Where BPM and Change Management Meet

Connecting Process Professionals

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Where BPM and Change Management meet

Paul Walsh | Oakton

8th September 2012

Agency Reform Consultancy -Where BPM met OCM

• BPM Link September 2012

www.oakton.com.au

Agenda

• Background• Oakton’s Brief • Discovery• Findings• Recommendations

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Background• Medium sized agency

– Almost 1300 staff– Responsible for budget >$4b (2010/11)

• Subject to numerous reviews the latest in April 2011• Independent Review had 39 recommendations• 38 of these accepted in Government’s response in July 2011.• This led to over 120 individual action items to be finalised by

30 June 2012!

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My first meeting at the Agency

From Independent Review (2011)

Recommendation 31: Corporate reform efforts within the Agency should be accelerated to promote a culture geared towards delivering results and enhancing productivity, especially by reducing staff turnover, streamlining business processes and reducing paperwork.

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Oakton’s Brief

The Terms of Reference (TOR) included:• Recommendations to improve business process reform

within the Agency , including current policy, guidelines and tools.

• Development of a business process framework covering the whole of the Agency

• A stocktake of Supporting (Enabling) processes and Management processes (with a “light touch” approach to core processes).

• Identification of five quick wins for streamlining processes.

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Business Process Management

Initiate AssessContinuous Improvement

Streamline

Planning

Stakeholder Engagement and Ownership

Process Modeling and Management

Organisational Change Impact

Learning and Development

Initial BPM analysis and definition documentation

Current state assessment documentation

Streamlined process documented and

implemented

Process measurements and controls

documentation

Control

Build BPMI leadership, understanding and

commitment

Understand all dimensions of the current

business processes

Improve efficiency, effectiveness and adaptability of the

business processes

Implement a framework to measure and control the

streamlined processes for ongoing improvement

Implement continuous improvement processes

Continuous improvement documentation

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Oakton’s BPM Framework

Business Process Development & Management Policy

Developed in 2006 following a review.— A vision

• This policy provides the context and rationale for the Agency’s new approach to the development and management of business processes and the creation of new quality control points which include testing, approval, release and reporting. It explains the key elements of the governance regime, and the reasons for the various components.

— Defined a minimum mandatory business processes• Common Business Processes

— Accessibility of business processes – Instructions, Policies, Guidelines, Tools

— Policy, business processes and knowledge sharing— Accountability for business processes— Effective and transparent management of business processes

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Multi-lateral agreements

Channels

Non-Gov Organisations

Grant schemes

Scholarships

Projects and tenders

Business Architecture

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3

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Strategic DriversPurpose

Strategic Goals

Portfolio

Strategies

Plan

Design Deliver

Monitor

ProgramLifecycle

Delivered Services

Business Transformation and Adaptability

People Finance Information Assets

Infra-structure Systems

BusinessPlanning

ResourcePlanning

FunctionsInvestmentFramework Processes Governance

Example of a high level business architecture

Policies

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External Stakeholders and Value Chain

Posts CommsChannels

Strategic themes – stakeholder feedback

Many of the strategic opportunities and issues raised by Senior Executive appeared to be symptomatic of rapid growth.


Planning – There is room to improve the planning process that links strategic goals with investment decisions

Proportionality – Current initiatives are aligning investment processes with program value and risk.

Enabling processes and systems – Are geared around old delivery modalities. System ownership is an issue. BPM is not strategically aligned.

Workforce skills – There is a requirement for more program management and delivery skills.

Program alignment – There is room to better align program planning and design with country strategies.

Governance – There is merit in developing and communicating an overarching governance framework.

Corporate knowledge and information –not as agile as it could be – this is partly about process, partly about corporate knowledge and management of information.

Business process maturity – An snapshotStrategic Alignment

Governance Methods Information Technology

Culture People

Process ImprovementPlan

Process management decision making

Process design & modelling

Process design & modelling

Process skills & expertise

Responsiveness to process change

Strategy & Process Capability Link

Process roles & responsibility

Process implementation & execution

Process implementation & execution

Process management knowledge

Process values & belief

Process Architecture

Process metrics & performance

Process control & measurement

Process control & measurement

Process education & learning

Process attitudes & behaviours

Process OutputMeasurement

Process management standards

Process improvement & innovation

Process improvement & innovation

Process collaboration & communication

Leadership attention to process

Process customers & stakeholder

Process management controls

Process project & program management

Process project & program management

Process management leader

Process management social networks


Adapted From Jeston & Nelis 2006 BPM: Practical Guidelines for Successful Implementations

In place

Partial or being developed

No evidence or only evident in one or two pockets


Process Stocktake

Level 1 process Confirm the description of the Level 1 process

Level 2 process Confirm what Level 2 processes are in scope of the Level 1 process

Process owner Who are the Level 1 and Level 2 owners?

Process health check What is the state of the current Level 2 processes? Effective, Could be improved, major issues

System What key systems support the Level 2 processes? This includes IT, excel spread sheets, access databases. If no system please state manual process.

Process guidelines Do any process guidelines exist, are they being used and where are they located?

Training What training, if any, is provided? How is this training delivered?

Why improve the process What are the main reasons why the process needs improving? E.g. Deliver benefits/ mitigate risks/ optimise costs.

Current/planned improvements What are the current or planned process improvements? Triggered by Effectiveness Review/ BP reform/ operational planning/ other.

Priority When are the desired improvements to be implemented? E.g. Quick win, mid-term, long-term.

Performance Metrics Are there any metrics? Eg volumes, staff resources, error rates, documented KPIs

The Findings

Recommendations to improve business process reform within the Agency , including current policy, guidelines and tools.

