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Introduction to the BPM Lifecycle

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An introduction to the different phases of the BPM life cycle: Analyze, Design, Implement, Measure, Improve. …

An introduction to the different phases of the BPM life cycle: Analyze, Design, Implement, Measure, Improve.

Key Takeaways:
- Analysis Frameworks provide context
- Transactions perform work, Analytics manage work
- The diagram isn’t everything
- Improve your capabilities in 3 areas:
-- Process Maturity
-- Process Management Maturity
-- Organizational Maturity

Presented by Michael zur Muehlen (Stevens Institute of Technology) at the Appian World 2012 Conference, April 16, 2012, in Reston VA.

Published in Business , Technology
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  • 1. Introduction to the BPM Life CycleMaturing BPM EffortsDr. Michael zur MuehlenStevens Institute of TechnologyCenter for Business Process InnovationApril 16, 2011
  • 2. “If it doesn’t make three people angry, it is not a process” Beyond Reengineering (Michael Hammer, 1996)2
  • 3. Key Takeaways §  Analysis Frameworks provide context §  Transactions perform work, Analytics manage work §  The diagram isn’t everything §  Improve your capabilities in 3 areas: §  Process Maturity §  Process Management Maturity §  Organizational Maturity3
  • 4. Analyze
  • 5. “Most businesses have just3 core processes:1.  sell stuff2.  deliver stuff, and3.  making sure you have stuff to sell and deliver” Geary Rummler 55
  • 6. Enterprise As A System Enterprise Management System Management Planning and Mgt. Information Information Control System System Custo- ReportingSuppliers Directive mers Operational System Operational Information System Goods and Services Money
  • 7. Organizing Content: Framework Strategy & Governance Contracting Marketing Purchasing Sales Receiving Warehousing Shipping Invoice Billing Auditing Accounts Accounts Payable Receivable Support Processes (Accounting, HR, IT etc.)7
  • 8. Design
  • 9. The Process Problem Source: 9 WW Grainger
  • 10. Process Abstraction Levels Level A Business Activities Business Objectives Scorecard Activities Level B Process Groupings Level C Process Groupings What Ownership Services Core Processes Core processes Delivery Units Products Level DProcess Business Flows System Processes Delivery Teams s How Level E Operational Process Flows Sub Processes Roles System Functions Level F Detailed Process Flows Detailed Processes Detailed Roles TransactionsSource: British Telecommunications plc 2006
  • 11. Implement
  • 12. “Vision without execution is hallucination” Thomas Alva Edison 1212
  • 13. The Developer’s Perspective 13
  • 14. The Architect’s Perspective 14
  • 15. What the Customer Wants 15
  • 16. Manage
  • 17. “All models are wrong, some are useful”George P.E. Box17
  • 18. Process Analytics Business Process Analytics Process Business Process Controlling Activity Monitoring Intelligence Processing of Event Detection & Dashboards Simulation Context Events Correlation Historical Analytics Rule-based Data Mining Notification Optimization Event BusExternal Event EAI ERP ECM BPM Sources Legacy Custom Enterprise IT Infrastructure
  • 19. Improve
  • 20. Targets •  Improve your Process Performance•  Improve your Process Management Performance•  Improve your Organizational Performance
  • 21. Theory of Constraints 1.  Define the goal - performance or compliance?2.  Define key metrics – cycle time, wait time, resource utilization3.  Identify the constraint – find the bottleneck activity/resource4.  Exploit the constraint – maximize use of the bottleneck5.  Subordinate to the constraint – limit upstream throughput6.  Elevate the constraint – invest and improve7.  Avoid inertia – start the process again
  • 22. Process Management Maturity Business Process Management Maturity Strategic Governance Method IT People Culture Alignment Process Process Roles and Process Design & Process Design & Process Skills & Process Values & Improvement Plan Responsibilities Modeling Modeling Expertise Beliefs Process Process Strategy & Process Decision Making Process Education Process Attitudes & Implementation & Implementation & Capability Linkage Processes & Learning Behaviors Executions Executions Process Metrics & Process Process Process Control & Process Control & Responsiveness to Performance Collaboration & Architecture Measurement Measurement Process Change Linkage Communication Process Process Process Leadership Process Output Management Improvement & Improvement & Process Knowledge Attention to Measurement Standards Innovation Innovation Process Process Process Project & Process Project & Process Process Customers Process Social Management Program Program Management & Stakeholders Networks Controls Management Management LeadersSource: Rosemann & De Bruin 2008
  • 23. Organizational Performance Value Generates FINANCIAL Cash Flow Primary Objectives CUSTOMER Processes Enable Value Value Proposition PROCESS BPM Coordinates Processes Regulatory Operations Customer Innovation / SocialBPM shapes and is Strategic shaped by Strategic Change Job organizational IT Agenda Families maturity LEARNING & GROWTH Maturity is determined by Human Information Organization People and Capital Capital Capital Technology
  • 24. Organizational Performance MISSION Organizational Mission is Mandated Objectives Paramount FINANCIAL CUSTOMER Value and Fiscal Responsibility are Fiscal Constraints Value Proposition in balance PROCESS BPM Coordinates Processes Regulatory Operations Customer Innovation / SocialBPM shapes and is Strategic shaped by Strategic Change Job organizational IT Agenda Families maturity LEARNING & GROWTH Maturity is determined by Human Information Organization People and Capital Capital Capital Technology
  • 25. Goal Specification, Strategy DefinitionBPM Life Cycle Organizational Analysis Strategy Revision Process Design Process Modeling and Models Specification Improvement Measures for Process Process Evaluation Implementation Target Metrics Process Mining / Build Time / Warehousing Integration Implemented Processes Process Enactment Export for other Process reporting purpose Metrics Run Time / Task and Resource Allocation Measure- ments Process Monitoring Process Metrics Business Activity Monitoring
  • 26. Key Takeaways §  Analysis Frameworks provide context§  Transactions perform work, Analytics manage work§  The diagram isn’t everything§  Improve your capabilities in 3 areas: §  Process Maturity §  Process Management Maturity §  Organizational Maturity
  • 27. Thank You!