Business Process Management: Implementing Continuous Improvement in Your Organization

Business Process Management: Implementing Continuous Improvement in Your Organization Henry Chandra Solution Architect VP Relationship, IASA Indonesia http://www.linkedin.com/in/henrychandra +62 856 138 58 98, henry@iasahome.org Hotel Menara Peninsula, Jakarta 14 November 2008

Why am I standing here? Meet Patrick of ACME Patrick’s Structured Approach What Patrick’s trying to tell you From here…

Meet Patrick A 35 year old guy

Meet Patrick A 35 year old guy Patrick works in …

Meet Patrick A 35 year old guy Patrick works in … He is a …

Meet Patrick A 35 year old guy Patrick works in … He is a … He lives in …

Meet Patrick A 35 year old guy Patrick works in … He is a … He lives in … He drives a …

Meet Patrick A 35 year old guy Patrick works in … He is a … He lives in … He drives a … And this is his story …

In ACME… Business People Think IT People are from Mars

In ACME… Business People Think IT People are from Mars IT People need to be more than a ‘Librarian’

In ACME… Business People Think IT People are from Mars IT People need to be more than a ‘Librarian’ IT needs to convert from Cost Center into providing Information Leadership for Business Information Cost Center Leadership

Patrick’s Mission: Increased Competition Faster Time- Budget Cuts to-Market ACME Deliver IT without fuss, get involved in business improvement and give business good leadership (Terry White, What Business Really Wants from IT)

Patrick is looking at Business Process Management The achievement of an organization’s objectives through the improvement, management and control of essential business processes. (Jeston and Nelis) BUSINESS PROCESS MANAGEMENT IS NOT AN IT “TOY” IT HAS TO CLOSE THE DISTANCE BETWEEN IT AND BUSINESS IT HAS TO INVOLVE BUSINESS AND IT TOGETHER BPM IS ABOUT MAKING BPM IS NOT ABOUT BPM IS NOT ABOUT BUSINESS TECHNOLOGY DIAGRAMS RUNS FASTER AND MORE EFFICIENT

BPM: Through the years No BPM Monolithic Enterprise Application UI UI UI UI Enterprise Application (internal and proprietary protocols, program and logic in monolithic programs)

BPM: Through the years No BPM: BPM 1990 Workflow in the Brain UI UI UI UI Enterprise Application (program and logic in monolithic programs)

BPM: Through the years No BPM: BPM: BPM 1990 1993 Task Management UI UI UI UI Enterprise Application (program and logic in monolithic programs)

BPM: Through the years No BPM: BPM: BPM: BPM 1990 1993 1996 Workflow Routing UI UI UI UI Enterprise Application (program and logic in monolithic programs)

BPM: Through the years No BPM: BPM: BPM: BPM: BPM 1990 1993 1996 2002 Services Integration UI UI Svc Svc Svc Enterprise Application Logic and SOA

BPM: Through the years No BPM: BPM: BPM: BPM: BPM: BPM 1990 1993 1996 2002 2007 Composite Services UI UI ESB Svc Svc Svc Enterprise Application Logic and SOA

Patrick understands The first rule of any technology is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. (Bill Gates, Microsoft Corporation) Black Box Syndrome Looking at the edges Syndrome

He knows what’s critical and what he needs to do Regatta Speed ↔ Effectiveness Being the fastest ↔ make processes more effective and efficient Metaphor Efficiency Use energy + enthusiasm to realized desired result ↕ Everyone is contributing towards realizing desired result Balance Make sure boat doesn’t lean sideways or tip over ↕ Make sure all implementation aspects are considered Cohesion Team rows as one, same rhythm and technique ↕ All implementation elements are in alignment Process 1st Oar, dictates speed to other rowers ↕ Business leads implementation, technology follows Management Steers the boat in a straight line to finish, do not go off course ↕ Sets and maintains trajectory to meet desired results

Patrick wants to get it right! 23

Patrick’s Structured Approach BPM Implementation Framework Organization Foundation Process Foundation Technology Foundation BPM Foundation Elaboration Improvement People and Technology Development Deployment Monitor and Benefit Realization Continuous Improvement

The Foundations What does the organization strive to ‘be’? What is the organization in business to ‘do’? How are we going to achieve the goals and objectives? etc.. How do the processes in your organization support it’s vision and mission? How well organized are they? How well do we understand the processes? etc.. Have we identified the required technology to support our BPM? How proficient are we with them? What do we need to do to prepare the technology skills and knowledge? etc..

The Foundations What does the organization strive to ‘be’? What is the organization in business to ‘do’? UNDERSTANDING YOUR ORGANIZATION, How are we going to achieveVISION, and objectives? IT’S the goals MISSION, STRUCTURE, ETC. etc.. How do the processes in your organization support it’s vision and mission? How well organized are they? How well do we understand the processes? etc.. Have we identified the required technology to support our BPM? How proficient are we with them? What do we need to do to prepare the technology skills and knowledge? etc..

