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A BPM Framework forKPI-Driven Performance Management.pptx
- 1. Business Breakthroughs Robert Osborne BusinessBreakthroughs Inc.
- 2. Business Breakthroughs • Overview ofthe Enterprise Business Model and the Governance Layer • Performance and Change Management as the Link Between Governance and Operations • KPIs – the Strategic Gap Measure for BPM • Performance Management – from Discovery to Assignment • Change Management – from Assignment to Resolution • Quick Hits vs the BPM Portfolio – How to Choose the Path • Success Factors for Management Adoption
- 3. Business Breakthroughs Identify theChanges ◦ Confirm Strategic Goals ◦ Establish Change Office ◦ Build Enterprise Business Process Architecture ◦ Choose KPIs – Cash, Employees, Customers, Suppliers ◦ Identify BPM & Change Projects Implement Changes through Projects ◦ Operate the Change Management Office Facilitate Communication Facilitate Change Projects Support BPM Project Teams Enable the teams to be successful ◦ Communicate Vision, Strategy and KPIs Maintain Progress ◦ Promote communication across the people at every level ◦ Monitor KPIs and close performance gaps ◦ Build teams and capabilities for change Identify Goals, Gaps And Projects Prioritize, Guide and Execute Change Monitor, Measure & Celebrate
- 4. Business Breakthroughs Complete Strategic Analysis andBuild Meta-Architecture Build Enterprise Business and Process Models Validate Architecture (Process, Function, KPI) Strategic Workshops & Prioritization KPI Model Strategic Initiatives, Gaps, and Quick Win Opportunities Change Project Portfolio Manage Change •Identity •Vision •Strategic Objectives •Existing documentation •Subject matter expert input •Value Reference Model (VRM) KPI Model Build KPI Model Input to Models Models
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- 6. Business Breakthroughs Product Mgmt Market Segment to Offering Lead Generation Offering to Opportunity Sales Opportunity toOrder Product & Service Delivery Order to Cash Post-Sale Services Cash to Satisfied Customer Provide & Manage Operational Finances Provide & Manage HR Provide & Manage Technology Services Company Governance Company Operations Plan Company Business Strategy Manage Company Performance Execute Company Operational Changes Market Mgmt Brand to Market Segments Manage Product and Service Relationship Manage Supply Chain Company Infrastructure Services Manage Ongoing Company Operations Manage Client Relationships Provide & Manage Infrastructure Ensure Compliance Define Standards of Operation Provide & Manage Transformation Services Product Development Offering Concept to Design Product Creation Design to Product / Service Manage Business Partner Relationships Key Performance Indicators Brand Mgmt Strategy to Brand Product Research Segments to Innovative Practices
- 7. Business Breakthroughs Product Mgmt Market Segment to Offering Lead Generation Offering to Opportunity Sales Opportunity toOrder Product & Service Delivery Order to Cash Post-Sale Services Cash to Satisfied Customer Provide & Manage Operational Finances Provide & Manage HR Provide & Manage Technology Services Company Governance Company Operations Plan Company Business Strategy Manage Company Performance Execute Company Operational Changes Market Mgmt Brand to Market Segments Manage Product and Service Relationship Manage Supply Chain Company Infrastructure Services Manage Ongoing Company Operations Manage Client Relationships Provide & Manage Infrastructure Ensure Compliance Define Standards of Operation Provide & Manage Transformation Services Product Development Offering Concept to Design Product Creation Design to Product / Service Manage Business Partner Relationships Key Performance Indicators Brand Mgmt Strategy to Brand Product Research Segments to Innovative Practices • KPIs are the “missing link” between strategies and operations • Using KPIs to identify and prioritize performance gaps makes sure you’re fixing the most important things first • The more immediate the feedback from operations to management via KPI reports and dashboards, the more agile the organization becomes • KPIs come in four classes: • Financial (Cash) • Service Delivery (Customers) • Supply Chain (Suppliers) • People (Employees) • Fewer is better!
