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Strategy & Business Process Management
 

Strategy & Business Process Management

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Describes what Business Professionals, IT Project Managers and Business Analysts need to know to add value to BPM programs.

Describes what Business Professionals, IT Project Managers and Business Analysts need to know to add value to BPM programs.

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    Strategy & Business Process Management Strategy & Business Process Management Presentation Transcript

    • STRATEGY AND BUSINESS PROCESS MANAGEMENT Techniques for Improving Execution, Adaptability, and Consistency CARL F. LEHMANN Principal Analyst BPMethods, LLC www.bpmethods.com Desk: +1.781.319.0599 Cell: +1.781.405.0027 carl.lehmann@bpmethods.comBPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 1
    • About BPMethods  A professional services firm focused on execution, performance & outcomes  Specializes in Business Process Management & Continuous Improvement  Helps management team & practitioners develop & refine BPM skills, techniques & practices  Manages processes as a portfolio of strategic assets  “Core” processes necessary to the creation and delivery of customer & shareholder value are managed to maximize customer value & financial returns  “Non-core” processes that perform supportive or management functions are managed to minimize risks & control costs  Improves results through modeling, analysis & simulation of new design or redesign alternatives  Begins engagements by first understanding  Business strategy  Organizational structure  The capabilities & limitations of in-place IT systems & resources BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 2
    • What BPMethods Offers Professional Services  Managed BPM Services • The Portfolio Management Service – Develops and manages a Business Process Portfolio • The Project Management Service – Initiates and runs a Business Process Improvement Project • The Program Management Service – Drives and executes a Continuous Process Improvement Program  BPM Guidance Services • On-Demand Coaching – an on call resource • Business-Focused Training – tailored BPM curriculum for management teams & workforce Products (used for BPM preparation or self-service)  BPM Guides • The Strategy Guide: How To Ensure That Your Resources Can Execute Your Strategy • The Portfolio Guide: How to Document & Manage Business Processes as Strategic Assets • The Readiness Guide: How to Assess the Ability of In-Place IT Systems to Support Process Change • The Evaluation Guide: How to Evaluate Business Process Analysis Software  BPM Software & Templates • The BP Inventory Worksheet (Microsoft Excel) • The BP Portfolio Template (Word) & The BP Portfolio Manager (Access 2007 Database) • The IT Readiness Assessment Template (Microsoft Word) BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 3
    • BPMethods Value Solves business problems (improves end-to-end processes)  Customer satisfaction  Financial  Operational  Cost  Quality  Schedule Deploys strategic initiatives (designs & structures a set of processes)  Open new markets  Launch new products or services  Mergers & acquisitions  Regulatory compliance Enables continuous transformation (manages a Business Process Portfolio)  Structures implementations or upgrades to assure strategic results • ERP (finance, accounting, HR, others) • Supply chain management • Customer relationship management • Product lifecycle management • Software-as-a-Service, Cloud • Business Process Management Suites (BPMS)  Initiates & manages Continuous Process Improvement Programs • To run, grow & transform organizations BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 4
    • What BPMethods Does Inventory & manage processes as assets  Classification  Portfolio management techniques Evaluate process quality  Using evaluation criteria  “Core” vs. “Non-core” processes Document details  Processes, polices/rules, performance measures (KPIs)  Develops a Business Process Portfolio Improves processes  Through modeling, analysis & simulation  Following “process-centric” design & redesign principles  Enabling a “process-centric” IT architecture  Rigorous change management techniques Sustains results  Develops a Continuous Process Improvement Program BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 5
    • Agenda What is BPM & why is it important? Market & technology trends How industry leaders view BPM  Translating business strategy into action  Questions they ask & the best practices they use How to manage, analyze and change business processes  Techniques, tools, methods, technologies & practices A BPM Practitioner Summary Conclusion BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 6
    • Agenda What is BPM & why is it important? Market & technology trends How industry leaders view BPM  Translating business strategy into action  Questions they ask & the best practices they use How to manage, analyze and change business processes  Techniques, tools, methods, technologies & practices A BPM Practitioner Summary Conclusion BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 7
