Ew10 Keynote

Architecture World 10 Enterprise BPM Improve efficiency and customer service, increase revenue and reduce costs Conference Keynote Outside-In – The Key To Success In The 21st Century: the what Steve Towers BP Group

Architecture World 10 Enterprise BPM Improve efficiency and customer service, increase revenue and reduce costs Track Session Outside-In – The Key To Success In The 21st Century: the how Steve Towers BP Group

“It’s true the questions Are the same… But this year the answers Are very different”

www.stevetowers.com www.bpgroup.org www.bp2010.com www.towersassociates.com www.oibpm.com

www.bpcommunity.org COMMUNITY • Global – 40,000 • LinkedIn – 4,000+ www.bp2010.com • Certification (7 Levels) TRAINING • Open & In house Learning • Online Support www.bpgroup.org BUSINESS • Support Groups PROCESS PROFESSIONAL • Mentoring & Coaching • Articles, News INFORMATION & • Discussion RESEARCH • Conferences & Seminars www.successfuloutcomes.blogspot.com

Architecture World 10 Enterprise BPM Improve efficiency and customer service, increase revenue and reduce costs Conference Keynote Outside-In – The Key To Success In The 21st Century: the what How to uncover significant opportunities for improving processes permanently: • Four key ‘hands-on’ techniques that can be used and deployed immediately • How shifting the focus to ‘outside-in’ can transform complex processes • The means to redefine ANY process through the use of a proven, pragmatic method • How processes can be harnessed for strategic long-term advantage • How Performance Management can be linked to process to achieve successful outcomes • The importance of the Business Process Professional in guiding your business to success

EBPM & EA Are Peas in the Same Pod. Growing each other to achieve Outside-In. Strategic Transformation ENTERPRISE ENTERPRISE Customer Process BPM Process Orientation ARCHITECTURE Architecture Maturity Standards Process Infrastructure Metrics Metrics Services Process Process ENTERPRISE Systems Models Ownership BUSINESS Software Integration Process ARCHITECTURE Standards Process Repository Analytics Complexity Tools & Techniques Management Management BPM Rewards & Information Technology Service Remuneration Standards Definitions Organisation Structure Enterprise Architecture Strategy Principles

We have inherited an industrial legacy in thought and action – what shape are you in? CPP 12 India July 2010

Our organisations all look the same... CEO Marketing Sales Customer Operations Finance Service CPP 12 India July 2010

Processes wend and meander their way around these rigid structures... CEO Marketing Sales Customer Operations Finance Service CPP 12 India July 2010

And hey ho – we nearly forgot the customer! Now where do they go? CEO Marketing Sales Customer Operations Finance Service CPP 12 India July 2010

And things have become very complicated The typical car contains about 2,000 components, 30,000 parts and 10 million lines of software code. (John Paul McDuffie, HBR June 2010) CPP 12 India July 2010

MORE COMPLEX THAN A FIGHTER JET Safety regulations and consumer demand for performance and convenience Have led to an exponential spike in cars’ software complexity. 100M AVERAGE LUXURY AUTO 20M NAVIGATION SYSTEM IN 2009 S-MERCEDES-BENZ 10M AVERAGE 2010 FORD AUTO LINES OF SOFTWARE 10M CODE IN FORD VEHICLES 6.5M BOEING 787 DREAMLINER (MILLIONS) 6M 5.7M U.S. AIR FORCE F-35 JOINT STRIKE FIGHTER 2.4M 1.7M U.S. AIR FORCE F-22 RAPTOR JET 2005 2009 2010 SOURCES IEEE: AUTOMOTIVE DESIGNLINE CPP 12 India July 2010

Some recent observations

The red tape is strangling us…. It is not a pretty picture Clerical Officer Child Support Agency

“Only 24% of a Probation Officers time is spent in face to face contact with their subjects. The rest goes on form filling and reporting” Harry Fletcher, National Association of Probation Officers

A third could be shaved off the annual £4.5bn cost of quangos and NHS management in England. Health secretary Andrew Lansley “More than 70% of nurses time is spent away from the patient”

Police bureaucracy is indeed grotesque - at any one time, out of a command unit of about 350 officers, just 10 will be out policing, the rest behind desks recording data and form-filling - a colossal waste of resources that urgently needs pruning. But it is a symptom, not a cause, and palliatives such as 'civilianisation' (recruiting civilian pen-pushers to take the place of officers behind desks) or less intensive incident recording are making the situation even worse. Sir David Normington UK Top Civil Servant

