The document discusses taking a cross-functional view of business processes to improve customer relationship management. It argues that focusing only on internal operational processes provides an inside-out view, while cross-functional processes that link operations provide an end-to-end customer perspective. The key is to define cross-functional processes, measure performance across functions, and get senior management involved to drive continuous improvement from a customer viewpoint.

1. BPM (Business Process
Management), CRM and
Cross-Functional Enterprise-
Level Customer-Focussed
Business Processes
Alan McSweeney

2. Objectives
• To describe an approach to integrating operational
processes into cross-functional customer focussed view for
improved customer relationship management
April 10, 2010 2

3. Scope
• Concerned with cross-functional, enterprise-level business
processes associated with customers and how
organisations can take a cross-functional view to drive
customer satisfaction
• Not concerned with providing details on business process
management, except where it is relevant to the cross-
functional customer-oriented view
April 10, 2010 3

4. Customer Service and Customer Satisfaction
• Poor customer service is still pervasive despite awareness
of the need for and benefits of improved customer service
• Many organisations have not changed their business
processes to deliver improved customer service and
provide what customers want
• Improved customer service means optimising end-to-end
processes from the customer viewpoint
− Involves linking multiple internal processes to get cross-functional
view from customer perspective
April 10, 2010 4

5. Illusion of Customer Relationship Management
• Myth of CRM
• Customers are not outsiders
• We are all customers – utilities, service providers, financial
institutions, government agencies
• CRM is about how WE want to be treated
• When we talk about customers (THEM), we mean us
April 10, 2010 5

6. What Customers Really Want – More For Less
• More Of • Less Of
− Value − Aggravation
− Responsiveness − Time to Complete Transaction
− Involvement − Rigidity
− Consideration − Cost
− Dependability − Bureaucracy
− Flexibility − Excuses
− Lack of Integration
April 10, 2010 6

7. What Organisations Try to Do – More With Less
• More Of • Less Of
− Work − Personnel
− Customers − Facilities
− Sales − Cost
− Revenue
− Margin
April 10, 2010 7

8. Balance Between Internal and External
• Need to balance management focus between “more with
less” and “most for less”
• More with less focuses on internal reductions: cost, staff
• More for less focuses on external improvements
• Only a cross-functional view of business processes can
achieve this balance
− Internal processes focus on operational functions
− Cross-functional view links internal processes to get end-to-end
customer view of organisation
• Cross-functional processes are those that really affect
customers – from start to end
April 10, 2010 8

9. Cross Functional Processes – Crossing “Vertical”
Operational Organisational Units
April 10, 2010 9

10. Core Cross Functional Processes
• Three cross-functional processes that are common to all
organisations
− Product/service delivery
• From order/specification/design/selection to
delivery/installation/implementation/provision and billing
− Customer management
• From customer acquisition to management to repeat business to up-sell/cross-sell
− New product/service provision
• From research to product/service design to implementation and commercialisation
• These processes cross multiple internal organisation boundaries and
have multiple handoffs but they are what concern customers
• Cross-functional processes deliver value
− Value to the customer
− Value to the company
• Integrated cross-functional processes means better customer service
and more satisfied and more customers
April 10, 2010 10

11. Core Cross Functional Processes and Customer View
The customer sees across the structure and is not concerned with but is all too
often aware of the operational elements, their complexity and lack of
interoperability
Product/Service
Delivery: from order
to completion
Customer
Relationship
Management
New Product/
Service
Provision
The organisation sees the structure vertically and in a compartmentalised
view and all to frequently does not see the customer viewpoint
April 10, 2010 11

12. Cross Functional View
• Creating a cross-functional view shows you how your
organisation really works
• Can be used to identify real opportunities for savings as
well as improvements
• Creates a win-win of More For Less and More With Less
April 10, 2010 12

13. Illusion of Attempting to Manage Outcomes
• Outcomes cannot be managed, only influenced
• Outcomes include:
− Sales
− Sales conversion rate
− Revenue
− Profit
− Cashflow
• Outcomes can only be influenced through activities:
− Improved customer satisfaction
− More sales activity
− Greater value for money
• Focussing on cross-functional processes is a key way of influencing
outcomes and delivering value
April 10, 2010 13

