Business Process Management 1 Developing The Skillset

Developing theDeveloping the BPM skill-set for long term successlong term successJanuary 2007

Steve TowersCEOTowers AssociatesTowers Associates

[email protected]

www.stevetowers.com 1

2

All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved

1976 On the inside

A little background…

INDUSTRIALENGINEERING

1976 On the inside..Inland RevenueBritish GasGatewayNationwide

SYSTEMSENGINEERING

NationwideCitigroup & CitibankBPM GroupTowers Associates

On the

OPERATIONSENGINEERING

On the outside..14 years55 companies

ENGINEERING

THOUGHT

Financial ServicesAirlinesPharmaTHOUGHT

ENGINEERING

2007

Pharma GovernmentUtility

www.stevetowers.com 3

In fact13 industries

37 countries

4 What are wehere for?

Our Successful Customer Outcome

today?today?

Provide you with new thinking andProvide you with new thinking and insights that will help you to

maximize the benefits provided bymaximize the benefits provided by Business Process Management

immediately– immediately, for now and forever


5

D l i Th N E lDeveloping The Necessary Employee Skills Needed To Sustain BPM Efforts

In The Long TermIn The Long Term

We all live under the same sky... ...but we don’t all have the same horizon.

(Konrad Adenauer)


6 Business Process Management

“Business Process Management (BPM) isBusiness Process Management (BPM) is a natural and holistic management

approach to operating business pp p gthat produces a highly efficient, agile, innovative and adaptive organizationinnovative, and adaptive organization

that far exceeds that achievable through traditional management approaches ”traditional management approaches.

Steve Towers & Terry Schurter


Evolution of Business Process thinkingbased on Research 2005-6 (800+ organizations)Evolution of Business

Process thinking

CUSTOMER EXPECTATION MANAGEMENT

ES

Process thinking

BUSINESS PROCESS MANAGEMENTO

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www.stevetowers.com 7INSIDE Focus OUTSIDE

F

8 It’s all about Performance

The single most compelling reason to The single most compelling reason to improve and manage the enterprise’s end-to-end business processes and end-to-end business processes and

technology is

i f to improve performance

and thereby create value and thereby create value

for customers and shareholders.


9An Observation

However…the challenge.

“The significant problems we face cannot be solved at the same level

of thinking we were at when we created them.”

Albert Einstein


10 How good is your Organization?

Some questions to think on:

l d h hHow aligned are you through your– Information SystemsInformation Systems–People–Processes and–Strategygy

To achieve a Successful Customer Outcome (everytime?)


Outcome (everytime?)

11

The Challengeg

The Current State

The Evolutionary Model

Pointers to the futurePointers to the future

Recommendations


12 Disruptive Pressures That are creating the Challenge

Customer Expectations

Globalization Globalization

Innovative new ways of doing business

A il th d t k f id hAgile methods to keep pace of rapid change

Compliance to regulations

Focus on process (rather than functional specializm)

Business needs greater control

Continuous productivity improvements


p y p

The pervasive nature of technology

13The Current State

Key Issues

Tension between ‘business’ and ‘technology’

Roles in a state of flux

Structures for delivery not effective

BPM still perceived ‘inside-out’– Rewardse a ds

– Outcomes


14The Evolutionary Model

Migration of roles

Development of discipline and professionalism

Combination approaches include people, processes, strategy and technology

Steady state is an illusion

Dynamic, agile structures mature


15 Business Process Owner Role

Business Process OwnerAuthority over organizational processesAuthority over organizational processesAuthority is senior and exceeds line rolesDotted line to "Chief Process Officer“

ProvideDirection

Responsibilities:Owns the process infrastructure

Articulate &Improve

ProcessesProcess

ManagementSet

ObjectivesinfrastructureEnsures compliance with process policies Defines process metrics that support

f bj iMeasure

Performancecorporate performance objectivesManages infrastructure for usersand stakeholders of the business processes.

