model – let participants know that they should not focus on getting from the bottom to the top – take one step at a time. For most companies, this means starting a transition from a functional focus to a service focus.
  • History of requests Short version of vetting
  • At this point, distribute the “Benefits Calculator” worksheets
  • Pmg tag bpm_presentation

    1. 1. How AAA transformed their business process improving the customer experience April 16, 2009 Andrew Kramer, PMG Evan Maxey, AAA
    2. 2. Agenda• Business Context• Problem: Service Request Fulfillment• Solution: Service Catalog• Steps to Implement a Service Catalog• Service Catalog in Action – AAA• Summary/Questions
    3. 3. • Business Context• Problem: Service Request Fulfillment• Solution: Service Catalog• Steps to Implement a Service Catalog• Service Catalog in Action – AAA• Summary/Questions
    4. 4. The Economic Imperative a nT h a Th ! n Ever! r v eWith Less”• E 2009 will be a year of “Do More ^ ^• Projects with and without capital expense will be subject to intense scrutiny• Only projects that will show ROI (save money) will be green-lighted• What can Business Process Management practitioners do to maximize results in this environment?
    5. 5. • Business Context• Problem: Service Request Fulfillment• Solution: Service Catalog• Steps to Implement a Service Catalog• Service Catalog in Action – AAA• Summary/Questions
    6. 6. What about your internal processes? Did you know: The average company spends between 3 percent and 15 percent of its total revenue delivering services to internal departments.1 • Don’t just look at your customer-facing processes for opportunities, look at your internal processes too • “Service Delivery Management” does just that – mines internal service delivery processes for cost savings and cycle time efficiencies1 Service Catalogs: The Heart of Service Delivery Management" Julie Giera,Forrester Research, Inc.
    7. 7. Internal and External ProcessesExternal Processes Internal Processes• Service Fulfillment tends to • Service Fulfillment tends to be cross-functional be cross-functional• Typical focus is on • Typical focus is on departmental budgets departmental budgets rather than end-to-end rather than end-to-end costs costs• Outcomes are often • Outcomes are often measured by department measured by department rather than holistically – rather than holistically – based on end-user based on end-user experience experience
    8. 8. Even More Neglected?• Phone calls back & forth• Cogs of wheels not touching• Communications gaps• Information gaps• Unique experience each time• Requests come in, each is handled differently• Ad-hoc or non-existent workflow• Random task assignment, approvals, routing• Inconsistent service• No status or service level agreements• Unknown costs• Procedure documents
    9. 9. Common Example – Employee OnboardingDescribe Employee Onboarding at your Company• What are the steps? What has to happen when a new person comes on board?• What functional groups are responsible for each of these steps?• How does the process start? Who owns initiating the process?• How do groups signal to each other that they’re done and ready for someone to take the next step?• How does the process end?
    10. 10. Mining for SavingsShow me the money! Identify cost and cycle timeopportunities in the onboarding example• Staple yourself to the process?• How many e-mails and phone calls back and forth?• How much paperwork?• How long does it take?• Are some parts overly controlled by a few people?• What kind of benefits could your organization realize by improving on this process?
    11. 11. Opportunities AboundAre your internal departments service providers? Finance/Accounting • Need budgets • Need reporting/analytics • Need financial analysis Information Technology • Need new computer Marketing • Need password reset • Need product tag line • Need new server infrastructure • Need product logo • Need market researchLegal• Need contract review Facilities• Need advice • Need to move cubes • Need new phone • Need maintenance
    12. 12. • Business Context• Opportunity: Service Delivery• Solution: Service Catalog• Steps to Implement a Service Catalog• Service Catalog in Action – AAA• Summary/Questions
    13. 13. What is a Service Catalog?• Like an e-commerce catalog, except that it includes the “services” you provide to your customers.• Provides graphical, attractive descriptions of available products & services in customer terms.• Empowers user self-service: shop & order, then track status.• Provides real-time business process management, integration, and fulfillment automation VS.
    14. 14. Bringing Order to Chaos• Phone calls back & forth • Tasks flowing in the right order• Cogs of wheels not touching • Accurate information flowing to• Communications gaps the right people• Information gaps • Things happen at the right time• Unique experience each time • Repeatable / measurable
    15. 15. Bringing Order to ChaosAd-hoc workflow Structured, automated workflow• Requests come in, each is • Requests are handled with handled differently software-defined workflow• Ad-hoc or non-existent • Workflow ensures tasks are workflow. handled in the right order,• Random task assignment, by the right people, at the approvals, routing right times• Inconsistent service • Consistency, repeatability,• No status or service level and measurability agreements • Transparent costs• Unknown costs • Real-time status and service• Procedure documents level management
    16. 16. Exercise Designing a Service CatalogOrdering a New Computer • The user-facing front end: – What would a user want to know/see? – What do you as the process owner want the user to know about the service? • When they decide to place an order: – What information do you need to capture from the requester? • Then what? What are the fulfillment steps? • At what points during fulfillment do we want to/need to communicate back to the user?