14. Illusion of Attempting to Manage Outcomes
Activities Outcomes
Develop and Sell the Right
Product at the Right Price You cannot force
customers to buy
more products and
Identify the Right Customers services
Fulfil Orders Correctly and
Satisfactorily
Sell More
Products/
Generate
Manage Customer Relationships Services and
More Profit
More
Profitably
Be Easy to Do Business With
Be an Organisation Customers
Want to Do Business With
Generate and Maintain High
Customer Satisfaction
April 10, 2010 14

15. Illusion of Attempting to Manage Outcomes
Activities Outcomes
But you can
take actions Develop and Sell the Right
and perform Product at the Right Price You cannot force
activities customers to buy
that will more products and
increase the Identify the Right Customers services
propensity
of customers Fulfil Orders Correctly and
to buy more Satisfactorily
Sell More
Products/
Generate
Manage Customer Relationships Services and
More Profit
More
Profitably
Be Easy to Do Business With
Be an Organisation Customers
Want to Do Business With
Generate and Maintain High
Customer Satisfaction
April 10, 2010 15

16. Barriers to Taking an Effective Cross-Functional View
• No Focus on Cross-Functional Processes
− No overall cross-functional business model
− Too many point solutions without an overarching context
• No Accountability for Cross-Functional Processes
− No one is accountable for start-to-end activities
− End-to-end processes not defined or even understood
• No Measurement of Cross-Functional Process Metrics
− No measurement of activities comprising cross-functional
processes from start-to-end
− Traditional rather than start-to-end metrics are pervasive
− Designed to provide an inside-out view of organisation
April 10, 2010 16

17. Single Barrier to Taking an Effective Cross-
Functional View
No Focus on
Cross-Functional
Processes
Lack of Focus
on Operations
No by Senior
Accountability No
Management Measurement of
for Cross-
Functional Cross-Functional
Processes Process Metrics
April 10, 2010 17

18. Single Barrier to Taking an Effective Cross-
Functional View
• You need to get senior management involved and senior
management must make the commitment to get involved
• Must engage with the detail
• Must understand the business
April 10, 2010 18

19. Reasons for Taking an Effective Cross-Functional
View
• Products and services are becoming commoditised
• No real differentiators
• New products and services are readily and quickly replicated
• Times to market are becoming much shorter
• Start-to-end customer focus and service is real differentiator
• Integrated products and start-to-end focus and service are difficult
to commoditise
• Combine service delivery with product/service
• Need to look at business in terms of start-to-end processes
April 10, 2010 19

20. Cross-Functional Processes
“Horizontal”
Cross
Functional
Processes –
Externally
Focussed
Link
Operational
Processes
Cross
Organisation
Boundaries
“Vertical” Operational Processes –
Internally Focussed
April 10, 2010 20

21. Operational Processes
• You have to have them, manage them, monitor them,
update them
• You cannot ignore them or do without them
• They define day-to-day specific activities and associated
controls
• But you need to ensure that operational processes exist
with a larger enterprise ecosystem
April 10, 2010 21

22. Cross-Functional Approach
• Connects operational processes in a start-to-end view
• Identifies which key operational processes need to be
improved
• Defines the information that needs to be collected
• Enables effective action to be taken
• Links measurement to achievement of business goals
• Becoming process-focused is a change in the way
organisations operate from functions to processes
April 10, 2010 22

23. Benefits of Cross-Functional Approach
• Achieve better results from processes
• Implement a consistent approach to assess and improve
processes that are aligned with the strategy and business
outcomes
• Reduce costs by avoiding duplication in process
improvement
• Increase customer satisfaction by defining and aligning
start-to-end business processes with measures that reflect
customer needs
• Improve productivity by eliminating process overlaps and
ineffectiveness through the reduction of process
complexities and implementing enterprise-wide standards
April 10, 2010 23

24. Data and Information Gap
• Within most organisations there is a noticeable information gap
− Timely access to information
− Access to accurate and complete information
− Access to information at an appropriate level of detail
− Inconsistent and patchy information from various business systems and units
• Which of these statements apply to you?
− The data is there but getting access to it is complicated or not possible
− Finding and collating data across different information sources is often very
difficult
− Performance data is not available quickly enough to act on it effectively
− There is excessive information that conceals what is really needed or important
− Some of the information required is simply not being captured
April 10, 2010 24

