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Re architecting the corporation v4 a

Re architecting the corporation v4 a

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Re-architecting the Corporation: enabling a process-based management revolution. …

Re-architecting the Corporation: enabling a process-based management revolution.
This presentation was prepared for, and delivered to, a group of Business Analysts. However, the core messages apply to everyone.

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  • 1. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 1 enabling a process-based management revolution Re-Architecting The Corporation Roger Tregear Leonardo Consulting 2 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013
  • 2. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 2 3 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 4 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 üreally understands what it wants, the first time üknows what is important, not just urgent ühas objective measures of performance üintelligently prioritises üanticipates needs well in advance üdelivers adequate funding via solid business cases Nirvana, a world where business …
  • 3. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 3 5 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 6 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 but it doesn’t have to be like that …
  • 4. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 4 7 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 Business Process Management 8 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 üBank: $30 million annual savings üAgency: 22% labor cost reduction üRetail: 82% cycle time reduction üERP: rework rate 400% to 15% üAid: 75% reduction in delivery cost üRegulator: +500% inspection rate üHR: On-boarding 3 days to 1 hour Process-Based Management Works
  • 5. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 5 9 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 What is a Business Process? 4Series of related activities 4Triggered by an event 4Transforms inputs into outputs 4Exchanges value with customers and other stakeholders 10 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 Process-Centric Perspective Functional Organisation Process Organisation Managing resources Creating, accumulating, & delivering value
  • 6. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 6 11 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 Unit A Unit B Unit C Unit D Unit E Management Deliver Service new need Research & Create New Service service delivered information requests Customer / User Customer / User service available Promote New Service new service design new service design materials SuppliersSuppliers Design & Deliver New Service Creating, Accumulating, Delivering Value 12 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 • Organisations exist to deliver value to customers and other stakeholders. That’s strategy. • They do this via coordinated activities across functions of the organisation. That’s a process. • It makes sense to optimise processes for customers and other stakeholders. That’s process improvement. • An aggregated view of process performance optimises overall performance. That’s process management. • Process management puts focus on the processes that realise the strategy. That’s execution. From Strategy to Execution
  • 7. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 7 13 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 MBPThe M in BPM stands for Management. BPM is a management philosophy. 14 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 90% 10% Mindset Toolset
  • 8. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 8 15 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 ra new technology ra project rsomething to outsource ra passing fad ra quick fix BPM is NOT … 16 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 Key management challenges are directly addressed by BPM Do we really know how work actually gets done? Is the IP embedded in our processes secure? Are we continuously improving our performance? Do we have control where it really matters? Are we meeting all of our compliance obligations? Are we making the most of our resources? Are we able to respond to opportunities? Are our customers happy enough? ü ü ü ü ü ü ü ü
  • 9. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 9 17 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 7 enablers of process-based management 18 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 1. Process Architecture 2. Process Measurement 3. Process Governance 4. Process Improvement 5. Process-Aware Culture 6. Process Capability 7. Process Support concrete & physical abstract & subtle supportive
  • 10. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 12 23 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 3. Process Governance Control process performance §process owners are accountable for responding to process performance anomalies 24 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 Process Governance Example Value Chain Executive Managers Value Chain Executive Managers Process Owners Process Owners BPM CoE BPM CoE Process CouncilProcess Council CEOCEO support chair secretariat reporting
  • 11. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 13 25 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 As Is To Be? 4. Process Improvement Improve processes §“improve” = create new value §consistent, understood & supported §continuously improved §As Is / To Be / As Is §small & big changes §problems & opportunities §part of every role 26 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 Process Improvement Example §Government regulatory authority pre-approval for change of service offering by vendor §As Is: average approval time 4 weeks, with range from 2-20 weeks §To Be: approvals in two streams, complex complete in 6 weeks and simple in 2 weeks, variability +/- 1 week § How? Process modelling & analysis, removal of delays by combining roles and deleting some steps, improved applicant awareness
  • 12. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 14 27 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 5. Process-Aware Culture Nurture process culture §measurement-friendly §community-focused §quality-motivated §change-welcoming §challenge-addicted §action-oriented 28 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 Process Culture Example §Regular ‘community of interest’ meetings §BPM activities and information web pages §Process Improvement Project reports §Library of BPM literature §Documented success stories §Published process performance results §Suggestion scheme (one that works!) §FAQs §… and anything else that shares and supports
  • 13. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 15 29 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 6. BPM Capability Develop BPM skills §consistent, reusable approaches §wide-ranging curriculum §must have inhouse capability §everybody is a process analyst 30 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 BPM Capability Example §Defined BPM curriculum (combination internal and external courses) §Including staff in Process Improvement Projects §Visiting speakers on key issues §Visits to other organisations §Attendance at conferences, webinars etc. §Publish/present case studies §…and anything else that builds BPM knowledge and experience
  • 14. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 16 31 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 7. Support BPM Establish ‘central’ support §manage the “process of process” §key role: develop capability §Support/coach, not take over §catalyst for change §maintain & mentor 32 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 BPM Support Example §Wells Fargo Bank §BPM Centre of Excellence as a “mechanism to accelerate awareness, adoption and governance” §Key role to “establish BPM as a strategic and sustainable capability” §$30 million in annual savings attributed to BPM/CoE
  • 15. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 17 33 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 1. Architect the enterprise 2. Measure process performance 3. Control process performance 4. Improve processes 5. Nurture process culture 6. Develop BPM skills 7. Support BPM 7 Steps to Performance Excellence 34 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 üreally understands what it wants, the first time üknows what is important, not just urgent ühas objective measures of performance üintelligently prioritises üanticipates needs well in advance üdelivers adequate funding via solid business cases Nirvana, a world where business …
  • 16. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 19 37 Re-architecting The Corporation © Roger Tregear, Leonardo Consulting 2013 enabling a process-based management revolution Re-Architecting The Corporation 38 Roger Tregear +61 419 220 280 r.tregear@leonardo.com.au www.leonardo.com.au www.rogertregear.com Let’s connect! More information on BPM and related topics can be found at the websites listed above and at www.bptrends.com. Roger’s column, Practical Process, is published by BPTrends and all columns can be accessed at the website (enter “Tregear” in the search field). The columns are also available a single collection in the recently published Amazon Kindle book, Practical Process. Copies of the Office of BPM book are available from Roger on request.
  • 17. Re-Architecting The Corporation enabling a process-based management revolution r.tregear@leonardo.com.au || +61 (0)419 220 280 || www.rogertregear.com 20 39 © Copyright, Leonardo Consulting 2013 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.