Lombardi Blueprint White Paper

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Using Business Process Mapping as a Communication Facilitator in the Global Enterprise

Information versus Communication

In a recent article on Lombardi Software and in particular their Blueprint business process mapping solution, I referred to John C. Maxwell’s assertion that “information is giving out; communication is getting through.”

It is an interesting perspective in that traditionally process mapping has been viewed as a way of providing an overview of the intricacies of the internal “architectures” that define and drive the modern enterprise. It has rarely (if ever) been considered a communication tool or facilitator. And herein lays the reason for its “boutique” status that has limited its practice to a select few “techies” who are perceived as being more system-oriented versus people-oriented.

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Lombardi Blueprint White Paper

  1. 1. Ottawa, Canada 2009 Using Business Process Mapping as a Communication Facilitator in the Global Enterprise White Paper A Knowledge Leadership Publication By Procurement Insights Author Jon Hansen
  2. 2. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise Table of Contents EXECUTIVE SUMMARY: INFORMATION VERSUS COMMUNICATION . . .................2 A TOOL FOR EVERYONE ……….. ………………………………………. . . . . ……………3 TRADITIONAL PROCESS MAPPING: A ROADMAP TO FAILURE? . . . ........................4 IDENTIFYING THE RIGHT DESTINATION ..........................................................................4 THE IMPORTANCE OF PROACTIVE COLLABORATION.................................................6 THE TOOLS OF POSITIVE OUTCOME . . . ...........................................................................6 AN INTUITIVE USER INTERFACE …………………………………….. …………………..7 A FINAL POINT . . . .....................................................................................................................8 ABOUT LOMBARDI SOFTWARE . . . ....................................................................................10 Appendices APPENDIX A ...............................................................................................................................13 APPENDIX B. . . ..........................................................................................................................14 1
  3. 3. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise Executive Summary: Information versus Communication In a recent article on Lombardi Software and in particular their Blueprint business process mapping solution, I referred to John C. Maxwell’s assertion that “information is giving out; communication is getting through.” It is an interesting perspective in that traditionally process mapping has been viewed as a way of providing an overview of the intricacies of the internal “architectures” that define and drive the modern enterprise. It has rarely (if ever) been considered a communication tool or facilitator. And herein lays the reason for its “boutique” status that has limited its practice to a select few “techies” who are perceived as being more system-oriented versus people-oriented. With the introduction of the Lombardi solution, this has all changed, or to borrow a phrase from a well known high tech marketing campaign, “finally, a process mapping solution for the rest of us.” The purpose of this white paper is to examine the emerging practice of leveraging process mapping and its related solutions as a communication tool to gain a more complete and accurate picture of how an enterprise actually works. I will then examine why the Lombardi offering is on the leading edge of this new paradigm. 2
  4. 4. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise A Tool for Everyone “Business process mapping is one method being used to raise process awareness and consequently improve an organization’s processes. Process mapping should not be seen as a tool solely for analysts and quality managers, but as a widespread, everyday technique for employees right across an organization to get involved with understanding and improving their own processes.” Supply Chain Management BPO Professional February 13, 2009 3
  5. 5. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise Traditional Process Mapping: A Roadmap to Failure? In a career that has spanned enough years to bore my children and their friends with the “I remember when” phrase that usually implies the kind of experience or insight that seems to come only with advancing age, I have both studied and witnessed first hand the significantly high rate of supply chain initiave failures. In fact as recently as 2007, studies have indicated that 85 percent of all initiatives fail to achieve the expected results, in some instances costing organizations millions of dollars. And this poor showing is not limited to supply chain programs only. IT-based programs have an equally dismal record of performance, while outsourcing projects fair even worse with a little more than 90 percent of all initiatives missing the anticipated savings mark by a wide margin. While there are many