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Process maturity
- 1. Process Maturity Assessing your readiness to progress to the next level Danie du Toit Internal Business Improvement Consultant Telkom SA LTD
- 2. Content / Agenda Background of current operating model Successes & Frustrations Why do we need to change The new way © Telkom 2012 | Process Maturity| 2
- 3. Our methodology Our approachidentifies different elements … and uses a holistic approach to find causing poor performance… counter measures that eliminate these factors end-to-end Technical Solutions Management Systems Mindsets & Capabilities Waste – Non Value added Technical solution – New processes, systems and operating procedures Variability – Inconsistencies in the way work is performed Management systems – New ways managing and measuring performance Inflexibility – Reducing freedom to respond to customer requests Mindsets & Capabilities – Working across departmental silos, and empowering people to solve problems Source: Telkom BIO Methodology © Telkom 2012 | Process Maturity| 3
- 4. Current approach 3 – 6 Month Projects 1 – 6 Day Events Create Flow Value stream mapping Quick Focus hits on waste Project Plan Kaizen 5S A3 Eliminate Variation Process Mapping Progress Standardization Six Sigma Change Readiness Approach Stakeholder Management Change Management Change Management © Telkom 2012 | Process Maturity| 4
- 5. Successes • Improve endto end delivery time by 50% • Improve on quality to Field Force by 80% • Cost avoidance on unnecessary dispatches of technicians equal to 5% of national Operations Budget • Improve Debtors aging beyond 30 Days by 15% • Reduce legacy outstanding Debtors by 20% • Improve National Core Technicians productivity by 14% Source: Telkom BIO Successes © Telkom 2012 | Process Maturity| 5
- 6. The frustration • Bureaucracyhinder adoption • Lack of sponsor involvement • Little long-term sustainability • Ownership • Lack of Urgency (Currency of process improvement) • Capability building on Continuous Improvement takes time and planning © Telkom 2012 | Process Maturity| 6
- 7. Why do weneed to do things differently? • Are you frustrated and feel you are not moving forward as fast as you need to? • Is your organization ready for the challenges of a slower economy? • Is your management asking you to control costs, avoid increasing staff size, and ensure that you are adding value? • Do you need to keep metrics that demonstrate, without a doubt, that you are running a "tight ship"? • At the same time, are you concerned about the quality of the work you are delivering to customers? Combining Process Maturity with Process Improvement Methodologies provides you with the tools you need to advance your organization. © Telkom 2012 | Process Maturity| 7
- 8. What is amaturity model A maturity model is an evolutionary roadmap for implementing the vital practices from one or more domains of organizational process. The five levels of maturity guide and organization from poor defined and inconsistent practices to finally continuous process innovation and optimization Organizations with a mature mastery of their processes Innovation Implement continual Predictable proactive Manage processes improvements to Standardized and results achieve business Develop standard quantitatively and targets Managed processes, exploit benefits of Build disciplined measures, and standardization Maturity Level Initial process, measures, training for product Motivate people to and training for & service offerings overcome problems products & service offering Capable processes and just “get the job done” Perpetual innovation Predictable results Change management Reuse / knowledge mgt. Productivity growth Reduce variation Effective automation Reduce rework Economies of scale Repeatable practices Mistakes, bottlenecks Satisfied schedules Ad hoc methods Hero worship Organizations with an immature mastery of their processes Time © Telkom 2012 | Process Maturity| 8
- 9. Understanding the model Inorder to adopt model one need to understand the objectives of the different levels, and also benefits per level Level Objectives Benefits Continuous proactive Achieve targets (5) Optimizing Flatten Organization improvement Business agility Manage process and Predictable results (4) Predictable performance quantitatively Real time corrections Productivity growth Establish standard end to end (3) Standardized Effective automation integrated process Platform for growth Reduce rework Create disciplined management within (2) Managed Reduce overload work units and stabilize work Stable local procedures Motivate people to overcome problems and (1) Initial Hero worship just “get the job done” Source: Overview of the BPMM “Bill Curtis” © Telkom 2012 | Process Maturity| 9
- 10. Different dimensions Strategy People Process Controls Alignment Alignment Process Technology Technology People Many Organizations David M Fisher Organization & Governance Culture Process Metrics & Competencies Measures Technology & Methodologies Architecture Gartner BPM © Telkom 2012 | Process Maturity| 10
- 11. Dimensions selected forappropriate model Strategic understanding of the role, position and focus for enterprise wide decision making in support of overall company objectives Operating methods and The governance model for the practices, including management, administration policies and procedures, and evaluation of initiatives Strategy with a strong focus on the which determine the way activities are performed appropriate metrics applied for measurement Process Controls Alignment Technology People Enabling information The human resource environment, systems, applications, including skills, organizational tools and infrastructure Methodology culture, and organizational structure Methodology used to influence the process improvement initiative © Telkom 2012 | Process Maturity| 11
