BPM in theory

ir. Olivier Rikken MBAAmsterdam, the Netherlands

and practice

2 BPM in theory and practice, ir Olivier Rikken MBA

Curriculum vitae

» Delft University of Technology, Aeronautical Engineering and System Engineering, Policy Analysis and Management – Simulation of Logistics Systems

» MSC - Master Thesis at Heineken – Designing processes of continuous improvement –Integration of Simulation and Lean Six Sigma, ToC and TPM

» DailyFresh Logistics – Business Engineer – Process improvement and IT

» Atos Origin – Executive Business Consultant – responsible for BPM

» Nyenrode Business University / Kellogg School of Management, MBA

» MBA - Masterthesis – Design framework to dialogue the effect of strategy changes on processes/culture/organizational structure/IT portfolio

» GE – Artesia Bank – Manager Sourcing, Facilities, Project Bureau and Operational Excellence departments, further responsible for Business Continuity Management and Records Management

3 BPM in theory and practice, ir Olivier Rikken MBA

Process management in organizations: a natural contradiction?

4 BPM in theory and practice, ir Olivier Rikken MBA

BPM – various definitions

BPM in Practice: Effective and efficient daily management and execution and continuous improvement of a company’s processes

5 BPM in theory and practice, ir Olivier Rikken MBA

strategic

tactical

operational

BPM from visionto execution

Vision

Modeling

Design/Simulate

Execution

Monitoring

Analyze/Validation

Client interaction

6 BPM in theory and practice, ir Olivier Rikken MBA

End-2-end customer processes

strategic

tactical

operational

Bus. Unit Bus. Unit Bus. Unit Bus. Unit

client

?

partner

?

client

!

partner

!

+ +

BPM at work!

GTBR*

7 BPM in theory and practice, ir Olivier Rikken MBA

Process management

strategic

tactical

operational

BPM at work!

ProcessOwner

+ +

execute

monitor

GTBR*

client

?

client

!

8 BPM in theory and practice, ir Olivier Rikken MBA

Process standardization

strategic

tactical

operational

BPM at work!

execute

+ +

PI*

9 BPM in theory and practice, ir Olivier Rikken MBA

Process optimization

strategic

tactical

operational

BPM at work!

analyzedesign validate

execute

mod

elm

onitor

processleader

+ +

LEAN

PI*

customer

!

10 BPM in theory and practice, ir Olivier Rikken MBA

IT flexibility strategic

tactical

operational

BPM at work!

+ +

PA*

11 BPM in theory and practice, ir Olivier Rikken MBA

Compliance strategic

tactical

operational

BPM at work!

analyzem

onitor

government

compliancyreport

execute

+ +

12 BPM in theory and practice, ir Olivier Rikken MBA

strategic

tactical

operational

Vision

Corporate performance managementBPM at work!

analyzevalidate

BI

design

strategicKPI

CxO

customer

!

13 BPM in theory and practice, ir Olivier Rikken MBA

strategic

tactical

operational

Bus. Unit Bus. Unit Bus. Unit Bus. Unit

analyzedesign validate

execute

mod

elm

onitor

processleader

government

compliancereport

Processowner

BI

+ +

Putting it all together!BPM at work!

customer

?

partner

?

customer

!

partner

!

LEAN

Vision

CxO

strategicKPI

customer

!

14 BPM in theory and practice, ir Olivier Rikken MBA

Think Big,

Act Small,

Scale Quickly!!

Phases in BPM

15 BPM in theory and practice, ir Olivier Rikken MBA

BPM phases

GTBR* PI* PA*

BPM

Exist of:

Process Awareness

Process strategy/design

Process modeling and standardization

Process centricorganization

Process Monitoring

BPM/process training

Exist of:

Lean /

Six Sigma

Process Intelligence

Big Data analysis

Exist of:

Straight Through Processing

Business Rules engines

SOA architecture

Legacy system wrapping

Business Process Simulation

Work flow management

BPM in the Cloud

Blockchain technologies!* Get The Basics Right, Process Improvement, Process Automation

16 BPM in theory and practice, ir Olivier Rikken MBA

PI

PI

Magic quadrant BPM, optimal BPM growth line

Leve

l Pro

cess

Thi

nkin

g / M

atur

ity

Level of automation

GTBR

PA

Axes should be in sync, otherwise problems or missed out opportunities

Slow/difficult ERP implementations

Many applications, hard to integrate

Little flexibility

Efficient/flexible but paper pushing

Missed out opportunity

Low High

High

- 60% costs

17 BPM in theory and practice, ir Olivier Rikken MBA

How to embed BPM/ effectively in your organization?