    17. 17. Sample New Computer Catalog Item Yourcompany logo
    18. 18. Sample New Computer Order Form Yourcompany logo
    19. 19. Sample New Computer Workflow
    20. 20. Benefits of Service Catalog ApproachThe average company spends between 3 percent and 15percent of its total revenue delivering services to internaldepartments. Companies that have implemented ServiceCatalog tools have:•saved 30 percent to 40 percent of the cost of those services,•reduced the time to deliver services by 50 percent•improved quality by between 25 percent and 40 percent.Service catalogs are the cornerstone of service delivery andautomation, and the starting point for any company interestedin saving money and improving relationships with the business. 11 "Service Catalogs: The Heart of Service Delivery Management" Julie Giera,Forrester Research, Inc.
    21. 21. Quantifying the BenefitsSample Benefits Calculations for a shared service departmentCall ReductionBefore Service Catalog • Monthly Call Volume Information Requests 100/month New Request 400/month Status Requests 200/month Requests that could be bundled 100/month TOTAL 800/month • Average cost per call: $24/call • Monthly Cost: $19,200; Annual Cost: $230,400After Service Catalog• 80% reduction in calls – Savings per month: 640 calls/month x $24/call = $15,360 – Savings per year: 12 x $15,360 ≈ $185,000
    22. 22. Benefits of Workflow AutomationSample Benefits Calculations – for process with purchasing approvalStreamline ApprovalsBefore Service Catalog• Number of requests per year: 400/month x 12 = 4,800• Average employee salary (fully loaded): $90,000/year• Time to chase approvals: 15 min/approval• 15 minutes effort ≈ $10.82• Total cost of manual approval: $52,000After Service Catalog• Full cost elimination
    23. 23. Benefits of Workflow AutomationSample Benefits Calculations – for generic internal processStreamline FulfillmentBefore Service Catalog• Existing average time to fulfill Time # of Requests – Simple requests 1 day 100 – Medium requests 3 days 200 – Complex requests 8 days 100After Service Catalog• Expected/SLA time Time # of Requests – Simple requests 1 day 100 – Medium requests 2 days 200 – Complex requests 5 days 100 – Time saved for customer: 1,400 days – 900 days = 500 days • 500 days ≈ $140,000 (@ $280 / day)
    24. 24. Additional Intangible Benefits• What additional “soft” or intangible benefits would be attractive within your company? – Improved relationships between departments – Improved predictability for internal service delivery – Reduced frustration = increased employee satisfaction – Promotes culture of quality and accountability
    25. 25. • Business Context• Opportunity: Service Delivery• Solution: Service Catalog• Steps to Implement a Service Catalog• Service Catalog in Action – AAA• Summary/Questions
    26. 26. Levels of “Service Lifecycle Management” Capabilities:Lifecycle •Regular SC reviews Focus Collaborate with Business •Adherence to retirement process •Demand is managed & forecasted Service •Collaborate with business on •Continuous process improvement Lifecycle initiatives •Regular alignment reviews Mgmt. Metrics-driven Improvements Capabilities:Delivery •Service assessment Focus •Guaranteed service levels •Active project reviews Service •Portfolio reviews with users •Define service costs Level •End-to-end service control •Drive service level Mgmt. •Cost reporting understanding •Improvements based on metrics Build a Service Catalog Capabilities:Service •Catalog servicesFocus •Service focused deliverables •Review with users •Process-based workflow & metrics •Implement portal •Service reporting Service •Track/monitor requests •Aligned with business Operation •Establish SRM teamFunctional Capabilities: Focus •Team/Silo focused deliverables System •Service portfolio non-existent Mgmt. •No clear understanding of workflow or expectations •Ad-hoc resource planning •Unclear picture of where time is spent
    27. 27. • Business Context• Opportunity: Service Delivery• Solution: Service Catalog• Steps to Implement a Service Catalog• Service Catalog in Action – AAA• Summary/Questions
    28. 28. AAA Before Service Request Fulfillment• Unorganized approach to working requests• No metrics for productivity beyond Approved Queue SLA• No metrics for quality• No automation• Limited knowledge base
    29. 29. Quick Wins – Immediate Improvements• Unorganized approach to working requests – Established new queues that allowed for a continuity in work effort and faster processing – “New Hire Class Provisioning” for project based requests – “Wireless Requests” for wireless and handheld devices – Retired “Verify to Close” -obsolete approach – Closing old requests to clear out noise making it easier to work in queues – Regular monitoring of all queues for aging by team lead – Result: In progress queue aging down from 11 days to 1 day
    30. 30. Improvements continued• No metrics for productivity beyond Approved Queue SLA – Setforth expectation that near real time handling is both possible and expected – Began measuring and discussing time allocation and tracking to phone logs – Began measuring number of requests worked per day – Result: ~21% productivity improvement
    31. 31. Improvements continued• No automation – Automated Blackberry Approval process – AutomatedBlackBerry Security work with Annual Security Awareness Training – Result: – Removed an entire category of work – Improved the customer experience with single activity request and approval – Reduced time to fulfill orders by days
    32. 32. In Progress for 2009• In Progress SLA (same day service)• Written Service Level Agreements for SRF service – Executive – Claims – Standard• Quality Metrics – Request Quality 99.99% correct – Peer reviews – Lead quality reviews – Metrics for escalations• Team building and rewards• Automated application of line items by service catalog will free up .75 FTE for fulfillment activities• Update knowledge base to “ready reference” usability
