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Architecture World 10
               Enterprise BPM
               Improve efficiency and customer service, increase revenue and reduce costs
               Conference Keynote



               Outside-In – The Key To Success In
                  The 21st Century: the what



Steve Towers
BP Group
Architecture World 10
               Enterprise BPM
               Improve efficiency and customer service, increase revenue and reduce costs
               Track Session



               Outside-In – The Key To Success In
                  The 21st Century: the how



Steve Towers
BP Group
“It’s true the
questions
Are the
same…

But this year
the answers
Are very
different”
www.stevetowers.com
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  www.successfuloutcomes.blogspot.com
Architecture World 10
                Enterprise BPM
                Improve efficiency and customer service, increase revenue and reduce costs
                Conference Keynote



Outside-In – The Key To Success In The 21st Century: the what


How to uncover significant opportunities for improving processes permanently:

• Four key ‘hands-on’ techniques that can be used and deployed immediately
• How shifting the focus to ‘outside-in’ can transform complex processes
• The means to redefine ANY process through the use of a proven, pragmatic method
• How processes can be harnessed for strategic long-term advantage
• How Performance Management can be linked to process to achieve successful outcomes
• The importance of the Business Process Professional in guiding your business to success
EBPM & EA Are Peas in the Same Pod. Growing each other to achieve Outside-In.



                                              Strategic
                                           Transformation
                  ENTERPRISE                                 ENTERPRISE
                                           Customer
        Process      BPM
                       Process             Orientation ARCHITECTURE
                                                                                 Architecture
       Maturity           Standards Process          Infrastructure
                                       Metrics                                     Metrics
                                                        Services
    Process           Process           ENTERPRISE                                        Systems
    Models           Ownership           BUSINESS                Software               Integration
            Process                   ARCHITECTURE               Standards
                              Process                                            Repository
           Analytics                                   Complexity
                        Tools & Techniques                                     Management
                                                      Management
                                            BPM
               Rewards &                                                         Information
                                         Technology          Service
             Remuneration                                                         Standards
                                                            Definitions
                         Organisation
                           Structure        Enterprise              Architecture
                                             Strategy                 Principles
We have inherited an industrial legacy in thought and
  action – what shape are you in?




CPP 12 India July 2010
Our organisations all look the same...


                                             CEO
                         Marketing   Sales   Customer   Operations   Finance
                                              Service




CPP 12 India July 2010
Processes wend and meander their way around these
  rigid structures...

                                             CEO
                         Marketing   Sales   Customer   Operations   Finance
                                              Service




CPP 12 India July 2010
And hey ho – we nearly forgot the customer!
  Now where do they go?

                                             CEO
                         Marketing   Sales   Customer   Operations   Finance
                                              Service




CPP 12 India July 2010
And things have become very complicated




       The typical car contains about 2,000
       components, 30,000 parts and 10 million
       lines of software code. (John Paul McDuffie, HBR June 2010)
CPP 12 India July 2010
MORE COMPLEX THAN A FIGHTER JET
Safety regulations and consumer demand for performance and convenience
Have led to an exponential spike in cars’ software complexity.

 100M AVERAGE
         LUXURY AUTO

 20M NAVIGATION SYSTEM IN 2009 S-MERCEDES-BENZ
 10M AVERAGE 2010 FORD AUTO                    LINES OF SOFTWARE
                                                                                     10M

                                               CODE IN FORD VEHICLES
 6.5M BOEING 787 DREAMLINER                    (MILLIONS)
                                                                       6M
 5.7M U.S. AIR FORCE F-35 JOINT STRIKE FIGHTER 2.4M
 1.7M            U.S. AIR FORCE F-22 RAPTOR JET
                                                  2005                      2009       2010
                                                         SOURCES IEEE: AUTOMOTIVE DESIGNLINE



CPP 12 India July 2010
Some
recent
observations
The red tape is
strangling
us….
It is not a pretty
picture

Clerical Officer
Child Support Agency
“Only 24% of a Probation Officers time is spent in face to face contact
with their subjects. The rest goes on form filling and reporting”
                           Harry Fletcher, National Association of Probation Officers
A third could be shaved
   off the annual £4.5bn
cost of quangos and NHS
management in England.