reasons for the plague of failures, what is interesting is what I refer to as the “commen elements” of unrealized expectations. One such element is the consistent utilization of traditional process mapping applications to establish the purported roadmap to success. Long considered to be an integral part of any program, almost every consultant talks about the need to “understand the flow” of a business to “present a realization of how things are,” and therefore enable the organization to mitigate risk and increase efficiency. As the globalized supply chain becomes more complex, and additional practice-centric tools such as supply chain mapping, which is an enhanced version of value stream mapping, are introduced one cannot help but wonder why the results have to date been so poor. After all, isn’t the whole concept behind creating and using a map based upon the premise of guiding you to the desired destination or outcome? Identifying the Right Destination In my seminars, I often refer to a 2007 Aberdeen study involving Chief Financial Officers “CFOs” in which the general consensus was that “too often finance executives in Corporate America simply don’t believe that purchasing departments are really bringing in the savings they claim.” 4
  6. 6. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise According to the study, the primary reason for this disconnect is deeply rooted in the fact that finance and purchasing do not “speak the same language.” As a result, there is often a misalignment of understanding that is reflected in contradictory and competing objectives where individual depatmental interests determines the course of action instead of enterprise- wide operational symmetry. This somewhat myopic view of how the enterprise operates is rooted in the fact that the stakeholders within the organization that are usually charged with leading process transformations are narrowly confined to either the finance or IT departments. And the corresponding process mapping tools these departments utilize have traditionally been equally narrow in terms of their “user-friendliness.” As a result, the communication efforts with stakeholders from other areas of practice both within and external to the organization have by and large been reduced to an exercise in gathering the information that aligns with the perceived goals established by the project champions. In essence, and governed by a belief on the part of the champions (i.e. finance or IT) that this is “where we need to go,” the process mapping exercises involving other areas of the enterprise are usually centered on an identify-and-alter mindset versus an understand, integrate and adapt approach. This of course is why change and/or compliance management is such a large part of most programs. In other words, we have selected the destination, now let’s use process mapping to help us tell everyone how we are going to get there. The problem with this approach is that no one stops to ask the question are we mapping the road to the right destination for all stakeholders? To emphasize this point, and referencing the Aberdeen study once again, CFOs rejected 73 percent of the savings claimed by purchasing as being irrelevant. This is a significant number as the processes that have been implemented to drive the savings from a purchasing standpoint, did not reflect the savings objectives of the finance department . . . two different destinations or outcomes. Based on this result, which department’s roadmap is likely going to be maintained? 5
  7. 7. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise The Importance of Proactive Collaboration Winston Churchill once proclaimed that “history is written by the victors.” He also said that “history will be kind to me for I intend to write it.” With process mapping, who is recording your organization’s history in terms of the processes that define the operational enterprise, and what medium are they using to outline the business flow that got you to the present destination? Of equal if not greater importance, what tools will be used and by whom to develop the roadmap to future destinations or outcomes? Asking these questions represents the acknowledgement of the need for a much broader engagement strategy that necessitates the utilization of tools that captures and incorporates different perspectives into a collective, best result outcome. What this means is that process mapping, should “not be seen as a tool solely for analysts . . . but as an everyday technique for employees right across an organization.” Or as one respondent to a recent Procurement Insights survey concluded, “with new flattened supply chains, business processes now need to be mapped across organizations and across business partners,” which means that traditional process mapping practices have to extend to become “network-centric” thereby better enabling the “multi-partner collaborative process.” If you accept the concept of the “multi-partner collaborative process” being an essential element of the emerging process mapping practice, the primary obstacle between intent, exectution and meaningful outcome, are intrinsically linked to the tools that are made available to facilitate a common understanding between diverse stakeholders. More to the point, and taking into account the non-indegenous skill sets of an expanded user community, is the process mapping tool easy to learn and use? The Tools of Postive Outcome In a recent article I wrote profiling Lombardi Software’s Blueprint Solution, I highlighted the fact that “traditionally, process mapping has fallen within the purview of the IT department, where the intricacies of functional requirement and technological configuration meet to deliver a program that automates business process.” I went on to say that “to most, the applications that have been developed to chart this “course of understanding” represent a 6
