Presentation from the book, the Insiders Guide to BPM: 7 Steps to Process Mastery

1. The Insiders’ Guide to
BPM
7 Steps to Process Mastery
By Terry Schurter Step 1 – Understand and
Embrace your Goal

2. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
1. Identify what needs to change
2. Translate that need to a goal
3. Identify metrics for measuring the goal
4. Measure them now, to establish the baseline
5. Set the target, thereby defining success
6. Measure metrics when complete, to assess our success
7. Learn from the results
8. Continually improve our goal setting skills
A Template is included at the end of this presentation to help in
setting process improvement Goals
The Eight (8) Elements of Goal Setting and Delivery
2The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com

3. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
1) Documenting your motivation
2) Identifying metrics that represent that motivation
3) Establishing the baseline for those metrics – the current state of the
process
4) Determining the goal – or target – you wish to achieve
5) Documenting the base units of measure of the metrics
6) Calculating the goal as a percentage of change
Process Goal Setting Requirements
3The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com

4. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
The most effective Process Improvement is driven by Goals
that represent an improvement through REDUCTION of
one or more goal metrics…
i.e. – reduce cost, time, activity, movement, etc.
When process goals seek to reduce something, the
likelihood of achieving real process improvement goes up
exponentially.
CRITICAL GOAL DRIVER
4The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com

5. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
1) Cost Reduction
2) Time to completion
3) Productivity
4) Performance
5) Efficiency
6) Quality
7) Customer Experience
Possible Motivations…
5The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com
1) $ per unit, $ per dept
2) Average elapsed time
3) Production per unit of time
4) One person to Y work (ratio)
5) Work over time
6) Rework or return count
7) # Moments of Truth
Possible Measures…

6. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
By approaching process goals by reducing a process metric, we
actually improve the process “across the board”
A percentage improvement on a targeted goal metric produces a
similar degree of improvement in other process metrics.
Therefore, if you reduce costs by 30% you will also reduce time to
completion by 30%, increase productivity by 30%, improve
performance by 30%, and so on – even including enhancing
customer satisfaction by 30%.
GOAL RELATIONSHIPS – EXPLICIT LINKING
6The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com

7. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
Examples (from actual projects):
7The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com
Motivation Metric Baseline Goal Units of
Measure
Target
Reduce process time Transaction time 4 2 Hours 50%
Improve quality Exceptions produced 10 2 Exceptions 80%
Reduce manual processing Processing time 40 20 Hours 50%
Reduce case investigation
time
Investigation elapsed time 40 .1 Hours 99.75%
Reduce complexity People involved in process 5 1 People 80%
Reduce processing time Cost per request $840 $420 Dollars 50%
Improve customer service Response time to Client 12 4 Hours 67%
Improve compliance Fines $10,000 $1,000 Dollars 90%
Reduce costs Costs per Document $50 $10 dollars 80%
Reduce training time Training modules 7 3 Modules 57%

8. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
1) Build your goal as a form of reduction
2) Identify one or metrics that you can establish a baseline on
(current state)
3) Set your target – it will drive the process optimization activity
4) Measure the baseline after optimization – to assess your results
But what if we don’t know what optimization (improvement)
potential exists?
Goal Setting – Key Takeaways
8The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com

9. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
In Step 2 we will discuss how to develop an elegant process
design, including how to assess improvement based on
actions we can take to improve a process.
Where process targets are not obvious (what is a reasonable
goal?) we can discover, evaluate and compare possible
process improvements, and then determine our
improvement target!
Discovering Opportunity
9The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com

10. The Insiders’ Guide to BPM: Step 1
Understand and Embrace Your
Goal
http://www.amazon.com/Insiders-Guide-BPM-Process-Mastery/dp/0929652096
Would you like to learn more about Mastering BPM?
10The Insiders’ Guide to BPM by Terry Schurter - www.tschurter.com
http://acuitystudio.com/human-centric-process-analysis-and-improvement/