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Re architecting the Organisation: putting process at the centre of business management
 

Re architecting the Organisation: putting process at the centre of business management

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Organisations are traditionally managed via the organisation chart. Yet not one of the entities shown on that chart can, by itself, deliver value to a customer. The reality is that we create, ...

Organisations are traditionally managed via the organisation chart. Yet not one of the entities shown on that chart can, by itself, deliver value to a customer. The reality is that we create, accumulate, and deliver value by collaboration across the chart. We manage resources vertically using the organisation chart; we create and deliver value via business processes operating across the organisation chart.

Organisations want to reduce costs, enhance products and services, and be more attentive to customers. Business Process Management (BPM) offers a practical solution, refocusing management on how value is delivered to customers and other stakeholders. The focus is on the way work gets done, and what impedes it being done in the most straightforward, efficient and effective way.

This presentation describes the 7 Enablers of Business Process Management.

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Re architecting the Organisation: putting process at the centre of business management Re architecting the Organisation: putting process at the centre of business management Presentation Transcript

  • Re-Architecting The Organisation putting process at the centre of business management
  • Re-architecting the Organisation Copyright Notice Copyright © 2014 Leonardo Consulting. All rights reserved. Materials used in this course are the property of Leonardo Consulting. Course participants are granted a perpetual, non-transferable, nonexclusive, royalty free licence to use these materials for internal purposes within their own organisations, but not for the provision of training internally within their organisations or the provision of training or other services to third parties on a commercial or any other basis. The material provided to course participants must not be copied, duplicated, or reproduced in any manner, or transmitted or given to others without the written consent of Leonardo Consulting. Release 4.0 January 2014 © Roger Tregear, Leonardo Consulting 2013 2
  • Re-architecting the Organisation I’m Roger Tregear, Consulting Director with Leonardo Consulting. I spend my working life talking, consulting, thinking and writing about analysis, improvement and management of business processes. +61 (0)419 220 280 r.tregear@leonardo.com.au © Roger Tregear, Leonardo Consulting 2013 3
  • Re-architecting the Organisation Leonardo BPM Curriculum BPM Consulting Services Measuring Processes BPM Maturity assessment 3 days of valuable insights into, and practical tools for, the discovery, definition and management of effective process performance measures Process Improvement projects Process Architecture development analytical better practices Derivation Enhancement New Process current practices Innovation new practices Utilisation potential practices creative Improving Processes This 3-day course delivers practical advice and 7 Enablers Rollout tools you can use immediately to generate great process change ideas. Stop relying on chance. Office of BPM development Process Modelling Excellence Process culture development This 1-day, tool-neutral seminar is a breakthrough experience for modellers and those who manage them. It will improve your Return on Modelling. Executive BPM coaching BPTrends Professional Certificate Process performance analysis Over 5 days the Professional Certificate program teaches a practical approach to analysing, measuring and improving process performance. Process governance design Process practitioner coaching Process modelling management BPTrends Enterprise Certificate Beyond process improvement, the Enterprise Certificate 5-day program teaches how to build and maintain a truly process-centric organisation. Process automation BPM capability development © Roger Tregear, Leonardo Consulting 2013 4
  • Re-architecting the Organisation © Roger Tregear, Leonardo Consulting 2013 5
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 6
  • Re-architecting the Organisation © Roger Tregear, Leonardo Consulting 2013 7
  • Re-architecting the Organisation but it doesn’t have to be like that … © Roger Tregear, Leonardo Consulting 2013 8
  • Re-architecting the Organisation Business Process Management © Roger Tregear, Leonardo Consulting 2013 9
  • Re-architecting the Organisation The Business Process Creed We believe in ... unimpeded flow of measurable value between an organisation and its customers and other stakeholders uncovering and eliminating wasteful activities a workplace that enables staff to deliver value eliminating frustration caused by broken processes having more certain control over things that really matter technology supporting business processes continuous improvement + discontinuous innovation. This is Business Process Management © Roger Tregear, Leonardo Consulting 2013 10
