BPM Governance (Imre Hegedus)

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BPM Governance is what sets BPM apart from Process Improvement. Having a Centre of Excellence (CoE) focus on key elements of process governance provides for the sustained transformation of BPM. Elements of this presentation are extracted from the Industry Report "BPM - Insights and Practices for Sustained Transformation" (2008)

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BPM Governance (Imre Hegedus)

  1. 1. <ul><li>Connecting Process Professionals </li></ul>
  2. 2.
  3. 3. BPM Governance Managing to Improve
  4. 4. BPM: Insights and Practices for Sustained Transformation BPM Governance – Insights and Practices As a term, BPM is enjoying unprecedented popularity across the globe. The term ‘process’ is now a staple in service industries almost as much as it has been in manufacturing. The size of both the technology and the professional services markets focused on various aspects of BPM is significant and growing… Report Structure
  5. 5. FACILITATING AND SUSTAINING CHANGE <ul><li>Process Improvement and BPM </li></ul>PIU Workshop – January 2009
  6. 6. Chapter 3 BPM and process improvement – enabling continuous improvement <ul><li>While many organisations have successfully introduced process improvement (PI) methodologies, a number of those very same organisations struggle to integrate enterprise-wide BPM as they continue to focus on initiatives for the current and coming financial years. </li></ul>BPM Governance – Insights and Practices “ Every process improvement project should be scoped in context of the other business processes...” <ul><li>Methods by which an organisation improves its business through focusing on its processes </li></ul><ul><li>Relies on BPM to pro-actively identify opportunities and sustain improvements </li></ul><ul><li>Methods by which an organisation manages its business through focusing on its processes </li></ul><ul><li>Relies on PI methods to improve processes and design new ones </li></ul>Projects Problems Reactive Short-term Operational Process-specific Facts & Data Single-loop Mechanistic Business Processes Proactive Long-term Strategic Business-wide Knowledge Double-loop Organic BPM PI General Characteristics
  7. 7. BPM and BPI: characteristics to be leveraged for an effective partnership <ul><li>Methods by which an organisation improves its’ business through focusing on its’ processes </li></ul><ul><li>Relies on BPM to pro-actively identify opportunities and sustain improvements </li></ul><ul><li>Methods by which an organisation manages its’ business through focusing on its’ processes </li></ul><ul><li>Relies on BPI methods to improve processes and design new ones </li></ul>Projects Problems Reactive Short-term Operational Process-specific Facts & Data Single-loop Mechanistic Business Processes Proactive Long-term Strategic Business-wide Knowledge Double-loop Organic BPM BPI General Characteristics BPM Governance – Insights and Practices
  8. 8. Consider the implication of these statistics… <ul><li>You can identify 30% improvement just from mapping a process </li></ul><ul><li>Value-adding activities constitute less than <10% of all enterprise activities </li></ul><ul><li>Manual activities are typically 80+% of an enterprises activities </li></ul><ul><li>TYPICAL IMPROVEMENT RESPONSES </li></ul><ul><li>Visualise </li></ul><ul><li>Analyse </li></ul><ul><li>Automate </li></ul><ul><li>… BUT… </li></ul>BPM Governance – Insights and Practices
  9. 9. Don’t improve what you cannot manage! <ul><li>100% of processes exhibit variation </li></ul><ul><li>Focus on the customer (capability) </li></ul><ul><li>Understand Common and Special Cause variation (stability) </li></ul><ul><li>Stabilise processes before improving their capability </li></ul><ul><li>Improve processes before automating them </li></ul><ul><li>Establish BPM and process governance </li></ul><ul><li>Evaluate enterprise BPM capability </li></ul>BPM Governance – Insights and Practices Process is both Stable And Capable Unstable Stable Capable Incapable Process is Stable But Incapable Process is Unstable but Capable Process is Unstable and Incapable
  10. 10. The PI and BPM Partnership <ul><li>Enterprises begin their ‘process journey’ by deploying Process Improvement methods </li></ul><ul><li>The sustainability of any Process Improvement (project) is dependant on the capability of the business to manage its processes </li></ul><ul><li>Improve only what you can manage </li></ul><ul><li>Continuous improvement is a function of the capability of an enterprise to both improve and manage its processes </li></ul><ul><li>Manage to Improve </li></ul>BPM Governance – Insights and Practices
  11. 11. CHARACTERISTICS OF GOOD BPM GOVERNANCE THE BPM CENTRE OF EXCELLENCE <ul><li>BPM Governance </li></ul>PIU Workshop – January 2009 BPM Governance – Insights and Practices
  12. 12. Chapter 9 BPM governance – leading and sustaining process change <ul><li>BPM Governance is what distinguishes BPM from PI – it is what makes the ongoing management of processes in an organisation a practice, rather than an initiative. </li></ul><ul><li>The sustainability of process improvements is a function of the ability of the organisation to design, measure, analyse and re-design processes on an ongoing basis. </li></ul><ul><li>A BPM governance structure oversees these capabilities at the enterprise level. </li></ul>BPM Governance – Insights and Practices Adapted from: UNESCO United Nations Economic and Social Commission for Asia and the Pacific
  13. 13. BPM Governance: Accountable <ul><li>Characteristics </li></ul><ul><li>Accountable to those who will be affected by the process decisions and actions </li></ul><ul><li>Key Elements </li></ul><ul><li>Centre of Excellence </li></ul><ul><li>Process Ownership </li></ul><ul><li>Function Owners </li></ul><ul><li>Accountable </li></ul><ul><li>Transparent </li></ul><ul><li>Responsive </li></ul><ul><li>Equitable and inclusive </li></ul><ul><li>Effective and Efficient </li></ul><ul><li>Compliant with enterprise values and policies </li></ul><ul><li>Participatory </li></ul><ul><li>Consensus-oriented </li></ul><ul><li>… delivered through a BPM CoE… </li></ul>BPM Governance – Insights and Practices “ Effective BPM Governance will ensure that all process improvement projects are managed as part of an enterprise-wide program of work.” Source: BPM – Insights and Practices for Sustained Transformation