  8. 8. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise forboding degree of complexity that has usually limited their use to a select few.” I later concluded that the degree of complexity, which prevented those individuals within different groups or departments (who best understand their own area of operations better than anyone else) to make a meaningful contribution in terms of process reviews, was a major factor in the high rate of initiative failures. Enter Lombardi’s Blueprint solution. By removing the barriers of complexity that were the hallmark of first generation process mapping software applications, Lombardi has positioned itself as the “universal translator” for the diverse and seemingly disparate departmental processes that exist within the global enterprise. Through an intuitive, on-demand user interface that represents the next generation in process mapping methodology, Lombardi has put the power (and benefits) of process mapping at the fingertips of anyone and everyone. Once the process elements of individual departments have been captured and defined, the powerful, correlative functionality of the Blueprint program creates an integration metrics that establishes and maintains a collectively cohesive enteprise-wide operation model. An Intuitive User-Interface that Duet Can Only Hope to Emulate In a white paper I wrote titled “SAP Procurement for Public Sector,” I discussed the vendor’s acknowledgement of the importance of developing an intuitive, familiar interface as a means of increasing end-user adoption. Through a collaborative initiative with Microsoft that was first launched as the Mendocino Project, and was subsequently renamed Duet, SAP’s efforts to create such an interface was based on their recognition that end-user compliance was one of the main barriers to a successful implementation. In an effort to remove said barriers, the company actively sought to leverage user comfort with known applications such as Excel to provide access to certain functions within the SAP architecture. The obvious reasoning was 7
  9. 9. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise that by promoting the utilization of SAP through a familiar, easy-to-use interface, end-users would be more inclined to use their application. The fact that Lombardi has already perfected a familiar, easy-to-use interface that makes Blueprint’s functionality similar to working with PowerPoint, and did so within the framework of a web-based, on-demand model means that this is a solution that is worth more than a cursory look. And given that Lombardi’s other applications such as the critically acclaimed Teamsworks solution which boasts an impressive client list that includes organizations from both the private and public sectors including Dell, Barclays Global Investors, Ford Motor Company, Hasbro, National Institute of Health, El Paso Energy and Intel, has built a strong following, Blueprint is almost certain to be a frontrunner for process mapping for many years to come. A Final Point One of the many advantages of a web based, on-demand solution besides ease-of-use and affordability is the opportunity a prospective end-user has to take it out for the proverbial test drive. And in line with the saying that a “picture paints a thousand words,” the 30- Day Free Trial offered by Lombardi provides a means to experience Blueprint’s many features first hand. So as the final point to this white paper, I am pleased to provide the following link; http://getblueprint.lombardi.com, content to let you reach your own conclusions. 8
  10. 10. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise We built Blueprint to let you: Document processes in a fraction of the time Outlining gets you started documenting in seconds, just like outlining in PowerPoint. Inline editing (no more toolbars!), flexible layouts, and automatic diagram generation means no drawing, yet you still have the power to make a diagram look the way you want it. Structured inputs keep you focused on what’s important. And since Blueprint is online, you can collaborate and chat with any of your colleagues anywhere in the world in real-time. No tools to install. No new languages to learn. Always have the right version, evergreen documentation that is constantly up to date No more posting version 4.35 to the shared drive. No more emails with 10 versions to manage. Blueprint handles all of this for you. Every change is captured instantly – and you can roll back to older versions at any time. Three different views of a process – map, diagram, and documentation – let people see the detail that they need. There is no better way to get a central repository for all your process documentation. Get more out of your process documentation Need to provide documentation for an audit, train a new associate, or execute your process in a BPM Suite (BPMS)? Blueprint gives you several ways to leverage your hard work. Export your documentation to PowerPoint automatically with the click of a button or export your process to any BPMS – like Lombardi Teamworks – for execution. 9