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 11
  • Re-architecting the Organisation What is a Business Process? Series of related activities Triggered by an event Transforms inputs into outputs Delivers value (products & services) to customers and other stakeholders Includes all of the resources and assets required for execution of the process © Roger Tregear, Leonardo Consulting 2013 12
  • Re-architecting the Organisation Management Process Perspectives Guides Process Inputs Flow Outputs Enablers © Roger Tregear, Leonardo Consulting 2013 13
  • Re-architecting the Organisation Which process? “My washing machine won’t work!” Warranty? Call Centre Technician Customer Customer VALUE Service Dispatch Parts Store fault-report-to-resolution process © Roger Tregear, Leonardo Consulting 2013 14
  • Re-architecting the Organisation Cross-Functional Value CHECK IN BOARD PLANE COMPLETE FLIGHT RETRIEVE LUGGAGE © Roger Tregear, Leonardo Consulting 2013 DEPART AIRPORT 15
  • Re-architecting the Organisation Creating, Accumulating, Delivering Value Management Unit A Unit B Unit C Unit D Unit E Deliver Service new need Research & Create New Service new service design service available new service design Design & Deliver New Service information Promote New Service requests Customer / User service delivered materials Suppliers © Roger Tregear, Leonardo Consulting 2013 16
  • Re-architecting the Organisation Creating, accumulating, & delivering value Functional Organisation Process Organisation Process-Centric Perspective Managing resources © Roger Tregear, Leonardo Consulting 2013 17
  • Re-architecting the Organisation So, what is a processcentric organisation? © Roger Tregear, Leonardo Consulting 2013 18
  • Re-architecting the Organisation Functional Organisation Process Organisation Process-centric Organisation © Roger Tregear, Leonardo Consulting 2013 19
  • Re-architecting the Organisation Process-centric Organisation © Roger Tregear, Leonardo Consulting 2013 20
  • Re-architecting the Organisation Process-centric Organisation © Roger Tregear, Leonardo Consulting 2013 21
  • Re-architecting the Organisation The M in BPM stands for Management. BPM is a management philosophy. © Roger Tregear, Leonardo Consulting 2013 22
  • Re-architecting the Organisation From Strategy to Execution 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. © Roger Tregear, Leonardo Consulting 2013 23
  • Re-architecting the Organisation BPM is NOT … a new technology a project something to outsource a passing fad a quick fix © Roger Tregear, Leonardo Consulting 2013 24
  • Re-architecting the Organisation Process-based management works Bank: $30 million annual savings Agency: 22% labour cost reduction Retail: 82% cycle time reduction Aid: 75% reduction in delivery cost Regulator: +500% inspection rate HR: On-boarding 3 days to 1 hour © Roger Tregear, Leonardo Consulting 2013 25
  • Re-architecting the Organisation Summarising the BPM Purpose Process delivers value to customers Process = performance Process understanding is vital Process improvement is strategic Process management is achievable Process mastery facilitates success © Roger Tregear, Leonardo Consulting 2013 26
  • Re-architecting the Organisation Mindset Toolset © Roger Tregear, Leonardo Consulting 2013 27
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 28
  • Re-architecting the Organisation 7 enablers of process-based management © Roger Tregear, Leonardo Consulting 2013 29
  • Re-architecting the Organisation 1. Process Architecture 2. Process Measurement 3. Process Governance concrete & physical 4. Process Change 5. Process-Aware Culture 6. Process Capability 7. Process Support abstract & subtle supportive © Roger Tregear, Leonardo Consulting 2013 30
  • Re-architecting the Organisation 1. Process Architecture Architect the enterprise keystone artefact value pathway prioritisation control project coordination visualisation portal © Roger Tregear, Leonardo Consulting 2013 31
  • Re-architecting the Organisation 2. Process Measurement Measure process performance If you aren’t measuring process performance, you aren’t doing process management, and you can’t know if you are doing process improvement Measures and measurement methods ProMeasure® is the Leonardo methodology for process measures management © Roger Tregear, Leonardo Consulting 2013 32
  • Re-architecting the Organisation 3. Process Governance Control process performance process owners are accountable for responding to process performance anomalies © Roger Tregear, Leonardo Consulting 2013 33
  • Re-architecting the Organisation 4. Process Change Change processes As Is / To Be / As Is Implementation chasm To Do Plan for change Kotter 8 Steps Urgency & commitment Process Change Management As Is To Be © Roger Tregear, Leonardo Consulting 2013 34