25. Data and Information Gap
• Measuring the effectiveness of end-to-end cross-functional processes needs
integrated information collection across operational processes
To measure from
end-to-end …
… You need to aggregate individual operation
measures into an integrated framework
April 10, 2010 25

26. Closing the Information Gap
• Closing the information
gap is an essential pre-
requisite of
implementing effective
and usable business
process management
• Responsibility of both the
business and IT working
collaboratively
April 10, 2010 26

27. Data, Information and Action
April 10, 2010 27

28. Data, Information and Action Cycle
• Data refers to the source figures and numbers. It is the raw material
for analysis
− Data gap is the absence of the tools and operational processes to consistently
collect, store, manage the data and make available tools to perform analyses.
• Information is the value extracted from the raw data
− Information gap is the absence of insight caused by the lack of defined metrics
and indicators and their timely and accurate availability and usability.
• Action is the need for operational business processes to ensure that
the information presented is used and acted upon
• The Data, Information, Action cycle means that there must be a
continuum from collecting the raw data to using it effectively
• Process to achieve this must be embedded in the organisation
April 10, 2010 28

29. Key Measures
• Overall financial performance • Overall operational
• Performance of partnerships performance
and alliances • Performance relative to
• Product and service line competition
profitability • Delivery of profit and value to
• Client profitability clients
• Client acquisition and retention • Client satisfaction
• Staff performance
April 10, 2010 29

30. Measure What Matters
• If you measure what matters to the customer then you will
be measuring what is important to the organisation
• Creates an objective view of performance
• Bear in mind that what get’s measured gets done
April 10, 2010 30

31. Achieving a Cross-Functional View
• Change of management attitude regarding customer
centric processes
• Widen attitude to process management from operational
to cross-functional
• Represents a significant effort and a new approach by
management
April 10, 2010 31

32. High-Level View of Areas of Management Refocus
and New Behaviours
Requirement Activities and Tasks
Organisation view that shows key 1. Define what is important for customers
cross-functional processes 2. Define the set of enterprise, cross-functional processes
3. Prioritise the critical enterprise, cross-functional processes and their constituent
operational processes
4. Develop plan to implement enterprise, cross-functional processes
5. Define the organisation structure needed to operate the enterprise, cross-
functional processes
6. Create plan for managing communications to articulate plan and its benefits
Design enterprise, cross- 1. Modify the critical enterprise, cross-functional processes and their constituent
functional processes to achieve operational processes
business goals
Define organisation structure 1. Identify organisational changes to create cross-functional alignment
needed to operate the enterprise, 2. Update organisational structures to create roles and responsibilities to
cross-functional processes implement cross-functional alignment
IT systems that add value cross 1. Identify IT investments that deliver in improved business performance and added
functions value
2. Implement IT systems
Cross-functional measurements 1. Define cross-functional measurements that link overall customer-focussed
that link performance to costs performance to cost and expenditure
and expenditure 2. Collect information that populate cross-functional measurements
Process for continuous 1. Define structures and processes to achieve continuous improvement
improvement 2. Implement structures and processes to achieve continuous improvement
3. Measure continuous improvement
April 10, 2010 32

33. Results of Management Refocus and New
Behaviours
• Focus on what matters to customers that includes:
− Framework to measure customer-oriented performance
− Structure to achieve customer-oriented improvements
April 10, 2010 33

34. Attitude Inhibitors to Customer Centricity
• Change to customer-centric operation requires learning, training and
management
− “I’m not in sales/marketing. Why are you talking to me?”
− “I’ve been here for 20 years and I don’t see why we should change now.”
− “I am willing to support the project 100% as long as it does not affect me.”
− “This is the way it’s always been done and it’s worked well up to now.”
− “I’ve got 15 minutes to talk to you. I’m very busy with important things.”
• Attitudes that require change
− Belief that you are smarter than your customers
− Belief that you know best
− Focus on short-term returns with no long-term focus
− Operational thinking is not the job of senior management
− Process will slow us down
April 10, 2010 34