  14. 14. The role of the BPM CoE <ul><li>Leading the strategy, design an deployment of the BPM effort. This will include the development of process methods and standards </li></ul><ul><li>Engaging he IT department and ensuring process-driven technology investment </li></ul><ul><li>Enterprise-wide focus to ensure strategic alignment, business relevance and integration with other business components </li></ul><ul><li>Process-centric focus to ensure the integrity and comprehensiveness of the BPM and PI activities </li></ul><ul><li>Prioritisation and program management of process initiatives </li></ul>BPM Governance – Insights and Practices
  15. 15. The role of the Functional Managers <ul><li>Mange their functions through the adoption of agreed processes </li></ul><ul><li>Identification of PI opportunities </li></ul><ul><li>Sponsor and resource process (re-)design and improvement initiatives </li></ul><ul><li>“ Functional managers and their staff continue to run the business functions, though now they ensure that processes are enacted as intended, and process issues that compromise business performance are identified.” </li></ul>BPM Governance – Insights and Practices
  16. 16. The role of the Process Owners <ul><li>Develop and lead strategic direction for in-scope processes </li></ul><ul><li>Champion process (re-)design and improvement initiatives </li></ul><ul><li>Management of processes to ensure visible and continuously improving performance </li></ul><ul><li>“ Process owners focus on their particular processes, and improve their performance in light of the key value-chains that their processes enable.” </li></ul>BPM Governance – Insights and Practices
  17. 17. Location of the BPM CoE Question 18: If your organisation has a group responsible for BPM, where is it located within your organisation? (Organisation Base=79) Source: UWS Survey BPM Governance – Insights and Practices
  18. 18. Factors affecting the design, structure and profile of BPM Governance <ul><li>Organisational Culture </li></ul><ul><li>Decision-making norms </li></ul><ul><li>Phase in the BPM Deployment </li></ul><ul><li>BPM Maturity </li></ul><ul><li>Type and Structure of BPM Elements defined </li></ul><ul><li>Issues being addressed by BPM </li></ul><ul><li>Other organisational factors and constraints… </li></ul>BPM Governance – Insights and Practices
  19. 19. BPM Governance: Accountability Insights and experiences <ul><li>Rarely: </li></ul><ul><ul><li>do the senior executive team fully appreciate what it means to be process-oriented when the BPM Executives or CoE are appointed </li></ul></ul><ul><ul><li>are Process Owners empowered or resourced appropriately </li></ul></ul><ul><ul><li>Is the organisational* change effort fully appreciated or well managed </li></ul></ul><ul><li>Typically: </li></ul><ul><ul><li>Lack of clarity around roles (BPM CoE, Functional Owners, Process Owners) </li></ul></ul><ul><ul><li>Business function managers feel threatened by the concept of Process Owners </li></ul></ul><ul><ul><li>Role of governance is multi-dimensional and changes over time (leader, convener, facilitator, enforcer) </li></ul></ul>BPM Governance – Insights and Practices
  20. 20. BPM Governance Success factors <ul><li>Successful BPM Governance will be more likely when: </li></ul><ul><li>The CEO and the leadership team endorse and resource (human and financial) the BPM effort </li></ul><ul><li>The BPM Governance body is empowered and filled by senior executives </li></ul><ul><li>The structure and role of the BPM bodies are recognised </li></ul><ul><li>Decision-making methods and rights are defined </li></ul><ul><li>BPM methods and standards for the enterprise are defined and formally endorsed </li></ul><ul><li>The relationship with other governance bodies, such as corporate and IT are clear </li></ul><ul><li>An enterprise business model that contexts process activities is adopted and managed </li></ul>BPM Governance – Insights and Practices
  21. 21. BPM Resources at: http://www.imrehegedus.com/resources/index.php <ul><li>Presentations </li></ul><ul><li>BPM: Aligning Business and IT </li></ul><ul><li>BPM: Context-setting Models </li></ul><ul><li>BPM: Key Elements </li></ul><ul><li>Articles </li></ul><ul><li>BPM & Culture </li></ul><ul><li>Customer Value: The Business Discipline of BPM </li></ul><ul><li>Innovation and BPM </li></ul><ul><li>BPM & PI: Business Performance Partners (part 1) </li></ul><ul><li>BPM & PI: Business Performance Partners (part 2) </li></ul><ul><li>BPM & PI: Business Performance Partners (part 3) </li></ul>“ Business Process Management – Insights and Practices for Sustained Transformation ” (2008) available from http://www.arkgroupaustralia.com.au/report-BPM.htm BPM Governance – Insights and Practices
  22. 22. For further information… Email: [email_address] Phone: (03) 9038 9007 Mobile: 0448 868 007 Skype: iphegedus Web: www.imrehegedus.com <ul><li>Important Notice </li></ul><ul><li>This presentation is the property of Imre Hegedus Consulting [ABN 37 105 464 793 ] (the Owner) and is subject to copyright. </li></ul><ul><li>Subject to the provisions of the Copyright Act 1968 (Cth), no use can be made of this presentation without the expression permission of the Owner. </li></ul><ul><li>This presentation is intended to provide a summary of the subject matter covered. </li></ul><ul><li>The Owner disclaims all liability in relation to the content of this presentation and the use to which it may be put. </li></ul>“ Business Process Management – Insights and Practices into Sustained Transformation ” (2008) available from http://www.arkgroupaustralia.com.au/report-BPM.htm BPM Governance – Insights and Practices

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