  • Re-architecting the Organisation 5. Process-Aware Culture Nurture process culture measurement-friendly community-focused quality-motivated change-welcoming challenge-addicted action-oriented © Roger Tregear, Leonardo Consulting 2013 35
  • Re-architecting the Organisation 6. BPM Capability Develop BPM skills consistent, reusable approaches wide-ranging curriculum must have inhouse capability everybody is a process analyst © Roger Tregear, Leonardo Consulting 2013 36
  • Re-architecting the Organisation 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 © Roger Tregear, Leonardo Consulting 2013 37
  • Re-architecting the Organisation 7 Steps to Performance Excellence 1. 2. 3. 4. 5. 6. 7. Architect the enterprise Measure process performance Control process performance Change processes Nurture process culture Develop BPM skills Support BPM © Roger Tregear, Leonardo Consulting 2013 38
  • Re-architecting the Organisation 2 Virtuous Circles the essence of process-based management © Roger Tregear, Leonardo Consulting 2013 39
  • Re-architecting the Organisation © Roger Tregear, Leonardo Consulting 2013 40
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 41
  • Re-architecting the Organisation What is a Process Architecture? Hierarchical description of processes with related documents, performance measures, measurement methods, and governance arrangements © Roger Tregear, Leonardo Consulting 2013 42
  • Re-architecting the Organisation Process Architecture Example Management Define strategy Govern the organisation Improve performance Mitigate risk Build strategic relationships SERVICE CUSTOMER Deliver Service Deliver e-service Define Service Research needs Define gaps Acquire customer details Develop Service Design service Create service Test service Launch service Implement e-service Debrief e-service customer Enhance e-service customer experience Deliver standard service Acquire customer details Implement service Debrief std service customer Enhance standard service customer experience Support Support staff lifecycle Apply organisation knowledge Assure legal & policy compliance Maintain ICT systems & services Control financial resources Maintain working environment Ensure data privacy & security © Roger Tregear, Leonardo Consulting 2013 43
  • Re-architecting the Organisation Process Architecture Example © Roger Tregear, Leonardo Consulting 2013 44
  • Re-architecting the Organisation Process Architecture Example Boeing GMS: C-17 Program Value Chain Lead the Enterprise Ensure Organizational Effectiveness Ensure Integration of Strategic Bus. & Functional Planning Perform Integrated Bus Financial Mang. Ensure Quality & Mission Assurance Perform SelfGovernance Insure Continuous Improvement Integrate & Deploy Processes & Procedures Manage Programs Administer Contracts Create, Acquire & Grow Business Manage Program Planning & Execution Minimize Program Risk Integrate Product/Service Definition Define & Manage Product/Service Requirements Create Opportunities & New Markets Acquire New Business Maintain/Grow Existing Business Plan & Control Product Service Design Concurrently Develop Product/ Service/Build-to/ Buy-to/Support Elements Manage IWA Performance Manage Suppliers Communicate Positions & Directions Ensure Customer Satisfaction Strengthen the Team Provide Ethics Guidance Provide Integrated Performance Mang. (Cost & Schedule) Produce Product Manage Material Rqmts Provide Supply Support Provide Field Services Select Source Negotiate & Award Purchase Contracts Support Products & Services Define Production Plan Provide Retrofit & Modification Services Provide Technical Data Manage Supplier Performance Provide Parts, Supplies, GFE & Tools to Assembly Manage Supplier Quality Assemble & Deliver Product Provide Instructional Systems Data & Training Verify Production Processes Provide Integrated Support Planning & Management Manage Supply Base Verify & Validate Product/Service Manage Gov Property Provide System Support Analysis Manage Inventory Provide Support Equipment Provide Enabling Infrastructure Provide Financial Services Provide Communication Services Provide Human Resources Provide Legal Services Provide Safety, Health & Env. Services Provide Security & Fire Protection Services Provide Export/ Import Compliance Manage Facilities & Equipment Provide Integrated Information Systems & Services Manage NonProduction Procurement Provide Flight Operations Services Source: www.bptrends.com © Roger Tregear, Leonardo Consulting 2013 45
  • Re-architecting the Organisation How is a Process Architecture used? Visualise organisation’s set of processes Understand execution of strategic intent Communicate process information Concentrate organisational focus on value delivery Understand process interdependencies Prioritise process analysis/improvement activity Coordinate process project portfolio management Provide repository of process information © Roger Tregear, Leonardo Consulting 2013 46
  • Re-architecting the Organisation Process Architecture & BPM Maturity Source: Paul Harmon, BPTrends Associates Business Process Architecture in common use © Roger Tregear, Leonardo Consulting 2013 47