• Development of a business process framework covering the whole of the Agency




Key Finding TOR #1

The current business process reform policy is a good document, but it was set up before the Effectiveness Review, and now requires a new approach to implementation to meet the Agency’s needs. This includes:— A greater level of direction and control of business process reform.— A more centralised approach to the planning, sequencing and delivery of

process improvements (i.e. the process lifecycle), supported by a rebranded Rules & Tools.

— A collective approach to managing the impacts of the numerous changes on the Agency’s operations.

— This approach is consistent with other organisations going through major business change, and should see the Agency through this transformative stage.


The Findings


Development of a business process framework covering the whole of the Agency





2.0 Core Processes

Key Finding TOR #2

This framework can be refined over time and provides a top-down view of processes across the whole of the Agency. It supports the Agency’s ability to identify the value of each process, and any risks and gaps, with the view to selecting key processes for detailed analysis and redesign.


The Findings



A stocktake of Supporting (Enabling) processes and Management processes (with a “light touch” approach to core processes).• Identification of five quick wins for streamlining processes.



2.0 Core processes

Supporting (Enabling) Processes – Level 1 Overall Rating

Manage finance 3

Manage human resources 2

Manage systems and technology 3/4

Manage legal services 3

Manage property 3

Manage security Not rated

Manage engagement with Minister & Parliament 3/4

Manage communications and media 3


Key Finding TOR #3

• Management processes – The Agency recently implemented several management frameworks to support its business needs through to 2015-16. There are still challenges, particularly for business planning and information management. This is consistent with other Government organisations.

• Core processes – There is an emerging view of the Agency’s top level processes required through to 2015-16.

• Supporting (enabling) processes – Some processes are working well, however there are key challenges in regard to quality, efficient use of resources and better automation, particularly for some financial and human resource processes. This is consistent with other Government organisations.


The Findings



A stocktake of Supporting (Enabling) processes and Management processes (with a “light touch” approach to core processes).

Identification of five quick wins for streamlining processes.


Quick winsStakeholder consultations and review of various documents has revealed some common quick win themes:• Travel (note: under development, updated Travel Policy)

• Acquittals;• Movement requisitions;

• Contracts (note: under development)• Improve administration of small value agreements

• Delegations• Contracts• Procurement• Resource Allocations

• Procurement• Automate• Communicate process and the why• Proportionality Project impact

• Grants• Streamline process

• Resource allocations• Faster, clearer delineation of approvals• Salaries & conditions for O-based staff

• Strategic Planning• Link between business unit planning and departmental budget

• Corporate Governance • Unclear how the various committees interact and areas of responsibilities


Some points for consideration:

What are the “knock-on” effects of changing processes?

Are these really quick wins?

Or are they the first steps of strategic initiatives or systems investment?

What does quick win mean for the Agency?• Time• Cost• Resource effort.

Key Finding TOR #4

Transformative change in the Agency has generated, and will continue to generate, numerous business improvement initiatives.• The 2011/12 program of improvements will strengthen processes. Early

results in key processes should be communicated to staff.• The Agency has implemented several “quick wins” over the last six months

that will have a major, positive impact on staff.

However, the goal of business process improvement is not always about efficiency or less paper work. In assessing improvement opportunities in the future, the Agency should consider its objectives i.e. will process improvement lead to:• More effective programs• Better quality and timeliness of decisions and deliverables• Mitigation of risks around key investments


Recommendations Approach to Business Process Reform

The Agency should refine its BPD&M Policy and implementation approaches to meet business needs through to 2015-16.

Rules & Tools The Agency should align Rules & Tools to the updated BPD&M Policy

Change Management The Agency should develop a Change Charter and Schedule that establishes an

enterprise-view of changes, including timing and sequencing. Business Process Framework

The Agency should further develop and then apply and maintain the business process framework as part of its broader approach to business process reform.


Recommendations (cont’d)

Early Results from Improvements Implemented in 2011/12 The Agency should focus attention on achieving and communicating early

results on recent improvement initiatives relating to travel processes, procurement (small value contracts) and workforce planning.



Early Priorities (< 6 months) — The Agency should implement the following early priorities:

• Scope and plan process improvements and workflow automations across core HR processes. (This would lead to a mid-long term HR improvement project.)

• Communicate and apply the results of the training needs analysis to establish the baseline for further workforce development and recruitment activities.

• Develop a draft Change Charter and Schedule that provides a view of the impacts of key policy and process changes on operations.

• Reduce the duplication and customisation of Senior Executive Briefings through more consistent use of new standard guidelines and templates.

• Deliver staff training and better guidelines for internal budgeting and general accounting reporting processes.



Other Improvements (6-24 months)• The Agency should address the issues raised in Supporting (Enabling)

processes and Management processes (Rating 1 or 2) over the next 6-24 months.

• The Business Improvement Office (outlined in Recommendation 1) should work closely with process owners and the Program Management Office to scope and plan key processes for automation as part of the upgrade of key systems and financial/human resource systems.


BPM meets Change Management

—BPM is often used to assist in business transformation

—Change Management should be used to assist in business transformation

—In business transformation you need to do both!


Consulting Technology

Thank you and Q&A

Strategic partnersMicrosoftOracleSAPIBM

MelbourneSydneyCanberraBrisbaneHyderabad

23 years9 key industry sectors800 plus clients10,000 plus projects

What problem

do you want defined?

Thank you and Q&A

Strategic partnersMicrosoftOracleSAPIBM

MelbourneSydneyCanberraBrisbaneHyderabad

23 years9 key industry sectors800 plus clients10,000 plus projects

What problem

do you want defined?

www.oakton.com.au

Where BPM and Change Management Meet

Business

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