    33. 33. Summary: Improved Service Requests• Initial assessment of SRF execution shows a working approach but with low productivity and significant team issues• Preliminary changes to improve process execution and morale have resulted in significant improvements• ~21% productivity improvement• SRF request aging Reduced from 11 days to same day
    34. 34. How AAA Improved Service Requests• Improved individual performance and team camaraderie• Claims Phone & Executive requests being processed same day*• Future changes including process approaches, knowledge sharing and automation will: – Continue to improve productivity (10% target) – Reduce aging to near real time service – Improve service quality to a 4 nines level of service (99.99% correct fulfillment) *In by 3PM, out same day
    35. 35. Current Mode of Operation: Simple Request Stated goal for the This is the Approved Queue is “Approved Queue” “in by 3pm, out same day” Approved Approved Service Service SRF Service SRS Service Request Catalog Team Request RequestRequestor Approval SRF Team is a There are multiple assigned fulfillment team & unassigned queues Add Line too, this work Items to constitutes the Fulfillment majority of our When the SRF Team is the fulfillment Teams Approver team, the request is either labor spend “assigned” meaning we are working on it or “unassigned” meaning we Request have not yet begun working on it SRF SRS Fulfilled Team Approved Service Fulfillment Requests Teams w/ Line These are the Items requests in the queues for people to work
    36. 36. Current Mode of Operation: Projects Approved Approver Service Service Approved SRF Requests SRS Catalog Service Team Service Requests Requests Help with Request Entry Add Line Items to Early notice of event Fulfillment Deliver SRF Teams fulfillment work Progress Reporting & Issue Resolution SRF Single Point of Contact Liaise to fulfillment SRSRequestor teams to ensure success Approved Requests Fulfillment Service Fulfilled Teams Requests w/ Line Items
    37. 37. Labor Allocation “Approved Queue” SRF (1) SRS Approved Approved SRF Service Service Service Service Team Catalog Request Request RequestRequestor In Progress Tasks •RBAC access provisioning Approval SRF Team is a SRF Queues •Fiberlink fulfillment team Additional Inf o •Payment tool access provisioning Add Line Required •Autopay access provisioning Items to too, this work •SRS access provisioning BB Security Hold •Crystal reports access provisioning Fulfillment constitutes the Non-Integrated Support •Callidus Prod. Comp access provisioning majority of our Teams Approver EDS •SalesX access provisioning •OCS access provisioning labor spend inHous •IT Employee separation requests In Progress •Cell phone ordering •Cell phone provisioning •Cell phone inventorying & prep for reuse Request •Blackberry ordering SRF Fulfilled •Blackberry provisioning Team •Blackberry inventorying & prep for reuse •Aircard provisioning SRF(2.5) SRS Fulfillment Teams Approved Service Requests w/ Line Items
    38. 38. High Level Steps in Service Catalog Project• Consider your internal opportunities• Identify internal process for transition to SC• Get green light• Appoint cross-functional project team• Use BPM best practices to streamline fulfillment process• Implement user front end and fulfillment backend to support process
    39. 39. Consider Your Internal Opportunities• Leading candidates for transition to Service Catalog approach often include: – IT – HR – Marketing – Facilities• Do your homework! Understand the current state of the internal process by researching: – Groups involved – Fulfillment steps – Interfacing Systems – Pain points – Cost and cycle time
    40. 40. Identify Internal Process for Transition to SC• Your initial process or group of processes will serve as a pilot or proof of concept. Eventually, the goal is to incorporate every internal service into the service catalog, but don’t bite off more than you can chew• What should be in the pilot? Your decision criteria will differ based on your own company situation/risk tolerance• Consider: – How big or small an effort do you believe you can realistically achieve with the resources and influence you have? – How big or small an effort will demonstrate the value of the service catalog to management? – How much cost or cycle time efficiency can you get from different groupings of possible pilot processes?
    41. 41. Get Green Light• You will need dedicated resources, executive sponsorship, and financial backing to start the pilot• How can you get the green light?• Handout: “Benefits Calculator Worksheet”
    42. 42. Appoint Cross-Functional Project Team• You will need advocates and decision-makers from each impacted department• Make sure to involve enough people but keep the team as small as possible
    43. 43. Use BPM Best Practices to Streamline Fulfillment Processes• Don’t simply automate your existing messy process• Look for opportunities to eliminate non-value- added steps, re-order steps to improve cycle times, push responsibility lower in hierarchy, etc.• This is where you shine!
    44. 44. Implement User Front-End and Fulfillment Back End• You may need new tools to support your improved process• Don’t be afraid to continue refining your process in the context of your new chosen toolset• Apply all software implementation best practices to ensure a smooth launch
    45. 45. • Business Context• Opportunity: Service Delivery• Solution: Service Catalog• Steps to Implement a Service Catalog• Service Catalog in Action – AAA• Summary/Questions
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