Process Excellence & BPM State of the Industry Keynote

The State of the Industry Steve Towers, Founder, BP Group Steve.towers@bpgroup.org www.bpgroup.org

The State of the Industry: Industry highlights and feedback from Six Sigma & Process Excellence IQ‟s global network & the www.BPGroup.org communityDrawing on 2010 Process Excellence surveyswith the Lean Six Sigma and BPM community, Six Sigma IQ and theBP Group… share with you the key global process excellence trends andindustry evolutions from the last12 months and the year ahead.1. Key evolutions in the Process Improvement corporate agenda: What are the market trends for programme development?2. Emerging Next Practice, Techniques, Tips and Methodologies3. How has the industry moved on: Onsite polling around your top investment and development areas for the next twelve months4. Making a new resolution: Looking forward to the „must dos‟ for the next 12 months5. Outside-In: The Secret of the 21st centuries leading companies – who are they and what are they doing?

Contributors – “The State of the Industry”Acknowledged Global SourcesGartner ~ Forrester ~ IBM ~ HBR ~BP Group ~ Lean Six Sigma ~Six Sigma IQ ~ BPEX ~ community ~Millward Brown ~3 IQPC & BP Group Conferences since January - Florida,London, Stockholm,5 More before year endSydney, Bangalore, Delhi, Dubai and Boston15,000+ Certified Process Professionals®5,000+ CPP-Masters® www.bpmbox.com

Jul 25-29 www.bpcommunity.org Brisbane CPP12345 Pro & Master • Global – COMMUNITY 50,000+ Aug 8-12 Perth • LinkedIn – 7,000+ CPP12345 Pro & Master www.bp2010.com Aug 22-26 Sydney • Accreditation CPP12345 Pro & Master CPP Practitioner Aug 29-Sep 2 CPP Professional Wellington TRAINING CPP Master CPP12345 Pro & Master • Open & In house Sep 12-16 Learning Melbourne • Online Support CPP12345 Pro & Master www.bpgroup.org Nov 7-8 Melbourne BUSINESS • Support Groups CPP12 Pro PROCESS PROFESSIONAL • Mentoring & Nov 14-15 Coaching Brisbane CPP12 Pro Nov 21-22 Sydney CPP12 Pro • Articles, News INFORMATION & • Discussion Dec 5-9 Melbourne RESEARCH • Conferences & CPP12345 Pro & Master Seminars Steve Towers SPECIALwww.successfulcustomeroutcomes.net www.bp2010.com

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

It is the end of our beginnings We are at the very point in time when a 400-year old age is dying and another is struggling to be born, a shifting of culture, science, society, and institutions enormously greater than the world hasDee Hock, Founder & CEO--Visa ever experienced. Ahead, the possibility of the regeneration of relationships, liberty, community, and ethics such as the world has never known, and a harmonyA Global with nature, with one another, and with the divinetipping point intelligence such as the world has never dreamed.

Key evolutions in the Process Improvement corporate agenda: What are the market trends for programme development?

The Always on World – It has all happened in the last 12 years!Mapping the Growth of the InternetThe Always on World of t

The Always on World of the 21st centuryMapping the Growth of the Internet

We believe that within five years, 96 percent of consumers will have access to the Internet, whether it be through a personal computer, a set-top box or a mobile phone. You bet that changes everything. (2010)Source: Fanzine

PERFORMANCE BENEFITS - PROCESS TRANSFORMATION EVOLUTION© Towers Associates 2011 – Research 800+companies 2006-2011 SERVICE & COST & REVENUE Outside-In Approaches e.g. Customer Expectation Management 4 Business Process Management Objective Benefits Lean post 2000 SERVICE & COST Six Sigma 3 1995-05 2 Business Business Process Process Reengineering Improvement 1980-95 1 Total Quality Management SERVICE 1970-80 INSIDE-OUT OUTSIDE-IN Scope of Transformation

Jeff Bezos sums it nicely…

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

Inspiration:Why should we bother? Udayan Banerjee, CTO, NIIT Technology (India)Because the answers arevery different !

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

Key evolutions in the Process Improvement corporate agenda: What are the market trends for programme development?At the programme management levelshifting from IT automation with efficiency and effectivenessimprovements to managing the Causes of WorkLinking of every task and activity to aSuccessful Customer Outcome….this is in line with shifts in responsibilityfor process at the corporate level

Who has responsibility to drive business processimprovement in your company?

"We cant solve problems by using the same kind of thinking we usedwhen we created them."

Too many managers have become sospecialized that they don’t think interms of the company’s big picture. Philip Kotler

Emerging Next Practice, Techniques, Tips andMethodologies Get passed those specialisms – link cause and effect Use of techniques that provide a line of sight to the primary customer/citizen “Break through the glass ceiling” OIL (Germany) / SSOS (Canada) / CEM (USA) / CIPA (UK) / Emphasis on „stopping the dumb stuff‟ before automation!

How has the industry moved on: Polling around your topinvestment and development areas for the next twelve monthsIBM‟s latest survey of CIO‟s and CEO‟s (published June)Source: ibm.com/theessentialcio “….increasingly help their public and private sector organizations cope with complexity by simplifying operations, business processes, products and services.” According to the IBM CEO 2010 Study, “better performers manage complexity on behalf of their organizations, customers and partners. With an overwhelming 99 percent of CIOs identified initiatives to simplify internal key processes as among those they would lead or support the organisation” What are your plans to simplify the customer experience, products and services to increase functionality, use and satisfaction?

Making a new resolution: Looking forward to the „mustdos‟ for the year ahead – To Do tickbox items Check your scorecards – Activity v. Outcome Extend current programmes towards the Enterprise level and ultimately The Customer Experience as the process Reward folks for achieving Successful Customer Outcomes Align all process activity to the SCO Count the things that count – Cost/Revenue/Service

Examples

Tony HsiehListen to the 15 minute interview

Zappos – Seven Ways to Achieve Exceptional Customer Services (Tony Hsieh)Make Customer Empower your Fire customers Don’t measure Don’t hide your View the costs of Celebrate greatservice a priority customer service who are call times.. And phone number. handling customer service by tellingfor the whole people. Rarely insatiable don’t use scripts You want to calls as an investment exception stories tocompany should they have to talk to in marketing, not an the entire company escalate issues. customers. expense

Moving to Lifestyle Management CUSTOMER LIFESTYLE MANAGEMENT 110+ PRODUCTSBIRTH GRADUATION MARRIAGE CAREER FAMILY GRANDEE RETIREMENT DEATH

Outside-In: The Secret of the 21st centuries leadingcompanies – who are they and what are they doing? Enterprise Business Process Management A method of managing an organisation by understanding and delivering Successful Customer Outcomes (SCO) also referred to as Outside-In

Some of the critical questions you may wish to ask Where does your process What is the Successful Customer start and finish? Outcome? What are the Key Moments What business are you (REALLY) in? of Truth in this Process?

Outside-In Business card/piece of paper = book (I have 30+ hardcopies with me) = deck Review the Action slides within this deck Get tooled up to help your organisation See some of you tomorrow at the workshop! www.bpmbox.com for Australia if you wish to qualify professionally

The State of the Industry Thank you! Steve Towers, Founder, BP Group Steve.towers@bpgroup.org www.bpgroup.org

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Process Excellence & BPM State of the Industry Keynote

by Steve Towers on Jul 08, 2011

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Process Excellence & BPM State of the Industry Keynote Presentation Transcript