    • BPM is not new!BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 8
    • What Is New? Traditional definitions  Basic definition • A logical series of related activities that converts input to results or output  Value-added extension • Designed to create or deliver customer value and/or; shareholder value through efficiency New thinking  Processes are assets and must be managed as such  If they are not they will become liabilities Process defined as an asset  An asset that affects the quality of a product, service or brand to uniquely satisfy customer needs and differentiates its executor from competitors BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 9
    • What is New? “Core” processes  Are necessary to the creation and delivery of customer & shareholder value  They must be managed to maximize customer value & financial returns “Non-core” processes  Perform supportive or management functions  They must be managed to minimize risks & control costs Asset Types  Operating processes • Create or deliver value for which customers are willing to pay  Support processes • Facilitate or assist the execution of operating or management processes  Management processes • Measure, control quality & assure performance outcomes • Help make decisions, control variance & resolve problems  Control processes (a subclass of management processes) • Adjust or correct a business process or its outcome, when performance measures vary, exceed acceptable thresholds or when a new opportunity is presented • Exception control processes affect known and/or anticipated events • Resolution control processes affect unknown and/or anticipated events BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 10
    • What is BPM & Why Is It Important? Popular beliefs perceive BPM as…  An enterprise-wide methodology  A systematic approach to managing and improving specific processes  A cost cutting or productivity initiative  A set of new technologies BPM is a managerial discipline focused on execution, performance & outcomes  Provides structure, methods & tools to align the workforce & IT with business strategy, helping organizations to execute & adapt while consistently achieving performance measures & business objectives  It is the “art & science” of how an organization does things (end-to-end) and how it can continuously do them better Why is it important?  Because HOW business gets done is just as important as WHAT gets done – how you do things creates Competitive Advantage  Business processes define your “value chain”, they should be treated as assets and assembled “…in the best possible way!” BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 11
    • Competitive Advantage“A systematic way of examining all the activities afirm performs and how they interact is necessaryfor analyzing the source of competitiveadvantage.” “The value chain disaggregates a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation.” Source: Michael Porter, Competitive Advantage, 1985 BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 12
    • Competitive Advantage Competitive advantage is created when a firm integrates the activities of its value chain in “the best possible way.” Source: Michael Porter, Competitive Advantage, 1985 BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 13
    • Agenda What is BPM & why is it important? Market & technology trends How industry leaders view BPM  Translating business strategy into action  Questions they ask & the best practices they use How to manage, analyze and change business processes  Techniques, tools, methods, technologies & practices A BPM Practitioner Summary Conclusion BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 14
    • Market & Technology Trends Notable acquisitions in the last 5 years (partial list)… Lombardi (BPM Suite) …………….. ........ ..... IBM …………….. iLog (Rules Engine) IBM …………….. Aptsoft (Event Management) IBM …………...… IBM …………….. Cognos (Business Intelligence) IBM …………….. TeleLogic (BP & App, Dev. Software) …………….. Filenet (Workflow) IBMMetastorm ……………….….. Proforma (BPA Software) Open Text ……………….….. Metastorm (BPA & BPMS) Oracle …………….…….. BEA (App. Dev. & BPMS) Pega …………………... Chordiant (CRM / BPM) Progress Software …………………... Savvion (BPMS) SAP ……………….….. Business Objects (Business Intelligence) Software AG ……………... Software AG ……………….….. IDS Scheer (BPA) Software AG ……………….….. webMethods (App. Dev & BPM) Tibco ……………….….. Spotfire (Business Intelligence) Tibco ……………... Tibco …………………... Nimbus (Process Documentation) Platforms acquiring building blocks & migrating to “process-centric” services-oriented architecture BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 15
    • BPM Vendor Landscape Gartner Magic Quadrant Gartner Magic Quadrant BPA Tools, 2008 BPM Suites, 2010 Source: Gartner Magic Quadrant for BPA Tools 2008 Source: Gartner Magic Quadrant for BPM Suites 2010 BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 16
    • BPM Vendor Landscape Forrester Wave IDC MarketScape 2011 BPM Suites, Q3 2010 Business Process Platforms Source: Forrester WaveTM Business Process Managment Suites Source: IDC MarketScape: Worldwide Business Process Platforms Q3, 2011 2011 Vendor Analysis BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 17