- 12. Formulate a framework ILLUSTRATIVE Level 1 Level 2 Level 3 Level 4 Level 5 Siloed Tactical Integrated Process Driven Optimized Enterprise Intelligent Operating (Initial) (Managed) (Standardize) (Predictable) Network (Optimizing) Strategy • Reactive to • Adapt/react to • Adapt to market • Adaptive to market • Predictive capabilities Market conditions market dynamics dynamics within 3 – 6 dynamics within weeks and market leadership within 1 - 2 years within 12 months months Controls • Local and • Hierarchical • Formal process • Process teams • Inter-enterprise process Functional Level management leadership establish responsible for overall teams own performance authority / structures priorities performance autonomy Process • Static business • Limited process • Fully transitioned from • Total process • Total process integration processes reengineering and functional to process integration across the across the ecosystem cross functional focus, including enterprise coordination management structures People • Subject matter • Cross functional / • Process leaders define, • Lean organization • Partner selection experts process team deploy, enhance, and focused on optimizing includes process & members (lead by maintain core process definitions and culture attributes IT) processes execution Technology • Independent • Leverage ERP • IT supports process • Utilize BPM solutions • Utilize BPM solutions to systems systems for cross leadership team in to automate process automate and monitor functional initiatives execution, monitoring, process execution integration and control across the throughout the enterprise ecosystem Methodology © Telkom 2012 | Process Maturity| 12
- 13. Determining the gap ILLUSTRATIVE Level 1 Level 2 Level 3 Level 4 Level 5 Siloed Tactical Integrated Process Driven Optimized Enterprise Intelligent Operating (Initial) (Managed) (Standardize) (Predictable) Network (Optimizing) Strategy • Reactive to • Adapt/react to • Adapt to market • Adaptive to market • Predictive capabilities Market conditions market dynamics dynamics within 3 – 6 dynamics within weeks and market leadership within 1 - 2 years within 12 months months Controls • Local and • Hierarchical • Formal process • Process teams • Inter-enterprise process Functional Level management leadership establish responsible for overall teams own performance authority / structures priorities performance autonomy Process • Static business • Limited process • Fully transitioned from • Total process • Total process integration processes reengineering and functional to process integration across the across the ecosystem cross functional focus, including enterprise coordination management structures People • Subject matter • Cross functional / • Process leaders define, • Lean organization • Partner selection experts process team deploy, enhance, and focused on optimizing includes process & members (lead by maintain core process definitions and culture attributes IT) processes execution Technology • Independent • Leverage ERP • IT supports process • Utilize BPM solutions • Utilize BPM solutions to systems systems for cross leadership team in to automate process automate and monitor functional initiatives execution, monitoring, process execution integration and control across the throughout the enterprise ecosystem Methodology © Telkom 2012 | Process Maturity| 13
- 14. Focus areas toprogress to level 3 ILLUSTRATIVE • Adapt to market dynamics within 3 -6 months Strategy • Establish Organizational Process Management (OPM) • Business process become foundational element of enterprise • Projects driven by Business cases Controls • Process metrics tied to individual and team performance • Transition from functional to process focus, including management Process structures, execution teams, and performance evaluation. • Optimize critical processes • Define process owners People • Introduce functional teams to focus process optimization Technology • Cross functional systems integration • Point to point partner integration • Move from IT lead to IT support Methodology • Focus on KAIZEN Events • Formalize a strategy to imbed a Continuous Improvement culture © Telkom 2012 | Process Maturity| 14
- 15. Structured approach ILLUSTRATIVE • Adapt to market dynamics within 3 -6 months Strategy • Establish Organizational Process Management (OPM) • Business process become foundational element of enterprise Organizational Process Organizational Process Management Goals Management Practices SG1: Appraisal- SP1: Maintain Descriptions Level 5 Strategy: Based of Process Needs Level 4 OPM improvements are Level 3 Incorporated SP2: Appraise Processes Process Standardize Process SG2: Process Assets are Created SP3: Identify Process Level 2 People and Deployed Improvements Level 1 Technology SP4: Maintain Process Action Maturity Methodology Plans Levels InG: Practices are Level 3 progress institutionalized SP5: Implement Process areas Action Plans InP1: Describe the process SG: Specific Goal InG: Institutionalization Goal InP2: Plan the work SP: Specific Practice InP: Institutionalization Practice InP3: Provide knowledge & Skills © Telkom 2012 | Process Maturity| 15
- 16. Institutionalizing practices ILLUSTRATIVE “The practices for Organizational Process Management are institutionalized” Describe the Process Control Performance & Results Organizational Plan the work Process Management Objectivity assure Conformance Provide knowledge & Skills Institutionalization Practices Source: Business Process maturity Model “B Curtis, CV Weber, T Gardner” © Telkom 2012 | Process Maturity| 16
- 17. Dramatic improvements withstandards “Based on Bill Curtis explorations of SEI (Software Engineering Institute) certified and research” Level 1 Benefit Level 2 Level 3 Level 4 Level 5 Baseline Rework 40% 20% 10% 6% 3% Estimating +30% to 100% +/-10 to +/-20% +/- 5% +/- 3% +/- 1% inaccuracy Delivered X 0.5 (X) 0.25 (X) 0.1 (X) 0.01 (X) defects Pre-test defect ≤ 30% 60% 80% 90+% 99% detection Productivity X 1.5 (X) 2 (X) 3 – 4 (X) >4 (X) Component Negligible Negligible Occasional ≥30% ≥30% reuse © Telkom 2012 | Process Maturity| 17
- 18. In conclusion Based on research it is evident that by combining Continuous Improvement Methodologies / Strategies with Business Process Maturity Models enhances you chances in being more successful to become a continuous process innovation and optimization organization. I came to realization that the more I learn the less I know © Telkom 2012 | Process Maturity| 18
- 19. Acknowledgements TeraQuets “Bill Curtis” BearingPoint “David M Fisher” BPTrends “Paul Harmon” McAfee “ Bill Curtis” Capability Measurement “ John Alden” Gartner “Janelle Hill” Stevens Institute of Technology “Danny Ho” Capability Measurement, LLC “ Dr. John W Alden” Business Process Maturity Model “Charles V Weber, Bill Curtis, Tony Gardner” © Telkom 2012 | Process Maturity| 19
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