BPM Case Management Global Summit - Building a BPM CoE

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Overview of steps in developing a BPM CoE

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BPM Case Management Global Summit - Building a BPM CoE

  1. 1. © 2014 IBM Corporation Climbing Mountains – Implementing a BPM Center of Excellence Scott Simmons Lead BPM Solution Architect IBM Software Group scottsim@us.ibm.com
  2. 2. 22 © 2014 IBM Corporation 3 Key Points for Discussion • BPM projects are often challenged due to ‒ Limited business/IT collaboration ‒ Ineffective requirements gathering and scope creep ‒ Limited BPM expertise and methodology • CoEs do not just happen – they require work and resources • Method adoption is key for CoE – Agile BPM is fundamental for success “Individually, we are one drop. Together, we are an ocean.” Ryunosuke Satoro
  3. 3. 33 © 2014 IBM Corporation AGENDA • Where Are You Going • Building the Perfect Beast • Beware of Falling Objects
  4. 4. 44 © 2014 IBM Corporation • Where Are You Going • Building the Perfect Beast • Beware of Falling Objects
  5. 5. 55 © 2014 IBM Corporation BPM in a Vacuum Does Not Work ... Didn’t you read the business requirements …. Don’t you understand that this solution does not match… grrrrr … IT techies!! You business folks – you just don’t know what you want … first one thing … and then something else … grrrrr … users!!!
  6. 6. 66 © 2014 IBM Corporation In My Work Establishing CoEs – I Get Asked … • What is the difference between a CoE and a CoC? • We have a SOA CoE – can we just use that as our BPM CoE? • Will the CoE help with our Lean initiative? • Business does not want to be involved – can the CoE be strictly IT? • CoEs might work in other organizations – but how can it work here? • Most of the time – I am the coach … the teacher … the facilitator … • BUT sometimes I am the “Terminator” ;-)
  7. 7. 77 © 2014 IBM Corporation Let’s First Establish – BPM CoEs Drive BPM Success 80% of the organizations with a COE report some degree of success with BPM Source: 2009 BPM State of the Market Report, Transformation & Innovation http://www.bpm.com/2009-bpm-state-of-the-market-report.html
  8. 8. 88 © 2014 IBM Corporation BPM Challenges e.g. Why BPM “Hits The Wall” • Enterprise Competency and BPM Adoption ‒ Lack of coordination between organizational boundaries ‒ Duplication of resources across the organization ‒ Lack of critical mass of skills • Business/IT Collaboration ‒ Lack of collaboration across Business and IT ‒ Difficulty with identifying process owners in the business • Process Discovery and Project Coordination ‒ Poor communication of business intent and requirements ‒ Wrong project scope and/or scope creep ‒ Outcomes are not the expected or required ones ‒ Long delivery time • BPM Methodology and Governance ‒ Waterfall-based development lifecycle ‒ Inconsistent BPM approaches across the organization 8
  9. 9. 99 © 2014 IBM Corporation What is a Center of Excellence? Definition: Whatever you call them, a Center of Excellence (CoE) should, at a most basic level consist of: A team of people that promote collaboration and using best practices around a specific focus area to drive business results. This team could be staffed with full- or part-time members. http://agileelements.wordpress.com/2008/ 10/29/what-is-a-center-of-excellence/ Jon Strickler Walter White OR Heisenberg?
