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A Health & Wellness Approach to Enterprise Process Management

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Don’t just fix the problems; fix the process (treat the disease, not just the symptoms). Don’t just fix the process; fix the business (treat the patient, not just the disease). Not being “sick” or in pain doesn’t mean you are healthy or will stay healthy without a wellness plan. The same thing applies to our business processes and we need to have a “wellness plan” that monitors our processes to maintain a healthy business.

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A Health & Wellness Approach to Enterprise Process Management

  1. 1. A Health & Wellness Model for Enterprise Process Management Brett Champlin President, ABPMP Association of Business Process Management Professionals www.abpm.org © Copyright, Brett Champlin, 2004-2007
  2. 2. A Medical Model <ul><li>Preliminary Assessment </li></ul><ul><li>Determine Patient Health Goals </li></ul><ul><li>Diagnose Patient Health </li></ul><ul><li>Reassess Health Goals </li></ul><ul><li>Develop Treatment Plan </li></ul><ul><li>Prescribe Treatments </li></ul><ul><li>Schedule Follow Up Visits </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  3. 3. Emergency Assessment <ul><li>Bleeding </li></ul><ul><li>Breathing </li></ul><ul><li>Breaks </li></ul><ul><li>Consciousness </li></ul><ul><ul><li>Awake </li></ul></ul><ul><ul><li>Alert </li></ul></ul><ul><li>Shock </li></ul><ul><li>Complaint </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007 <ul><li>Expenditures </li></ul><ul><li>Cash Flows </li></ul><ul><li>Operations </li></ul><ul><li>Marketing </li></ul><ul><ul><li>Responsive </li></ul></ul><ul><ul><li>Effective </li></ul></ul><ul><li>Management </li></ul><ul><li>Complaint </li></ul>
  4. 4. Office/Hospital Preliminary Assessment <ul><li>Pulse </li></ul><ul><li>Height </li></ul><ul><li>Weight </li></ul><ul><li>Respiration </li></ul><ul><li>Temperature </li></ul><ul><li>Blood Pressure </li></ul><ul><li>Complaint </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007 <ul><li>Cash Flow </li></ul><ul><li>Industry(ies) </li></ul><ul><li>Market Share </li></ul><ul><li>Revenues </li></ul><ul><li>Operating Costs </li></ul><ul><li>Product Lifecycle </li></ul><ul><li>Complaint </li></ul>
  5. 5. Determine Patient Health Goals <ul><li>Save Life </li></ul><ul><li>Ease Suffering </li></ul><ul><li>Cure Disease </li></ul><ul><li>Prevent Disease </li></ul><ul><li>Improve Overall Health </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007 <ul><li>Stop Gap Measures </li></ul><ul><li>Fix Problems </li></ul><ul><li>Redesign Processes </li></ul><ul><li>Process Management </li></ul><ul><li>Strategic Process Planning </li></ul>
  6. 6. Diagnose Patient Health <ul><li>Symptoms </li></ul><ul><li>Disease </li></ul><ul><li>Etiology </li></ul><ul><li>Long Term Health Risks </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007 <ul><li>Known Problems </li></ul><ul><li>Process Performance </li></ul><ul><li>Business Environment </li></ul><ul><li>Long Term Viability </li></ul>
  7. 7. Which System(s) Are Affected? <ul><li>Core </li></ul><ul><ul><li>Circulatory, Respiratory, Neurological, Digestive, Reproductive </li></ul></ul><ul><li>Support </li></ul><ul><ul><li>Skeletal, Musculature, Skin </li></ul></ul><ul><li>Control </li></ul><ul><ul><li>Nervous System, Sensory, Endocrine, Immune </li></ul></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  8. 8. Which System(s) Are Affected? <ul><li>Core Operational Processes </li></ul><ul><ul><li>Engage Customer, Transact Business, Fulfill Expectations, Service Customer Needs </li></ul></ul><ul><li>Enabling Processes </li></ul><ul><ul><li>Resource Management </li></ul></ul><ul><ul><li>Financial – Human – Physical – Material - Information </li></ul></ul><ul><li>Control Processes </li></ul><ul><ul><li>Process Management </li></ul></ul><ul><ul><li>Strategic Positioning – Performance Monitoring – Process Transformation - Change Mgt - Compliance </li></ul></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  9. 9. Business Process Architecture Brainstorm BPM Conference, Chicago, April 10, 2007 Source: Paul Harmon, BP Trends
  10. 10. Measurement <ul><li>Cycle/Handling/Throughput Time </li></ul><ul><li>Resource Utilization </li></ul><ul><li>Rework/Reprocess </li></ul><ul><li>Defect Rates </li></ul><ul><li>Waste </li></ul><ul><li>WIP Queues </li></ul><ul><li>Customer Retention/Satisfaction </li></ul><ul><li>Market Growth/Loss </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  11. 11. Diagnostic Tools <ul><li>Process Mapping </li></ul><ul><li>Simulation </li></ul><ul><li>Statistical Analysis (Six Sigma ) </li></ul><ul><li>Activity-Based Cost Analysis (ABC/M) </li></ul><ul><li>Relationship Analysis </li></ul><ul><li>Root Cause Analysis </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  12. 12. Relationship Mapping Brainstorm BPM Conference, Chicago, April 10, 2007 GOVERNMENT VENDORS (SUPPLIERS) MARKETS (CUSTOMERS) <YOUR BUSINESS> COMPETITORS CHANNELS (SALES & DISTRIBUTION) COMMUNITY
