This document discusses process maturity and improving an organization's processes. It provides an overview of a maturity model with five levels that guide an organization from inconsistent practices to continuous process innovation. The objectives and benefits of each maturity level are outlined, with the goals including establishing standardized processes, managing processes quantitatively, and ultimately enabling continuous improvement and achieving targets through process optimization.

1. Process Maturity
Assessing your readiness to
progress to the next level
Danie du Toit
Internal Business Improvement Consultant
Telkom SA LTD

2. Content / Agenda
 Background of current operating
model
 Successes & Frustrations
 Why do we need to change
 The new way
© Telkom 2012 | Process Maturity| 2

3. Our methodology
Our approach identifies different elements … and uses a holistic approach to find
causing poor performance… counter measures that eliminate these
factors end-to-end
Technical Solutions
Management Systems
Mindsets & Capabilities
Waste – Non Value added Technical solution – New processes,
systems and operating procedures
Variability – Inconsistencies in the way
work is performed Management systems – New ways
managing and measuring performance
Inflexibility – Reducing freedom to
respond to customer requests Mindsets & Capabilities – Working across
departmental silos, and empowering people
to solve problems
Source: Telkom BIO Methodology © Telkom 2012 | Process Maturity| 3

4. Current approach
3 – 6 Month Projects 1 – 6 Day Events
Create Flow
Value stream
mapping
Quick
Focus
hits
on
waste
Project Plan
Kaizen
5S
A3
Eliminate Variation
Process
Mapping Progress
Standardization
Six Sigma
Change Readiness Approach
Stakeholder Management
Change Management Change Management
© Telkom 2012 | Process Maturity| 4

5. Successes
• Improve end to end delivery time by 50%
• Improve on quality to Field Force by 80%
• Cost avoidance on unnecessary dispatches of technicians
equal to 5% of national Operations Budget
• Improve Debtors aging beyond 30 Days by 15%
• Reduce legacy outstanding Debtors by 20%
• Improve National Core Technicians productivity by 14%
Source: Telkom BIO Successes © Telkom 2012 | Process Maturity| 5

6. The frustration
• Bureaucracy hinder adoption
• Lack of sponsor involvement
• Little long-term sustainability
• Ownership
• Lack of Urgency (Currency of process improvement)
• Capability building on Continuous Improvement takes time and planning
© Telkom 2012 | Process Maturity| 6

7. Why do we need to do things differently?
• Are you frustrated and feel you are not moving forward as fast as you
need to?
• Is your organization ready for the challenges of a slower economy?
• Is your management asking you to control costs, avoid increasing staff
size, and ensure that you are adding value?
• Do you need to keep metrics that demonstrate, without a doubt, that you are
running a "tight ship"?
• At the same time, are you concerned about the quality of the work you
are delivering to customers?
Combining Process Maturity with Process Improvement Methodologies provides
you with the tools you need to advance your organization.
© Telkom 2012 | Process Maturity| 7

8. What is a maturity model
A maturity model is an evolutionary roadmap for implementing the vital
practices from one or more domains of organizational process. The five levels
of maturity guide and organization from poor defined and inconsistent
practices to finally continuous process innovation and optimization
Organizations with a mature mastery of their processes Innovation
Implement continual
Predictable proactive
Manage processes improvements to
Standardized and results achieve business
Develop standard quantitatively and targets
Managed processes, exploit benefits of
Build disciplined measures, and standardization
Maturity Level
Initial process, measures, training for product
Motivate people to and training for & service offerings
overcome problems products & service
offering Capable processes
and just “get the job
done” Perpetual innovation
Predictable results
Change management
Reuse / knowledge mgt.
Productivity growth Reduce variation
Effective automation
Reduce rework Economies of scale
Repeatable practices
Mistakes, bottlenecks
Satisfied schedules
Ad hoc methods
Hero worship Organizations with an immature mastery of their processes
Time
© Telkom 2012 | Process Maturity| 8

