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8 Omega Business
 

8 Omega Business

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8 Omega Business

8 Omega Business

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    8 Omega Business 8 Omega Business Presentation Transcript

    • Applying the 8 Omega Business Change Framework Section 5
    • Process Management Framework V I A D I I C D Stage 1 - Discover Stage 2 - Analyse Stage 3 - Design Stage 4 - Integrate Stage 5 - Implement Stage 6 - Manage Stage 7 - Control Stage 8 - Improve tm
    • Delivering BPT - Discipline and Co-ordination DISCOVER ANALYSE MANAGE INTEGRATE IMPLEMENT CONTROL IMPROVE DESIGN
    • People Process Technology Strategy
    • People Process Technology Strategy Discover Implement Improve Analyse Design Manage Control I M A D I I C Integrate D Transformers Operational Process Managers tm
    • People Process Technology Strategy Discover Implement Improve Analyse Design Manage Control I M A D I I C Integrate D 4 x 8 = 32 Action / Information Nodes “ action nodes” tm
    • Strategy
      • Historically, one of the greatest deficiencies of other approaches to business change has been the failure to place the whole initiative in a truly strategic context
      • The focus on Strategy signals the significance of the operational and organisational implications that process-centric change can have for the organisation
      • A vision of the end game, clarity of direction, not only a clear business strategy but also a strategy for ongoing change itself are essential; execution is a major project in its own right
      • Strategy is defined for all throughout the organisation by setting targets and objectives that emphasise their roles and outcomes but in balance with available time, resources and ongoing commitments
      • A clear strategic remit is what sets winners apart from losers; it embodies and communicates the guiding principles behind why we do what we do in re-organising around, and implementing, customer-centric business processes
      • If our change projects are not related back to the agreed strategy then they will not be delivering true business value
      • Continuing reference back to strategic guidance helps ensure the effective use of resources, focus on process principles and overcomes the inertia of the functional silos that we seek to transform
      • Whether we deliver on the strategy has to be the ultimate measure of our success
    • People
      • Conventional frameworks for change pay very little attention, if any, to the people issues in change; their neglect has fundamentally flawed the majority of strategic initiatives
      • People are the unique resource – all else can be purchased in the open market; the effectiveness and efficiency of the people in the way in which they deliver well designed, customer-focused processes is the BIG differentiator in the marketplace
      • BPT seeks engagement with, and ownership of, not only the results but also the process of change itself by all the people in the organisation and processes under review
      • Organisations are more likely to succeed by focusing on People, Processes and Strategy than the traditional obsession with Processes and Technology
      • The commitment of the people to the process of change, not just the end results, is vital if the transition to genuine process-centricity is to be achieved
      • The vast majority of people are innately conservative and the negativism of workplace folklore concerning change informs attitudes, opinions and beliefs
      • A key component in the business change strategy is working towards “making change the culture”
      • This is a progression in which people’s ownership of/ full involvement in the processes of change helps move the whole organisation into ways of thinking and working through business transformation such that the final “Improve” stage is sustainable.
    • Process
      • The core concept of business transformation is that customer-centric processes are the motivation for, the heart of and the delivery system of the organisation
      • Processes should be designed to create VALUE, ultimately to the customer but also to the other stakeholders such as staff, management, shareholders, the public, depending on context
      • The core processes create the tradable/ consumable value, the other processes support, enable or manage the value-creation activity
      • Change is a progression and process-centricity is a target realistically achieved in stages
      • - Functionally-focused reviews may be the start point but value chain driven, enterprise wide business processes are the end game; be consistent throughout, scale up progressively
      • Failure to understand the structure of an organisation’s processes means that non-value adding activities and costs reduce competitiveness, profitability and survivability in a market driven economy
      • At the same time an obsession with the “As-Is” of current processes can deter innovative thinking: in the design of high value-adding processes it is often best to “start when you want to be (the “To-Be”) rather than where we are (the “As-Is”)
      tm
    • Technology
      • For many years the term BPM was synonymous with Technology, vendors described their products as BPM systems and largely neglected the other 3 elements of 8 Omega
      • Value creating business processes are systems (a mechanism for transforming inputs into value-added outputs) in their own right
      • Systems are technology-agnostic but technologies are massive enablers of many processes that are created; in that respect Technology is an important value creator, when that value has been identified, defined and justified
      • The technology must be designed serve the business requirements and objectives; the business must fulfil the obligation to define these to shape the IT requirements definition process, not leave a vacuum into which IT alone are left to shine a light
      • The smart application of technology is often seen as a differentiator in the marketplace; often exaggerated, in reality the client is more impressed by results, not means
      • An organisation’s technology normally extends well beyond core computer systems – plant, machinery, their control systems, communication networks
      • All should be considered as an integrated (or disintegrated!) delivery mechanism, the components of which interact with, and are linked by, the processes which collectively go to make up the business system
    • Discover D The essential starting point for any process project and the stage most often neglected. Facts, not preconceived notions and subjective opinions, have to be unearthed and agreed. Precipitated, premature analysis of inaccurate and incomplete facts is the bogey of all projects – process reviews are no exception. Discovery in respect of the business strategy can reveal major shortcomings which can require significant acknowledgement and effort to resolve Across the whole range of issues (strategy, people, processes and technology) those involved should work towards the 1 st Point of Consensus.