  • Re-architecting the Organisation Process Architecture & EA Enterprise Architecture – another variable term Commonly a structured collection of strategy, process, data, application, technology, rules, services and other artefacts Examples: TOGAF, FEAF, Zachman © Roger Tregear, Leonardo Consulting 2013 48
  • Re-architecting the Organisation Putting process at the centre © Roger Tregear, Leonardo Consulting 2013 49
  • Re-architecting the Organisation Building a Process Architecture 1. 2. 3. 4. 5. 6. 7. 8. 9. Identify the organisation in focus Understand the strategic intent Discover the Customer Value Proposition(s) Name the Value Chain(s) Decompose VC(s) into Level 1 processes Decompose L1 processes into L2 processes Determine measures & measurement methods Devise governance arrangements Remove any misalignments © Roger Tregear, Leonardo Consulting 2013 50
  • Re-architecting the Organisation Lead the Agency Develop Vision & Values Develop Business Plan Evaluate Programs Formulate Policy Foster Relationships Allocate resources Manage change Coordinate XYZ Program Core Processes Management Processes Business Process Architecture Example Award Competitive Grants (Type A) Award Competitive Grants (Type B) Allocate Regional Payments Coordinate Other Programs Support Processes Advise Government Support the Agency Support staff lifecycle Enable procure ment Value Chains (Level 0 Processes) Maintain physical facilities Deliver IT services Organise knowledge Control financial resources Assure compliance Level 1 Processes © Roger Tregear, Leonardo Consulting 2013 51
  • Re-architecting the Organisation Business Process Architecture Example Coordinate XYZ Program Award Competitive Grants (Type B) Decide funded projects Seek proposals Develop funding agreements Monitor funding agreements Resolve proponent queries Award Competitive Grants (Type A) Allocate Regional Payments Level 1 Processes Level 2 Processes © Roger Tregear, Leonardo Consulting 2013 52
  • Re-architecting the Organisation Business Process Architecture Example Award Competitive Grants (Type B) Seek proposals Decide funded projects Receive proposals Evaluate proposals Moderate assessments Decide final rankings Communicate outcomes Develop funding agreements Monitor funding agreements Level 2 Processes Level 3 Processes © Roger Tregear, Leonardo Consulting 2013 53
  • Re-architecting the Organisation Business Process Architecture Example © Roger Tregear, Leonardo Consulting 2013 54
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 55
  • Re-architecting the Organisation Why Measure Process Performance? Processes are the only way any organisation delivers value to its customers/stakeholders No functional entity, by itself, can deliver value to an external customer Organisations execute their strategic intent via their business processes © Roger Tregear, Leonardo Consulting 2013 56
  • Re-architecting the Organisation Measuring processes allows us to: understand cross-functional performance align with strategy determine priorities drive improvement detect performance trends determine capability range uncover problems change behaviour control risk benchmark performance © Roger Tregear, Leonardo Consulting 2013 57
  • Re-architecting the Organisation Measuring Gaps From As Is & To Be Focus Evaluation criteria Degree of difficulty Extent of change As Is To Be © Roger Tregear, Leonardo Consulting 2013 58
  • Re-architecting the Organisation ProMeasure® is the Leonardo methodology for process measures management © Roger Tregear, Leonardo Consulting 2013 59
  • Re-architecting the Organisation Which process? Prioritise processes Return on Effort? Define the process boundaries Serve customer Take order Make coffee order received © Roger Tregear, Leonardo Consulting 2013 Deliver coffee order filled 60
  • Re-architecting the Organisation Stakeholders Who cares? Why? How do they measure process performance? Not all stakeholders are equal H PRINCIPAL [Satisfy] [Manage] FOLLOWER CONNECTOR [Monitor] Power / Influence BYSTANDER [Inform] L L Engagement © Roger Tregear, Leonardo Consulting 2013 H 61
  • Re-architecting the Organisation Process Vision What is the process meant to achieve? If the process was working well, how would we know? © Roger Tregear, Leonardo Consulting 2013 62
  • Re-architecting the Organisation Measure what? Process measures are different Themes: • Satisfaction • Time • Cost • Quality • Compliance • Capacity © Roger Tregear, Leonardo Consulting 2013 63
  • Re-architecting the Organisation Discovery Where do we get measurement ideas? Reference models, e.g. APQC, KPI Library Observation Benchmarking Stakeholder analysis © Roger Tregear, Leonardo Consulting 2013 64
  • Re-architecting the Organisation Goldilocks Rationalise the number of measures Remove redundancy Measuring correct process? Practical MM? Establish a target? Important or interesting? © Roger Tregear, Leonardo Consulting 2013 65
  • Re-architecting the Organisation Misalignment? Reality check Aligned to measures of higher level process? Anything missing? © Roger Tregear, Leonardo Consulting 2013 66