        Health secretary
        Andrew Lansley

   “More than 70% of
   nurses time is spent
 away from the patient”
Police bureaucracy is indeed
grotesque - at any one time, out of a
 command unit of about 350 officers,
  just 10 will be out policing, the rest
     behind desks recording data and
     form-filling - a colossal waste of
         resources that urgently needs
                               pruning.

But it is a symptom, not a cause, and
   palliatives such as 'civilianisation'
    (recruiting civilian pen-pushers to
      take the place of officers behind
                                 desks)
  or less intensive incident recording
are making the situation even worse.


                 Sir David Normington
                  UK Top Civil Servant
On the Down
 Inside-out
CPP 12 India July 2010
The biggest
enemy of
thinking is
complexity,
for that leads
to confusion.
Edward de Bono
On the Up with Outside-In




CPP 12 India July 2010
Apple sees things
                         differently

                         $25,000 a minute PROFIT




CPP 12 India July 2010
Tony Hsieh
Why should we bother?
    Because the answers
    are very different !




                            Inspiration:
                            Udayan Banerjee
                            CTO,
CPP 12 India July 2010
                            NIIT Technology (India)
And…
  “We can‟t solve
problems using the
   same kind of
 thinking we used
 when we created
      them”
This is a Copernican Moment




   Copernicus - 19 February 1473 – 24 May 1543
                                                 He died 467 years ago
A new perspective.. It‟s a seismic shift in focus



                                     The
                              Customer Experience
  Enquire about a   Navigate to the   Experiencing      Baggage       Enjoying the trip   Relaxing in the   Returning Home     Enjoying a
        trip            airport        hospitality   transportation                           hotel                          Coffee at Home




                                                 is the Process
Enterprise Business Process Management
                            A method of managing
                              an organisation by
                         understanding and delivering
                         Successful Customer Outcomes.
                         It is also referred to as „Outside-In‟
CPP 12 India July 2010
Four proven ways to move Outside-In
                   1.    Examine where your process
                         starts and finishes
                   2.    Understand and Apply Process
                         Diagnostics
                   3.    Articulate Successful Customer Outcomes
                   4.    Determine What Business You are in
CPP 12 India July 2010
Four proven ways to move Outside-In
                   1.    Examine where your process
                         starts and finishes
                   2.    Understand and Apply Process
                         Diagnostics
                   3.    Articulate Successful Customer Outcomes
                   4.    Determine What Business You are in
CPP 12 India July 2010
Understand &                       PROCESS       PROCESS       PROCESS
                         Create     DIAGNOSTICS   DIAGNOSTICS   DIAGNOSTICS                Develop
     Develop             Process                                               Perform               Manage
    Successful
                         Activity    Identify                    Identify        Risk       Action   Delivery
    Customer                        Moments of      Identify     Business     Assessment     Plan
    Outcomes               List
                                       Truth      Breakpoints     Rules




CPP 12 India July 2010
Where does your
                         process start and
                              finish?
CPP 12 India July 2010
Where does the process start and finish?




  Enquire about a   Navigate to the   Experiencing      Baggage       Enjoying the trip   Relaxing in the   Returning Home     Enjoying a
        trip            airport        hospitality   transportation                           hotel                          Coffee at Home




             Shifting our focus to the Customer Experience and improving that
             Through Moments of Truth, Breakpoints & Rules lets us
             FIX the Causes of Work and REMOVE the Points of Failure
Outside In– Successful Customer Outcomes
      Focus on Doing the Right Thing and Doing Things Right
Looking at the Process Outside-In
 Achieves dramatic internal benefits
 (typical 40-70%
 cost savings)
 and extends
 our value chain




                          Navigate to the   Experiencing      Baggage                                                                         Enjoying a Coffee
   Enquire about a trip       airport        hospitality   transportation   Flying the airplane   Enjoying the trip   Relaxing in the hotel        at Home