The Foundations What does the organization strive to ‘be’? What is the organization in business to ‘do’? UNDERSTANDING YOUR ORGANIZATION, How are we going to achieveVISION, and objectives? IT’S the goals MISSION, STRUCTURE, ETC. etc.. How do the processes in your organization support it’s vision and mission? How well organized are they? UNDERSTANDING THE PROCESSES INSIDE YOUR ORGANIZATION, END – TO – END How well do we understand the processes? etc.. Have we identified the required technology to support our BPM? How proficient are we with them? What do we need to do to prepare the technology skills and knowledge? etc..

The Foundations What does the organization strive to ‘be’? What is the organization in business to ‘do’? UNDERSTANDING YOUR ORGANIZATION, How are we going to achieveVISION, and objectives? IT’S the goals MISSION, STRUCTURE, ETC. etc.. How do the processes in your organization support it’s vision and mission? How well organized are they? UNDERSTANDING THE PROCESSES INSIDE YOUR ORGANIZATION, END – TO – END How well do we understand the processes? etc.. Have we identified the required technology to support our BPM? How proficient are we with them? UNDERSTANDING THE TECHNOLOGY TO SUPPORT YOUR BPM INITIATIVE What do we need to do to prepare the technology skills and knowledge? etc..

Ready to Launch – BPM Foundation Launch Pad for all BPM projects in the organization Project Launch Pad Business Project Team Project Plan Case

Executing BPM Project Understanding and Monitor and Elaboration of Current Solutions and Process Benefit Process Improvements are brought to life Realization Realizing Deployment benefits Elaboration and getting lessons Prepare and develop learned Make the process(es) people and within the scope of the technology solution project as efficient and effective as possible. People and Technology Improvement Development

Elaboration – The ‘What is’ Phase Workshops Metrics Analysis and Gathering Root Cause Analysis People Capability Matrix Always ask when is the right time to stop, if it is, then stop!

Improvement – The ‘What if’ Phase Analysis Creative Improvement Workshops Simulations People Capability Matrix and Capacity Planning Business Case Get the process ‘right’ before automating it

Development – People and Technology People Strategy Presentation Orchestration Activity Definition and Role Redesign Integration RASCI Model And lotsa testing… …if you put a good performance against a bad system, the system will win almost every time. (Keen, 1997: 65)

Deployment – Live! Deployment Strategy Marketing Strategy Training Roll Out

Monitor and Benefit Realization – A look back Project Results and Performance Measurements Lessons Learned and Corrective Actions Feedback Loop for Future Implementations

Business as Usual What happens after project has gone life and handed over to Business?? Project Visibility Line Business As Usual

Business as Usual What happens after project has gone life and handed over to Business?? Project Project Management Visibility Line Business As Usual People Change Management

Business as Usual What happens after project has gone life and handed over to Business?? Project Project Management Visibility Line Leadership Business As Usual People Change Management

Business as Usual What happens after project has gone life and handed over to Business?? Project Project Management Visibility Line Leadership We had improvement programs. But the real difference came when we decided it was no longer a program, it was a business strategy. Business As Usual People Change (Stephen Schwartz, IBM) Management

Continuous Improvement Continuous Improvement Process The considerable Processes must improvements investment made continuously be without in any project improved and sustainability is must be redesigned not worth the maintained and effort enhanced over time Process Governance Continuous Improvement Monitoring Maintain Process Models

Technology Perspective of Things: BPM and SOA

Technology Perspective of Things: BPM and SOA Business Process Management Service Oriented Architecture Business and Management Process Architectural Philosophy for Standard- Improvement Practice based Services Design BPM without SOA SOA without BPM would require allows design and custom coding for building of system integration services

Technology Perspective of Things: BPM and SOA Business Process Management Service Oriented Architecture Business and Management Process Architectural Philosophy for Standard- Improvement Practice based Services Design SOA +BPM unifies and orchestrates BPM without SOA SOA without BPM business processes with underlying would require allows design and standard-based service infrastructure custom coding for building of system integration bring services process It is a concert that will agility and efficiency to business audience

Technology Perspective of Things: BPM and SOA How BPM is aligned with SOA…

He can do it, you should too! Structured Approach to BPM Implementation

He can do it, you should too! Structured Approach to BPM Implementation Business As Usual Execution Phases Understand Improve Develop Monitor BPM Foundation Foundation Phases

What Patrick is trying to tell you… Business Process Management brings IT and Business together • It is not an IT toy • It has to be lead by Business and supported by IT A Structured Approach to BPM Implementation is required to minimize risks and help to ensure success • Process improvement is paramount prior to process automation • All implementation aspects of BPM needs to work together achieving common goal • BPM is supported by pillars of People, Process and Technology • BPM Implementation Structured Approach includes solid foundations, proper execution methodology and continuous improvement phase to ensure process improvement is sustainable BPM and SOA are aligned to bring seamless integrated business process platform to support agility and process efficiency

Help Patrick refine the framework Business Process Management Implementation Framework is a work-in-progress that still needs further fine-tune and adjustments Call to action to all IASA members or IT practitioners in general to work together in formalizing and crystallizing an implementation framework for BPM Contact IASA Indonesia to contribute http://indonesia.iasahome.org henry@iasahome.org

Q&A Thank You

Business Process Management: Implementing Continuous Improvement in Your Organization

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