Bpm Risk Analysis 10 27 10 30


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Bpm Risk Analysis 10 27 10 30

  1. 1. Identifying and Analyzing the Risks of Business Process Reengineering Projects Kristin M. Howlett Director of Process Improvement DeKalb County, Georgia October 29, 2008
  2. 2. <ul><li>Are you gambling with your project? </li></ul>
  3. 3. Can you afford to roll the dice on risk?… Develop a formal Risk Management Plan: Consider all vulnerabilities Consider likelihood of event happening Manage and react frequently Consider all actions that can minimize, impact or eliminate event 1. Identify Risk: 2. Assess Risk: 3. Mitigate Risk: 4. Monitor Risk:
  4. 4. Risk Identification <ul><li>Categories of Risk for Projects : </li></ul><ul><ul><li>Technology Risk </li></ul></ul><ul><ul><ul><li>Hardware/Software Risk </li></ul></ul></ul><ul><ul><li>People Risk </li></ul></ul><ul><ul><ul><li>Resources </li></ul></ul></ul><ul><ul><ul><li>Time commitment for project </li></ul></ul></ul><ul><ul><ul><li>Change Management </li></ul></ul></ul><ul><ul><ul><li>Vendor Soft Skills </li></ul></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul><ul><ul><li>Project Risk </li></ul></ul><ul><ul><ul><li>Sponsorship </li></ul></ul></ul><ul><ul><ul><li>Scope </li></ul></ul></ul><ul><ul><ul><li>Cost Estimate and Budgeting </li></ul></ul></ul><ul><ul><ul><li>Project Management </li></ul></ul></ul><ul><ul><ul><li>Process Reengineering </li></ul></ul></ul><ul><ul><ul><li>Political Environment </li></ul></ul></ul><ul><ul><ul><li>Change Management </li></ul></ul></ul>Technology Risk People Risk Project Risk
  5. 5. Technology Risk <ul><li>Hardware Risk </li></ul><ul><ul><li>New purchase vs. existing hardware </li></ul></ul><ul><ul><li>Maintenance – costs for upgrades </li></ul></ul><ul><ul><li>Technology redundancy (across different systems), or interoperability (interfaces between systems) </li></ul></ul><ul><li>Software Risk </li></ul><ul><ul><li>Custom solution vs. package solution </li></ul></ul><ul><ul><li>Interfaces </li></ul></ul><ul><ul><li>User-friendly technology </li></ul></ul><ul><ul><li>Enhancements to software </li></ul></ul><ul><ul><li>Software functionality </li></ul></ul><ul><ul><li>On-going support (when project is complete) </li></ul></ul>
  6. 6. People Risk <ul><li>Resources </li></ul><ul><ul><li>Subject Matter Experts </li></ul></ul><ul><ul><li>Technical resources </li></ul></ul><ul><ul><li>Contractors </li></ul></ul><ul><ul><li>End user management </li></ul></ul><ul><li>Time Commitment for Project </li></ul><ul><ul><li>Concurrent projects </li></ul></ul><ul><ul><li>Other work responsibilities </li></ul></ul><ul><li>Change Management </li></ul><ul><ul><li>Acceptance of new process from project team and the rest of the organization </li></ul></ul><ul><ul><li>Plan in place and owners assigned </li></ul></ul><ul><li>Training </li></ul><ul><ul><li>Training on new procedures </li></ul></ul><ul><ul><li>On-going availability for new training (or retraining if needed) </li></ul></ul><ul><li>Vendor Soft Skills </li></ul>
  7. 7. Project Risk <ul><li>Sponsorship </li></ul><ul><ul><li>Who is leading the project? </li></ul></ul><ul><ul><li>How engaged is he or she? </li></ul></ul><ul><li>Scope </li></ul><ul><ul><li>Have clearly defined goals and objectives in advance </li></ul></ul><ul><ul><li>Avoid “scope creep” </li></ul></ul><ul><li>Cost Estimate & Budgeting </li></ul><ul><ul><li>Know budget limitations </li></ul></ul><ul><ul><li>Contingency Fund (add 25% to budget for unanticipated events) </li></ul></ul><ul><li>Project Management </li></ul><ul><li>Process Reengineering </li></ul><ul><ul><li>Is it being performed? </li></ul></ul><ul><ul><li>Who is responsible for it? </li></ul></ul><ul><li>Political Environment </li></ul><ul><li>Change Management </li></ul><ul><ul><li>Clearly defined process on how requirement changes will be implemented </li></ul></ul><ul><ul><li>How will changes be institutionalized? </li></ul></ul>
  8. 8. Case Study: DeKalb County 311 <ul><li>DeKalb County is located in Metropolitan Atlanta </li></ul><ul><li>Third most populated county in Georgia </li></ul><ul><ul><li>Population: 737,000 </li></ul></ul><ul><ul><li>Over 100 languages spoken </li></ul></ul><ul><li>DeKalb is home to… </li></ul><ul><li>The state’s second largest airport (PDK) </li></ul><ul><li>Center for Disease Control (CDC) </li></ul><ul><li>GBI Headquarters, FBI and IRS Regional Headquarters </li></ul><ul><li>9 major medical facilities, including </li></ul><ul><li>Emory University Hospital and Atlanta VA </li></ul><ul><li>Medical Center </li></ul>
  9. 9. Case Study: DeKalb County 311 <ul><li>What is 311? </li></ul><ul><li>An easy to remember three digit phone number to call when contacting your local government for any “non-public safety emergency” matter. </li></ul><ul><li>Centralized, consolidated call center to relieve the non-emergency call burden from 911 and to provide excellence in customer service </li></ul><ul><ul><li>“ One-stop Shop” for customer service delivery </li></ul></ul><ul><li>System-wide technology implementation that provided an opportunity for Dekalb to revisit the way the county does business </li></ul><ul><ul><li>Streamlined business processes </li></ul></ul><ul><ul><li>Eliminated redundant activities </li></ul></ul><ul><ul><li>Improved customer-facing business practices </li></ul></ul><ul><ul><li>Increased revenue streams </li></ul></ul>