- 8. Manage Performance Operationalperformance is reported via KPIs If there is a performance issue, the GM or Process Owner is informed The Performance Gap is confirmed and rapid analysis performed The Change Office team is available to help with the analysis and provide recommendations Based on priority, action is taken; The higher the urgency, the more immediate the action Ownership of the Performance Gap is assigned to individuals or projects The performance managers monitor the KPIs to determine if and when the corrective action is successful KPI Quality Performance Manager Change Program Manager Change Management Office GM Operations Enterprise Process Architect Prioritize Performance Gap GM Change Office Team Analyze Performance Gap Assign Performance Gap Ownership Process Owner
- 9. Manage Change ThePerformance Gap Owner reviews the issue and determines, with help from Operations, if this is a “Quick Fix” that can be handled by Ops. If so: ◦ Ops team is assembled, and a short project is conducted ◦ Solution is implemented and activated ◦ KPI is checked by the team and assessed If the Ops team determines it is outside their scope of competency or ownership, a Performance Gap Project is defined, and added to the Change Portfolio Portfolio is evaluated regularly or upon request by the Steering committee and Change Office Using KPIs and Strategic Targets, the committee prioritizes, funds and assigns resources to projects Active projects require teams, and the teams execute projects, implement the solutions and monitor KPI impacts Ops Fixit Teams Steering Committee Change Project Team Prioritize Proposed Solution Prioritize Project Portfolio Identify Potential Solutions Team Leader Ops Team Members Business Experts Activate Solution Across Group Execute Quick Fix Change Office Team Portfolio Project Champion Project Business Leader Project Team GM Execute Project
- 10. • Driven toresolving a specific problem or achieving a specific goal. • The solution can be identified quickly • Implementation authority exists on the team or can be confirmed within one or two business days • All the people required are immediately available • A short burst of activity & effort (can range in hours to few days) • Emphasis on action over extensive analysis • Initiative to resolve a more complex issue • Cross-department issue, where all the people required are not immediately available • May require IT/MIS participation • The required level of activity & effort is uncertain • More detailed analysis is needed to understand and completely identify the problem • Impacts multiple departments or multiple companies • Requires sponsorship or executive approval 10
- 11. Business Breakthroughs • This circleshows the risk of moving from Awareness to Action without Understanding the consequences and impact of those Actions • Equally there is a risk of failing to act quickly enough through too much analysis. Awareness Action Knowledge Understanding Awareness Action Knowledge Understanding • This circle represents the correct cycle of progression • When undertaking a new initiative, teams must worked round sequentially, beginning with Awareness • Ensures that the action is within the correct context Over-Reaction Analysis Paralysis Informed Action
- 12. Business Breakthroughs 12 12 Move on to Next Issue Improvement Lifecycle IdentifyGaps & Problems Design Solution Confirm Feasibility Make Changes Celebrate Success Measure KPI Results Make this the Standard Document Situation Monitor and Verify Change Start Here
- 13. Manage Change Manage Performance KPI Quality Performance Manager Change Program Manager Change Management OfficeGM Operations Ops Fixit Teams Steering Committee Enterprise Process Architect Prioritize Performance Gap BPM Project Team Prioritize Proposed Solution GM Prioritize Portfolio Change Office Team Analyze Performance Gap Identify Potential Solutions Team Leader Ops Team Members Business Experts Activate Solution Across Group Execute Quick Fix Change Office Team Portfolio BPM Proj Champion BPM Project Business Leader BPM Project Team Assign Performance Gap Ownership GM Process Owner Continuous Process Improvement Execute BPM Project
- 14. Business Breakthroughs Steering Committee Change Program Manager Change Office Manager Enterprise Process Architect Team Leader Project Team Business Experts ITLead Change Project Team Structure IT (MIS) Quality Performance Manager Portfolio Financial Controller Change Project Sponsor KPIs Drive Project Priorities for the Teams & Measure Success
- 15. Business Breakthroughs KPI Model Vision KPI Strategic KPIs Value ChainKPIs Strategies must contribute to Vision KPI Operational KPIs must contribute to Strategies Setup a KPI Dashboard team that is 100% committed to building the executive dashboards Implement the KPI model in one value chain at a time Start small, get some successes, prove that the entire cycle works Activity / Workflow Performance Metrics Task Performance Metrics
- 16. Business Breakthroughs Use KPIs tomaintain alignment throughout the organization The more current the KPI measure, the more agile the organization can be A formal and fulltime Change/BPM office is needed; Change/BPM is not a part-time job Dedicate team to build KPI Dashboards Define a clear process for how to react to KPI variations
- 17. Business Breakthroughs Robert Osborne BusinessBreakthroughs Inc.