NASSCOM BPM Summit 2013 - MasterClass I - Derek Miers

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NASSCOM BPM Summit 2013 - MasterClass I - Derek Miers

  1. 1. Making Leaders Successful Every Day
  2. 2. © 2013 Forrester Research, Inc. Reproduction Prohibited 2 Forrester consulting is different › Research based • Answering key client questions. • Meaningful methodologies that impact speed, reduce costs and risk. › Analyst led • Research focused into highly customized engagements. • Building actionable outcomes for clients. › Independent • No vendor or technology bias. › Strategic • No implementation. • No down stream aspirations. • We help our clients make the right decisions for their business needs. Research based Analyst led Independent Strategic Our objective is to grow your business capabilities Business first, technology second
  3. 3. BPM Master Class Derek Miers, Principal Analyst September 17th, 2013 @bpmfocus
  4. 4. © 2012 Forrester Research, Inc. Reproduction Prohibited Whatever “it” is that you do … If it’s good enough today, it’s probably not going to be good enough tomorrow. “Nothing fails like success - because we don't learn from it. We learn only from failure.” “One cannot teach a man anything. One can only enable him to learn from within himself.”
  5. 5. © 2013 Forrester Research, Inc. Reproduction Prohibited 5 Let’s start with some questions › How many of you are from a BPO or similar services co? • End users? ISVs? › Do you see BPM as a software development paradigm? • Or is it a way of driving ongoing improvement in business outcomes? › Who has seen a process? • What did it look like? › Do your clients want their processes foolproof or fault tolerant? My objectives for this session › Challenge your thinking • Understanding comes from different perspectives. › See how the space is changing. • How much longer for labor arbitrage? • Where are the future opportunities? › Develop long term, sustainable value propositions. • Reimagine the future (don’t reengineer). • Drink your own champagne. • The methods are the same as you will apply to your customers.
  6. 6. © 2013 Forrester Research, Inc. Reproduction Prohibited 6 Source:Forrester Research,Inc.60638 ge ge h >> Dynamic casemanagement enables knowledge worker processesand collaboration Procedures Traditional BPM and workflow Practices Straight-through transactions Production workflow Collaborative workflow Tryly unique exceptions Ad hoc exception handling Processes exist on a spectrum
  7. 7. © 2013 Forrester Research, Inc. Reproduction Prohibited 7
  8. 8. © 2013 Forrester Research, Inc. Reproduction Prohibited 8 Why would they come back?
  9. 9. © 2013 Forrester Research, Inc. Reproduction Prohibited 9 36% 68% 60% 35% Value innovation Customer experience improvement Cost reduction Waste elimination Maturity level 2-3 (n = 136) Value innovation Customer experience improvement Cost reduction Waste elimination 60% 59% 45% 32% Maturity level 3-4 (n = 88) Value innovation Customer experience improvement Cost reduction Waste elimination 58% 50% 46% 46% Maturity level 4-5 (n = 24) Mature firms take a balanced approach "What are the two primary goals of your business improvement program?" 42% 39% 74% 43% Value innovation Customer experience improvement Cost reduction Waste elimination Maturity level 1-2 (n = 77) Base: 325 business process professionals Source: Q2 2011 Global Forrester/IQPC Business Process Maturity Online Survey
  10. 10. © 2013 Forrester Research, Inc. Reproduction Prohibited 10 How many projects/programs/initiatives do you have? or “Wellness Program”Band-Aid approach People work hard to improve what they’ve got not what they necessarily need.
  11. 11. © 2013 Forrester Research, Inc. Reproduction Prohibited 11 Develop vision before the “To-Be” processes Prioritize Outline processes Outcome metrics Roles and skills Operational process architecture Executive engagement Business services (Capability set) Business services (Capability set) Business services (Capability set) Business area (Capability set) Business engagement Baseline (As-Is) Process definitions (To-Be) A322 + Process definitions (To-Be) A322 +A322 +A322 + Let’s switch gears – how do you do projects today? Establish customer experience vision
  12. 12. © 2013 Forrester Research, Inc. Reproduction Prohibited 12 Silo’d Functional Political challenges abound Functions supported by processes Processes supported by functions From Traditional Line Management To Processes & Services Management Challenges revolve around building broad engagement and creating alignment.