CPP 12 India July 2010
Check Out & ……..
                                                                       Gee..
                                                                Wouldn‟t it
                                                                  be great If
                                                              as I checkout
                                                             of the hotel…

    Enquire about a   Navigate to the   Experiencing      Baggage       Flying the                       Relaxing in the                    Enjoying a Coffee
          trip            airport        hospitality   transportation    airplane    Enjoying the trip       hotel         Returning Home        at Home




CPP 12 India July 2010
Why should we bother?
                                        Outside-In is winning in terms of Revenue,
                                        Profitability & Customer Service
                                                      $6.4 Bn First Quarter LOSS
                                                      $537 M First Quarter LOSS
    $34 M First Quarter PROFIT                         Apr. 23--United Airlines said Tuesday that it would eliminate 1,100 jobs
                                                       …..it would reduce capacity by shedding 30 airplanes, UAL shares
      Apr. 18--Southwest Airlines Co. said Thursday    plummeted 37 percent to $13.55
      it earned $34 million in the first quarter
      Southwest now plans to take delivery of 14      $80 M First Quarter LOSS
                                                       Houston-based Continental Airlines Inc.
      new Boeing 737-700 aircraft next year
                                                       reported Apr 17 that it lost $80 million




     58 Successive Quarters                           $4.1 Bn First Quarter LOSS
     of PROFIT
CPP 12 India July 2010
Four proven ways to move Outside-In
                   1.    Examine where your process
                         starts and finishes
                   2.    Understand and Apply Process
                         Diagnostics
                   3.    Articulate Successful Customer Outcomes
                   4.    Determine What Business You are in
CPP 12 India July 2010
www.cemmethod.com
                                  EXECUTE
                         REVIEW


            ASSESSMENT

DISCOVERY
Element         Always   Discretionary   Levels
                                                 Process Activity Map (PAM)                         Y        1-2-3-4
                                                 Process Diagnostics                                Y        1-2-3-4
  Twenty OI Quantifiable Elements (Levels 1-5)

                                                 Risk Assessment                        Y                    1-2-3-4
                                                 Action Plan                            Y                    1-2-3-4
                                                 Actions Taken                          Y                    1-2-3-4
                                                 POF Dependencies                       Y                    1-2-3-4
                                                 Points of Failure profile              Y                    1-2-3-4
                                                 Future State PAM                                   Y        1-2-3-4
                                                 Risk Impact Assessment                             Y        1-2-3-4
                                                 Validated Process Activity Map                     Y         2-3-4
                                                 SCO Mind Map                           Y                     2-3-4
                                                 Validated Process Diagnostics                      Y         2-3-4
                                                 Innovation Landscape                               Y         3-4
                                                 SCO Statement Metrics                  Y                     3-4
                                                 Process Performance Landscape                      Y         3-4
                                                 Performance Management Scorecard       Y                     4-5
                                                 OI Strategy Map                                    Y         4-5
                                                 IT Opportunities matrix                Y                     4-5
                                                 Individual Scorecard                   Y                     4-5
                                                 SCO Capabilities Overview                          Y         4-5

CPP 12 India July 2010
Performance. Agility & Quality are driven by...


                                                  MOT


                                                        BP
                                             BR
Can You Imagine How Different Things
Would Be?
MOT
MOT                  MOT         MOT   MOT
      MOT      MOT         MOT




Any interaction with the CUSTOMER
                is a
         MOMENT OF TRUTH
MOT
MOT                          MOT         MOT   MOT
          MOT          MOT         MOT




              And every
            MOMENT OF TRUTH
Ripples and reverberates through the organisation
MOT
MOT                                MOT         MOT   MOT
             MOT             MOT         MOT




                       And
                   MOMENTS OF TRUTH
      Create complexity, cost, wastefulness and failure
MOT
      THE CAUSE OF WORK
                     MOT
                                 MOT   MOT
                                             MOT

