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Business Process Management: Is - Is Not - Must Have - Must Not

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What BPM is and is not. What you must have to be successful with BPM and what you must not do.

What BPM is and is not. What you must have to be successful with BPM and what you must not do.

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  • 1. Is Is Not Must Have Must Not Business Process Management Roger Tregear, Leonardo Consulting 20 May 2009
  • 2. 2 AGENDA What BPM is What BPM is not 3 Must Haves 3 Must Nots Take Aways
  • 3. 3 What is BPM? Business Process Management is a structured, coherent and consistent way of understanding, documenting, modelling, analysing, simulating, executing, measuring and continuously changing end-to-end business processes and all involved resources in light of their contribution to business improvement. Definition by the Australian BPM Community of Practice (http://bpm-collaboration.com/)
  • 4. 4 What’s the Big (BPM) Idea? Processes are inherently cross-functional. So functional management (alone) does not manage the delivery of value to customers. We deliver value to our customers via our business processes. Yet we (often) manage our organisations via functions.
  • 5. 5 Process analysis & description only. Focus on As Is. Improving individual processes. Changing from As Is to To Be. Understand performance metrics and drivers. Focus on As Is. Continuous improvement across the value chain. “Process Based Management”. Process Improvement as a part of Process Management
  • 6. 6 BPM is NOT … a new technology a project something to outsource a passing fad a quick fix
  • 7. 7 3 MUST HAVES 1. Process Architecture 2. Continuous Measurement 3. Consistent Framework
  • 8. 8 PROCESS ARCHITECTURE Create, Acquire & Grow Business Integrate Product/Service Definition Manage Suppliers Produce Product Support Products & Services Define Production Plan Provide Parts, Supplies, GFE & Tools to Assembly Assemble & Deliver Product Verify Production Processes Manage Material Rqmts Select Source Negoitate & Award Purchase Contracts Manage Supplier Quality Manage Supplier Performance Manage Supply Base Manage Gov Property Manage Inventory Define & Manage Product/Service Requirements Plan & Control Product Service Design Concurrently Develop Product/ Service/Build-to/ Buy-to/Support Elements Verify & Validate Product/Service Create Opportunities & New Markets Acquire New Business Maintain/Grow Existing Business Provide Supply Support Provide Field Services Provide Retrofit & Modification Services Provide Instructional Systems Data & Training Provide Technical Data Provide Integrated Support Planning & Management Provide System Support Analysis Provide Support Equipment Provide Financial Services Provide Human Resources Provide Communicatins Services Provide Export/ Import Compliance Provide Safety, Health & Env. Services Provide Legal Services Manage Facilities & Equipment Provide Integrated Information Systems & Services Provide Enagling Infrastructure Manage Non- Production Procurement Provide Flight Operations Services Provide Security & Fire Protection Services Manage Program Planning & Execution Administer Contracts Minimize Program Risk Provide Integrated Performance Mang. (Cost & Schedule) Manage IWA Performance Manage Programs Boeing GMS: C-17 Program Value Chain Ensure Integration of Strategic Bus. & Functional Planning Ensure Organizational Effectiveness Perform Integrated Bus Financial Mang. Ensure Customer Satisfaction Perform Self- Governance Integrate & Deploy Processes & Procedures Strengthen the Team Provide Ethics Guidance Lead the Enterprise Communicate Positions & Directions Ensure Quality & Mission Assurance Insure Continious Improvement Source: BPTrends
  • 9. 9 CONTINUOUS MEASUREMENT Good Good 100 90 80 70 60 50 40 30 20 10 Quality (1X) 100 90 80 70 60 50 40 30 20 10 Efficiency (1X) Process Performance Assessment Assessment Assessment PercentCompliantOrders CompletedItemsperMan-hour 02 03 J F M A M J J A S O N D ND ND 1 2 2 2 2 2 02 03 J F M A M J J A S O N D ND ND 1 2 2 2 2 2 03 J F M A M J J A S O N D02 ND ND 2 2 2 2 1 1 1.5 2.0 2.0 2.0 1.5 1.5 02 03 J F M A M J J A S O N D ND ND Source: BPTrends
  • 10. 10 CONSISTENT FRAMEWORK
  • 11. 11 3 MUST NOTS 1. Focus 2. Language 3. Destination
  • 12. 12 DON’T FOCUS ON BPM It’s never about BPM It is about: business, quality, compliance, innovation, systems implementation, cost management etc etc “The main thing is to keep the main thing the main thing.” Stephen R Covey Beware of Self-Licking Ice Cream Cones
  • 13. 13 DON’T SPEAK WITH MULTIPLE TONGUES Shared lexicon Coordinated messages, messengers & channels
  • 14. 14 DON’T FOCUS ON THE ROADMAP Provide purpose and destinations, not a roadmap! One corner, one change at a time Changing Minds
  • 15. 15 BPM is ... the only value delivery system process-based management BPM is not ... IT, a project, outsourced, a fad or a quick fix Must have ... A process architecture, continuous measurement and a consistent framework Must not ... focus on BPM, speak with multiple tongues or focus on the roadmap.
  • 16. 16
  • 17. 17 Roger Tregear Consulting Director Leonardo Consulting r.tregear@leonardo.com.au
  • 18. 18 © Copyright, Leonardo Consulting 2009 All rights reserved. The contents of this document are subject to copyright. No part of it may be reproduced in any way, by electronic means or otherwise without the written permission of Leonardo Consulting.