Roles

Business Process Management & Competence Centre

18 BPM in theory and practice, ir Olivier Rikken MBA

Roles

» Process owner» Responsible day to day management of the process and

improvement proposals – has the total process overview, communicates with PL and LM

» Process leader» Ultimate accountable for the processes

» BPM professional (Lean Champions, LSS Black belts etc)» Various roles – Analyst, consultant, project manager

» Line management» Responsible for execution of the different parts of the process

» Client!» Never forget the customer! They pay what you do/produce!

Accountability

19 BPM in theory and practice, ir Olivier Rikken MBA

Proces 1

Proces 2

Proces 3

Organization (including roles)

BPC & MCProcess owners

& BPM professionals

Line management

Board

Div

isio

n 1

Div

isio

n 2

Div

isio

n 3

Div

isio

n 4

Process Leaders

Position of BPM & Competence Centre

20 BPM in theory and practice, ir Olivier Rikken MBA

How to manage (which) processes?

Process levels

Three level management steering and reporting cycle

What to monitor

How to make sure people follow the process

Change management

21 BPM in theory and practice, ir Olivier Rikken MBA

Process Levels

Chain processes

(Companyfinancials)

Business processes

(KPI’s)

Business sub-processes

(PPI’s)

Tasks

(Targets)

22 BPM in theory and practice, ir Olivier Rikken MBA

Management steering and reporting cycles

We can distinguish 3 management and reporting cycles:

» Operational steering - Day to day management cycle» Resposibility process owner, informs Line management» Daily management of the processes based on input of the process variables using Process Monitoring

/ Business Activity Monitoring (creating “traffic lights”)

» Tactical Steering (e.g. Weekly / monthly steering c ycle)» Responsibility process owner, » informs process leader and genera management» Monthly steering based on cumulative data (report). Can be used as input for rolling forecast (needs

daily/weekly update as well). Is used as “early warning system” for spotting (error) trends. Increases level of monitoring on certain processes as a result of this report.

» Can be used as input in Kaizens and or Six Sigma Projects

» Strategic Steering (Quarterly or more steering cycl e)» Responsibility process leader initiated by process owner (provides all information for decisions),

involve the client where you can!» Quarterly (or more) steering based on cumulative data. Overview top priority larger problems. Using

this information and an impact/possibility of realization study decision on which problem to tackle.» Can be used as input in Kaizens and or Six Sigma Projects.» Also this information can be used to make decision with regards to the product portfolio, what to keep

what to let go.

23 BPM in theory and practice, ir Olivier Rikken MBA

What to monitor

» If you monitor processes, you want to monitor the process flow

» “Extended” Little’s law I = C x T and Q» Inventory» Capacity/throughput» Time» Quality

24 BPM in theory and practice, ir Olivier Rikken MBA

How to steer individuals in usage of the processes

» Automate!

» If not possible, no workarounds – Put following the process in personal goals

» BUT PICK YOUR FIGHT to what extend you describe the process, be realistic, monitor processes at the right level

» Tacit, but in general – front office people related work, more high level process steering, back office, production related, into the lowest level

25 BPM in theory and practice, ir Olivier Rikken MBA

Change management

» Let them find the problems and solutions

» Best change is “secret”

» Bottom up, but be sure your backed top down!

» Go slow to go fast, think big, act small, scale quickly

You can contact me anytime if you have any question s or if you want to have a good conversation regarding BMP or FinTech!

Olivier Rikken MSc MBAm +31 (0)6 1139 4292o.k.rikken@gmail.com