    • BPM Market Observations Market Size & Growth Recent International Data Corporation (IDC) research shows that the worldwide business process management (BPM) and middleware market recovered strongly from its 2009 growth slump and for 2010 revenue totaled nearly $16.1 billion, representing growth of 9.2% - up sharply from a growth rate of 2.2% in 2009. Prognostications IBM reports that inefficient business processes cost Fortune 500 companies more than $480 billion dollars a year and public sector organizations as much as $1.3 trillion. Gartner, a leading IT research and advisory firm, reports that over 78% of business improvement projects yield internal rates of return of 15% or more. AIIM, the Association for Imaging and Information Management, reports that half of organizations practicing business process management realize investment payback within 18 months and over 70% realize payback within 2 years. BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 18
    • Benefits Sought Source: Forrester Software Survey, Q4 2009 BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 19
    • Agenda What is BPM & why is it important? Market & technology trends How industry leaders view BPM  Translating business strategy into action  Questions they ask & the best practices they use How to manage, analyze and change business processes  Techniques, tools, methods, technologies & practices A BPM Practitioner Summary Conclusion BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 20
    • How Industry Leaders View BPM BPM is NOT…  An isolated initiative, an IT project  Just about processes BPM is…  A managerial discipline that treats processes as strategic assets integral to creating & delivering customer & shareholder value, & sustaining competitive advantage  A means to structure resources (people, business processes & IT) to make each more effective, adaptable & valuable to consistently achieve results while adapting to change Practice Business Process Portfolio Management  Core & non-core processes managed as a portfolio of strategic assets  Maximize customer value & financial returns  Minimize risks & costs Industry leaders are highly effective at creating value & linking strategy with execution BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 21
    • To Create Value Leaders Ask… How do we compete? (Competitive Strategy & Competitive Advantage)  Define value  Determine a defendable strategy through analysis (customer, market, industry, competitor) How do we focus operations? (The Discipline of Market Leaders)  Pick an operating model (core processes, IT, organization, culture, mgmt. systems) • Operational Excellence • Product Leadership • Customer Intimacy How do we manage performance? (Balanced Scorecard)  Develop a performance measurement system (outcome measures & performance drivers) • Financial perspective • Customer perspective • Internal business process perspective • Learning & growth perspective How do we adapt? (The Adaptive Enterprise)  Sense-and-respond techniques • Adaptive Loop (sense, interpret, decide, act) • Modular Organization (assemble cross-functional as needed) • Commitment Management (record & track) The result: a strategic plan  A process – not an event BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 22
    • To Achieve Results Leaders Ask… How do we instill the correct organizational behavior?  Empower & motivate  Emphasize workforce collaboration (focused on end-to-end execution)  Establish collaborative objectives (focused on transformational & end results)  Managing responsibility & accountability (reinforcing strategy) How do we structure processes for strategic execution?  Practice “Process-centric design”  Document, model, simulate & analyze core processes (not just map)  Measure performance through “KPI Sets”  Design “Control Processes” (to manage anticipated & unanticipated events)  Event management (techniques to sense change & execute control processes) How do we structure technology for strategic execution?  Assess IT readiness for process change (First!, or at least early)  Evolve toward a “Process-Centric” design & IT architecture How do we align strategy & resources for execution?  Reveal cause-and-effect relationships across resources (Derivative Analysis) The result: an operating plan  A process – not an event BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 23
    • Agenda What is BPM & why is it important? Market & technology trends How industry leaders view BPM  Translating business strategy into action  Questions they ask & the best practices they use How to manage, analyze and change business processes  Techniques, tools, methods, technologies & practices A BPM Practitioner Summary Conclusion BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 24
    • Motivations & Approaches for BPM A Problem • Strategy & KPI Set • Process Team • Process Selection • Methodology • Modeling & Simulation • Implementation & Control BPM Business Process Portfolio Management A Strategic Initiative Continuous Transformation • Strategy & KPI Set(s) • Strategy & KPI Sets • Program & BPM Team(s) • Center of Excellence (BPM Teams) • Process Set • Process Portfolio & Audit • Methodology(ies?), PMO? • Multiple Methodologies, PMO • Redesigns & New Designs • Multiple Tools • Modeling & Simulations • Governance • Execute, Manage & Control • Continuous Improvement Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 25