  10. 10. 1010 © 2014 IBM Corporation Governance Prioritize initiatives & implement governance processes Develop Skills Identify skill gaps & create development roadmaps Process Optimization Analyze trends and alert process owners to situations that need attention Promote Adoption Manage process standards to reduce project risk and accelerate delivery Thought Leadership Set direction and vision for process management Best Practices Capture, communicate and enforce best practices and methods Center of Excellence But … What Does a BPM Center of Excellence Do? THE ROLE OF THE CoE OFTEN DIFFERS BY ORGANIZATION
  11. 11. 1111 © 2014 IBM Corporation IT-led Business-led Centralized Federated BPM CoEs Depend on Organization and Culture Business and IT Collaboration and Alignment is Key
  12. 12. 1212 © 2014 IBM Corporation Key Responsibilities for a BPM CoE • Enterprise Competency and BPM Adoption ‒ Provide coordination/consistency between organizational boundaries ‒ Central design clearinghouse e.g. leading practices, technical future, resources ‒ Manage BPM Adoption and Training • Business/IT Collaboration ‒ Ensure communication/collaboration between groups ‒ Technical AND business leadership for BPM initiatives • Process Discovery and Project Coordination ‒ Support BPM project prioritization and scope ‒ Manage expectations and outcomes ‒ Optimize Time-to-Market for new BPM applications • BPM Methodology and Governance ‒ Provide Agile BPM as a consistent approach to BPM delivery ‒ Establish consistent BPM governance and reuse approach ‒ Manage/conduct Design Reviews ‒ Support for multiple styles of BPM e.g. CASE, STP, Content ‒ Support for key BPM capabilities e.g. Cloud, BAM, Social, Mobile
  13. 13. 1313 © 2014 IBM Corporation • Where Are You Going • Building the Perfect Beast • Beware of Falling Objects
  14. 14. 1414 © 2014 IBM Corporation BPM CoE Goals Vary By Organization  Support Demand Generation via BPM adoption  Support for Business Transformation programs  Enable enterprise BPM governance  Support Demand Fulfillment – Projects prioritization and completion (time/budget)  Provide a shared infrastructure for business  Support an approach which fosters re-use  Provide specialized skills/resources  Many options … up to you to decide …
  15. 15. 1515 © 2014 IBM Corporation Core BPM CoE Components  Charter/Mission  Organization and Executive Sponsorship  Relationships with organizations  Other CoEs, governance teams, etc.  Re-use of existing practices and models  BPM Governance Policy/Enforcement  Prioritization of projects  Taking business strategy into account  Includes understanding of technical risks  Communication Additional Considerations  Evangelism  Methodology and Open Standards  Reuse of assets such as style guides  Measurement – metrics, timers, KPIs  Open Standards e.g. CMIS, BPMN, BPEL  Consultancy  Accelerate BPM projects and adoption  Consistency across BPM domains  Currency  Keeping up with latest trends, product announcements, etc. The Anatomy of a BPM CoE
  16. 16. 1616 © 2014 IBM Corporation  Number of continuous improvement projects  ROA - % of asset (process) reuse  Baseline client satisfaction  % variance of budget and schedule  Number of processes captured  % of redundancy eliminated  % of manual work automated  Reduction of policy exceptions Mission  Act as central point for BPM work across enterprise  Set and govern end-to-end method policies and procedures  Support taskforces in cross divisional collaboration/convergence initiatives  Champion innovation which support BPM strategies  Manage BPM communication  Establish rules of engagement across lines of businesses and follow formalized engagement process including how to manage exceptions  Conduct periodic and ad-hoc project audits & status and monthly sponsor checkpoints  Follow formalized communication process  Conduct user group meetings  Track and manage approved initiatives in a pipeline and prioritize projects based on stakeholder priorities  Conduct annual budget plan Operating Principles Success Measurements  Support users, best practices, issues; validate models  Recognize BPM opportunities to inject into cross divisional collaboration/convergence efforts  Conduct education across the enterprise  Scope: enterprise-wide, cross-divisional collaboration efforts  BPM Project roadmap and dashboard  BPM Governance Methodology  BPM Development Methodology  Reusable BPM assets  SME Contacts, Reference Examples  Best Practice Solutions, Perform Guides / Project Workbooks  Custom Tools to Assist and Automate Services, Scope, Deliverables Critical First Step – Developing the BPM CoE Charter
