“ BPM is the way best-practice organizations conduct business ”
It also confirmed that regardless of where an organization stands in terms of process ‘maturity’, technology continues to play a vital role.
While the APQC research participants agreed that technology, by itself, does not constitute “Business Process Management”, they concluded that much of the promise of BPM initiatives will not be realized without powerful, flexible and user-friendly IT solutions to support them .
Four of the five of APQC’s best practice partners cited technology support being a key success factor for managing, aligning and integrating business processes - --thus impacting profitability and their ability to compete in today’s competitive, global market.”
Functional vs Cross-Functional Process Management Source: Dan Madison, “Process Mapping, Process Improvement and Process Management President Human Resources Marketing Finance Information Technology Process Management Within Functional Areas Cross Functional Process Management President Marketing Sales Field Operations Underwriting
Business Process Dynamics Mission, strategy, goals, and objectives Business Process Workflow Design Information Systems Motivation & Measurement Policies and Rules Human Resources Facilities (or other)
Steps & decisions
Sequence and flow
“ Reward and punishment”
Process performance indicators
Business rules that the process enforces
External & internal
Matching jobs to tasks
Selection and placement
enables enables enables enables enables Culture, core competencies, and management systems Supports Constrains enables Source: Alec Sharp, Clariteq
Business Process “Meta Model” PURPOSE PEOPLE PLACE PROCESS PRODUCT PERIOD
“ Always design a thing by considering it in its next larger context - a chair in a room, a room in a house, a house in an environment, an environment in a city plan.” - Eero Saarinen
PROCESS “MATURITY” MODEL Integrated (6) Coordinated Process Initial (1) ad hoc Process Repeatable (2) Stable Process Defined (3) Standard Process Managed (4) Measured Process Optimized (5) Effective Process Process Control Process Measurement Process Definition Basic Management Control Process Integration Consistent Execution Controlled Environment Quality and Productivity Improvement Continuing Improvement Chaotic Cooperative Optimization
Process Management “Maturity” Continuously Improving Process Predictable Process Disciplined Procedures Consistent Process Cooperative Process Need Quality Management Program Need Management Regulation Ignored (1) Manage/ Plan (5) Participate/ Control (4) Support/ Direct (3) Recognize/ Organize (2) Steward/ Lead (6) Need Enterprise Integration Process Management Maturity Process Maturity
Process Types Primary (Core Operational/Value Chain) Process Support Processes Management Processes Sub Process Sub Process Sub Process Sub Process Sub Process HR Services Financial Services Information Services Facilities Services Procurement Services Planning Directing Monitoring Controlling Transforming
Impact and Approach Source: Jeston & Nelis Point of Approach Within Organization Redesign of Industry Value Chain Redesign of Business Redesign of Processes Improvement of Sub Processes Incremental Improvements Impact on Organization
Process Re-Design is end-to-end re-thinking of what we are doing
Process Reengineering is a blank slate approach
Process Innovation involves changing the model, not just improving its efficiency
Process Improvement Process Reengineering Process Re-Design Time Degree of Innovation Cost
Managing Process Transformation Source: Jeston & Nelis End-to-End Process Activity/ Sub Process Scope of Change Short Long Time Process Improvement Business Model Process Re-Design Process Reengineering
Map Processes to Business Strategies Business Processes Major Impact Moderate Impact Major Impact Moderate Impact Engage Customers Transact Business Fulfill Expectations Provide Services Reduce Costs Reduce Time-to-Market Improve Quality Gain Market Share Broaden Product Line Business Strategies Adapted from Bob Curtice Performance Improvement Associates"
Establish Performance Diagnostics Business Processes Diagnostics + ++ 0 World Class Better Than Competitors Equal to Competitors Worse Than Competitors 4.3 0.7 Years since last major improvement effort Benchmark Grade 3 Yr Efficiency Metrics 3 Yr Effectiveness Metrics Process Cost ($ bln) 2 4 1 3 ++ 0 + 2.1 1.4 Engage Customers Transact Business Fulfill Expectations Provide Services Adapted from Bob Curtice Performance Improvement Associates"
Assess the Portfolio Adapted from Bob Curtice Performance Improvement Associates" Engage Customers Transact Business Fulfill Expectations Provide Services Reduce Costs Reduce Time-to-Market Improve Quality Gain Market Share Broaden Product Line Years since last major improvement effort Benchmark Grade 3 Yr Efficiency Metrics 3 Yr Effectiveness Metrics Process Cost ($ bln) 4.3 0.7 2 4 1 3 ++ 0 + 2.1 1.4
How can we be sure this process is the most critical one to improve at this point in time?
How do we know which process(es) improvement will contribute the most to achieving business objectives?
How can we ensure the benefits of an improvement project do not degrade over time?
Managing a Process Portfolio
Ensures some level of attention is paid to all important processes even when there is no major improvement project underway
Provides a rationale to focus attention on the most critical process(es) needing improvement
Provides a framework for on-going performance measurement of all processes
Adapted from Bob Curtice Performance Improvement Associates"
Map to Decision Support Tools Engage Customer Provide Service Transact Business Fulfill Expectations OPPORTUNITIES THREATS Internal Factors External Factors STRENGTHS WEAKNESSES Leverage Constraints Obstacles Vulnerabilities External Factors Internal Factors
Strategic Tactical Degree of Change Short Long Time Process Improvement Process Re-Design Enterprise Process Alignment/ Process Portfolio Management Process Reengineering Business Process Management Managing Process Transformation Organization Change Management Low Hanging Fruit/ Quick Hits
Impact and Involvement Source: Jeston & Nelis Involvement of Business Manager Impact on Organization Low High High Redesign Business Model Redesign End-to-End Process Improve/Redesign Sub Process Incremental Sub Process/ Activity Improvement Business As Usual In the Driver’s Seat Pilot Project Under the Radar Under- ambitious Exceeding mandate Low