  • Re-architecting the Organisation Leakage Performance Leakage Points (PLPs) – places and circumstances where a process could most easily fail Identify and remove Measure for residual PLPs © Roger Tregear, Leonardo Consulting 2013 67
  • Re-architecting the Organisation MMs Where, how, when, who, will the data come from? MMs must be: • Reliable • Cost-effective • Credible • Reasonably easy © Roger Tregear, Leonardo Consulting 2013 68
  • Re-architecting the Organisation Perfect? Mistake-proof processes do not need measures! What can be done to the process to reduce or prevent performance problems? © Roger Tregear, Leonardo Consulting 2013 69
  • Re-architecting the Organisation Document Create an enduring record Present performance data: • target to the audience(s) • report by exception • push or pull? • visual reporting © Roger Tregear, Leonardo Consulting 2013 70
  • Re-architecting the Organisation ProMeasure® is the Leonardo methodology for process measures management © Roger Tregear, Leonardo Consulting 2013 71
  • Re-architecting the Organisation The Ultimate Test Do we have a viable set of the minimum number of important measures of actual process performance about which we have key stakeholder agreement and for which we have a measurement method that can costeffectively gather objective, accurate data against a well-defined target? © Roger Tregear, Leonardo Consulting 2013 72
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Improvement Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 73
  • Re-architecting the Organisation Who is in charge? Management Unit A Unit B Unit C Unit D Unit E Deliver Service new need Research & Create New Service new service design service available new service design Design & Deliver New Service information Promote New Service requests Customer / User service delivered materials Suppliers © Roger Tregear, Leonardo Consulting 2013 74
  • Re-architecting the Organisation A System of Measurement Lead the organisation Develop Vision Determine market strategy Manage risk & compliance Manage capital Process 1.1 Value Chain 1 Process 1.2 Process 1.3 Process 2.1 Value Chain 2 Process 2.2 Process 1.2 Process 2.3 m Support the organisation Deliver HR services Deliver IT services Manage finances Maintain physical facilities EPA Measures MMs Reports Response © Roger Tregear, Leonardo Consulting 2013 75
  • Re-architecting the Organisation Process Governance Model Process Council secretariat Office of BPM CEO support chair Executive Process Owners reporting Process Owners © Roger Tregear, Leonardo Consulting 2013 76
  • Re-architecting the Organisation Process Governance Model Process Council secretariat Office of BPM CEO support chair Executive Process Owners reporting Process Owners © Roger Tregear, Leonardo Consulting 2013 77
  • Re-architecting the Organisation Process Owner or ... coordinator sponsor manager steward despot guardian supervisor controller director custodian principal …… © Roger Tregear, Leonardo Consulting 2013 78
  • Re-architecting the Organisation You have been selected to be a Process Owner! What does it mean to be a PO? Strategic, not clerical Respond to the measurements Initiate performance reviews Exercise influence, not authority Managing up and over Continuous ‘fault finding’ Be the ‘voice of the process’ © Roger Tregear, Leonardo Consulting 2013 79
  • Re-architecting the Organisation Process Owner Proposition Process Owners are responsible for things over which they have no control? Process Owners are accountable for responding when process performance is outside of the accepted range or trending in that direction. © Roger Tregear, Leonardo Consulting 2013 80
  • Re-architecting the Organisation Executive Process Owners Owners of highest level processes Form the Process Council © Roger Tregear, Leonardo Consulting 2013 81
  • Re-architecting the Organisation Process Governance Model Process Council secretariat Office of BPM CEO support chair Executive Process Owners reporting Process Owners © Roger Tregear, Leonardo Consulting 2013 82
  • Re-architecting the Organisation Process Council Whole-of-organisation coordination & oversight Source of authority Critical link to strategy management Separate entity, not an agenda item Key objectives: • • • • • Ensure BPM correctly aligned with strategy Develop policies related to the use of BPM Oversight all BPM development activities Assess process performance outcomes Resolve high level misalignments or conflicts © Roger Tregear, Leonardo Consulting 2013 83
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 84
  • Re-architecting the Organisation Continuous improvement lifecycle •current operation •problems & opportunities •performance •implement changes •realise benefits •target operation •resolve problems •realise opportunities © Roger Tregear, Leonardo Consulting 2013 85
  • Re-architecting the Organisation © Roger Tregear, Leonardo Consulting 2013 86
  • Re-architecting the Organisation The Implementation Chasm As Is To Be To Do BAU BBTU © Roger Tregear, Leonardo Consulting 2013 87