  13. 13. Reassess Health Goals <ul><li>Immediate </li></ul><ul><li>Short Term </li></ul><ul><li>Long Term </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  14. 14. Generic Process Maturity Model Brainstorm BPM Conference, Chicago, April 10, 2007 Integrated (6) Coordinated Process Initial (1) ad hoc Process Repeatable (2) Stable Process Defined (3) Standard Process Managed (4) Measured Process Optimized (5) Effective Process Process Control Process Measurement Process Definition Basic Management Control Process Integration Consistent Execution Controlled Environment Quality and Productivity Improvement Continuing Improvement Chaotic Cooperative Optimization A Health Assessment Tool
  15. 15. Assess Organization <ul><li>Traditional (Functional Organization) </li></ul><ul><li>Involvement Management </li></ul><ul><li>Process Management </li></ul><ul><li>Cross-Functional Management </li></ul><ul><li>Matrix Management </li></ul><ul><li>Process Focused </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007 Styles of Work Management, Dan Madison, “ Process Mapping, Process Improvement, and Process Management”
  16. 16. Traditional – Involvement Brainstorm BPM Conference, Chicago, April 10, 2007 Styles of Work Management, Dan Madison, “ Process Mapping, Process Improvement, and Process Management” Manager Supervisor Worker Manager Supervisor Teams and task force President Accounting Marketing Customer Service Manufacturing President Accounting Marketing Customer Service Manufacturing
  17. 17. Process Management – Cross-Functional Management Brainstorm BPM Conference, Chicago, April 10, 2007 Styles of Work Management, Dan Madison, “ Process Mapping, Process Improvement, and Process Management” President Accounting Marketing Customer Service Manufacturing President Accounting Marketing Customer Service Manufacturing = Improved Processes = Improved Processes
  18. 18. Matrix – Process Focused (f-type) Brainstorm BPM Conference, Chicago, April 10, 2007 Styles of Work Management, Dan Madison, “ Process Mapping, Process Improvement, and Process Management” Process Consultant Process Consultant Process Consultant Accounting Marketing Customer Service Manufacturing Process Owner Process Owner Process Owner CEO Or COO President Accounting Marketing Customer Service Manufacturing = Improved Processes overseen by Process Consultants = Improved Processes overseen by Process Owners
  19. 19. Work Management and Effectiveness Brainstorm BPM Conference, Chicago, April 10, 2007 Traditional Involvement Process Cross- Functional Matrix F-Type World Class Extremely Wasteful Total organizational effectiveness and efficiency scale Styles of Work Management, Dan Madison, “ Process Mapping, Process Improvement, and Process Management”
  20. 20. Process Management Plan Brainstorm BPM Conference, Chicago, April 10, 2007 Continuously Improving Process Predictable Process Disciplined Procedures Consistent Process Optimized Process (5) Managed Process (4) Defined Process (3) Repeatable Process (2) Initial State (1) Integrated Process (6) Cooperative Process Need Quality Management Program Need Management Regulation Ignored (1) Manage/ Plan (5) Participate/ Control (4) Support/ Direct (3) Recognize/ Organize (2) Lead/ Collaborate (6) Need Enterprise Integration Process Management Maturity Process Maturity
  21. 21. Develop Treatment Plan <ul><li>Ease Symptoms </li></ul><ul><li>Cure Disease </li></ul><ul><li>Rehabilitation Plan </li></ul><ul><li>Maintenance Plan </li></ul><ul><li>Wellness Improvement Plan </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  22. 22. Health Assessment Brainstorm BPM Conference, Chicago, April 10, 2007 Process Assessment Initial (1) ad hoc Process Repeatable (2) Stable Process Defined (3) Standard Process Managed (4) Measured Process Optimized (5) Effective Process Integrated (6) Coordinated Process Wellness Evaluation Life Threatening Seriously ill Stable but ill Basically Healthy Robust and Active Excellent Long Term Health Immediate Treatment Stabilize, Treat life critical symptoms Aggressively treat symptoms and disease(s) Holistically treat disease(s), evaluate etiology Prescribe health improvement plan Prescribe health maintenance plan Monitor and maintain healthy behaviors