  11. 11. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise About Lombardi Software Lombardi is a leader in business process management (BPM) software for companies, systems integrators and government agencies. We offer award- winning BPM technology, know-how and services to help our customers succeed with their process improvement initiatives. Lombardi is behind some of the largest, most successful BPM implementations in the world. Our customers include Allianz Group, Aflac, Banco Espirito Santo, Barclays Global Investors, Dell, El Paso Energy, FETAC, Financial Services Authority, Ford Motor Company, Hasbro, ING Direct, Intel, Maritz Travel, National Bank of Canada, National Institute of Health, Safety-Kleen, T-Mobile, UCLH, Xbridge and numerous governmental agencies. For more information, visit www.lombardi.com. © Procurement Insights 2008-2009 10
  12. 12. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise About the Author Jon Hansen has studied and written extensively about e-Procurement and the changing face of procurement around the globe. In addition to being a highly acclaimed international speaker, his Procurement Insights Blog reaches 300,000 syndicated subscribers each month worldwide, and is currently available in several languages. He has written more than 200 articles and papers on subjects ranging from supply chain optimization and the utilization of agent-based modeling in the software development process to the evolution of sustainable purchasing practices and the impact of traditional ERP-centric implementation methodologies on the high rate of supply chain initiative failures. Funded by the Government of Canada’s Scientific Research and Experimental Development (SR&ED) program Mr. Hansen’s work in both identifying the existence of Commodity Characteristics as well as defining and recording their impact on “best value” purchasing practices represented a seminal breakthrough that led to the establishment of new theories surrounding the practical utilization of synchronized platforms in achieving sustainable coordinated savings and overall process efficiencies. Other white papers by Jon Hansen: The Greening of Procurement: How Social Consciousness is Re-Shaping Procurement Practices Talent Attraction and Retention in a Global Economy SAP Procurement for the Public Sector Strategic Sourcing Practices in Higher Education Yes Virginia! A Profile in Excellence To obtain copies of the above referenced white papers, or to inquire about Jon’s availability to speak at your next conference or seminar contact Jennifer Cameron at jenncameron@sympatico.ca, or 819-986-8953. 11
  13. 13. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise Using Business Process Mapping as a Communication Facilitator in the Global Enterprise White Paper Appendices 12
  14. 14. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise APPENDIX A Page 2 (John c. Maxwell Reference); Bridging the Operational Disconnect within the Collective Enterprise (Lombardi Software Profile), Procurement Insights Profile of Lombardi Blueprint Software (February 7, 2009) Page 3 (A Tool for Everyone); Q&A Forum on LinkedIn, http://www.linkedin.com/answers?viewQuestion=&questionID=415645&as kerID=15318179&goback=%2Eait%2Emid_1012379073 Page 4 (Aberdeen Study Reference); Bridging the Communications Gap Between Finance and Purchasing, Procurement Insights Post, (January 31, 2008) and CATA Supply (Chain) Practices Forum on Viadeo, http://www.viadeo.com/hub/afficherubrique/?hubId=002wi7sn2ek47v2&for umId=002fxrh9626fdd2 Page 6 (Winston Churchill Quote); http://thinkexist.com/quotation/history_is_written_by_the_victors/150112.ht ml, Thinkexist.com web site Page 6 (Procurement Insights Survey); Q&A Forum on LinkedIn, http://www.linkedin.com/answers?viewQuestion=&questionID=415645&as kerID=15318179&goback=%2Eait%2Emid_1012379073 Page 7 (Duet Reference/SAP White Paper); (Duet) The Mendocino Project: A Brilliant Strategy by Microsoft and SAP to Sidestep Anti- Trust Legislation?, Procurement Insights Post, (December 21, 2007) and (SAP White Paper) SAP Procurement for Public Sector (White Paper), Procurement Insights Publications, (January 18, 2008) 13
  15. 15. Using Business Process Mapping as a Communication Facilitator in the Global Enterprise APPENDIX B Use the following link to access the Forrester Report in its entirety: http://www.lombardisoftware.com/downloads/wp_forrester-blueprint- process-discovery-and-execution.pdf 14

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