  13. 13. © 2013 Forrester Research, Inc. Reproduction Prohibited 13 The new rules require transformation.
  14. 14. © 2013 Forrester Research, Inc. Reproduction Prohibited 14 Transformation – what’s your definition? “Transformation means being prepared to change everything you do; but most importantly – how you think.”
  15. 15. © 2013 Forrester Research, Inc. Reproduction Prohibited 15 Brand Definition, Service and Product Design, Customer Segments CMO Business Process, Lean, Six Sigma Continuous Improvement, Performance Improvement COOCustomer Experience Journeys Touchpoints CCO ERP, Workflow, Business Rules, Events, SOA, BI, MDM CIO Target Operating Model Strategic intent Operating model Realizations and Uses Integrate across organizational silos
  16. 16. © 2013 Forrester Research, Inc. Reproduction Prohibited 16 Markets Brand Teasing apart strategic intent HOW ARE WE GOING TO WIN? Customer segments Risk management Strategic intent Goals & objectives
  17. 17. © 2013 Forrester Research, Inc. Reproduction Prohibited 17 Strategic intent Articulate the operating modelThe zen operating model Governance Service Proposition Capabilities Processes
  18. 18. © 2013 Forrester Research, Inc. Reproduction Prohibited 18 Capabilities Outside-inInside-out Lens Efficiency Risk Reduction Experiences Value / Outcomes Integrating outside-in with inside-out Applications/ Technologies Processes Resources/ Partners Service Proposition Customer Objectives Persona Touchpoints Contexts Journeys
  19. 19. © 2013 Forrester Research, Inc. Reproduction Prohibited 19 Example - Commonwealth Bank Australia Customer goal: buy a house New capabilities to help customer’s achieve goal: › Mobile: phone camera and GPS combined with Internet. › Content: Integrate 3rd party content to identify house, give the list price, estimate your loans, provide detailed suburb profiles, median price, etc. › Integration: Plugs into back end systems to start loan process; efficiency built in up front.
  20. 20. © 2013 Forrester Research, Inc. Reproduction Prohibited 20 Outside-inInside-out Work backward from customer goals Customer support; loan origination; mobile app; web integration; credit check, … Back end integration; customer onboarding; loan origination; partners CSRs, estate agents, support … Integratedmobileapp, websiteandCSR Take photo of house; connect to agents; integrated credit check, loan origination Findtherighthouse withinbudget PeterandMary–timepoor, househunters Looking for right neighborhood and houses but little time Web, mobile, call center Customer Care Revenue Mgmt LoanMgmt
  21. 21. © 2013 Forrester Research, Inc. Reproduction Prohibited 21 Outside-inInside-out Co-create and apply at any level Excel toolkit, PowerPoint Capture current state, options analysis Financial analyst; Lean Six Sigma lead ShowMeTheMoney Understandcashflow implicationsofBPM Businessunitmanager withP&Lresponsibility Early stage business case development Briefing, check-ins, delivery in 10 days Meetings, reviews Metricsdevt Business modeling Executive IVs
  22. 22. © 2013 Forrester Research, Inc. Reproduction Prohibited 22 TOMScope Lens Outside-inInside-out Efficiency Risk Reduction Experiences Value/Outcomes Governance Design Change Projects Target operating models provide the glue Customer Objectives Contexts Touchpoints Journeys Personas Applications/ Technologies Processes Resources/ Partners Capabilities Service Proposition Strategic Intent Markets Brand Customer segments Risk Mgmt Goals/ objectives
  23. 23. © 2013 Forrester Research, Inc. Reproduction Prohibited 23 Operating model informs organization design › Example Result – Medco 2.0 BIAC – Business Innovation and Agility Center CoE – Center of Excellence TRC – Therapeutic Resource Center TRC / Clinical OpsTRC Pharmacy Front End & Back end Ops Order Processing Client Management OpsClient Advocacy Fin. Plng and Analysis Ops Revenue Cycle Mgmt Ops Finance Patient & Physician Advocacy Patient & Physician Advocacy BPM Solution CoE’s Business Process Owners’ CoEs Lines of Business CoEs Accredo BIAC Liberty BIAC Market Groups BIAC Retiree Solutions BIAC New Markets BIAC Business Technology Group - Shared Service CoEs Claims Processing Content Management Infrastructure Services Info. Planning/Master Data Mgt. Business IntelligenceArchitecture Web Services Imaging Services Pega Framework