Performance


p

Process Management is a journey, not a destination

16Pointers to the future

People policies (discussion in context of t f )recent performance)

– Zara

Vi i– Virgin

– South West airlines

Citi– Citigroup

Outside-In

Customer Expectation Management


17 Business Process ManagementCenter of Excellence (COE)

The CPO focuses on the human, organizational and value stream Board

BPM Center of Excellence

organizational and value stream aspects of business processes and their transformation:

Gaining consensus of internal gconstituents around new concepts

Identifying business performance and incentive metrics

Chief Process Officer (CPO)

Drafting organizational alignment requirements

Designing the organization's Change ManagementC di t

Mentor

Designing the organization s hierarchy of process for reusability

Leading the execution of building

Coordinator

Process KnowledgeManager


Leading the execution of building and sustaining a process-managed organization

Business ProcessAnalyst/architect

18 Business Process Management Center of Excellence

Charter:Alignment of processes to achieve SCO

DiscoveryDiscovery

ImproveImprove AnalyzeAnalyze

Alignment of processes to achieve SCO Maintain control and accountabilityDevelop Outside-In thinking and Praxis ImproveImprove AnalyzeAnalyze

DesignDesignControlControl

Optimize OperationsDeliver ComplianceProvide end-to-end visibility

ValidateValidateImplementImplement

DesignDesignControlControl

Services:Coaching and facilitating

Create sustainable agility

ValidateValidate

IntegrateIntegrate

ppTraining, education and professionalizationBest practicesBusiness case creation


Business case creationBusiness process architectures

19 Facilitating Roles Within the COE, Part 1

Change ManagementCoordinator

Mentor

Chief Process Officer (CPO) Business Process Analyst/Architect

E di i

Process Knowledge Manager


Mentor




Ensures co-ordination on process definitions, notations and next practice

Ensures Outside-In alignment and encourages next practice integration



Developing a consistent process rule and business

Developing process approaches that all business process (in or out) must adhere to

p

process, rule and business monitoring architecture

Mentoring process analysts

Acting as a liaison with the

Maintaining a reference of best practices and methodologies from (in and out) of the organization

C i bili h h Acting as a liaison with the information and systems teams

Providing a framework for process evolution

th 8 O h

Creating capability through development of professionally qualified coaches and practitioners


e.g. the 8 Omega approach

www.8Omega.com

20 Facilitating Roles Within the COE, Part 2

Mentor

Understanding process M t


Change Management Coordinator

Mentor


Understanding process disciplines and approaches being able to build a coalition and gain consensus among key


Mentor



Educating business professionals and process stakeholders around


Mentor



Facilitating workshops aimed at l d f

Working closely with process owner project manager

consensus among key process stakeholders

stakeholders around BPM disciplines

securing early adoption of BPM practices and process changes

Demonstrating techniques for uncovering hidden process

owner, project manager and business process analyst to craft process change objectives for workshops

uncovering hidden process capabilities

Growing internal skill-sets to ‘do this stuff ourselves’

Identifying enterprise level disconnects and through appropriate approaches e.g. DADVIICI create an SCO aligned


organization

21Recommendations

Understand that organizational structure and staffing are not "one size fits all"

Id if hi d k k h ld i Identify process ownership and key stakeholders prior to starting any BPM initiative

View implementation of BPM as a root and branch effort using proven approaches

Realize that no one group implements the BPM initiative

Understand there must be a visionary, and senior leadership Understand there must be a visionary, and senior leadership must share the vision

Demonstrate the closer you move process accountability to the coal face the greater the chance of successcoal face the greater the chance of successBPM requires you to rethink the organization:

– New disciplines

N i ti l t t


– New organizational structures

– New views of organizational processes

22 What are wehere for?

Our Successful Customer Outcome

today?today?

Provide you with new thinking andProvide you with new thinking and insights that will help you to

maximize the benefits provided bymaximize the benefits provided by Business Process Management

immediately– immediately, for now and forever


23 Find out more

Thank [email protected]


Join us at www.towersassociates.com to see how we are bridging the gap between IT and Business

Business Process Management 1 Developing The Skillset

Business

Transcript of Business Process Management 1 Developing The Skillset