35. Tyranny of the Organisation Chart
Cross-Functional Processes
• The organisation chart by its
nature emphasises vertical
functions, seniority, vertical
reporting lines
• Creates local domains of
influence and vested
interests
• An organisation chart view
inhibits cross-functional
process view
• Everyone is partially
responsible so no-one has Organisation
overall responsibility Operational
Functions
April 10, 2010 35

36. Customer Centric Cross-Functional Measurements
Measure from Start to Finish
• Measure what matters as work moves through the organisation through the
individual operational processes
• Trends in these measurements will show the real health of your organisation
April 10, 2010 36

37. Organisation Value Chains
Value Chains
• Value chains add value and confer competitive advantage
when defined and linked
April 10, 2010 37

38. Cross Functional Processes Link Operational
Processes
• Need a clear
understanding
of the
organisation’s
operational
processes
• Need to ensure
that the
operational
processes are
optimised
• Cross-functional
processes
involve
collaboration
between
operational
processes
April 10, 2010 38

39. Cross Functional Processes and Strategy
• Effective cross-functional Measure
processes deliver on the Achievement
organisation’s strategy of Goals
• Cannot divorce the Strategy
organisation’s strategy from
operational processes and their
execution Delivered By
• Collecting information on the
performance of cross-functional Cross-Functional
processes will allow the Processes
execution of strategy to be
effectively measured
• Linkage between strategy, cross- Consisting Of
functional processes and
operational processes means
individual process Operational Processes
measurements can be linked to
overall performance Set Goals
• Allows goals to be connected to
operational processes
April 10, 2010 39

40. Sample Enterprise Business Process Models
• The following sample organisational models illustrate
implementations of aligned cross-functional business
processes and have the following core characteristics:
− Enterprise-level process definition
− Focus on end-to-end cross-functional business processes that
deliver value to customers
− Designed for simplified communication
− Common understanding of processes among process owners and
users
− Simple structures and frameworks
− Appropriate use of external reference models and standards
April 10, 2010 40

41. Sample Enterprise Business Process Models - 1
Business Environment
Competitors, Governments Regulations and Requirements, Standards, Economics
Customer’s Process Needs
Business
Core Processes Business
Processes That Create Value for the Customer
Controlling Measurement
Process Process
Customer Product Order Customer
Processes That Acquisition Delivery Fulfilment Support Processes That
Direct and Tune Monitor and
Other Processes Report the
Results of Other
Enabling Processes Processes
Processes That Supply Resources to Other Processes
Channel Supply Human Information Business
Management Management Resources Technology Acquisition
Supplier’s Processes
April 10, 2010 41

42. Sample Enterprise Business Process Models - 2
Align
Supply Chain
Innovate Plan
Source Make Fulfil Customers
Sell
Build
People Finance Information Environment Governance
April 10, 2010 42

43. Sample Enterprise Business Process Models –
Common Structure
• Sample business process models have a common structure
• Generic structure that forms a template for specific
actualisations
Operational Processes With
Cross Functional Linkages
Vision,
Strategy,
Leadership,
Business
Management
Management and Support
Processes
April 10, 2010 43

44. Sample Enterprise Business Process Models –
Common Structure
Vision, Operational Processes With Cross Functional Linkages
Strategy,
Business Develop and
Market and Deliver Manage
Manage
Management Products and
Sell Products Products and Customer
and Services Services Service
Services
Vision and
Strategy
Management and Support Processes
Business
Planning, Human Information
Financial Facilities
Merger, Resource Technology
Management Management
Acquisition Management Management
Legal,
Governance Regulatory, Knowledge,
External
and Environment, Improvement
Relationship
Compliance Health and and Change
Management
Safety Management
Management
April 10, 2010 44