               MOT         MOT
        MOT




         THE EFFECT
It‟s all about Customer Experience and the
Moment of Truth. Remove or Improve!
                               Steve Jobs
Four proven ways to move Outside-In
                   1.    Examine where your process
                         starts and finishes
                   2.    Understand and Apply Process
                         Diagnostics
                   3.    Articulate Successful Customer Outcomes
                   4.    Determine What Business You are in
CPP 12 India July 2010
www.cemmethod.com
                                  EXECUTE

                         REVIEW


            ASSESSMENT

DISCOVERY
CPP 12 India July 2010
Stages in the approach



   Understand &                       PROCESS       PROCESS       PROCESS
                         Create     DIAGNOSTICS   DIAGNOSTICS   DIAGNOSTICS                Develop
     Develop             Process                                               Perform               Manage
    Successful
                         Activity    Identify                    Identify        Risk       Action   Delivery
    Customer                        Moments of      Identify     Business     Assessment     Plan
    Outcomes               List
                                       Truth      Breakpoints     Rules




CPP 12 India July 2010
Understand & Develop Successful Customer Outcomes
                                CRAFTING THE
                                SUCCESSFUL CUSTOMER OUTCOME
                                Understanding the real Customer Need                                           TOOLS




                           Layer 1:                                                                            Layer 4:
                           Who is the                                                                          How does what
                           Customer?                                                                           We do impact
                                                                                                               Customer
                                                                                                               Success?
                           Layer 2:
                           What is the
                           Customers current
                           Expectation?                                                                 Layer 5:
                                                                                                        The Successful
                                                                                                        Customer
                                                                                                        Outcome – what does
                           Layer 3: What is the process                  The One liner SCO:             the customer really
                           the customer thinks they are                  One line statement             need from us?
                           involved with?                                that explains the
                                                                         actual SCO

                         The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
                         process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
                         inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
Who said this? (Inspired SCO thinking)
                   “You can't always get
                     what you want
                     But if you try
                     sometimes you might
                     find
                     You get what you
                     need”

CPP 12 India July 2010
Applying for a University Grant
                                CRAFTING THE
                                SUCCESSFUL CUSTOMER OUTCOME
                                Understanding the real Customer Need                                           TOOLS




                           Layer 1:                                                                            Layer 4:
                           Who is the                                                                          How does what
                           Customer?                                                                           We do impact
                                                                                                               Customer
                                                                                                               Success?
                           Layer 2:
                           What is the
                           Customers current
                           Expectation?                                                                 Layer 5:
                                                                                                        The Successful
                                                                                                        Customer
                                                                                                        Outcome – what does
                           Layer 3: What is the process                  The One liner SCO:             the customer really
                           the customer thinks they are                  One line statement             need from us?
                           involved with?                                that explains the
                                                                         actual SCO

                         The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
                         process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
                         inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
The Successful Customer Outcome
 EDUCATION LOAN APPLICATION

 Who is My Customer?
                               Student
                                                       Who is my                How does what we do
 We must be careful here. What we are                  Customer?                impact Customer
     trying to do is identify the category                                      Success?
     of people who are likely to be our
     customer, and who we want to be
                                             What is the
     our customer.
                                             Customers current           SCO              The SCO - what
                                             expectation?
                                                                                          does the
 This could be “people wishing to take                                                    customer
       classes” or “people desiring an                                                    REALLY want
                                                     What is the process the              from us?
       education” but…                               customer thinks they are
                                                     involved with?



 “students” is a very good answer because
      it defines that group of people who
      are most likely to be consumers of
      the “financial aid process.”



CPP 12 India July 2010
The Successful Customer Outcome

                                   Student

                                                       Who is my                How does what we do
                                                       Customer?                impact Customer
            I must go through the                                               Success?
            financial aid process to
            get Aid                          What is the
                                             Customers current           SCO              The SCO - what
                                             expectation?
                                                                                          does the
            There will be problems,                                                       customer
                                                                                          REALLY want
            but I should eventually                  What is the process the              from us?
            get my financial aid                     customer thinks they are
                                                     involved with?