9. Understanding the model
In order to adopt model one need to understand the objectives of the different
levels, and also benefits per level
Level Objectives Benefits
Continuous proactive Achieve targets
(5) Optimizing Flatten Organization
improvement
Business agility
Manage process and Predictable results
(4) Predictable
performance quantitatively Real time corrections
Productivity growth
Establish standard end to end
(3) Standardized Effective automation
integrated process Platform for growth
Reduce rework
Create disciplined management within
(2) Managed Reduce overload
work units and stabilize work Stable local procedures
Motivate people to overcome problems and
(1) Initial Hero worship
just “get the job done”
Source: Overview of the BPMM “Bill Curtis” © Telkom 2012 | Process Maturity| 9

10. Different dimensions
Strategy
People
Process Controls
Alignment
Alignment
Process Technology Technology People
Many Organizations
David M Fisher
Organization &
Governance
Culture
Process Metrics &
Competencies Measures
Technology &
Methodologies
Architecture
Gartner BPM
© Telkom 2012 | Process Maturity| 10

11. Dimensions selected for appropriate model
Strategic understanding of the role, position
and focus for enterprise wide decision
making in support of overall company
objectives
Operating methods and The governance model for the
practices, including management, administration
policies and procedures, and evaluation of initiatives
Strategy with a strong focus on the
which determine the way
activities are performed appropriate metrics applied for
measurement
Process Controls
Alignment
Technology People
Enabling information The human resource environment,
systems, applications, including skills, organizational
tools and infrastructure Methodology culture, and organizational
structure
Methodology used to
influence the process
improvement initiative
© Telkom 2012 | Process Maturity| 11

12. Formulate a framework
ILLUSTRATIVE
Level 1 Level 2 Level 3 Level 4 Level 5
Siloed Tactical Integrated Process Driven Optimized Enterprise Intelligent Operating
(Initial) (Managed) (Standardize) (Predictable) Network
(Optimizing)
Strategy • Reactive to • Adapt/react to • Adapt to market • Adaptive to market • Predictive capabilities
Market conditions market dynamics dynamics within 3 – 6 dynamics within weeks and market leadership
within 1 - 2 years within 12 months months
Controls • Local and • Hierarchical • Formal process • Process teams • Inter-enterprise process
Functional Level management leadership establish responsible for overall teams own performance
authority / structures priorities performance
autonomy
Process • Static business • Limited process • Fully transitioned from • Total process • Total process integration
processes reengineering and functional to process integration across the across the ecosystem
cross functional focus, including enterprise
coordination management structures
People • Subject matter • Cross functional / • Process leaders define, • Lean organization • Partner selection
experts process team deploy, enhance, and focused on optimizing includes process &
members (lead by maintain core process definitions and culture attributes
IT) processes execution
Technology • Independent • Leverage ERP • IT supports process • Utilize BPM solutions • Utilize BPM solutions to
systems systems for cross leadership team in to automate process automate and monitor
functional initiatives execution, monitoring, process execution
integration and control across the throughout the
enterprise ecosystem
Methodology
© Telkom 2012 | Process Maturity| 12

13. Determining the gap
ILLUSTRATIVE
Level 1 Level 2 Level 3 Level 4 Level 5
Siloed Tactical Integrated Process Driven Optimized Enterprise Intelligent Operating
(Initial) (Managed) (Standardize) (Predictable) Network
(Optimizing)
Strategy • Reactive to • Adapt/react to • Adapt to market • Adaptive to market • Predictive capabilities
Market conditions market dynamics dynamics within 3 – 6 dynamics within weeks and market leadership
within 1 - 2 years within 12 months months
Controls • Local and • Hierarchical • Formal process • Process teams • Inter-enterprise process
Functional Level management leadership establish responsible for overall teams own performance
authority / structures priorities performance
autonomy
Process • Static business • Limited process • Fully transitioned from • Total process • Total process integration
processes reengineering and functional to process integration across the across the ecosystem
cross functional focus, including enterprise
coordination management structures
People • Subject matter • Cross functional / • Process leaders define, • Lean organization • Partner selection
experts process team deploy, enhance, and focused on optimizing includes process &
members (lead by maintain core process definitions and culture attributes
IT) processes execution
Technology • Independent • Leverage ERP • IT supports process • Utilize BPM solutions • Utilize BPM solutions to
systems systems for cross leadership team in to automate process automate and monitor
functional initiatives execution, monitoring, process execution
integration and control across the throughout the
enterprise ecosystem
Methodology
© Telkom 2012 | Process Maturity| 13

