My vision on BPM - Olivier Rikken
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Transcript of My vision on BPM - Olivier Rikken
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 [email protected]