  10. 10. Case Study: DeKalb County 311(continued) <ul><li>Some of the benefits of 311 include… </li></ul><ul><li>Relieving front-end, customer service work load from individual departments across the county, allowing individual departments to better focus on core business functions </li></ul><ul><li>Assessing county performance </li></ul><ul><ul><li>Tracks the quantity and status of service requests to improve accountability and service delivery </li></ul></ul><ul><ul><li>Classify and analyze service requests to locate problem areas </li></ul></ul><ul><li>Improving service quality and quantity </li></ul><ul><ul><li>Improves how county services are requested, scheduled, and performed (standardization of practices) </li></ul></ul><ul><ul><li>Central point of intake and retention of customer information </li></ul></ul><ul><ul><li>Ability to handle many calls simultaneously with a “live” person </li></ul></ul><ul><ul><li>Ability to identify service needs in high call volume areas </li></ul></ul><ul><ul><li>Increases the efficiency of administrative activities by eliminating </li></ul></ul><ul><ul><li>tasks that add no value </li></ul></ul>
  11. 11. Case Study: DeKalb County 311 <ul><li>All departments are affected by 311 and will have some changes in their customer facing processes and practices </li></ul><ul><li>At the onset of the project, the scope was actually too limited – the project overlooked dependence on external departmental involvement </li></ul><ul><ul><li>Call center implementation became process improvement project </li></ul></ul>Project Risk: Scope Basic 311 Call Center Process Flow
  12. 12. Managing Risk <ul><li>There are 3 types of risk: </li></ul><ul><ul><li>Controllable - Risk can be identified and a contingency plan to minimize or eliminate risk is established </li></ul></ul><ul><ul><ul><li>Plan for alternatives or options from most optimal to least optimal </li></ul></ul></ul><ul><ul><li>Uncontrollable – Occurs when risk can be identified, but the specific event and/or the timeline for occurrence is unknown </li></ul></ul><ul><ul><ul><li>Plan for contingencies </li></ul></ul></ul><ul><ul><li>Unknown – A risk that has not been identified and it occurs </li></ul></ul><ul><ul><ul><li>Hiring freeze in DeKalb County that threatened 311 “Go Live” date </li></ul></ul></ul><ul><ul><ul><li>Acquiring the “311” number designation </li></ul></ul></ul>
  13. 13. Assessing Risk <ul><li>Determine risk probability that event will occur </li></ul><ul><ul><li>Give a rating to the event: High, Medium, or Low risk </li></ul></ul>Interface availability will impact the SIT/ UAT; potentially the Go Live A week delay in hiring a trainer will cause a week delay in the Go Live, $15K/week Impact / Status <ul><li>Engage vendor early </li></ul><ul><li>Identify Architecture by Month 1 of the project </li></ul>High High New Interface Needed for Hansen Department <ul><li>Information </li></ul><ul><li>Systems will </li></ul><ul><li>conduct training </li></ul><ul><li>classes </li></ul>Low Low Hiring of Departmental Trainer Mitigation / Contingency Risk Probability Risk Impact Risk and Description
  14. 14. Mitigating Risk <ul><li>Develop a Contingency Plan </li></ul><ul><ul><li>Determine a back-up plan for an event happening </li></ul></ul><ul><ul><li>Determine who owns the event if it happens </li></ul></ul><ul><li>Risk Avoidance: Can you prevent a risk from occurring? </li></ul><ul><ul><li>Who will be responsible for preventing the risk from happening and when will it be done? </li></ul></ul><ul><li>Assess severity of impact </li></ul><ul><ul><li>Whenever possible, relate risk impact in terms of money and time: </li></ul></ul><ul><ul><li>A 4 week delay in a hardware delivery date would cost $40K per week (or $160K for a month). </li></ul></ul><ul><li>Budget for Impacts </li></ul><ul><ul><li>Add 25% to your budget to fund mitigation and contingency plans </li></ul></ul>
  15. 15. Monitoring Risk <ul><li>Develop and implement a methodology to manage the risk process </li></ul><ul><ul><li>Use software tools and risk mitigation techniques to manage risks </li></ul></ul><ul><ul><li>Develop a formal process for issues management </li></ul></ul><ul><ul><li>Reassess and add risk items throughout implementation </li></ul></ul>
  16. 16. Key Take-Aways <ul><li>Risk cannot be avoided, so don’t take a chance! </li></ul><ul><li>Follow a Risk Management Plan: </li></ul><ul><ul><li>Identify risks early in project implementation </li></ul></ul><ul><ul><li>Assess the potential impact to project (preferably in dollars) </li></ul></ul><ul><ul><li>Mitigate risk by developing a contingency plan for each risk </li></ul></ul><ul><ul><li>Monitor risk continuously </li></ul></ul>
  17. 17. Questions?