The Process Of Bpm

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A webinar I gave back in 2007 on business process management.

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  • Thanks Howard. You should all now be looking at the slide titled The Process of BPM. Slide number X. Next slide.
  • The Process Of Bpm

    1. 1. THE PROCESS OF BPM George Van Antwerp April 6, 2007
    2. 2. BUSINESS PROCESS MANAGEMENT IS… TECHNOLOGY ENABLED CONTINUOUS IMPROVEMENT <ul><li>A strategy </li></ul><ul><li>A management philosophy </li></ul><ul><li>An approach </li></ul><ul><li>A technique </li></ul><ul><li>Enabled by technology </li></ul>FOR <ul><li>Reducing cycle time </li></ul><ul><li>Building agility </li></ul><ul><li>Increasing process visibility </li></ul><ul><li>Improving performance </li></ul><ul><li>Increasing consistency </li></ul>
    3. 3. AS TOYOTA POINTED OUT, PROCESS CAN BE A COMPETITIVE ADVANTAGE <ul><li>“ We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.” </li></ul><ul><li>Sources: “Decoding the DNA of the Toyota Production System,” Steven Spear and Kent Bowen, Harvard Business Review , September-October 1999 </li></ul>
    4. 4. DETERMINE YOUR BASELINE AND OBJECTIVES 0 1 2 3 4 5 Acknowledge Business Inefficiencies Directly link process model and rules to execution Process Automation and Control Compare alternatives driven by various optimization techniques in real time Craft process automation and control across the enterprise, customers and trading partners Interprocess Automation and Control Create a business performance framework that links business valuation (near real time) to process execution Enterprise Valuation Control Innovate new businesses, products and services through agile business architecture Agile Business Structure Model and analyze business processes Process-Aware Generally, where companies are today Source: Gartner BPM Maturity Model Measure and monitor business activities
    5. 5. CREATING A BPM SOLUTION Continuous Improvement Strategy Adapted from Gartner graphic on BPM Organizational Change Management Measure Model Analyze Prioritize Control Automate BPM Improve Pilot
    6. 6. PRIORITIZE WHERE TO START <ul><li>Revenue </li></ul><ul><li>Cost </li></ul><ul><li>Customer </li></ul><ul><li>Satisfaction </li></ul><ul><li>Cycle Time </li></ul><ul><li>Compliance </li></ul><ul><li>Large numbers of process steps, integration points, exceptions, transaction, participants and/or organizations </li></ul><ul><li>A short window for development & deployment </li></ul><ul><li>Frequent process change and/or high number of exceptions </li></ul><ul><li>Need for process level metrics and ability to audit process transactions </li></ul><ul><li>Distressed Shipments </li></ul><ul><li>Employee On boarding </li></ul><ul><li>Automated Returns </li></ul><ul><li>Benefits Administration </li></ul><ul><li>SOX Compliance </li></ul><ul><li>Billing Disputes </li></ul><ul><li>Incentive Compensation Management </li></ul><ul><li>PO Mgt / Approval </li></ul><ul><li>Manager Self Service </li></ul><ul><li>Invoice Reconciliation </li></ul>Source: modified based on Lombardi Software slide <ul><li>Product Development and Mgmt </li></ul><ul><li>ITSM </li></ul><ul><li>Channel Mgmt </li></ul><ul><li>Procurement </li></ul><ul><li>Proposal Mgmt </li></ul>Process Complexity Process Impact L H
    7. 7. DEFINE YOUR MEASURES AND CAPTURE YOUR CURRENT STATE <ul><li>Identify key drivers (revenue, cost, market share) </li></ul><ul><li>What drives those metrics </li></ul><ul><li>Look at correlation between metrics </li></ul>Based on the Balanced Scorecard TM framework. Financial Customer Internal / Business Process Learning & Growth Mail Profit Customer Satisfaction Mail Rxs Days-in- House Plan Design Alignment 1 st Call Resolution Voluntary Turnover Benefit Education Employee Satisfaction
    8. 8. MODEL YOUR PROCESS - SIPOC Suppliers Inputs Process Customers Requirements <ul><li>MD </li></ul><ul><li>Patient </li></ul><ul><li>Client / Payor </li></ul><ul><li>Call center agent </li></ul><ul><li>RPh </li></ul><ul><li>Pharmacy tech </li></ul><ul><li>Robotics </li></ul><ul><li>Pharma </li></ul><ul><li>Order entry clerk </li></ul>Step 1: Get Rx and payment Outputs Step 2: Enter order into system Step 3: Check eligibility and patient info Step 4: Resolve exceptions <ul><li>See Below </li></ul><ul><li>Prescription </li></ul><ul><li>Drug monograph </li></ul><ul><li>Savings opportunity </li></ul><ul><li>Client bill </li></ul><ul><li>Patient </li></ul><ul><li>Client / Payor </li></ul><ul><li>MD </li></ul><ul><li>USPS </li></ul><ul><li>Pharma </li></ul><ul><li>2 days-in-house </li></ul><ul><li>1 st call resolution </li></ul><ul><li>99.999% accuracy </li></ul><ul><li>Lowest cost drug </li></ul>Step 5: Ship Rx to patient <ul><li>Valid prescription </li></ul><ul><li>Patient information </li></ul><ul><li>Payment </li></ul><ul><li>Drugs </li></ul><ul><li>Mailing supplies </li></ul>
    9. 9. ANALYZE AND IMPROVE TWO DIME FRAMEWORK FOR REDUCING MUDA <ul><li>Transport </li></ul><ul><li>Waiting </li></ul><ul><li>Overproduction </li></ul><ul><li>Defect </li></ul><ul><li>Inventory </li></ul><ul><li>Motion </li></ul><ul><li>Extra Processing </li></ul>Source: Image from Lombardi Software Source: TWO DIME framework from The Power of Process by Kiran Garimella
    10. 10. AUTOMATE AND PILOT <ul><li>Reduces Time to Develop New Process-Based Applications with Simple Drag-and-Drop Design </li></ul><ul><li>Enables Organization to Rapidly Apply Changes to Rules and Process Flow </li></ul><ul><li>Extensible and Based on a Service Oriented Architecture for Rapid Integration into Existing Systems </li></ul><ul><li>Simple to Use for Non-Developers and Standards Based </li></ul>Source: Appian
    11. 11. BUSINESS ACTIVITY MONITORING FOR CONTROL
    12. 12. WHAT IS DIFFERENT Yesterday Today Focus on Current State No Yes Solutions Paper Technical Governance Functional End-to-end Process Project Duration 6-24 months 90-120 days IT and Business Collaboration Optional Critical Results BPR = Layoffs BPM = Asset Optimization Implementation Methodology Waterfall / SDLC Agile / RAD Technology EAI / Workflow BPM
    13. 13. CONCLUSIONS <ul><li>Business Process Management is part strategy and part technology </li></ul><ul><li>You have to focus on end-to-end processes </li></ul><ul><li>Agility is key – iterate </li></ul><ul><li>Change your framework </li></ul><ul><ul><li>Use BPM versus Visio </li></ul></ul><ul><ul><li>Process abstraction </li></ul></ul><ul><li>Link Six Sigma / Lean and BPM </li></ul><ul><li>Everything is a process </li></ul>
    14. 14. Q&A

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