45. Define Measures Linked to Key Processes
Number of Profitability
Customer
New Per Inventory
Turnover
Customers Customer
Business Environment
Competitors, Governments Regulations and Requirements, Standards, Economics
Customer Customer’s Process Needs
Acquisition
Cost Core Processes
Business Business
Processes That Create Value for the Customer
Controlling Measurement Number of
Process Process
Customer Product Order Customer Customers
Acquisition Delivery Fulfilment Support
Processes That Processes That Complaints
Direct and Tune Monitor and
Other Processes Report the
Time to Fulfil Results of Other
Order Enabling Processes Processes
Processes That Supply Resources to Other Processes
Time to
Channel Supply Human Information Business
Management Management Resources Technology Acquisition Resolve
Complaints
Forecast
Accuracy Supplier’s Processes
Number of Delivery Payment
Time Invoice
Returns Accuracy Times
Accuracy
April 10, 2010 45

46. Actions to Achieve Enterprise Business Process
Approach
• Identify and understand the cross-functional, enterprise-
level business process that create and add value
• Understand and define the metrics that measure cross-
functional, enterprise-level business process performance
• Define a plan for managing and improving cross-functional,
enterprise-level business processes identifying priorities
and resources
• Ensure there is sponsorship, ownership, accountability for
results and recognition of achievements
• Communicate the vision to the organisation
April 10, 2010 46

47. Enterprise Business Process Models vs. Organisation
Chart
• How do the two compare?
• Organisation Chart • Enterprise Business Process Models
− Top-down structure focussing on − Functional areas that traverse
operational areas operational boundaries
− Focussed on internal organisation and − Focussed on end-to-end
structure accomplishments
− Compartmentalised − Joined-up
Vision, Operational Processes With Cross Functional Linkages
Strategy,
Business Develop and
Market and Deliver Manage
Manage
Management Products and
Sell Products Products and Customer
and Services Services Service
Services
Vision and
Strategy
Management and Support Processes
Business
Planning, Human Information
Financial Facilities
Merger, Resource Technology
Management Management
Acquisition Management Management
Legal,
Governance Regulatory, Knowledge,
External
and Environment, Improvement
Relationship
Compliance Health and and Change
Management
Safety Management
Management
April 10, 2010 47

48. Baldrige Criteria Framework
• The Baldrige criteria framework focuses on continuous improvement
that is concentrated on the customer, led by management, based on
facts and data, and directed toward results
Organisational Profile: Environment, Relationship, Challenges
Workforce and
Strategic
Human
Planning
Resources
Business
Leadership
Results
Customers and Process
Markets Management
Information, Measurement, Analysis and Knowledge Management
April 10, 2010 48

49. Baldrige Criteria Framework
• Baldrige criteria framework is a superset of the cross-
functional business process management view of an
organisation in order to deliver improved customer
satisfaction
• Included here for the sake of completeness
• We are concerned specifically with cross-functional
business processes relating to customer service and
customer relationship management
• Baldrige criteria framework can provide a proven
framework for this
April 10, 2010 49

50. Mapping Sample Business Process Model - 1
Vision, Operational Processes With Cross Functional Linkages
Strategy,
Business Develop and
Market and Deliver Manage
Manage
Management Products and
Sell Products Products and Customer
and Services Services Service
Services
Vision and
Strategy
Management and Support Processes
Business
Planning, Human Information
Financial Facilities
Merger, Resource Technology
Management Management
Acquisition Management Management
Legal,
Governance Regulatory, Knowledge,
External
and Environment, Improvement
Compliance Health and
Relationship
Management
and Change Business Environment
Safety Management
Management Competitors, Governments Regulations and Requirements, Standards, Economics
Customer’s Process Needs
Business
Core Processes Business
Processes That Create Value for the Customer
Controlling Measurement
Process Process
Customer Product Order Customer
Processes That Acquisition Delivery Fulfilment Support Processes That
Direct and Tune Monitor and
Other Processes Report the
Results of Other
Enabling Processes Processes
Processes That Supply Resources to Other Processes
Channel Supply Human Information Business
Management Management Resources Technology Acquisition
Supplier’s Processes
April 10, 2010 50

51. Mapping Sample Business Process Model - 2
Vision, Operational Processes With Cross Functional Linkages
Strategy,
Business Develop and
Market and Deliver Manage
Manage
Management Products and
Sell Products Products and Customer
and Services Services Service
Services
Vision and
Strategy
Management and Support Processes
Business
Planning, Human Information
Financial Facilities
Merger, Resource Technology
Management Management
Acquisition Management Management
Legal,
Governance Regulatory, Knowledge,
External
and Environment, Improvement
Relationship
Compliance Health and and Change
Management
Safety Management
Management
Align
Supply Chain
Innovate Plan
Source Make Fulfil Customers
Sell
Build
People Finance Information Environment Governance
April 10, 2010 51

