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                           quot;How toquot; Seminar: Bridging
                                     the G
                                     th Gap
                          Creating Alignment between
                           Business and Technology
                                      Goals
                                      G l




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
2




             Steve.towers@towersassociates.com
             www.towersassociates.com




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
3


                          “You will never ever think of
                        Process in the same way again
                                                  again”
                                                       (you can quote me on that!)


                    Becoming a “Business Goals Translator”
                    Inside-Out versus Outside-In
                    Perspectives
                    Moments of Truth and Points of Failure™
                    Degrees of Complexity™

All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
4

                                       The 8 Omega Framework for Business Process




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
5                                                                                       A recurring theme for the session




               The difficulty lies, not in the new
                            y     ,
                 ideas, but in escaping the old
                                ones
                                                                John Maynard Keynes




                                Simplicity is the ultimate
                                      sophistication
                                                                       Leonardo da Vinci




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
6




                           Dealing with complexity is an
                        inefficient and unnecessary waste of
                         time,
                         time attention and mental energy
                                                    energy.
                          There is never any justification for
                           things being complex when they
                                         could
                                      be simple.

                                                                              Edward de Bono

All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
Inside-out v. Outside-In
      7
                                                                                          Functional Islands - before
               Global Bank – AS-WAS
                l   l

                                                                                                Actioning
                                                                 3                             department
                                                                                                         6
                           2                                           4                                                        Filing/Doc. Mgt
                               Telephone                                                                7
                                Liaison

                                                                                 8                                    1. Client calls into Call Centre
                                                                                                                  9   2. Call transferred to Tel. liaison
                                                             5                                                        3. Action request passed to line
                                                                                                                      department
               Call Centre                                                                                            4. Action progress reported to
                                                                           Correspondence                             Telephone liaison
                                                                                      Unit                            5. Telephone liaison inform
                                                                                                                      customer of progress
                               1                                                        10                            6. File information requested
                                                                                                                      7. File information transferred
                                                   Client                                                             8. Letter created
   Hello – can you tell me
                                                                                                                      9. File and letter returned to Filing
                                                                                                                                                          g
   the t t
   th status of my loan
               f    l
                                                                                                                      10. Letter despatched to customer
   Application please?

All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
8                                                                                        Process Improvement
                                                                                               - during
               Global Bank – Transition
                l   l

                                                                                                 Actioning
                                                                                                department
                                                                                                            3
                           2                                                                                                     Filing/Doc mgt.
                                                            5                                           4
                                                      Customer
                                                     Contact Unit

                                                                                                                  1. Client calls CCU.
                                                                                                                  2. Action request passed to
                                                                6                                                 line department
                                                                                                                  3. File info’ requested
                                                                                                                  4. File info’ delivered
                                                                                                                  5. Customer response
                                                                                                                  compiled
                               1
                                                                                                                  6. Tel. liaison contact customer
                                                                                                                  with resolution (‘phone/letter)




                                                            Improved Productivity, Enhanced Quality, Lower Cost


All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
9                                                                                        Process Management
                                                                                               - outcomes
               Global Bank – IS-NOW
                l   l




                                                                                          Online information
                                                                                                store

                                                      Customer
                                                   Experience Centre                                     1 Client calls Customer Experience
                                                                                                         1.
                                                                                                         Centre.
                                                                 2                                       2. Tel. liaison resolve and contact
                                                                                                         customer with resolution (‘phone/
                                                                                                         letter/email)



                                                                          The rules have changed....!
                                   1                                      Now organized around
                                                                          Successful Customer Outcomes


                                                           Reduced Costs, Improved Revenues, Enhanced Service

All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
tm



    10




www.8Omega.com
www 8Omega com
                        The 8 Omega Framework for Business Process Transformation
All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
11




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
12




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
13
                                                                                               Functional Islands
               Global Bank – AS-WAS
                l   l

                                                                                                 Actioning
                                                                 3                              department
                                                                                                         6
                           2                                           4                                                  Filing
                                   Telephone                                                            7
                                    Liaison


                                                                                   8
                                                                                                                  9
                                                             5
               Call Centre
                                                                              Correspondence
                                                                                         Unit
                                                                                                                      5   Business Rules
                               1                                                        10
                                                                                                                      4    Moments of Truth

                                                                                                                           Break Points
                                                Client


All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
14                          Completing the IS Matrix




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
15




              What are the benefits of taking a CEM approach?
                – Cost Reductions
                – Revenue Growth
                – Service Improvement
                – More customers - Market/customer penetration
                – More business per customer (customer lifecycle)
              Immediately, directly and forever
              Easy and simple to measure success – examples…
              Zara, Virgin Group, South West, Citicorp, Starbucks




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
16                                                                                        Transformation
                                                                                              Examples




                                      US Bank              US Bank                     Pharma               Pharma        Euro    Euro
                                        Before                 After                    Before               After
                                                                                                             Aft         R t il
                                                                                                                         Retail   R t il
                                                                                                                                  Retail
                                                                                                                         Before   After