  24. 24. © 2013 Forrester Research, Inc. Reproduction Prohibited 24 Forrester Capability Portfolio Assessment Representative numbers only Sub-dimensions represent mix of value drivers and strategic imperatives Capabilities or Services grouped by primary value chain elements Scoring supported by formal definitions for each sub-dimension Dimensions adaptable to meet program needs
  25. 25. © 2013 Forrester Research, Inc. Reproduction Prohibited 25 Forrester Capability Portfolio Assessment 1.1 1.2 2.1 2.2 2.3 2.4 2.5 2.6 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3 5.1 5.2 5.3 5.5 3.0 5.3 7.5 0 2.5 5 MATURITY+PERFORMANCE BUSINESS IMPACT CAPABILITY PORTFOLIO ANALYSIS MATRIX Bubble Size = Complexity Bubble chart provides both decision support tool and long term tracking of improvements
  26. 26. © 2013 Forrester Research, Inc. Reproduction Prohibited 26 Target Operating Model update process 1 • What purpose does the business (unit) perform. What’s your brand all about. 2 • Assess the current state of your business. Establish a base line. • How bad is it? What volume/resources, # cases, etc.? 3 • How have your internal capabilities changed? What was the impact? • What external factors will affect your business going forward. 4 • What’s your vision going forward? • What service propositions will differentiate you in the eyes of the customer? 5 • What capabilities and enablers do you need to achieve the target? • Think about it across people, process, technology, data, measurement, etc. 6 • Assess the current results, maturity and level of performance (effectiveness/efficiency) of each key enabler/capability today. 7 • Establish a roadmap to address the gaps. • Build the engagement plan and manage the change program.
  27. 27. © 2013 Forrester Research, Inc. Reproduction Prohibited 27 Integrating forces of change Operating model Internal ExternalStrategic directives Customer expectations New regulations Competitor actions Manager Team ATeam BTeam C Balanced and consistent view App portfolio New program charter Prioritized BPM initiative Customer experience Service design Org structure
  28. 28. © 2013 Forrester Research, Inc. Reproduction Prohibited 28 Give shape to your transformation program Flesh out top level strategy. Engage around customers. Optimize performance. Consistent process architecture. Understanding costs and drivers. Optimizing investment decisions. Input to organizational design. Design and coordinate change.        
  29. 29. © 2013 Forrester Research, Inc. Reproduction Prohibited 29 “One cannot teach a man anything. One can only enable him to learn from within himself” ›Apply this framework at any level: • Business to consumer • Business-to-business • Shared services • Business unit • Department • Individual ›Use the overall approach to scale a change program • Engage them properly and it becomes theirs. • Big tent, multiple competing teams • Multiple unrelated concepts, or dependent projects, or just one issue. ›But you need to let people see the world differently • Means stepping out of the normal frame of reference. • Start with your own unit.
  30. 30. © 2013 Forrester Research, Inc. Reproduction Prohibited 30 Example service concepts CONCEPTS SHOULD BE IDENTIFIED AND DEVELOPED BY TEAM ›The “Project Facilitation” Service ›The “Speed To Market” Service ›The “Show Me The Money” Service ›The “Fast Forward Operating Model” Service ›The “Waste Eliminator” Service ›The “Build A Customer-centric Vision” Service ›The “Value Innovation” Service
  31. 31. © 2013 Forrester Research, Inc. Reproduction Prohibited 31 Aligning corporate change initiatives Vision (Strategy) Governance & Plans Structure Incentives Perform’ce Culture (Behavior) Change Governance Structure Incentives Culture Vision Structure Incentives Culture Vision Governance Incentives Culture Vision Governance Structure Culture Vision Governance Structure Incentives Confusion False Starts Chaos Gradual Change Better Sameness
  32. 32. Thank you Derek Miers +44 20 7323 7670 dmiers@forrester.com @bpmfocus

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