Dimensions Of Change

Dimensions of Business Process Change Brett Champlin, President, Association of BPM Professionals

Association of BPM Professionals www.ABPMP.org
Non-profit, vendor-independent, professional organization
Dedicated to the advancement of business process management concepts and its practices
Practitioner-oriented and practitioner-led
Founded 2003
10 Active US Chapters, many more forming
Affiliations with BPM groups internationally
Guide to BPM Common Body of Knowledge (BPM CBOK™)
BPM Model Curriculum
Certified Business Process Professional (CBPP)™

ABPMP’s Guide to a BPM Common Body of Knowledge

What is BPM?
BPM is a Management Discipline
Process-oriented thinking
Manage end-to-end business process
Strategy is carried out through process
Process assessment, analysis and design
Process performance over functional performance
Enabled by an evolving set of technologies
Process discovery and definition
Process execution and orchestration
Process monitoring and control
Process performance decision support

APQC BPM Benchmarking Study
“ 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.”
Source: APQC

BPM Has Become Mainstream
Two recent Forrester Surveys (Sept-Oct 2007)
449 decision makers in North America and Europe 60% were already using BPM an additional 19% plan to do so in next 12 months
160 US and UK enterprise architects 85% were actively planning or already had BPM deployments under way
BPM Centers of Excellence (COEs) are the catalyst for BPM success
Source: Forrester

Primary Reasons for Investing in BPM
The good news is that you can get all of these benefits from BPM. You don’t need to choose just one.
Source: Gartner

Process vs. Functional Management

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

Alternate Process Management Structures

Business Process Dynamics Mission, strategy, goals, and objectives Business Process Workflow Design Information Systems Motivation & Measurement Policies and Rules Human Resources Facilities (or other)
Performers
Steps & decisions
Sequence and flow
Handoffs
Applications
Information
Employee assessment
“ Reward and punishment”
Process performance indicators
Constraints
Business rules that the process enforces
External & internal
Skills
Matching jobs to tasks
Selection and placement
Workplace design
Equipment
Furniture…
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

Process Domains Business Operations Technical

Perspectives

WORDS OF WISDOM
“ 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

Transformation Personality Profile Source: Gartner Style Characteristics Imperative Cultural Agressives
Holistic Coordination
Seize Advantage
We change the rules of the market
We welcome rapid change
People at all levels embrace new ideas
Stay Ahead Cultural Moderates
Local Optimization
Seek Parity
We follow fast behind market leaders
We can cope with a few moderate changes
New ideas flow top-down through managers
Get Leverage Cultural Conservatives
Central Control
Reduce Pain
We seek mature markets, then compete on price
We prefer status quo; discourage exceptions
New ideas are limited to job descriptions purview
Catch Up

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 TRANSFORMATION CONTINUUM
Process Improvement is incremental
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

Why Process Portfolio Management?
Looking at one process at a time is not optimal
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

1 st Order Change
Tasks & Nature of Work
PLACE PEOPLE PURPOSE PROCESS PRODUCT PERIOD

2 nd Order Change
Attitudes, Values & Skills

3 rd Order Change
Motivation & Relationships

4 th Order Change
Structure & Culture

5 th Order Change
Structure & Culture
Relationships with External Partners & Community

A PARTING THOUGHT... “ You don’t have to change. Survival isn’t mandatory.” - Dr. W. Edwards Deming

Dimensions of Business Process Change Brett Champlin President, ABPMP www.ABPMP.org [email_address]

Dimensions Of Change

by Brett Champlin

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