BPM Center of Excellence

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A webinar that I presented on creating a BPM center of excellence. Replay available on BPMBasics.com as BPM 105.

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BPM Center of Excellence

  1. 1. BPM 105: BPM Centers of Excellence SANDY KEMSLEY Copyright © 2009 BPMbasics. All rights reserved. Copyright © 2009 BPMbasics. All rights reserved.
  2. 2. Agenda Economic drivers for BPM Why create a BPM CoE? What is the value of a CoE? How do you build a CoE? Case study example Copyright © 2009 BPMbasics. All rights reserved.
  3. 3. BPM Economic Drivers Economic conditions mandate operational efficiency and cost reduction “Gartner estimates the BPMS market. . .is one of the fastest-growing segments in Related compliance and risk software, and it is forecast to management scrutiny driving standards remain so during the next five and policies enforcement years. Many organizations are now focused on making BPM Satisfying customers on-demand, with a program, not just a agility to respond to competitive threats project.” and constant change -- Gartner: "Hype Cycle for Application Development, 2008", Visibility, transparency, governance & July, 2008 controls more important than ever Copyright © 2009 BPMbasics. All rights reserved.
  4. 4. More Urgency Now Than Ever “ "Particularly in light of today’s volatile economy, organizations are looking to trim the fat off their operations. In a receding market, process agility is an objective that organizations strive for. In order to leverage business opportunities with a short window of execution, an organization must be able to adapt its processes quickly and efficiently.“ BPM and Beyond: The Human Factor of Process Management, October 2008 Source: Aligning IT to Business Processes: How BPM is Complementing ERP and Custom Applications, Aberdeen Group, May 2007 Copyright © 2009 BPMbasics. All rights reserved.
  5. 5. Why Create A BPM CoE? Benefits and drivers for a Center of Excellence Copyright © 2009 BPMbasics. All rights reserved.
  6. 6. Expected Benefits of a CoE Knowledge transfer Synergies between BPM projects Shared code and components for increased reusability Results: – Faster deployments – Lower costs – Standardized, repeatable BPM projects Copyright © 2009 BPMbasics. All rights reserved.
  7. 7. Measuring the Impact Forrester survey, October 2007: – “What impact have BPM efforts had on your enterprise to date?” – “Did the BPM project deliver on your organization’s expectations or goals?” – “Has a team been created to provide BPM guidance?” – Source: “The EA View: BPM Has Become Mainstream”, Forrester Research Inc., February 19, 2009 Copyright © 2009 BPMbasics. All rights reserved.
  8. 8. CoE Correlates with Business Improvement Forrester survey results: – Of the companies experiencing clear, measurable improvement due to BPM, 49% have a CoE – Of the companies that have had no success with BPM, 4% have a CoE Copyright © 2009 BPMbasics. All rights reserved.
  9. 9. Forrester’s Summary “Clearly, while a BPM COE may not be a panacea for BPM success, having one in operation significantly increases the odds of BPM success.” Copyright © 2009 BPMbasics. All rights reserved.
  10. 10. CoE Correlates with BPM Success Forrester survey results: – Of the companies stating that BPM exceeded their goals significantly, 67% have a CoE – Of the companies stating that BPM failed to meet their goals, 14% have a CoE Copyright © 2009 BPMbasics. All rights reserved.
  11. 11. What Is The Value of a BPM CoE? Functions that the Center of Excellence provides Copyright © 2009 BPMbasics. All rights reserved.
  12. 12. Skills BPM knowledge and skills that are too rare to maintain in each project – BPM methodology – Process engineering – BPM tool usage Mentoring and project- specific advice Training and skills transfer to project Copyright © 2009 BPMbasics. All rights reserved.
  13. 13. Governance Creating common BPM principles and methodologies Ensuring that principles and methodologies are used Copyright © 2009 BPMbasics. All rights reserved.
  14. 14. Repository BPM training materials – Process specialists on projects – Process participants Best practices and techniques Common code/components Shared (sub)processes Copyright © 2009 BPMbasics. All rights reserved.
  15. 15. Community Shared ideas and problem-solving Better view of end-to-end processes across enterprise Potential to combine common processes Promoting shift from departmental to enterprise scale projects Copyright © 2009 BPMbasics. All rights reserved.
  16. 16. How Do You Build a BPM CoE? Center of Excellence roles and models Copyright © 2009 BPMbasics. All rights reserved.
  17. 17. Basics of Creating a CoE Executive sponsorship and involvement Establish a BPM methodology independent of technology – Terms and definitions – Standards – Best practices – SOA alignment Co-locate the expertise and define roles and responsibilities – Business and technical – Practical and visionary Copyright © 2009 BPMbasics. All rights reserved.
  18. 18. Roles Chief Process Officer or process czar Steering committee Project manager Enterprise architect Business process analyst/process architect BPM developer Process modeler User Acceptance Testing (UAT) and Quality Assurance (QA) BPM software administrator Copyright © 2009 BPMbasics. All rights reserved.
  19. 19. Skills Process architecture expertise Platform management Education and training Best practices development Technical patterns development Vendor product expertise BPM industry and standards expertise Implementation methodology Process registry and repository Copyright © 2009 BPMbasics. All rights reserved.
  20. 20. Case Study The “Accidental” BPM CoE Copyright © 2009 BPMbasics. All rights reserved.
  21. 21. Investment Management Company $49B assets under management, 1 million investors Business Challenges: BPM Solution: Streamline Credit Fulfillment Increased control over and Credit Servicing human-centric, mission- processes critical processes Support continuous Incoming documents trigger improvement loan origination process, Risk management using OCR to auto-index and Provide firm foundation for route business growth Conversion of 650,000+ Improve compliance documents from legacy system Improved risk management and compliance practices Copyright © 2009 BPMbasics. All rights reserved.
  22. 22. No “Formal” Institution of a CoE, But… After initial deployment, key players continued to monitor success, optimize and look for expansion opportunities Lead: owner responsible for BPM strategic direction From the business: – Business process designers – Release project manager – QA lead From IT: – Solution architect – System administrator – Lead developer Copyright © 2009 BPMbasics. All rights reserved.
  23. 23. Informal CoE Drove New BPM Initiatives Prioritize feature requests End user training/communication Release management framework Process application best practices Social networking to facilitate adoption Knowledge base Knowledge transfer sessions Copyright © 2009 BPMbasics. All rights reserved.
  24. 24. Business Value Created by CoE Bridge communication gap between conflicting business and IT groups Improved efficiency in BPM development and release Copyright © 2009 BPMbasics. All rights reserved.
  25. 25. Models for a CoE Small “accidental” CoE Large internal build Virtual CoE with external portions on vendor or independent site Copyright © 2009 BPMbasics. All rights reserved.
  26. 26. Summary and Key Takeaways Benefits and drivers for a BPM CoE CoE functions CoE roles and skills Case study: grassroots CoE Copyright © 2009 BPMbasics. All rights reserved.
  27. 27. Thank You BPM Basics is your online resource center for BPM. www.BPMbasics.com info@bpmbasics.com Appian is a global innovator in business process management software suites. www.appian.com info@appian.com 27 Copyright © 2009 BPMbasics. All rights reserved.

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