On the Down Inside-out CPP 12 India July 2010

The biggest enemy of thinking is complexity, for that leads to confusion. Edward de Bono

On the Up with Outside-In CPP 12 India July 2010

Apple sees things differently $25,000 a minute PROFIT CPP 12 India July 2010

Tony Hsieh

Why should we bother? Because the answers are very different ! Inspiration: Udayan Banerjee CTO, CPP 12 India July 2010 NIIT Technology (India)

And… “We can‟t solve problems using the same kind of thinking we used when we created them”

This is a Copernican Moment Copernicus - 19 February 1473 – 24 May 1543 He died 467 years ago

A new perspective.. It‟s a seismic shift in focus The Customer Experience Enquire about a Navigate to the Experiencing Baggage Enjoying the trip Relaxing in the Returning Home Enjoying a trip airport hospitality transportation hotel Coffee at Home is the Process

Enterprise Business Process Management A method of managing an organisation by understanding and delivering Successful Customer Outcomes. It is also referred to as „Outside-In‟ CPP 12 India July 2010

Four proven ways to move Outside-In 1. Examine where your process starts and finishes 2. Understand and Apply Process Diagnostics 3. Articulate Successful Customer Outcomes 4. Determine What Business You are in CPP 12 India July 2010

Understand & PROCESS PROCESS PROCESS Create DIAGNOSTICS DIAGNOSTICS DIAGNOSTICS Develop Develop Process Perform Manage Successful Activity Identify Identify Risk Action Delivery Customer Moments of Identify Business Assessment Plan Outcomes List Truth Breakpoints Rules CPP 12 India July 2010

Where does your process start and finish? CPP 12 India July 2010

Where does the process start and finish? Enquire about a Navigate to the Experiencing Baggage Enjoying the trip Relaxing in the Returning Home Enjoying a trip airport hospitality transportation hotel Coffee at Home Shifting our focus to the Customer Experience and improving that Through Moments of Truth, Breakpoints & Rules lets us FIX the Causes of Work and REMOVE the Points of Failure

Outside In– Successful Customer Outcomes Focus on Doing the Right Thing and Doing Things Right

Looking at the Process Outside-In Achieves dramatic internal benefits (typical 40-70% cost savings) and extends our value chain Navigate to the Experiencing Baggage Enjoying a Coffee Enquire about a trip airport hospitality transportation Flying the airplane Enjoying the trip Relaxing in the hotel at Home CPP 12 India July 2010

Check Out & …….. Gee.. Wouldn‟t it be great If as I checkout of the hotel… Enquire about a Navigate to the Experiencing Baggage Flying the Relaxing in the Enjoying a Coffee trip airport hospitality transportation airplane Enjoying the trip hotel Returning Home at Home CPP 12 India July 2010

Why should we bother? Outside-In is winning in terms of Revenue, Profitability & Customer Service $6.4 Bn First Quarter LOSS $537 M First Quarter LOSS $34 M First Quarter PROFIT Apr. 23--United Airlines said Tuesday that it would eliminate 1,100 jobs …..it would reduce capacity by shedding 30 airplanes, UAL shares Apr. 18--Southwest Airlines Co. said Thursday plummeted 37 percent to $13.55 it earned $34 million in the first quarter Southwest now plans to take delivery of 14 $80 M First Quarter LOSS Houston-based Continental Airlines Inc. new Boeing 737-700 aircraft next year reported Apr 17 that it lost $80 million 58 Successive Quarters $4.1 Bn First Quarter LOSS of PROFIT CPP 12 India July 2010

www.cemmethod.com EXECUTE REVIEW ASSESSMENT DISCOVERY

Element Always Discretionary Levels Process Activity Map (PAM) Y 1-2-3-4 Process Diagnostics Y 1-2-3-4 Twenty OI Quantifiable Elements (Levels 1-5) Risk Assessment Y 1-2-3-4 Action Plan Y 1-2-3-4 Actions Taken Y 1-2-3-4 POF Dependencies Y 1-2-3-4 Points of Failure profile Y 1-2-3-4 Future State PAM Y 1-2-3-4 Risk Impact Assessment Y 1-2-3-4 Validated Process Activity Map Y 2-3-4 SCO Mind Map Y 2-3-4 Validated Process Diagnostics Y 2-3-4 Innovation Landscape Y 3-4 SCO Statement Metrics Y 3-4 Process Performance Landscape Y 3-4 Performance Management Scorecard Y 4-5 OI Strategy Map Y 4-5 IT Opportunities matrix Y 4-5 Individual Scorecard Y 4-5 SCO Capabilities Overview Y 4-5 CPP 12 India July 2010

Performance. Agility & Quality are driven by... MOT BP BR

Can You Imagine How Different Things Would Be?