52. Challenges and Lessons Learned from Cross-
Functional BPM Implementation
Aligned Processes
Aligned Measures
Resources, Skills and Enabling Technology
Knowledge Sharing
Credibility and Simplicity in Communication
Process Improvement Tools
April 10, 2010 52

53. Aligned Processes
• Understanding, defining and aligning business processes
are key to success
• Aligned processes increase return
• Individual operational processes need to be connected to
larger cross-functional processes
April 10, 2010 53

54. Aligned Measures
• Appropriate performance measurement available to all is
important
• Need to measure results of cross-functional processes and
constituent operational processes
• Ensures focus is maintained on what is important
April 10, 2010 54

55. Resources, Skills and Enabling Technology
• Dedicated, trained and skilled resources are important
• Need usable, functional technology providing process
design, mapping features
• Ensure full-time responsibility
April 10, 2010 55

56. Knowledge Sharing
• Acquire and share internal and external expert knowledge
• Implement knowledge sharing technology
• Learn from others’ mistakes
• Use appropriate external expertise
April 10, 2010 56

57. Credibility and Simplicity in Communication
• Need to communicate the need to operate in a business
process oriented manner
• Need to sell the concept to personnel
• Showing results is necessary to get buy-in and sustain BPM
initiatives
April 10, 2010 57

58. Process Improvement Tools
• Process improvement is core to BPM
• Toolset is important
April 10, 2010 58

59. Process Management Model
Business Strategy, Business Models, Business Plans, Change Management Process
Leadership
Design and Implement Processes
Process
Performance
Measure Actual vs. Target Performance
Process
Design
Cause Analysis Create and Implement Solutions
Process Knowledge Execution Continuous Process
Redesign Management Improvement Improvement Improvement
Gap Success Share Best Practices
April 10, 2010 59

60. Business Process Action Hierarchy
Business
• Cross-functional Process
Hierarchy
processes need to be
aligned with actions Cross Functional Cross Functional
Process Process
Consists of one or
• Performance of more of …
actions rolls-up to Process Process Process Process
performance of Consists of one or
more of …
process Sub-Process Sub-Process
Consists of one or
more of …
Activity Activity
Consists of one or
more of …
Task Task
Consists of one or
more of …
Step Step Step Step
April 10, 2010 60

61. Sample Business Process Action Hierarchy
• Sample set of actions associated with a process
− Need to ensure that individual actions are aligned and their performance
measured
Sample Business Process Hierarchy
Cross Functional Process Supply Chain Management
Consisting of a Number of Processes Including Fulfil Order
Consisting of a Number of Sub-Process Including Take Customer Order
Consisting of a Number of Activities Including Check Customer Status
Consisting of a Number of Tasks Including Validate Customer Account and Credit
Consisting of a Number of Steps Including Enter Customer Details
April 10, 2010 61

62. You Know You Are Achieving a Cross-Functional
Customer View When …
• You know what matters to customers
• You measure what matters to customers
• You identify and understand the key cross-functional,
enterprise-level business processes
• You start initiatives that focus on cross-functional,
enterprise-level business processes
• You link operational processes to cross-functional,
enterprise-level business processes
• You reward personnel based on contribution to customer
satisfaction and performance
April 10, 2010 62

63. Achieving a Cross-Functional View
• There will be problems
• You are encroaching on peoples’ territories
• You are creating waves
• Understand and deal with
April 10, 2010 63

64. Summary
• Too often organisations look to what is important to them
and now what is important to their customers
• Too often organisations are structured along operational
lines
• Poor customer service is still pervasive despite awareness
of the need for and benefits of improved customer service
• A cross-functional view of business processes shows what
is important to customers
• If you measure what matters to the customer then you will
be measuring what is important to the organisation
April 10, 2010 64

65. More Information
Alan McSweeney
alan@alanmcsweeney.com
April 10, 2010 65