    • How To Audit Process Maturity To achieve high-performance organizations must develop their enterprise capabilities & establish process enablers  Enterprise capabilities  Process enablers 1. Leadership: Senior executives who support the creation 1. Design: The comprehensiveness of the specification of of processes. how the process is to be executed. 2. Culture: The values of customer focus, teamwork, 2. Performers: The people who execute the process, personal accountability, and a willingness to change. particularly in terms of their skills and knowledge. 3. Expertise: Skills in, and methodology for, process 3. Owner: A senior executive who has responsibility for the redesign. process and its results. 4. Governance: Mechanisms for managing complex 4. Infrastructure: Information and management systems projects and change initiatives. that support the process. 5. Metrics: The measures the company uses to track the process’s performance. Source: Michael Hammer, Harvard Business School Publishing BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 26
    • How To Inventory Processes  Select a process classification model  APQC-PCF, SCC-SCOR, VCG-VRM, eTOM, ACORD, Strategy Map, custom, others…APQC’s PCF VCG VRM Other or SCC SCOR Custom BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 27
    • How To Inventory Processes  Conduct a Business Process Inventory  Use the chosen classification model, take “stock” of processes Source: APQC & BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 28
    • How To Evaluate Process Quality  Create evaluation criteria  Used by management teams for qualitative evaluation, example criteria… CRITERIA DESCRIPTION (Qualitative Assessment) 1. Value Core, Secondary, Low, Outsourced, Not Applicable 2. Asset type Operating, Support, Management, Exception Control, Resolution Control 3. Use Routine, Periodic, Occasional, Not Used, Unknown, New 4. Complexity Simple, Low, Moderate, Complex, Highly Complex 5. Discipline Formal, Informal, Rely on 3rd Party 6. Automation Manual, Semi-automated, Fully-automated, Rely on 3rd Party 7. Documentation Detailed, Satisfactory, Unsatisfactory, Undocumented, Rely on 3rd Party 8. Training Sufficient, Insufficient, Not Available, Not Necessary, Rely on 3rd Party 9. Effectiveness Very Effective, Effective, Adequate, Not Very Effective, Not At All Effective 10. Efficiency Very Efficient, Efficient, Adequate, Not Very Efficient, Not At All Efficient Action Improve, Consolidate, Eliminate, Benchmark, Re-evaluate, Design, Outsource, Insource, None Timing Immediately, Near-Term, Long-Term, Unspecified Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 29
    • How To Manage Processes as Assets  Use Business Process Portfolio Management  Focuses on how to improve the returns from diverse business processes that comprise an organizations value chain  Create A Business Process Portfolio  A classification system & common data repository used to inventory, document & manage detailed information & process lifecycles Database Document BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 30
    • How To Select Projects  Problematic, strategic, transformational  What needs to be done? Revenue Profit Market Share Margins Growth Response Acquisition Accuracy Satisfaction Innovation Retention Speed Churn Quality Efficiencies Costs BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 31
    • How To Select Projects  Consider type & complexity  Transactional  Transformational  Decision Making Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 32
    • How To Select Projects  Use a Complexity Assessment Matrix  Modify as required Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 33
    • How To Document Processes Identify process components What governs execution & value creation What is needed Process Design What value to begin “How” is created What is needed to execute & create value BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 34
    • How To Document Details Name, classification, descriptive information, contacts Evaluation criteria, comments, action status Execution (high-level step-by-step activities/tasks) Best practices Associated policies & rules, controls, processes, systems Resources Performance measures (KPIs) Collaborative objectives Risks Related information & documents Process lifecycle management  Communications plan  Messages/changes to be communicated  History BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 35
    • How To Measure Performance Select KPI Set(s) (Balanced Scorecard meets Six Sigma) Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 36
    • How To Assess In-Place Systems IT Readiness Assessment  Helps business professionals ask the right questions of IT professionals  Reveals capabilities & limitations of in- place IT systems  Calculates the time, cost, effort & resources required to adapt IT systems to support process change  Acquires data for ROI analysis of improvement projects  Tests feasibility & accurately determines financial returns  Helps justify IT investment if needed BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 37