      • Identify current and future business strategy
      • Extent and effectiveness of strategy communication
      • Determine key decision makers
      • Establish whether there is a strategy for change which has process-centricity at its centre
      • Identify strategic planning process
      • - Audit current skills
      • - Determine process roles
      • - Map functional activities to customer outcomes
      • - Understand current process capability
      • - Identify process dependencies
      • - Map current process metrics
      • - Audit current systems
      • - Capture systems development plans
    • Analyse A Once the discovery stage is fully explored and all stakeholders have agreed issues and objectives (1 st Point of Consensus) the full analysis process can begin. The discipline of analysis means focus on the issues and precludes premature evaluation, quick fixes and functional obsession. Good quality discovery will gather the right data, create sufficient information and enable the required analysis – enough, and no more than is needed.
      • - Undertake strategic analysis of best practice process performance
      • Identify critical skill sets for improving process performance
      • Establish competence framework
      • Size the effort to move to (a) awareness, (b) critical mass (c) fully process centric working
      • Audit the current processes
      • Undertake analysis of process failings
      • Quantify tactical opportunities for interim change
      • Complete current state BPM Maturities analysis
      • Develop an understanding of the opportunities for change
      • Assess systems alignment with business process objectives
      • Analyse system development priorities to align with business process objective
      • Identify Business Process Management Systems
    • Design D The business requirements definition completed at the end of the Analysis stage forms the backdrop against which new process configurations are designed, trialled and tested The quick-wins that are revealed in Analysis are refined and implemented. These provide a return to management even though many are subsumed by the later more strategic process designs. The emphasis is on identifying multiple solutions. Some may be considered extreme, all must observe the defined business requirements and to be considered for selection, fully Validated. Testing for validity and viability of credible options has to be completed before the final acceptance decision (the Third Point of Consensus) can be made. The selected option moves forward for integration. The technical best is not always the most suitable in the given circumstances – fundamental redesign may be necessary to achieve viability prior to active integration, followed by implementation
      • Confirm the hard-wired strategic view of process as identified in the agreed business requirements.
      • Ensure design incorporates the ability to deliver key performance measures aligned to the strategy
      • Ensure core processes are aligned to successful customer outcomes
      • Create strategic process model
      • Define process competencies against requirements, targets and objectives
      • Identify new skills/ competence requirements
      • Define necessary realignment of motivational activity and personal/ team reward systems
      • Create and refine process model
      • Check that strategic and process models are aligned
      • Ensure process outcomes are designed to deliver successful customer outcomes
      • Agree process configuration with executive sponsor and rest of the team
      • Select BPMS required for tactical and operational deployments of process change
      • Simulate process activities within current and projected BPMS
      • Identify and cost systems development effort needed to optimise process delivery
    • I Integrate Organisations invariably underestimate the work involved in preparing to implement change into an operational environment - Integration activity is designed to ensure that the Implementation stage is as problem free as possible. The business has to remain operational while the new processes are refined, trialled and tested. This has big implications for resources – systems capacity, physical resources, skills and competence development among staff… Business controls (measures, metrics) have to be validated in the context of the new process and the required customer outcomes
      • Confirm that process outcomes conform with strategic process model requirements and integrate with other redesigned process components
      • Ensure that implications of the strategic business process model have been fully communicated and the benefits/ advantages
      • Simulate strategic rollout and confirm through executive reviews
      • Define operational process team structures
      • Firmly establish BPM Awareness and Education programme
      • Confirm and rollout people skills development programme including process knowledge
      • Align process management competencies and controls with team and individual reward systems