  • Re-architecting the Organisation Eight-Stage Change Model 1. Establish a Sense of Urgency 2. Create Guiding Teams 3. Develop a Vision & Strategy 4. Communicate the Change Vision 5. Empower/Enable Broad-Based Action 6. Generate Short-Term Wins 7. Keep Going – Don’t Let Up 8. Make it Stick © Roger Tregear, Leonardo Consulting 2013 88
  • Re-architecting the Organisation Stepping Up To Change Make It Stick Don’t Let Up Achieving Change Generate Short-Term Wins Empower/Enable Action Engaging the Organisation Communicate the Change Develop a Vision & Strategy Build Guiding Teams Creating a Climate for Change Increase Urgency © Roger Tregear, Leonardo Consulting 2013 89
  • Re-architecting the Organisation Why are some process changes not completed? He who has not first laid his foundations may be able with great ability to lay them afterwards, but they will be laid with trouble to the architect and danger to the building. Niccolo Machiavelli, The Prince (1532) Process Change Management © Roger Tregear, Leonardo Consulting 2013 90
  • Re-architecting the Organisation Process Change Management Create a Climate for Change Resist temptation to just rush into modelling and analysis Properly understand the problems & opportunities, and their causes & constraints Lay a sound foundation for the process change Select Process Increase the sense of urgency #1 Create a Climate for Change Build Guiding Team(s) #2 Develop BPM Vision & Strategy #3 © Roger Tregear, Leonardo Consulting 2013 91
  • Re-architecting the Organisation Process Change Management Engage the Organisation Communicate BPM Vision for buy-in #4 Change is cross-functional Exec support & understanding Engage the Organisation Enable action & empower people #5 Change minds Develop ongoing capabilities Analyse Process Publicise the successes Consolidate improvements & find more #7 Create & nurture enthusiasm Improve Process Communicate & celebrate successes #6 Execute Changes © Roger Tregear, Leonardo Consulting 2013 92
  • Re-architecting the Organisation Process Change Management Implement & Sustain Implement & Sustain As Is / To Be cycle Exhaust the possibilities Stage the changes Ongoing effort required to maintain the changes Analyse Process Consolidate improvements & find more #7 Improve Process Execute Changes Review & learn to add to the body of knowledge Ensure changes are embedded in culture #8 © Roger Tregear, Leonardo Consulting 2013 93
  • Re-architecting the Organisation To maximise the chances of successful change Select Process Increase urgency Kotter Change Model Create a Climate for Change Build Guiding Team(s) PI Stage Develop BPM Vision... Start change management early Communicate Vision Plan to make changes Engage the Organisation Enable action Recognise cross-functional impact Include change management in the ‘process of process’ Implement & Sustain Analyse Process Consolidate & find more Improve Process Communicate successes Execute Changes Process Change Management Ensure changes embedded Review & Learn © Roger Tregear, Leonardo Consulting 2013 94
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 95
  • Re-architecting the Organisation Organisational Culture Some things are above the ‘waterline’ and are very apparent Some things are below the waterline and are intangible Processes Symbols Stated goals Behaviours Stories Space/Layout Systems What we say Rules/Guidelines Espoused values Rewards/sanctions Way we treat customers Thoughts Unspoken norms or rules Unexpressed Values Expectations Needs Mindsets Beliefs Fears “The way we do things around here” © Roger Tregear, Leonardo Consulting 2013 96
  • Re-architecting the Organisation What is a Process-Aware Culture? measurement-friendly community-focused quality-motivated change-welcoming challenge-addicted action-oriented Where else in your organisation would this mindset be useful? © Roger Tregear, Leonardo Consulting 2013 97
  • Re-architecting the Organisation Continuous problem finding Continuous improvement © Roger Tregear, Leonardo Consulting 2013 98
  • Re-architecting the Organisation Measurement-friendly? © Roger Tregear, Leonardo Consulting 2013 99
  • Re-architecting the Organisation Assessing & Tracking Culture Measure dimensions of culture Assess leadership impacts and behaviours Current/desired culture at a glance Show development pathways Culture comparisons © Roger Tregear, Leonardo Consulting 2013 100
  • Re-architecting the Organisation Leverage Points Mindset Beliefs and perceptions Self awareness and Emotional Intelligence Resilience, coping strategies, self-efficacy Behaviours What we observe others do – 1:1 and in teams Leadership and key influencer behaviours (especially) What is said and done Symbols Where time and resources are invested Vision and values Who and what is rewarded and how Physical environment Rituals Systems Goal setting / Budgeting / Reporting Recruitment / Induction / Remuneration Training and Development Performance Management Communication Internal/external systems and processes © Roger Tregear, Leonardo Consulting 2013 101