14. Focus areas to progress to level 3
ILLUSTRATIVE
• Adapt to market dynamics within 3 -6 months
Strategy
• Establish Organizational Process Management (OPM)
• Business process become foundational element of enterprise
• Projects driven by Business cases
Controls
• Process metrics tied to individual and team performance
• Transition from functional to process focus, including management
Process
structures, execution teams, and performance evaluation.
• Optimize critical processes
• Define process owners
People
• Introduce functional teams to focus process
optimization
Technology
• Cross functional systems integration
• Point to point partner integration
• Move from IT lead to IT support
Methodology
• Focus on KAIZEN Events
• Formalize a strategy to imbed a Continuous
Improvement culture
© Telkom 2012 | Process Maturity| 14

15. Structured approach ILLUSTRATIVE
• Adapt to market dynamics within 3 -6 months
Strategy
• Establish Organizational Process Management (OPM)
• Business process become foundational element of enterprise
Organizational Process Organizational Process
Management Goals Management Practices
SG1: Appraisal- SP1: Maintain Descriptions
Level 5 Strategy: Based of Process Needs
Level 4 OPM improvements are
Level 3 Incorporated SP2: Appraise Processes
Process
Standardize Process SG2: Process
Assets are Created SP3: Identify Process
Level 2 People
and Deployed Improvements
Level 1 Technology
SP4: Maintain Process Action
Maturity Methodology Plans
Levels InG: Practices are
Level 3
progress institutionalized SP5: Implement Process
areas Action Plans
InP1: Describe the process
SG: Specific Goal
InG: Institutionalization Goal InP2: Plan the work
SP: Specific Practice
InP: Institutionalization Practice InP3: Provide knowledge &
Skills
© Telkom 2012 | Process Maturity| 15

16. Institutionalizing practices ILLUSTRATIVE
“The practices for Organizational Process Management
are institutionalized”
Describe the
Process Control Performance &
Results
Organizational
Plan the work Process
Management Objectivity assure
Conformance
Provide knowledge
& Skills
Institutionalization Practices
Source: Business Process maturity Model
“B Curtis, CV Weber, T Gardner” © Telkom 2012 | Process Maturity| 16

17. Dramatic improvements with standards
“Based on Bill Curtis explorations of SEI (Software
Engineering Institute) certified and research”
Level 1
Benefit Level 2 Level 3 Level 4 Level 5
Baseline
Rework
40% 20% 10% 6% 3%
Estimating
+30% to 100% +/-10 to +/-20% +/- 5% +/- 3% +/- 1%
inaccuracy
Delivered
X 0.5 (X) 0.25 (X) 0.1 (X) 0.01 (X)
defects
Pre-test defect
≤ 30% 60% 80% 90+% 99%
detection
Productivity
X 1.5 (X) 2 (X) 3 – 4 (X) >4 (X)
Component
Negligible Negligible Occasional ≥30% ≥30%
reuse
© Telkom 2012 | Process Maturity| 17

18. In conclusion
Based on research it is evident that by combining Continuous
Improvement Methodologies / Strategies with Business Process
Maturity Models enhances you chances in being more successful to
become a continuous process innovation and optimization
organization.
I came to realization that the more I learn the less I know
© Telkom 2012 | Process Maturity| 18

19. Acknowledgements
 TeraQuets “Bill Curtis”
 BearingPoint “David M Fisher”
 BPTrends “Paul Harmon”
 McAfee “ Bill Curtis”
 Capability Measurement “ John Alden”
 Gartner “Janelle Hill”
 Stevens Institute of Technology “Danny Ho”
 Capability Measurement, LLC “ Dr. John W Alden”
 Business Process Maturity Model “Charles V
Weber, Bill Curtis, Tony Gardner”
© Telkom 2012 | Process Maturity| 19

20. Thank You!