      • Define process roles and appoint key process people
      • Confirm and size strategic process model
      • Test and agree process control system and reporting mechanisms
      • Dovetail process change across main functions and activities
      • Design and refine process integration programme
      • Optimise process roll-out through current systems
      • Populate Strategic process model
      • Migrate legacy systems into BPMS environment
    • Implement I Consensus on business requirements having been reached by the stakeholders, and reflected in the agreed process design, the new process solution(s) can be progressively implemented. The effectiveness of previous communication and the true level of ownership and commitment are tested in the fire of actual change. Operational process management should be in place and part of the implementation team The implementation project will have its own set of targets and controls, totally separate from those embedded by design in the operational processes themselves
      • Deploy strategic process model
      • Monitor delivery against required outcomes
      • Communicate improved process flow and operating guidelines
      • Conduct training on improved processes
      • Follow through with BPM Awareness and Education programme
      • Focus training around process team objectives and priorities
      • Manage process integration program
      • Roll-out process controls
      • The skills needed to overcome inertia
      • Deploy BPMS
      • Refine current systems to achieve process objectives – customer outcomes
      • Manage roll-out and cyclically reassess integration / implementation approach through BPM audit and feedback
    • M Manage The transformers (the business change professionals) give way to the operational process managers as the new processes are integrated and implemented With the functional silos gone the delivery of the process outcomes to satisfy client requirements and expectations is the focus and driver of all management activity The end-to-end process is delivered by self-managing teams (autonomous/ semi autonomous) created and trained to deliver consistently high quality through fluidity and continuity of approach At all levels (process managers, teams and team members) the clear definition of responsibility, authority and accountability for the process components and their outputs lies at the core of the role definitions.
      • - Verify process performance and delivery as being in line with Strategic Process Model
      • - Ensure operational effectiveness of communication systems to inform corporate management
      • - Refine information interpretation & decision making
      • Conduct recruitment, training and skills enhancement
      • Process teams and their performance management systems
      • - Performance Development Programmes
      • - Culture Change / Maturity Development
      • Manage/ review processes & process improvement
      • - Highlighting and communicating non-compliance (upwards, downwards, and sideways)
      • - Resolving issues to achieve compliance
      • - Relationships with support, enabling and other service processes
      • - Generation, analysis, interpretation and use of process metrics
      • Manage relationships with IT functions and activities
      • Appraise IT cost and process effectiveness
      tm
    • Control C The analysis and design process firstly exposes the current functional measures and metrics, determines the future appropriate operational process controls and designs them into the then implemented business structure. Controls are designed not just for senior management but for all those tasked with delivering process components Controls should illuminate and inform and those active in delivering the process must be trained to interpret and react constructively to the information as it becomes available The Control activity serves not just the current process but reveals problems and opportunities that are dealt with in the subsequent Improvement stage
      • - Review and Monitor Strategic Process measures
      • Provide feedback and action planning to refine Strategy based around Process Operations
      • - Review and maintain training & education approaches
      • Rollout & Maintain BPT Awareness & Education program
      • - Manage Process Metrics
      • - Hold and continually improve process performance gains
      • - Processes operate within and are supported by IS tools
      • - A complete BPTS has been deployed and is maintained to agreed standards.
      tm
    • Improve I Having established the process-centric culture its perpetuation is dependant on the continuous review and improvement of the operational processes. As customer outcomes evolve the processes that deliver them are subject to necessary review Continuous improvement approaches such as Kaizen can be adopted and adapted to ensure evolving process suitability Process owners, managers and operational staff are fully involved with the assistance of the business change professionals, themselves part of the organisation’s Centre for Process Excellence.
