The Practice of Business Process Management


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Key issues in the achievment of process-based management.

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The Practice of Business Process Management

  1. 1. The Practice of Business Process Management Roger Tregear, Leonardo Consulting 20 May 2009
  2. 2. 2 BPM –The Number One Priority Gartner (2009)
  3. 3. 3 Boeing Global Mobility Systems Source: BPTrends
  4. 4. 4 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
  5. 5. 5 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
  6. 6. 6 Process Improvement particular process problems isolated projects discontinuous improvement Process Management not a project but a management philosophy process-based management a culture of continuous improvement Process Management ≠≠≠≠ Process Improvement
  7. 7. 7 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.
  8. 8. 8 Source: BPTrends BPM Maturity
  9. 9. 9 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
  10. 10. 10 Organisational Excellence Operational Excellence • Avoid opportunity losses • Improve risk management • Protect intellectual capital • Support contingency planning • Improve strategy execution • Improve IT outcomes • Improve measurement • Reduce costs, remove waste • Improve customer service • Increase agility • Document processes • Reduce complexity • Support staff • Enhance process consistency Compelling Reasons for BPM See Practical Process column at for more details
  11. 11. 11 Process is what delivers value to customers Process = performance Process understanding is vital Process improvement is strategic Process management is achievable Process mastery creates differentiation Process mastery facilitates success it’s always about process
  12. 12. 12 CI team ProjectManager(s) ProcessOwner Continuous Improvement Analysis Project Centrelink- towards BPM Mastery But we don’t manufacture products. Process thinking can’t work for us!
  13. 13. 13 The Power of Two Put 1 grain of rice on the 1st square, 2 on the 2nd, 4 on the 3rd square, 8 on the 4th – each time doubling the number of grains on the next square. How many grains on the board when all squares are covered? 18,446,744,073,709,551,615 (18.4 Quintillion) How many grains on the first half of the board? 4.3 million 0.00000000002331034671%
  14. 14. 14 Process Tragics Process Pragmatists TheBPMChasm BPM Chasm the twilight zone BPM idea is fading for all but the zealots disillusionment BPM development is stalled Crossing The Chasm target niche markets of “pragmatists in pain” package a complete solution that addresses day-to-day management problems Acknowledgement: “Crossing the Chasm”, Geoffrey Moore, 2002
  15. 15. 15 Source:
  16. 16. 16 Process-based management is real, not just aspirational Customer value is only delivered by business processes PM ≠ PI BPM is strategic Find your compelling reasons Not just about manufacturing The Power of Two Cross the Chasm
  17. 17. 17
  18. 18. 18 Roger Tregear Consulting Director Leonardo Consulting
  19. 19. 19 © 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.