                MOTs                       27                     4                       62                      7       54         3
                BPs                        63                    7                       168                      19     141         7
                R l
                Rules                      13                     3                       32                      5       23         3
                DOCx                   22,113                   84                   323,312                      665   175,122     63

                                                          260 x LESS                                       486 x                  2780 x
                                                          complex                                          LESS                   LESS
                                                                                                           complex                complex




                                                                            Data Examples from sample of 72 organizations (2006)
All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
tm

    17




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
18




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
19




                      “Out of intense complexity
                       Out
                      intense simplicity emerges”


                                          Winston C
                                                  Churchill



All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
20




               “there are people no matter where you go that
                     think they know h
                     thi k th k      how you should t
                                              h ld teach th
                                                         h them
                      what you know – though they don’t know it
                                    themselves”
                                                           Richard Bandler




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
21




                           quot;How toquot; Seminar: Bridging
                                     the G
                                     th Gap
                          Creating Alignment between
                           Business and Technology
                                      Goals
                                      G l




All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved

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Business Process Management 2 Bridging The Gap Between Business And Technology

  • 1. 1 quot;How toquot; Seminar: Bridging the G th Gap Creating Alignment between Business and Technology Goals G l All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 2. 2 Steve.towers@towersassociates.com www.towersassociates.com All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 3. 3 “You will never ever think of Process in the same way again again” (you can quote me on that!) Becoming a “Business Goals Translator” Inside-Out versus Outside-In Perspectives Moments of Truth and Points of Failure™ Degrees of Complexity™ All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 4. 4 The 8 Omega Framework for Business Process All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 5. 5 A recurring theme for the session The difficulty lies, not in the new y , ideas, but in escaping the old ones John Maynard Keynes Simplicity is the ultimate sophistication Leonardo da Vinci All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 6. 6 Dealing with complexity is an inefficient and unnecessary waste of time, time attention and mental energy energy. There is never any justification for things being complex when they could be simple. Edward de Bono All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 7. Inside-out v. Outside-In 7 Functional Islands - before Global Bank – AS-WAS l l Actioning 3 department 6 2 4 Filing/Doc. Mgt Telephone 7 Liaison 8 1. Client calls into Call Centre 9 2. Call transferred to Tel. liaison 5 3. Action request passed to line department Call Centre 4. Action progress reported to Correspondence Telephone liaison Unit 5. Telephone liaison inform customer of progress 1 10 6. File information requested 7. File information transferred Client 8. Letter created Hello – can you tell me 9. File and letter returned to Filing g the t t th status of my loan f l 10. Letter despatched to customer Application please? All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 8. 8 Process Improvement - during Global Bank – Transition l l Actioning department 3 2 Filing/Doc mgt. 5 4 Customer Contact Unit 1. Client calls CCU. 2. Action request passed to 6 line department 3. File info’ requested 4. File info’ delivered 5. Customer response compiled 1 6. Tel. liaison contact customer with resolution (‘phone/letter) Improved Productivity, Enhanced Quality, Lower Cost All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 9. 9 Process Management - outcomes Global Bank – IS-NOW l l Online information store Customer Experience Centre 1 Client calls Customer Experience 1. Centre. 2 2. Tel. liaison resolve and contact customer with resolution (‘phone/ letter/email) The rules have changed....! 1 Now organized around Successful Customer Outcomes Reduced Costs, Improved Revenues, Enhanced Service All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 10. tm 10 www.8Omega.com www 8Omega com The 8 Omega Framework for Business Process Transformation All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 11. 11 All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 12. 12 All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 13. 13 Functional Islands Global Bank – AS-WAS l l Actioning 3 department 6 2 4 Filing Telephone 7 Liaison 8 9 5 Call Centre Correspondence Unit 5 Business Rules 1 10 4 Moments of Truth Break Points Client All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 14. 14 Completing the IS Matrix All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 15. 15 What are the benefits of taking a CEM approach? – Cost Reductions – Revenue Growth – Service Improvement – More customers - Market/customer penetration – More business per customer (customer lifecycle) Immediately, directly and forever Easy and simple to measure success – examples… Zara, Virgin Group, South West, Citicorp, Starbucks All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 16. 16 Transformation Examples US Bank US Bank Pharma Pharma Euro Euro Before After Before After Aft R t il Retail R t il Retail Before After MOTs 27 4 62 7 54 3 BPs 63 7 168 19 141 7 R l Rules 13 3 32 5 23 3 DOCx 22,113 84 323,312 665 175,122 63 260 x LESS 486 x 2780 x complex LESS LESS complex complex Data Examples from sample of 72 organizations (2006) All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 17. tm 17 All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 18. 18 All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 19. 19 “Out of intense complexity Out intense simplicity emerges” Winston C Churchill All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 20. 20 “there are people no matter where you go that think they know h thi k th k how you should t h ld teach th h them what you know – though they don’t know it themselves” Richard Bandler All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved
  • 21. 21 quot;How toquot; Seminar: Bridging the G th Gap Creating Alignment between Business and Technology Goals G l All Material © Bizchange, Steve Towers & Terry Schurter 1992-2006 unless otherwise stated – All Rights Reserved