  23. 23. Prescribe Treatment <ul><li>Alternatives </li></ul><ul><li>What to do now </li></ul><ul><li>How often </li></ul><ul><li>How much </li></ul><ul><li>How long </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  24. 24. Business Process Strategy Map Brainstorm BPM Conference, Chicago, April 10, 2007 Business Strategy Mergers, Acquisitions, Core/Context, Divestiture, Joint Venture Business Portfolio Mgt Enhance/Retain, Outsource, In-source, Co-source White Label, Aggregate, Orchestrate Business Processes (Supply Chain, Value Chain, Product Design, Marketing) Business Process Management Metrics, KPIs, Change Management, Collaboration Business Process Management System Process execution lifecycle Process design lifecycle Discover Design Deploy Execute Operate Interact Analyze Optimize Web Services & EAI Integration Source: Howard Smith, CSC & BPMI
  25. 25. A Plethora of Treatment Options <ul><li>ABCD Checklist for Operational Excellence </li></ul><ul><li>Activity based costing (ABC) </li></ul><ul><li>Affinity Diagram </li></ul><ul><li>Assigned Process </li></ul><ul><li>Balanced Scorecard </li></ul><ul><li>Benchmarking </li></ul><ul><li>Brainstorming </li></ul><ul><li>Business Systems Planning (BSP) </li></ul><ul><li>Cause/Effect Diagram </li></ul><ul><li>Consensus Building </li></ul><ul><li>Continuous Flow Optimization (TOC) </li></ul><ul><li>Cross Functional Process Map </li></ul><ul><li>Customer Research </li></ul><ul><li>Cycle Time Reduction </li></ul><ul><li>Decision Matrix </li></ul><ul><li>Decision process re-engineering </li></ul><ul><li>Earned Value Analysis </li></ul><ul><li>Force Field Diagram </li></ul><ul><li>Functional Economic Analysis </li></ul><ul><li>Gantt Chart </li></ul><ul><li>Human Resource Development </li></ul><ul><li>Improvement Process </li></ul><ul><li>Interrelationship Digraph </li></ul><ul><li>ISO-9000 </li></ul><ul><li>Kaizen </li></ul><ul><li>Meeting Process </li></ul><ul><li>Multivoting </li></ul><ul><li>P/R Measurements; Leading, Lagging Indicators </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007 <ul><li>Pareto Diagram </li></ul><ul><li>Process Decision Program Chart </li></ul><ul><li>Process Flow Chart </li></ul><ul><li>Purpose, Vision, Goals, Strategies, & Plans </li></ul><ul><li>Process Improvement </li></ul><ul><li>Process Management </li></ul><ul><li>Process Redesign </li></ul><ul><li>Process Reengineering </li></ul><ul><li>Organizational Development </li></ul><ul><li>Relationship Diagram </li></ul><ul><li>Relationship Strategies </li></ul><ul><li>Scoreboard </li></ul><ul><li>Stage Theory - Stages of Team Growth </li></ul><ul><li>Storyboarding </li></ul><ul><li>Strategic Business Planning </li></ul><ul><li>Strategic Fit Analysis </li></ul><ul><li>Supply Chain Management </li></ul><ul><li>Six Sigma and Lean Manufacturing </li></ul><ul><li>Six Thinking Hats </li></ul><ul><li>Streamlining </li></ul><ul><li>Systematic Diagram </li></ul><ul><li>Total Quality Management </li></ul><ul><li>Quality Function Deployment (QFD) </li></ul><ul><li>Value Chain Mapping </li></ul><ul><li>Value-Added Step Analysis </li></ul><ul><li>Waste Search </li></ul><ul><li>Workflow Diagram </li></ul><ul><li>More… </li></ul>
  26. 26. Process Improvement Plan <ul><li>Generic Process Maturity Model </li></ul><ul><li>Where are we? </li></ul><ul><li>Where do we want to be? </li></ul><ul><li>When? </li></ul><ul><li>What do we need to do to get there? </li></ul><ul><li>How will we get there? </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  27. 27. Process Improvement Plan Brainstorm BPM Conference, Chicago, April 10, 2007 ASSESSMENT PRESCRIPTION GOAL Well Controlled Process - Level 4 or better Process Refinement - Level 5 Process Integration - Level 6 Initial (1) ad hoc Process Repeatable (2) Stable Process Defined (3) Standard Process Managed (4) Measured Process Optimized (5) Effective Process Integrated (6) Coordinated Process Radical Reengineering Reengineering/ Redesign Process Improvement (Six Sigma) Process Redesign Analyze Systems Dynamics Manage Relationships Obliterate and Innovate - Level 4 or better Leverage What Works - Level 4 or better Strengthen and Nurture Relationships
  28. 28. Schedule Follow Ups <ul><li>Regular Visits </li></ul><ul><li>Self Assessments </li></ul><ul><li>Periodic Checkup </li></ul><ul><li>If Side Effects Occur </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  29. 29. The Process Doctor’s Advice <ul><li>Process Health Clinic </li></ul><ul><li>Holistic Patient Treatment </li></ul><ul><li>Long Term Health & Wellness Plan </li></ul>Brainstorm BPM Conference, Chicago, April 10, 2007
  30. 30. A Health & Wellness Model for Enterprise Process Management Brett Champlin, CCP, CDMP [email_address] Association of Business Process Management Professionals www.abpm.org © Copyright, Brett Champlin, 2004-2007

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