  17. 17. 1717 © 2014 IBM Corporation CoE Staffing1 7 2. Plan, Prioritize & Evangelize 3. Build Leverage & Reuse 4. Deliver Solutions 5. Build & Manage Infrastructure Solution and Transformation Teams Solution B Solution C Platform / Infrastructure Team Solution A Steering Committee CoE Governance Discipline Authorities … • Expand and Scale • Manage and Tune • Implement Infrastructure • Monitor Usage • Senior Sponsorship • Set Direction • Enterprise Process Roadmap • Prioritize Opportunities • Manage Talent Plan • Standardize Designs • Identify Reuse Potential • Release Scoping and Definition • Build and Test • Deployment and Support • Establish Funding Model • Escalation Endpoint • Standardize Methods • Drive Consistent Metrics • Evangelize Process & BPM • Oversee Execution • Ensure Solution Robustness • Solution Risk Management • Communication & Training • Measurement & Optimization 1. Align Direction & Funding
  18. 18. 1818 © 2014 IBM Corporation Riyadh Bank CoE Organization From IBM IMPACT 2014 – April 2014
  19. 19. 1919 © 2014 IBM Corporation 1 to 3 Weeks Enabling An Agile BPM Methodology: Iterative Playbacks 8 to 10 Weeks 2 to 3 Weeks 1 to 2 Weeks Test Go Live Development Infrastructure Training/ Mentoring Definition How many playbacks … how frequently … what are criteria …. This will vary by organization and process --- but having a representative structure is the key – Often you will iterate over a given playback a number of times
  20. 20. 2020 © 2014 IBM Corporation Project Identification and Design Approach • A key focus of BPM CoEs should be in the BPM project selection/design • Organizations need an established approach for project identification and initial process design with key stakeholders • Process Discovery provides a foundation to drive requirements and increase the success of the BPM initiatives
  21. 21. 2121 © 2014 IBM Corporation Process Discovery Process Discovery enables “business stakeholders” direct involvement in BPM design – decreasing time-to-market through better requirement and process definition and increasing the quality and business acceptance of BPM solutions Process Discovery provides linkage to Lean Six Sigma Initiatives
  22. 22. 2222 © 2014 IBM Corporation 1. Understand the Current Environment 2. Define the CoE Mission and Vision 3. Define CoE Roles, Responsibilities and Mechanisms 9. Get Approval of Sponsor and Stakeholders 5. Identify CoE Mentoring and Educational Needs 4. Map Resources and Mechanisms to CoE Roles 8. Create Transition Plan 7. Define Education and Mentoring Plans 6. Identify CoE Processes Inputs  BPM Roadmap  Current Organization Assessment  Current IT Environment  Current Organization Description  Organization Design  Job Roles, Responsibilities, and Competencies Outputs  CoE Mission , Vision & Scope  CoE Operating Principles  CoE Transition Plan  CoE Job Roles, Responsibilities  Governance Operating Model  Governance Processes and Delegation hierarchy  Governance dispute resolution mechanism  CoE Organizational Design  CoE Education Plan  CoE Mentoring Plan  Demand management process  Decision criteria  CoE Metrics and Measurements Establishing a BPM Center of Excellence
  23. 23. 2323 © 2014 IBM Corporation Leading Practices for BPM Project Management • Design Reviews should be ongoing and provide consensus and steps for optimization • Executive Sponsorship is critical to success • Involve business stakeholders from the onset – collaboration/alignment is mandatory for success • Process discovery is critical – without a clear direction, success cannot be achieved • Define and document project scope to ensure alignment and expectation management • Practice “Agile BPM” e.g. “Blueprinting”, Process Discovery, “Playbacks”, Discovery Workshops
  24. 24. 2424 © 2014 IBM Corporation CoE Monitoring is Often Overlooked2 4 Resource Efficiency Reduce the gap between Business and IT Customer Satisfaction IT ability to respond to business quicker / more accurately IT to add value to solution Quality of Delivery Accuracy of Delivery Decision making confidence Strengthen relationship between IT and Business Operational Efficiency Alignment of Business Processes Reduction in time to market Increased business value Business confidence in solution /technology Accuracy of process and data Consistency of process and data Project development on track Strengthen relationship between IT and Business Reduction in hardware / software costs Increase in % of user education (Business, Developers, Administrators) Reduction in “bug fixes” Reduction in overall support calls Reduction in time to close calls # of project completed in less time / with less resources Reduction in development costs and cycle times Increased # of business assets Increased # of artifacts reused  CoEs are like BPM – you cannot manage it if you cannot measure it  What are the measurements of success to maintain Management support?  Key to define tangible/measurable metrics for CoE ROI and define in Charter Intangible Tangible