MOT MOT MOT MOT MOT MOT MOT MOT Any interaction with the CUSTOMER is a MOMENT OF TRUTH

MOT MOT MOT MOT MOT MOT MOT MOT And every MOMENT OF TRUTH Ripples and reverberates through the organisation

MOT MOT MOT MOT MOT MOT MOT MOT And MOMENTS OF TRUTH Create complexity, cost, wastefulness and failure

MOT THE CAUSE OF WORK MOT MOT MOT MOT MOT MOT MOT THE EFFECT

It‟s all about Customer Experience and the Moment of Truth. Remove or Improve! Steve Jobs

www.cemmethod.com EXECUTE REVIEW ASSESSMENT DISCOVERY

CPP 12 India July 2010

Stages in the approach Understand & PROCESS PROCESS PROCESS Create DIAGNOSTICS DIAGNOSTICS DIAGNOSTICS Develop Develop Process Perform Manage Successful Activity Identify Identify Risk Action Delivery Customer Moments of Identify Business Assessment Plan Outcomes List Truth Breakpoints Rules CPP 12 India July 2010

Understand & Develop Successful Customer Outcomes CRAFTING THE SUCCESSFUL CUSTOMER OUTCOME Understanding the real Customer Need TOOLS Layer 1: Layer 4: Who is the How does what Customer? We do impact Customer Success? Layer 2: What is the Customers current Expectation? Layer 5: The Successful Customer Outcome – what does Layer 3: What is the process The One liner SCO: the customer really the customer thinks they are One line statement need from us? involved with? that explains the actual SCO The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy inside-out thinking to create an actionable strategic and operational objective for the entire organisation. CPP 12 India July 2010

Who said this? (Inspired SCO thinking) “You can't always get what you want But if you try sometimes you might find You get what you need” CPP 12 India July 2010

Applying for a University Grant CRAFTING THE SUCCESSFUL CUSTOMER OUTCOME Understanding the real Customer Need TOOLS Layer 1: Layer 4: Who is the How does what Customer? We do impact Customer Success? Layer 2: What is the Customers current Expectation? Layer 5: The Successful Customer Outcome – what does Layer 3: What is the process The One liner SCO: the customer really the customer thinks they are One line statement need from us? involved with? that explains the actual SCO The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy inside-out thinking to create an actionable strategic and operational objective for the entire organisation. CPP 12 India July 2010

The Successful Customer Outcome EDUCATION LOAN APPLICATION Who is My Customer? Student Who is my How does what we do We must be careful here. What we are Customer? impact Customer trying to do is identify the category Success? of people who are likely to be our customer, and who we want to be What is the our customer. Customers current SCO The SCO - what expectation? does the This could be “people wishing to take customer classes” or “people desiring an REALLY want What is the process the from us? education” but… customer thinks they are involved with? “students” is a very good answer because it defines that group of people who are most likely to be consumers of the “financial aid process.” CPP 12 India July 2010

The Successful Customer Outcome Student Who is my How does what we do Customer? impact Customer I must go through the Success? financial aid process to get Aid What is the Customers current SCO The SCO - what expectation? does the There will be problems, customer REALLY want but I should eventually What is the process the from us? get my financial aid customer thinks they are involved with? CPP 12 India July 2010

The Successful Customer Outcome EDUCATION LOAN APPLICATION What is the process the Customer thinks they are involved with? Student Getting an education Who is my Customer? Building a successful career I must go through the financial aid process to get Aid Earning a degree What is the Customers current SCO expectation? This is a major step beyond traditional process management techniques. There will be problems, but I should eventually get my What is the process the financial aid customer thinks they are This part of SCO Mind Mapping involved with? moves us towards the “outside-in” perspective where we can uncover Getting an education Earning a degree how the process really effects the customer. Building a Successful career CPP 12 India July 2010

The Successful Customer Outcome Determine when a student can register Determine if a student can graduate Student Determine if a student can afford the class Who is my How does what we do Customer? impact Customer I must go through the financial Success? aid process to get Aid What is the Customers current SCO expectation? There will be problems, but I should eventually get my What is the process the financial aid customer thinks they are involved with? Getting an education Earning a degree Building a Successful career CPP 12 India July 2010