CPP 12 India July 2010
The Successful Customer Outcome                                                         EDUCATION LOAN APPLICATION


                                                                                         What is the process the Customer thinks
                                                                                             they are involved with?
                                            Student
                                                                                         Getting an education
                                                                Who is my
                                                                Customer?                Building a successful career
            I must go through the financial
            aid process to get Aid                                                       Earning a degree
                                                      What is the
                                                      Customers current           SCO
                                                      expectation?                       This is a major step beyond traditional process
                                                                                               management techniques.
            There will be problems, but I
            should eventually get my                          What is the process the
            financial aid                                     customer thinks they are        This part of SCO Mind Mapping
                                                              involved with?
                                                                                              moves us towards the “outside-in”
                                                                                              perspective where we can uncover
                 Getting an education                            Earning a degree             how the process really effects the
                                                                                              customer.
                                 Building a Successful
                                 career

CPP 12 India July 2010
The Successful Customer Outcome                                                                  Determine when a student
                                                                                                  can register

                                                                                                                 Determine if a student can graduate


                                            Student                                                                   Determine if a student can
                                                                                                                      afford the class
                                                                  Who is my                How does what we do
                                                                  Customer?                impact Customer
            I must go through the financial                                                Success?
            aid process to get Aid
                                                       What is the
                                                       Customers current            SCO
                                                       expectation?

            There will be problems, but I
            should eventually get my                            What is the process the
            financial aid                                       customer thinks they are
                                                                involved with?



                 Getting an education                              Earning a degree


                                 Building a Successful career




CPP 12 India July 2010
The Successful Customer Outcome                                                 Determine when a student can
                                                                                   THESE THINGS ARE MEASUREABLE
                                                                                 register

                                                                                   THESE THINGSa student can graduate
                                                                                         Determine if ARE PERSONAL
                                                                                   THESE THINGS ARE OUTSIDE-IN
                                  Student                                                           Determine if a student can afford
                                                                                                    the class
                                                       Who is my           How does what we
                                                       Customer?           do impact Customer
            I must go through the                                          Success?
            financial aid process to                                                                      I need to receive my financial
                                              What is the                                                 assistance
            get Aid
                                              Customers current
                                                                      SCO
                                                                                    The SCO -             I need to receive aid before the
                                              expectation?                          what does             semester starts
            There will be problems,                                                 the customer
            but I should eventually                  What is the process the        REALLY need           I need to attend the classes I have
                                                     customer thinks they are       from us?              chosen
            get my financial aid
                                                     involved with?
                                                                                                          I do not want to call to chase progress


                Getting an education                    Earning a degree                                  I need to receive the correct amount

                             Building a Successful
                                                                                                          I do not want to have to fix your
                             career                                                                       mistakes

CPP 12 India July 2010
Understand & Develop Successful Customer Outcomes
                                CRAFTING THE
                                SUCCESSFUL CUSTOMER OUTCOME
                                Understanding the real Customer Need                                           TOOLS




                           Layer 1:                                                                            Layer 4:
                           Who is the                                                                          How does what
                           Customer?                                                                           We do impact
                                                                                                               Customer
                                                                                                               Success?
                           Layer 2:
                           What is the
                           Customers current
                           Expectation?                                                                 Layer 5:
                                                                                                        The Successful
                                                                                                        Customer
                                                                                                        Outcome – what does
                           Layer 3: What is the process                  The One liner SCO:             the customer really
                           the customer thinks they are                  One line statement             need from us?
                           involved with?                                that explains the
                                                                         actual SCO

                         The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
                         process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
                         inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
Define the Successful Customer Outcome Map
                                CRAFTING THE
                                SUCCESSFUL CUSTOMER OUTCOME
                                Understanding the real Customer Need                                           TOOLS




