Business Process Management 1 Developing The Skillset

Developing the BPM skill-set for long term success January 2007 Steve Towers CEO Towers Associates steve@stevetowers.com www.stevetowers.com 1

A little background… 1976 On the inside.. inside Inland Revenue INDUSTRIAL British Gas ENGINEERING Gateway Nationwide Citigroup & Citibank BPM Group SYSTEMS Towers Associates ENGINEERING On the outside.. 14 years OPERATIONS 55 companies ENGINEERING Financial Services Airlines THOUGHT Pharma ENGINEERING Government Utility 2007 In fact 13 industries 37 countries www.stevetowers.com 3

4 What are we here for? Our Successful Customer Outcome today? Provide you with new thinking and insights that will help you to maximize the benefits provided by Business Process Management – immediately immediately, for now and forever All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

5 Developing Th N D l i The Necessary Employee E l Skills Needed To Sustain BPM Efforts In The Long Term We all live under the same sky... ...but we don’t all have the same horizon. (Konrad Adenauer) All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

6 Business Process Management “Business Process Management (BPM) is Business a natural and holistic management approach to operating business pp p g that produces a highly efficient, agile, innovative and adaptive organization innovative, that far exceeds that achievable through traditional management approaches ” approaches. Steve Towers & Terry Schurter All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

Evolution of Business Process thinking Evolution of Business based on Research 2005-6 (800+ organizations) Process thinking CUSTOMER EXPECTATION MANAGEMENT ES OUTCOME BUSINESS PROCESS MANAGEMENT ution O Understandin and Execu OCESS SUCCESSFUL CUSTOMER ng PRO SIX SIGMA OUTCOMES AL U FUNCTIONA EFQM INSIDE Focus OUTSIDE www.stevetowers.com 7

8 It’s all about Performance The single most compelling reason to improve and manage the enterprise’s end-to-end business processes and technology is to i improve performance f and thereby create value for customers and shareholders. All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

9 An Observation However…the challenge. “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.” Albert Einstein All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

10 How good is your Organization? Some questions to think on: How aligned are you through your l d h h – Information Systems – People – Processes and – Strategy gy To achieve a Successful Customer Outcome (everytime?) All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

12 Disruptive Pressures That are creating the Challenge Customer Expectations Globalization Innovative new ways of doing business Agile A il methods t k th d to keep pace of rapid change f id h Compliance to regulations Focus on process (rather than functional specializm) Business needs greater control Continuous productivity improvements p y p The pervasive nature of technology All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

13 The Current State Key Issues Tension between ‘business’ and ‘technology’ Roles in a state of flux Structures for delivery not effective BPM still perceived ‘inside-out’ – Rewards e a ds – Outcomes All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

14 The Evolutionary Model Migration of roles Development of discipline and professionalism Combination approaches include people, processes, strategy and technology Steady state is an illusion Dynamic, agile structures mature All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

15 Business Process Owner Role Business Process Owner Authority over organizational processes Provide Authority is senior and exceeds line roles Direction Dotted line to \"Chief Process Officer“ Responsibilities: Set Articulate & Process Improve Owns the process Objectives Processes Management infrastructure Ensures compliance with process policies Defines process metrics that support Measure Performance corporate performance objectives f bj i Manages infrastructure for users and stakeholders of the business processes. p Process Management is a journey, not a destination All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

16 Pointers to the future People policies (discussion in context of recent performance) t f ) – Zara – Vi i Virgin – South West airlines – Citi Citigroup Outside-In Customer Expectation Management All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

17 Business Process Management Center of Excellence (COE) Board The CPO focuses on the human, organizational and value stream aspects of business processes and BPM Center of Excellence their transformation: Gaining consensus of internal g constituents around new concepts Chief Process Officer (CPO) Identifying business performance and incentive metrics Mentor Drafting organizational alignment requirements Change Management Coordinator C di t Designing the organization's organization s hierarchy of process for Process Knowledge reusability Manager Leading the execution of building Business Process and sustaining a process- Analyst/architect managed organization All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

18 Business Process Management Center of Excellence Charter: Alignment of processes to achieve SCO Maintain control and accountability Discovery Develop Outside-In thinking and Praxis Improve Analyze Optimize Operations Deliver Compliance Provide end-to-end visibility Create sustainable agility Control Design Services: Coaching and facilitating Implement p Validate Training, education and professionalization Integrate Best practices Business case creation Business process architectures All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

19 Facilitating Roles Within the COE, Part 1 Chief Process Officer (CPO) Business Process Chief Process Officer (CPO) Process Knowledge Mentor Analyst/Architect Mentor Manager Change Management Coordinator Change Management Ensures co-ordination on E di i Coordinator Process Knowledge Manager Process Knowledge Manager Ensures Outside-In Business Process Analyst/architect process definitions, Business Process Analyst/architect alignment and encourages notations and next next practice integration practice p Developing process approaches that Developing a consistent all business process (in or out) must process, process rule and business adhere to monitoring architecture Maintaining a reference of best Mentoring process analysts practices and methodologies from (in and out) of the organization Acting as a liaison with the information and systems teams C i bili Creating capability through h h development of professionally Providing a framework for qualified coaches and practitioners process evolution e.g. th 8 Omega approach the O h www.8Omega.com All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

20 Facilitating Roles Within the COE, Part 2 Mentor Change Management Coordinator Chief Process Officer (CPO) Chief Process Officer (CPO) M t Mentor Understanding process Mentor Change Management Coordinator disciplines and approaches Change Management Coordinator Educating business Process Knowledge Manager being able to build a Process Knowledge Manager professionals Business Process Analyst/architect coalition and gain Business Process Analyst/architect and process consensus among key stakeholders around process stakeholders BPM disciplines Facilitating workshops aimed at Working closely with process securing early adoption of BPM l d f owner, owner project manager practices and process changes and business process analyst to craft process change objectives Demonstrating techniques for for workshops uncovering hidden process capabilities Identifying enterprise level disconnects and through Growing internal skill-sets to ‘do appropriate approaches e.g. this stuff ourselves’ DADVIICI create an SCO aligned organization All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

21 Recommendations Understand that organizational structure and staffing are not \"one size fits all\" Id if hi Identify process ownership and k stakeholders prior to d key k h ld i starting any BPM initiative View implementation of BPM as a root and branch effort using proven approaches Realize that no one group implements the BPM initiative Understand there must be a visionary, and senior leadership must share the vision Demonstrate the closer you move process accountability to the coal face the greater the chance of success BPM requires you to rethink the organization: – New disciplines – N New organizational structures i ti l t t – New views of organizational processes All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

22 What are we here for? Our Successful Customer Outcome today? Provide you with new thinking and insights that will help you to maximize the benefits provided by Business Process Management – immediately immediately, for now and forever All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

23 Find out more Thank you! steve@stevetowers.com Join us at www.towersassociates.com to see how we are bridging the gap between IT and Business All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

Business Process Management 1 Developing The Skillset

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