The Successful Customer Outcome Determine when a student can THESE THINGS ARE MEASUREABLE register THESE THINGSa student can graduate Determine if ARE PERSONAL THESE THINGS ARE OUTSIDE-IN Student Determine if a student can afford the class Who is my How does what we Customer? do impact Customer I must go through the Success? financial aid process to I need to receive my financial What is the assistance get Aid Customers current SCO The SCO - I need to receive aid before the expectation? what does semester starts There will be problems, the customer but I should eventually What is the process the REALLY need I need to attend the classes I have customer thinks they are from us? chosen get my financial aid involved with? I do not want to call to chase progress Getting an education Earning a degree I need to receive the correct amount Building a Successful I do not want to have to fix your career mistakes CPP 12 India July 2010

Understand & Develop Successful Customer Outcomes CRAFTING THE SUCCESSFUL CUSTOMER OUTCOME Understanding the real Customer Need TOOLS Layer 1: Layer 4: Who is the How does what Customer? We do impact Customer Success? Layer 2: What is the Customers current Expectation? Layer 5: The Successful Customer Outcome – what does Layer 3: What is the process The One liner SCO: the customer really the customer thinks they are One line statement need from us? involved with? that explains the actual SCO The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy inside-out thinking to create an actionable strategic and operational objective for the entire organisation. CPP 12 India July 2010

Define the Successful Customer Outcome Map CRAFTING THE SUCCESSFUL CUSTOMER OUTCOME Understanding the real Customer Need TOOLS Layer 1: Layer 4: Who is the How does what Customer? We do impact Customer Success? Layer 2: What is the Customers current Expectation? Layer 5: The Successful Customer Outcome – what does Layer 3: What is the process The One line SCO: the customer really the customer thinks they are One line statement need from us? involved with? that explains the actual SCO The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy inside-out thinking to create an actionable strategic and operational objective for the entire organisation. CPP 12 India July 2010

Understand the business you are in CPP 12 India July 2010

What business are you in? Inside-Out Hallmark Cards  Perspective Shift… what Gilead Sciences did the founders want from their business? BMW Southwest Airlines  Outside-In… a new focus, Your company a complete vision CPP 12 India July 2010

Process Performance Customer Landscape SUCCESSFUL CUSTOMER OUTCOMES SCO CUSTOMER OUTCOMES CO CO OUTCOMES Oc Oc Oc OUTPUTS ACTIVITIES TASKS CPP 12 India July 2010

In Outside-In all work is aligned to achieving Successful Customer Outcomes CPP 12 India July 2010

CPP Level Objective Attainment Designation 7 Leadership Master CPP Champion 6 Strategy Master CPP Master 5 Integrate Master CPP 5 4 Perform Professional CPP 4 3 innovate Professional CPP 3 2 Align Professional CPP 2 1 Optimise Practitioner CPP 1 CEMM Engineer Engineer CEMM (E) Community Business Process Professional pathway Everyone   Leading to the Certified Process Professional (CPP) Business Analyst     Open and in-house formats on a global basis Process Managers      Delivered through the BP Group Associate network. Technologists      For the latest programme visit www.bp2010.com Senior Managers       Leaders        Certification Notes: InClass Assessment        One Day Testing    Online – within 6 months of class Case Studies    Two required – may be historic Client Interview    By agreement Peer Review   By agreement Experience      Proven qualification, time in post Ongoing Notes: Certification Renewal        Webinars, Approved Conferences, Projects Experience      Proven qualification, time in post CPP 12 India July 2010 Mayfair House, 14-18 Heddon Street, Mayfair, London W1B 4DA UK | © MMX BP Group The BP Group, The BP Group,10685-B Hazelhurst Dr. 8602, Houston, TX 77043 US

adeus Tack Takk Vielen Dank afscheid Bedankt Obrigado 再見 작별 인사 Grazie tạm biệt नमस्ते Thank You Totsiens Terima Kasih Tak Bedankt Gracias Kiitos αντίο Auf Wiedersehen CPP 12 India July 2010 до свидания

Architecture World 10 Enterprise BPM10 Improve efficiency and customer service, increase revenue and reduce costs Conference Keynote Outside-In – The Key To Success In The 21st Century: the what Steve Towers BP Group

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Ew10 Keynote

by Steve Towers

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