  • Re-architecting the Organisation The Leaders' Role in Culture Change Live values, demonstrate behaviours Champion + Make expectations clear Visibly champion mindsets/behaviours Tell local stories to support the shift Role Model + Story Teller Leverage existing programs and BAU to support culture change Champion organisation-wide leadership interventions Ensure local initiatives are aligned © Roger Tregear, Leonardo Consulting 2013 102
  • Re-architecting the Organisation The most important tool is leadership © Roger Tregear, Leonardo Consulting 2013 103
  • Re-architecting the Organisation BPM culture development 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 © Roger Tregear, Leonardo Consulting 2013 104
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 105
  • Re-architecting the Organisation BPM capabilities - people BPM knowledge Able to use tools & techniques Understand methodologies Properly trained Practical experience BPM is part of every role © Roger Tregear, Leonardo Consulting 2013 106
  • Re-architecting the Organisation BPM capabilities - methods The ‘process of process’ Process architecture Measures & measurement methods Process improvement methodology Modelling conventions Knowledge database © Roger Tregear, Leonardo Consulting 2013 107
  • Re-architecting the Organisation Building BPM Capability Define BPM curriculum & learning pathways Development & maintain artefacts Including staff in Process Improvement Projects Visiting speakers on key issues Publish process models & related information Visits to other organisations Attendance at conferences, webinars etc. Internal conferences Publish/present case studies Improve the ‘process of process’ © Roger Tregear, Leonardo Consulting 2013 108
  • Re-architecting the Organisation A System of Measurement Lead the organisation Develop Vision Determine market strategy Manage risk & compliance Manage capital Process 1.1 Value Chain 1 Process 1.2 Process 1.3 Process 2.1 Value Chain 2 Process 2.2 Process 1.2 Process 2.3 m Support the organisation Deliver HR services discover Deliver IT services model Manage finances measure Maintain physical facilities report analyse improve © Roger Tregear, Leonardo Consulting 2013 manage 109
  • Re-architecting the Organisation BPMM Assessment – an indicator of capability © Roger Tregear, Leonardo Consulting 2013 110
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 111
  • Re-architecting the Organisation Supporting processes Problem resolution Methods & tools maintenance Modelling tool support Curriculum management Training delivery Bridge classroom to workplace Compliance management Knowledge management Improve the ‘process of process’ © Roger Tregear, Leonardo Consulting 2013 112
  • Re-architecting the Organisation Success looks like this… Improved organisation performance via: • in-house BPM capabilities • consistent, repeatable methods • innovative process redesigns • successful change projects • increased BPM maturity • better prioritisation of process work • alignment of strategy and processes • improved IT/business interaction © Roger Tregear, Leonardo Consulting 2013 113
  • Re-architecting the Organisation The Office of BPM aka BPM Centre of Excellence, BPM Centre of Expertise, BPM Group etc etc Small Centralised Focused MAIN OBPM TASK IS TO Fulltime RAISE THE BPM CAPABILITY Funded OF THE ORGANISATION © Roger Tregear, Leonardo Consulting 2013 114
  • Re-architecting the Organisation © Roger Tregear, Leonardo Consulting 2013 115
  • Re-architecting the Organisation Scoping the OBPM © Roger Tregear, Leonardo Consulting 2013 116
  • Re-architecting the Organisation Scoping the OBPM Business Unit Involvement Increasing BPM Maturity Office of BPM Involvement © Roger Tregear, Leonardo Consulting 2013 117
  • Re-architecting the Organisation Scoping the OBPM Directing Coaching Serving intervention influence © Roger Tregear, Leonardo Consulting 2013 118
  • Re-architecting the Organisation Resourcing the OBPM Process Management Office Management Office Support Process Improvement Architect Office Admin Project Mgr Coach Systems Admin Process Analyst Methodologist Knowledge Mgr IT Analyst Auditor Teacher Data Analyst Modeller Facilitator Note: this diagram shows roles, not positions SME Change Agent © Roger Tregear, Leonardo Consulting 2013 119
  • Re-architecting the Organisation Funding the OBPM Office Management Process Management Office Support Process Improvement © Roger Tregear, Leonardo Consulting 2013 120
  • Re-architecting the Organisation 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 the BPM CoE © Roger Tregear, Leonardo Consulting 2013 121
  • Re-architecting the Organisation Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Process Context 7 Enablers Overview Process Architecture Process Measurement Process Governance Process Change Process-Aware Culture Process Capability Process Support Wrap © Roger Tregear, Leonardo Consulting 2013 122
  • Re-architecting the Organisation 7 Steps to Performance Excellence 1. 2. 3. 4. 5. 6. 7. Architect the enterprise Measure process performance Control process performance Change processes Nurture process culture Develop BPM skills Support BPM © Roger Tregear, Leonardo Consulting 2013 123