    • How To Improve Processes  Select a methodology  ISO, Six Sigma, Lean, ITIL, others… The PRACTICE MethodTM for Business Process Analysis & Improvement  Phase 1: Plan (What do you want to do?)  Business strategy review determines what strategic initiatives are to be pursued and/or what problems need to be solved  Calls out how results will be measured, and who will be held accountable and responsible for outcomes  Phase 2: Research (What are you doing now?)  A Process Improvement Team researches current environment and what is needed to achieve the Phase 1 objectives  A Project is created, in-place IT systems are evaluated for adaptability; a process analysis tool is selected (if needed)  As-Is (or clean slate) process mapping and measuring begins  Phase 3: Analyze, Correct & Test (How do you do what you want to do?)  As-Is (or clean slate) process is modeled to measure actual (or assumed) performance & to find waste & inefficiency  Specialized elicitation techniques are used to generate ideas for improvement (innovation)  Process alternatives are tested and refined resulting in a final To-Be design  Upon completion of return on investment (ROI) analysis & Acceptance Agreement a Next Step decision is made  Phase 4: Implement & Control (Do it!)  Implementation Plan, training, IT systems are adapted/augmented, new process is deployed  A Quality Control Plan assure results are realized, consistent & repeatable  Phase 5: Extend (Keep doing it better!)  Processes monitored within a Strategic Planning & Review timetable to form a Continuous Process Improvement Program BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 38
    • How To Improve Processes Understand the organization  Organization charts, RACI Matrix, Stakeholder Classification Matrix High Low Potential for cooperation Low High Potential to Impact BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 39
    • How To Improve Processes Skills  Project management • Methodology • Scoping • Team building • Work breakdown structure • Communications • Risk management • Execution • Implementation • Change management • Quality control  Business analysis • Requirements gathering • Artifact selection (diagrams, models, functional requirements, reports) • Elicitation techniques (observation, interviews, workshops, use cases) • Measurement & analysis • Design and/or redesign • Test BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 40
    • How To Improve Processes Select artifact set, elicitation techniques & requirements management tools Source: Corporate Education Group BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 41
    • How To Improve Processes Select BPM tools  If needed or desired Business Process Analyses (BPA) software Business Process Management Suites (BPMS) BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 42
    • How To Improve Processes Process-centric design/redesign must include event management & control processes that can… 1. Capture/manage roles 2. Capture KPI Set(s), policies, business rules 3. Capture performance threshold(s) 4. Sense variation (events and/or opportunities) • Includes trends prior to exceeding threshold 5. Alert relevant systems & stakeholders (role based) 6. Assemble/aggregate information • From distributed disparate sources, internal & external 7. Interpret information (exception & resolution [case] management) • Based on strategic objectives, performance measures & rules of engagement 8. Negotiate & record commitments • Based on roles, empowerment, motivation, accountability, responsibility 9. Disseminate information • To all relevant systems & stakeholders 10. Track & report commitments & results against KPI Set(s) & strategic objectives Core processes must have corresponding control processes  Exception & resolution controls BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 43
    • Process-Centric IT Building Blocks  Must be capable of integrating sufficiently to support process-centric design Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 44
    • How To Manage Change Recognize barriers  Turf battles by functional managers  Workforce resistance to change  No one in charge or in authority to push redesign  Lack of incentives from department or oversight authority  Inability to perform “out of the box” thinking  Resource constraints  Uncommitted top management  Skepticism about “yet another effort” How to prevail  People support what they create • Start slowly, create involvement  People have the right to their opinions • Honor this, listen, let them know the team is aware & prepared to act  When people hear “the process is broken” they may think “they’re broken” • Make it perfectly clear, the process is the problem, not them!  Continuous communication  Judge managerial involvement (Is your time invested or wasted?) BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 45