  25. 25. 2525 © 2014 IBM Corporation • Where Are You Going • Building the Perfect Beast • Beware of Falling Objects
  26. 26. 2626 © 2014 IBM Corporation Uniquevaluerealized 1 2 Identify a Project Extend Initial Project into a Program 3 Transform by Integrating Capabilities Across the Enterprise Process Transformation Continuous Process Improvement Across the Enterprise Simulate Process Models to Optimize Process Flow Value realized • Develop automated capabilities for processes and decisions • Leverage proven methodologies to implement process and/or decision automation • Scale on initial project success • Extend automation with greater integration across the enterprise • Further optimize decisions with situational context from business events • Provide detailed visibility into running processes with configurable dashboards • Identify opportunities to improve processes • Identify opportunities to improve decision making • Develop a roadmap for BPM transformation • Develop a roadmap for BRMS transformation • Identify skills, tools, and, standards gaps within the organization • Automate simple processes Discover & Document a Current Business Process Document Policies and Automate Decision Logic Monitor Process KPIs to Optimize Effectiveness Track Process Steps in Real Time Establish a Center of Excellence Build a Skills Development Program Consolidate Governance Activities Automate Manual Activity Flows Moving from BPM Project to BPM Adoption
  27. 27. 2727 © 2014 IBM Corporation Typical Barriers to BPM CoE Success2 7 People  Competing priorities, silos of activity  Lack of demonstrated ROI  Business demand exceeds IT supply  Pockets of expertise  IT becomes a bottleneck  Lack of time, budget, resources Data, Technology & Infrastructure  Perceived to be difficult to use, hard to learn  Response times do not meet expectations  Inconsistent meta data, data definitions, security  Silos of data, poor integration  Structured data vs unstructured data  Many different tools, expensive to support/license Process  Best practices not shared, accessible  Poor/inconsistent methodologies/standards  Lack of adequate skills  Projects not aligned with goals & strategy  Compliance issues, governance, risk Culture  Lack of senior management commitment  Communication gap between IT and LOB  Process ownership conflicts  Funding Model  Resistance to change  Lack of accountability & ownership for KPIs
  28. 28. 2828 © 2014 IBM Corporation Summary • Enterprise BPM requires an top-down organizational strategy • Key Guiding Principles for a CoE ‒ C-Level Commitment is critical ‒ Foster/mandate business/IT alignment ‒ Focus on requirements gathering and an Agile BPM Methodology ‒ Understand CoEs do not just happen ‒ Involve your key vendors – BPM, SOA, Database, Application etc • Steps for action ‒ Assess current state ‒ Determine “where you want to be” ‒ Define a plan for the CoE ‒ Execute the plan prudently ‒ Measure, evaluate and evolve • Work as a Team to achieve Success
  29. 29. 2929 © 2014 IBM Corporation Questions?
  30. 30. 3030 © 2014 IBM Corporation References • Evaluating BPM applications: BPM design reviews and Rubik's Cubes http://www.ibm.com/developerworks/bpm/bpmjournal/1302_col_simmons/1302_col_simmons.html • Synchronicity: An agile approach to business process management http://www.ibm.com/developerworks/websphere/bpmjournal/1202_col_simmons/1202_simmons.html • Successful BPM takes a true team-oriented approach http://www.ibm.com/developerworks/websphere/techjournal/1108_col_simmons/1108_col_simmons.html • SOA governance and the prevention of service-oriented anarchy http://www.ibm.com/developerworks/websphere/techjournal/0609_col_simmons/0609_col_simmons.html • Scaling BPM Adoption: From Project to Program with IBM Business Process Manager http://www.redbooks.ibm.com/abstracts/sg247973.html • Creating a BPM Center of Excellence http://www.redbooks.ibm.com/abstracts/redp4898.html?Open

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