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The Process-centric Organisation
 

The Process-centric Organisation

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Putting process at the centre of business management.

Putting process at the centre of business management.

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  • These are examples of organizations/projects where BPM principles were applied to very positive effect.

The Process-centric Organisation The Process-centric Organisation Presentation Transcript

  • paving the way towards performance excellence The Process-Centric Organisation Roger Tregear Leonardo Consulting March 2013
  • 2 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 Bank: $30 million annual savings Agency: 22% labor cost reduction Retail: 82% cycle time reduction ERP: rework rate 400% to 15% Aid: 75% reduction in delivery cost Regulator: +500% inspection rate HR: On-boarding 3 days to 1 hour Process-based management works
  • 3 The Process-Driven Organization © Roger Tregear, Leonardo Consulting 2012 Functional Organization Process Organization Process-Centric Perspective Value is created and delivered by collaboration across the organisation
  • 4 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 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 service available Promote New Service new service design new service design materials Suppliers Design & Deliver New Service Accumulating & Delivering Value
  • 5 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 The M in BPM stands for Management. BPM is a management philosophy.
  • 6 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 90% 10% Mindset Toolset
  • 7 The Process-Driven Organization © Roger Tregear, Leonardo Consulting 2012 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?        
  • 8 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 7 enablers of a process-centric organisation
  • 9 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 1. Process Architecture 2. Process Measurement 3. Process Governance 4. Process Improvement 5. Process-Aware Culture 6. BPM Capability 7. Office of BPM concrete & physical abstract & subtle supportive
  • 10 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 Architect the enterprise keystone artefact value pathway prioritisation control project coordination visualisation portal 1. Process Architecture
  • 11 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 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
  • 12 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 3. Process Governance Control process performance process owners are accountable for responding to process performance anomalies Value Chain 1 Process 1.1 Process 1.3Process 1.2 Lead the Organisation Manage risk & compliance Determine market strategy Manage capital Develop Vision Support the Organisation Deliver HR services Maintain physical facilities Deliver IT services Manage finances Value Chain 2 Process 2.1 Process 2.3Process 2.2 m EPA Measures MMs Reports Response Process 1.2 Process 1.2
  • 13 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 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 changes AND big changes
  • 14 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 4. Process Improvement problems AND opportunities part of every role document the proof of success effective methodologies • BPTrends Redesign • Positive Deviance • Process Mining • 4Dimensions analysis • Automation
  • 15 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 Process Improvement: BPTrends Redesign
  • 16 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 Process Improvement: Positive Deviance +ve-ve
  • 17 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 Process Improvement: Process Mining Source: van der Aalst, Wil M.P., et al. (2012) Process mining manifesto. In BPM 2011 Workshops Proceedings, Springer-Verlag, Campus des Cézeaux, Clermont-Ferrand, pp. 169-194.
  • 18 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 Process Improvement: 4Dimensions New Process Utilization potential practices Derivation better practices Enhancement current practices Innovation new practices analytical creative
  • 19 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 Process Improvement: Automation innovative technology breakthrough redesign model execution (BPMS)
  • 20 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 5. Process-Aware Culture Nurture process culture measurement-friendly community-focused quality-motivated change-welcoming challenge-addicted action-oriented
  • 21 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 6. BPM Capability Develop BPM skills consistent, reusable approaches wide-ranging curriculum must have inhouse capability everybody is a process analyst
  • 22 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 7. Office of BPM Establish the Office of BPM key role: develop capability catalyst for change maintain & mentor MP01 Translate StrategyInto Processes MP02 Gather and Analyze BPM Demands MP03 Define BPM Projects Portfolio MP04 Plan prioritized BPM Projects MP05 Manage BPM Projects & Portfolio MP06 Disseminate BPM Results and Culture BPM Projects BPM Results SUPPORT PROCESS MANAGEMENT SUPPORT PROCESS IMPROVEMENT MANAGE BPM STRATEGY BPM Demands Strategic Demands SP01 Administer BPM methods and tools SP02 Administer BPM Roles and Responsibilities SP03 Administer BPM Services Portfolio SP04 Administer BPM Human Resources SP05 Administer BPM Budget Operational Demands MS01 Define Process Vision and Scope MS02 Understand Processes (As Is) MS03 Analyze Processes MS04 Redesign & Standardize Processes (To Be) M05 Implement & Roll Out Process MS08 Educate and Train on Process Management MS09 Maintain Process Architecture & RepositoryCS07 Support Compliance & Certification CS06 Identify and Provide Competencies MS06 Support Performance Measurement CS10 Measure Process Maturity MS07 Support Continuous Improvement CS08 Support Risk & Control Management CS05 Specify, Develop & Test IT Systems CS04 Automate process control & execution (via BPMS) CS02 Perform Innovation & value creation analysis CS03 Perform risk analysis CS01 Perform quantitative analysis CS09 Support Cost Management SUPPORT THE OFFICE OF BPM
  • 23 The Process-Centric Organisation © Roger Tregear, Leonardo Consulting 2012 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 via an Office of BPM 7 Steps to Performance Excellence
  • 24 The Process-Driven Organization © Roger Tregear, Leonardo Consulting 2012 Every organisation wants to make the right things happen, at the right time, to create the right result, for the right people. A process-centric operation focuses on the value exchanged with customers and other stakeholders, optimising that exchange, and continuously seeking to improve and manage it in a consistent, repeatable way.
  • 25 Roger Tregear Consulting Director Leonardo Consulting +61 419 220 280 r.tregear@leonardo.com.au www.leonardo.com.au