                           Layer 1:                                                                            Layer 4:
                           Who is the                                                                          How does what
                           Customer?                                                                           We do impact
                                                                                                               Customer
                                                                                                               Success?
                           Layer 2:
                           What is the
                           Customers current
                           Expectation?                                                                 Layer 5:
                                                                                                        The Successful
                                                                                                        Customer
                                                                                                        Outcome – what does
                           Layer 3: What is the process                  The One line SCO:              the customer really
                           the customer thinks they are                  One line statement             need from us?
                           involved with?                                that explains the
                                                                         actual SCO

                         The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
                         process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy
                         inside-out thinking to create an actionable strategic and operational objective for the entire organisation.
CPP 12 India July 2010
CPP 12 India July 2010
Four proven ways to move Outside-In
                   1.    Examine where your process
                         starts and finishes
                   2.    Understand and Apply Process
                         Diagnostics
                   3.    Articulate Successful Customer Outcomes
                   4.    Determine What Business You are in
CPP 12 India July 2010
Understand the business you are in




CPP 12 India July 2010
What business are you in?

       Inside-Out
       Hallmark Cards                    Perspective Shift… what
       Gilead Sciences                    did the founders want
                                          from their business?
       BMW
       Southwest Airlines                       Outside-In… a new focus,
       Your company                              a complete vision


CPP 12 India July 2010
Process Performance
                                          Customer
   Landscape
      SUCCESSFUL CUSTOMER OUTCOMES
                                           SCO

      CUSTOMER OUTCOMES
                                     CO              CO

      OUTCOMES
                                Oc           Oc           Oc
      OUTPUTS


      ACTIVITIES


      TASKS



CPP 12 India July 2010
In Outside-In
 all work is
 aligned to
 achieving
 Successful
 Customer
 Outcomes
CPP 12 India July 2010
CPP 12 India July 2010
CPP 12 India July 2010
CPP Level           Objective                                                                                  Attainment                         Designation

              7                                                                                 Leadership                 Master                          CPP Champion

              6                                                                     Strategy                               Master                           CPP Master
              5                                                             Integrate                                      Master                               CPP 5
              4                                                  Perform                                                Professional                            CPP 4
              3                                      innovate                                                           Professional                            CPP 3
              2                            Align                                                                        Professional                            CPP 2
              1              Optimise                                                                                    Practitioner                          CPP 1
       CEMM Engineer                                                                                                      Engineer                           CEMM (E)

          Community                                                                                                     Business Process Professional pathway
           Everyone                                                                                                   Leading to the Certified Process Professional (CPP)
        Business Analyst                                                                                            Open and in-house formats on a global basis
       Process Managers                                                                                            Delivered through the BP Group Associate network.
         Technologists                                                      
                                                                                                                        For the latest programme visit www.bp2010.com
       Senior Managers                                                                    
            Leaders                                                                                    

         Certification                                                                                                                     Notes:
      InClass Assessment                                                                                                            One Day
             Testing                                                                                                                    Online – within 6 months of class
          Case Studies                                                                                                                  Two required – may be historic
        Client Interview                                                                                                                By agreement
          Peer Review                                                                                                                    By agreement
           Experience                                                                                                                 Proven qualification, time in post

            Ongoing                                                                                                                        Notes:
     Certification Renewal                                                                                                          Webinars, Approved Conferences, Projects
           Experience                                                                                                                 Proven qualification, time in post
CPP 12 India July 2010 Mayfair House, 14-18 Heddon Street, Mayfair, London W1B 4DA UK |
  © MMX BP Group The BP Group,                                                            The BP Group,10685-B Hazelhurst Dr. 8602, Houston, TX 77043 US
CPP 12 India July 2010
adeus Tack Takk Vielen Dank
      afscheid Bedankt Obrigado
    再見 작별 인사         Grazie
      tạm biệt              नमस्ते      Thank You
     Totsiens                Terima Kasih    Tak
    Bedankt                     Gracias       Kiitos
                         αντίο
    Auf Wiedersehen
CPP 12 India July 2010
                                     до свидания
Architecture World 10
               Enterprise BPM10
               Improve efficiency and customer service, increase revenue and reduce costs
               Conference Keynote



               Outside-In – The Key To Success In
                  The 21st Century: the what



Steve Towers
BP Group