      • Embrace all key strategic activity
      • Align strategy to customer outcomes
      • Evolve and refine strategic process model
      • Broaden understanding and active involvement of staff in process evolution
      • Deepen and develop process skills and competence
      • Populate strategic process model
      • Ensure scope of processes extends across the value chain
      • Monitor and reflect developing customer expectations in evolving process structures
      • Ensure new IT systems are business-process centric
      • Keep refining current IT systems to deliver the evolving strategic process model
      • Continually evolve and incorporate tactical process solutions
      tm
    • Discover Implement Improve Analyse Design Manage Control I M A D I I C Integrate D tm
    • People Process Technology Strategy D Discover tm
      • Audit Current Systems
      • Capture Systems Development Plans
      • Understand current process capability
      • Identify Process dependencies
      • Map current process metrics
      • Audit Current Skills
      • Determine Process Roles
      • Map functional activities to Customer Outcomes
      • Compile current and future Strategic plans
      • Determine key decision makers
      • Identify Strategic Planning Process
    • People Process Technology Strategy A Analyse tm
      • Assess Systems alignment with Process Objectives
      • Prioritize System Development to align with Process Objectives
      • Identify Business Process Management Systems
      • Audit the current processes
      • Identify Root Cause Analysis
      • Quantify tactical opportunities available
      • Develop a Case for Change
      • Complete BPT Maturities Model
      • Identify Critical skill sets for improving process performance
      • Establish Competence framework
      • Size the effort to move to (a) Awareness (b) critical mass (c) fully process centric working
      • Undertake Strategic Analysis of best practice process performance
    • People Process Technology Strategy D Design Then the Rubber hits the Road… tm
      • Select BPTS for tactical and Operational deployments of process change
      • Categorize Systems development effort to optimize Process deployment
      • Create/Refine Process Model
      • Establish a Strategic Process Model outline
      • Plan Process priorities aligned to Customer outcomes
      • Develop people skills development program
      • Identify and refine Reward systems
      • Align customer outcomes to key business processes
      • Establish 'hard wired' strategic view of processes
      • Develop process systems design to incorporate key performance measures aligned to strategy
      • Create Strategic Process Model
    • People Process Technology Strategy I Integrate tm
      • Migrate legacy systems into BPTS environment
      • Optimize process roll-out through current systems
      • Dovetail process change across main functions and activities
      • Determine and refine process integration program
      • Align current and developing process management competence system with existing Rewards systems)
      • Migrate People management systems into Strategic Process Model and Framework
      • Appoint Key Process people and roles
      • Redefine existing strategy into Strategic Process Model
      • Undertake Organization wide communications defining and emphasizing process objectives
    • People Process Technology Strategy I Implement tm
      • Deploy BPTS
      • Refine current systems to achieve process objectives (customer outcomes)
      • Manage Roll-out and reassess integration approach through BPT Audit and feedback
      • Manage process integration program Roll out process controls
      • Communicate improved process flow and operating guidelines
      • Conduct training on improved processes
      • Establish BPT Awareness & Education program
      • Establish Process Teams priorities
      • Deploy Strategic Process Model
    • People Process Technology Strategy M Manage
      • Verify process performance and delivery as being in line with Strategic Process Model
      • Ensure operational effectiveness of communication systems to inform corporate management
      • Refine information interpretation & decision making
      • Conduct recruitment, training and skills enhancement
      • Process teams and their performance management systems
      • Performance Development Programmes
      • Culture Change / Maturity Development
      • Manage/ review processes & process improvement
      • Relationships with support, enabling and other service processes
      • Generation, analysis, interpretation and use of process metrics
      • Manage relationships with IT functions and activities
      • Appraise IT cost and process effectiveness
      • Evaluate IT developments from business perspective
      tm
    • People Process Technology Strategy C Control tm
      • Processes operate within and are supported by IS tools
      • A complete BPTS has been deployed and is maintained to agreed standards.
      • Manage Process Metrics
      • Hold and continually improve process performance gains
      • Review and maintain training & education approaches
      • Rollout & Maintain BPT Awareness & Education program
      • Review and Monitor Strategic Process measures
      • Provide feedback and action planning to refine Strategy based around Process Operations
    • People Process Technology Strategy I Improve tm
      • Ensure new systems are process centric
      • Refine current systems to meet Strategic Process Model
      • Incorporate tactical process solutions
      • Populate Strategic Process Model
      • Extend Process Scope across Value Chain
      • Reinforce Customer proposition through process evolution
      • Broaden Process Understanding
      • Deepen Process Skills
      • Develop Process Competence
      • Embrace all Key Strategic activity
      • Align Strategy to Customer Outcomes
      • Grow and refine Strategic Process Model
    • The Framework for Business Process People Process Technology Strategy Discover Implement Improve Analyse Design Manage Control I M A D I I C Integrate D Enabler 1 - People and Politics in the Process Enabler 2 - Communication & Presentation- Selling Process Change The 8  Framework is … not a Rigid Methodology tm
    • User’s Experience
      • Users describe the 8 Omega framework as:
        • Focused on delivery and results
        • Easy to apply
        • Consistent and inclusive of existing approaches e.g. six sigma
        • Applicable from the board room into the front line
        • Embracing of methodologies and technologies developed in the last decade
        • An evolution in thinking and practice that allows organisations to develop and internalize ongoing performance improvement.
    • Key Learning Points
      • Any Framework must tie process logic back to the Corporate Strategy
      • Only Enterprise Business Processes Can Deliver the Big Wins
      • In The Real World, People Take it Step By Step
      • Process thinking is easy, but Functional Behaviour is Hard to Break
      • Within the framework, develop a methodology to suit the needs of the organisation and making best use of the available expertise.