    • How To Manage Change Technique: ADKAR Change Management Model  Focuses on the individual, requires instilling & managing five key goals: • Awareness of the need to change • Desire to participate and support the change • Knowledge of how to change (and what the change looks like) • Ability to implement the change on a day-to-day basis • Reinforcement to keep the change in place Extend Implement & Control Methodology Successful Analyze, Correct, Test Change Research Plan Awareness Desire Knowledge Ability Reinforcement  Facilitates workforce collaboration through collaborative objectives Sources: Jeff Hiatt, Prosci Change Management, Change Management Learning Center, BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 46
    • Agenda What is BPM & why is it important? Market & technology trends How industry leaders view BPM  Translating business strategy into action  Questions they ask & the best practices they use How to manage, analyze and change business processes  Techniques, tools, methods, technologies & practices A BPM Practitioner Summary Conclusion BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 47
    • A BPM Practitioner: Sloan Valve Source: ABPMP Chicago Speaker Series - The Process Enterprise: How Process Transformation Changes the Business. Tom Coleman Chief Information and Process Officer for Sloan Valve Company, 10/2009 BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 48
    • A BPM Practitioner: Sloan Valve Source: ABPMP Chicago Speaker Series - The Process Enterprise: How Process Transformation Changes the Business. Tom Coleman Chief Information and Process Officer for Sloan Valve Company, 10/2009 BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 49
    • Agenda What is BPM & why is it important? Market & technology trends How industry leaders view BPM  Translating business strategy into action  Questions they ask & the best practices they use How to manage, analyze and change business processes  Techniques, tools, methods, technologies & practices A BPM Practitioner Summary Conclusion BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 50
    • Summary Conclusion BPM is an emerging managerial discipline focused on execution, performance & results  Processes need to be managed as a portfolio of assets  If not, they will become liabilities Technology is trending away from transaction-oriented applications to process-centric systems  Process enablement is becoming de facto design by IT vendors Industry leaders view BPM as a way to achieve competitive advantage  By uniquely creating & delivering customer & shareholder value  By aligning people, process & technology  By consistently achieving performance measures while adapting to change BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 51
    • Summary Conclusion Follow BPM “How To” techniques  Audit process maturity  Understand the organization  Select a process classification model  Conduct a business process inventory  Evaluate process against qualitative criteria  Use portfolio management techniques  Create a business process portfolio  Document processes, polices & rules  Select KPI Sets  Select improvement projects based on need, priority & complexity  Select a methodology  Assemble BPM skills, artifacts, elicitation techniques & tools  Follow process-centric design/redesign principles & IT architectural constructs  Recognize barriers and resistance, manage change Sustain results  Recognize & overcome barriers  Develop a Continuous Process Improvement Program BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 52
    • How to Use The PORTFOLIO ApproachTMA Business Process Portfolio Management System Prepare for BPM using Learn How To Manage Processes Classify, Inventory & Evaluate Processes 1 The Strategy Guide 2 using The Portfolio Guide 3 using The BP Inventory Worksheet Create a Business Process Portfolio using Document Processes using Document Policies, Rules & KPIs 4 The BP Portfolio Manager or The BP Portfolio Template 5 Process Detail Sheets 6 using Rules & KPI Detail Sheets Assess IT Readiness for process change using 7 Manage Lifecycles & a Continuous Process Improvement 8 The Readiness Guide & IT Analysis Sheets 9 Select Business Process Analysis Software using The Evaluation Guide (if needed) Program using The BP Portfolio Manager Italicized red text indicates a deliverable. Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 53
    • How to Use The PRACTICE MethodTMA Process Improvement Project Management System Learn How To Improve Processes Learn How To Manage Projects 1 Prepare for BPM using The Strategy Guide 2 Using The Process Guide* 3 using The Project Guide, The BP Project Manager & Project Management Document Templates* Document Processes, Policies & Assess IT Readiness for process change using Select Business Process Analysis 4 Rules using Detail Sheets 5 The Readiness Guide & IT Analysis Sheets 6 Software using The Evaluation Guide (if needed) Measure Return on Investment 7 Model, Simulate & Analyze Processes using BPA Software 8 using The BP ROI Calculator* 9 Implement & Manage Process Change using The IT Guide & Project Management Document Templates* Italicized red text indicates a deliverable. * Indicates in development. Source: BPMethods BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 54
    • Coming March, 2012 BPMethods, LLC | Business Process Management & Continuous Improvement | A Professional Services Firm © BPMethods, LLC | www.bpmethods.com | info@bpmethods.com | +1.781.319.0599 55