P2G Proposition


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Our approach to Business Process Management

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  • P2G Proposition

    1. 1. a different proposition in business process management rob rensman process2go limited instant process transformation ©May 2007
    2. 2. What is BPM <ul><li>Management discipline in its own right </li></ul><ul><ul><li>Hammer and Champy: Re-engineering the Corporation (1993) – became synonymous with de-layering and downsizing </li></ul></ul><ul><ul><li>From ERP to e-business (late nineties) – off-the-shelf business processes </li></ul></ul><ul><ul><li>BPM and Six Sigma, uncomfortable partners (2001) </li></ul></ul><ul><li>Attempt to definition: an approach that aims at delivering continued improvement in an organisation’s performance by evaluating and aligning processes against a desired business model. </li></ul><ul><li>BPM both enables and drives change </li></ul>
    3. 3. Some truisms <ul><li>More than 80% of all business processes are manual or require human intervention – so why do we still believe that systems will drive BPM? </li></ul><ul><li>When people think process they think administration, compliance and complexity - so why do we still talk about processes? </li></ul><ul><li>Process and function are in constant conflict with each other – If a function fails, a process will not work, if a process fails, a company starts losing customers or money. Most functions can be replaced, most processes are part of the non-tangible assets of an organisation and typically have a longer shelf-life </li></ul><ul><li>A process is just the way we do our jobs, not a managerial straight-jacket – if only that was understood!!! </li></ul><ul><li>Process-based organisations are better tuned to changes in their environment and have a better chance to compete outside their traditional markets </li></ul>
    4. 4. So what IS a process-based organisation <ul><li>Executive understands which processes are the company’s key differentiator in the market and protects its IPR; only the company’s brand is worth more to them </li></ul><ul><li>The economic value of each process is understood and constantly evaluated </li></ul><ul><li>When one process changes, the process owners agree the allowable impact on other processes </li></ul><ul><li>Low value processes are off-shored or outsourced </li></ul><ul><li>Often, IT systems are aligned to business processes (and not the other way around) </li></ul>
    5. 5. Examples of process-based organisations (and why they perform better!) <ul><li>Dell – e-business </li></ul><ul><ul><li>Mass online customisation of computer equipment and peripherals revolutionised the business and computer market </li></ul></ul><ul><li>Marlborough Stirling – Mortgage Processing (STP) </li></ul><ul><ul><li>Eliminating the number of human interventions in verifying and approving mortgage applications and loan origination, as opposed to wrapping human interventions around automated processes </li></ul></ul><ul><li>Morning Star - US Tomato Processing Plant without functional hierarchy </li></ul><ul><ul><li>All business processes are the result of voluntary agreements between self-regulating teams who contract services (read: processes) to each other to maximise operational efficiency. The CEO is the ‘process architect’ and protects the vision of the company. </li></ul></ul>
    6. 6. So why don’t all companies aspire to be process-driven? <ul><li>Process-driven organisations require a paradigm shift at the executive level of the organisation in times when competitive pressures allow little time for a rethink of company models </li></ul><ul><li>There is a misconception that all processes need to be defined in detail before companies can start seeing the value of BPM - you do not need an enterprise-wide process model to start delivering real benefits </li></ul><ul><li>There is a reluctance to change existing organisational structures as they reflect traditional functional hierarchies and the established power base at the executive level. </li></ul><ul><li>Typically, existing financial, budgeting and reward systems do not recognise the costs nor value the contribution of any process to the bottom-line of the organisation </li></ul><ul><li>Legacy systems (including ERP!!!) often complicate swift process alignment across the organisation </li></ul>
    7. 7. What does Process2go aim for: <ul><li>We combine the power of human-centric process design with structured change management techniques to: </li></ul><ul><ul><li>Challenge organisations to manage processes as assets and liabilities, not just as necessary ‘work flows’ </li></ul></ul><ul><ul><li>Transform the way teams interact, deliver and are motivated. </li></ul></ul><ul><li>In doing so, we support organisations in maximising the true economic value of processes and improve their operational performance. </li></ul>
    8. 8. What makes P2Gs proposition different <ul><li>P2G seeks immediate alignment with financial function and puts a financially motivated business case at the heart of its success </li></ul><ul><li>P2G works closely with HR/People Managers to ensure job roles, responsibilities and rewards can be adjusted to support the change </li></ul><ul><li>Its methodology is light, adaptable and can be easily scaled in response to the business challenge. The tools and techniques are carefully matched to the maturity of the organisation </li></ul>
    9. 9. A High Level Approach (each step has its own decision making tools, templates and stage-gates)
    10. 10. Our BPM toolkit includes: <ul><li>BPM Business Case Development Kit - a series of templates that help identify a BPM value proposition, promotes quantification of benefits and savings and helps to get buy-in from business management, line managers and finance managers alike </li></ul><ul><li>Rapid ‘as is’ process analysis using the OneMinuteProcess © tool - a process definition template that explains in clear steps and plain language how to execute a process from the perspective of the customer or operator, not the system! </li></ul><ul><li>Process Mobilisation Force – how to create a BPM ‘cell’ in your organisation and what should their role be in moving towards a process-based organisation </li></ul><ul><li>Capability Transfer &Transition before winding down the assignment – the methodology is portable and can be easily adapted to fit the customer’s programme or process environment. This makes it easy to train change and process-champions and leave behind the capability to mature the approach and accelerate the positive results of BPM. </li></ul>
    11. 11. A Taster…
    12. 12. Typical opportunities we aspire to get involved in <ul><li>Business start-ups that require a head-start with Best-in-class processes </li></ul><ul><li>Rapidly changing organisations that need to prioritise and align process or service improvement initiatives </li></ul><ul><li>Mergers & Acquisitions: challenges of colliding business models and processes </li></ul><ul><li>Requirement for BPM method and tool-selection </li></ul><ul><li>Our clients value our approach: see testimonials on website: www.process2go.com </li></ul>
    13. 13. Myth Busters <ul><li>ERP and CRM accelerate the creation of process-based organisations – on the contrary: they only do so in introducing functions – processes are left to the departments to sort out after the consultants have left + garbage in = garbage out </li></ul><ul><li>Six Sigma is the only method in town to deliver BPM thoroughly – statistical process analysis (the fundamental premise of Six Sigma) is only a small part of the approach – all the other elements have been long tried and tested in Change Management and BPM </li></ul><ul><li>BPMS will revolutionise business processes and make organisations infinitely more agile – there are no quick fixes to BPM – these systems will only work when part of a BPM initiative </li></ul><ul><li>BPM is not Workflow </li></ul><ul><li>BPM is not e-business (although e-businesses are certainly the best examples of process-based organisations) </li></ul><ul><li>BPM is certainly not EAI (when staffware was taken over by Tibco, it largely lost its credibility as a true BPM player) </li></ul>
    14. 14. Acknowledgements <ul><li>Alex Popov , Senior Process Manager T-Mobile for his frequent contributions and challenges </li></ul><ul><li>Robert S Kaplan, David P. Norton for redefining corporate performance in ‘Alignment’, Using the Balanced Scorecard to Create Corporate Synergies, Harvard 2006 </li></ul><ul><li>Peter G.W. Keen for writing one of the more interesting contributions to BPM in ‘The Process Edge’, Creating Value Where it Counts, Harvard 1997 </li></ul><ul><li>Keith Harrison-Broninski , for his insight in ‘Human Interactions’, The Heart and Soul of Business Process Management, Tampa FL 2005 </li></ul><ul><li>Roger T. Burlton for his standard work on BPM ‘Business Process Management’, Profiting from Process, Indianapolis 2001 </li></ul>