  • Re-architecting the Organisation Re-Architecting The Organisation putting process at the centre of business management © Roger Tregear, Leonardo Consulting 2013 124
  • Re-architecting the Organisation Processbased management © Roger Tregear, Leonardo Consulting 2013 125
  • Re-architecting the Organisation Roger Tregear +61 419 220 280 r.tregear@leonardo.com.au www.leonardo.com.au www.rogertregear.com 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. Let’s connect! Copies of the Office of BPM book are available from Roger on request. © Roger Tregear, Leonardo Consulting 2013 126
  • Re-architecting the Organisation Partners in Process Organisations are traditionally managed via the organisation chart. Yet not one of the entities shown on that chart can, by itself, deliver value to a customer. The reality is that we create, accumulate, and deliver value by collaboration across the chart. We manage resources vertically using the organisation chart; we create and deliver value via business processes operating across the organisation chart. Organisations want to reduce costs, enhance products and services, and be more attentive to customers. Business Process Management (BPM) offers a practical solution, refocusing management on how value is delivered to customers and other stakeholders. The focus is on the way work gets done, and what impedes it being done in the most straightforward, efficient and effective way. Leonardo Consulting provides assistance with the seven enablers that put process at the centre of business management. © Roger Tregear, Leonardo Consulting 2013 127
  • Re-architecting the Organisation Together, building BPM Together, we … document the process architecture This allows you to … • understand how you create & deliver value • focus clearly on the most elements Together, we … define process measures This allows you to … • deeply understand organisational performance • prioritise process improvement investments Together, we … establish process governance This allows you to … • respond to process performance anomalies • sustain continuous performance improvement Together, we … improve process performance This allows you to … • resolve important performance issues • realise process improvement benefits Together, we … raise & sustain process awareness This allows you to … • create a mindset of continuous improvement • generate enthusiasm for performance excellence Together, we … enhance process capability This allows you to … • develop consistent, reusable approaches • build inhouse process improvement capability Together, we … establish ongoing process support This allows you to … • maintain process improvement quality • embed continuous performance improvement © Roger Tregear, Leonardo Consulting 2013 128
  • Re-architecting the Organisation Accelerating BPM development Leonardo Consulting provides consulting, education and technology accelerators for organisations wishing to develop higher levels of maturity in each of the seven enablers of BPM. For 15 years we have been a trusted advisor to our customers delivering quality education, technology and consulting services. Our approach is process-centric; our focus is performance-driven. Our ability to assist organisations with innovative process-based management is sound, practical, deep and proven. Our work is unrelentingly focused on helping customers achieve their goals using business process-centric management approaches. Leonardo Consulting specialises in helping organisations achieve effective process-based management. It’s what we do. It’s who we are. © Roger Tregear, Leonardo Consulting 2013 129
  • Re-architecting the Organisation Leonardo BPM Curriculum BPM Consulting Services Measuring Processes BPM Maturity assessment 3 days of valuable insights into, and practical tools for, the discovery, definition and management of effective process performance measures Process Improvement projects Process Architecture development analytical better practices Derivation Enhancement New Process current practices Innovation new practices Utilisation potential practices creative Improving Processes This 3-day course delivers practical advice and tools you can use immediately to generate great process change ideas. Stop relying on chance. Process Modelling Excellence This 1-day, tool-neutral seminar is a breakthrough experience for modellers and those who manage them. It will improve your Return on Modelling. BPTrends Professional Certificate Over 5 days the Professional Certificate program teaches a practical approach to analysing, measuring and improving process performance. 7 Enablers Rollout Office of BPM development Executive BPM coaching Process practitioner coaching Process performance analysis Process governance design Process modelling management BPTrends Enterprise Certificate Beyond process improvement, the Enterprise Certificate 5-day program teaches how to build and maintain a truly process-centric organisation. Process automation BPM capability development © Roger Tregear, Leonardo Consulting 2013 130