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Business Process Management Practical Advice & Methodology - Climbing Your First Steps on the BPM Maturity Ladder
Tom Einar Nyberg
Head of BPM
Managing Consultant - Capgemini Norway
ten@capgemini.com
2013
2 Copyright © 2009 Capgemini. All rights reserved.
Contents
Business Process Management The strategic objectives and process services that delivers them
Process mapping and documentation Communicating effectively and laying the foundation
Process analysis and improvement Analysing and improving processes to make them more effective and effecient
Process performance measurement Measuring performance against targeted levels
Processs governance and continuous improvement Aligning peformance with strategic priorities and taking actions for improvement
3 Copyright © 2009 Capgemini. All rights reserved.
Firstly - the purpose of BPM is to help you achieve your goals typically
related to four main strategic areas – ”the four Cs”
Cost and
effectiveness
Compliance Change
Customer
experience
Manage
Critical Business
Processes
4 Copyright © 2009 Capgemini. All rights reserved.
Performance
measurement
Governance and
continous improvement
Critical processes must be treated as assets in the organisation –they
need to be managed in order to contribute to deliver strategic results
Label
Mapping and
documentation
Analysis and
improvement
Manage
Critical
Processes
Plan
Do Check
Act
5 Copyright © 2009 Capgemini. All rights reserved.
The BPM services that the organisation must deliver are necessary to
manage the critical processes in a structured way
Governance and
continuous
improvement
Performance
measurement
Analysis and
improvement
Mapping and
documentation
Element Overview Methdology
Making BPM a part of
Corporate Performance
Management
Connect strategi target
achievement and governance
process with execution of
process improvment initiatives
Eliminate existing
performance problems and
”pains”
Redesigned processes to
make them more effective
and effecient
Implement process
improvement
Monitor and analyse
performance results from
processes – integrate this into
an integrated system for
performance management
From ”Chaos-to-controll”
Effective process
communication and training
Foundation for doing further
process improvement
Goal
Aligning strategic goals
and initiatives with
operational performance
improvement.
Making strategic targets
parts of organisational
processes
Analyse existing
performmance problems
Redesign processes in
order to close gaps in
performance
Support implementation
of redesigned processes
Setting up a proactive
system of monitoring and
analysing performance
gaps and target results
from processes
Facilitate process
workshops and modell
process documentation
Identify quick-wins and
improvement targets
Governance and maturity
model
Balanced Scorecarding
Management system
BPM Center of
Excellence
LEAN design and
business analysis
Industry reference
models and best
practises
Functional process
change mgmt support
Six Sigma statistical
process control
KPI/PPI breakdown
Performance
benchmarking
Systematic improvement
regime
Fascilitation techniques
Communication format
Modelling tools
(ARIS/QLM/VISIO/PPT)
Modelling notations
(BPMN/IDEF0/EPC)
6 Copyright © 2009 Capgemini. All rights reserved.
Contents
Business Process Management The strategic objectives and process services that delivers them
Process mapping and documentation Communicating effectively and laying the foundation
Process analysis and improvement Analysing and improving processes to make them more effective and efficient
Process performance measurement Measuring performance against targeted levels
Processs governance and continuous improvement Aligning peformance with strategic priorities and taking actions for improvement
7 Copyright © 2009 Capgemini. All rights reserved.
Documenting business processes – its about COMMUNICATION:
The right LEVEL & FORMAT for the right AUDIENCE at the right TIME
Business Process Modelling
The documentation and modelling of business processes is essential in order to support the BPM lifecycle
Modelling is always done to achieve a goal – and has a specific purpose. It needs to be governened by business priorities
A typical problem is ”forcing” the agenda for process modelling – that deliveres little value
Process documentation should be SICC: Simple, Intuitive, & Communicate Clearly
Modell with caution: One can always modell too much, adjust the method to achieve your objective.
Standard format: A process modell is NOT ART – it needs to be understood equally by anyone in the organisation,
Level Type
Process description
Short description of
the process
Required – needed
for all processes-
Simple
activity overview
Overview of activities
& description
Can be used in
order to provide an
overview of activities
Activity flow and
procedures
Detailed activity flow
and descriptions
Used only where
required to describe
detailed execution
and guidance for
activities
Level Type
8 Copyright © 2009 Capgemini. All rights reserved.
The different types of processes and models are linked together in a
hierarchy to make it easey to find process related information
Nivå Modelltype Objekter representert i modell
Level 0
Value chai
diagram
Value chain,
phases and streams
Level 1
Process
landscape
Value chain
Megaprocess
(Manage, Core, Support)
Level 2
Process
overview
Level 3
Process
workflow
Goals
Activities
Resources
Roles
Risk
Level 4
Procedures Activities
and instructions
Sales
Create
sales
order
Mega-process
Main-process
Sub-process
Conduct
sales meeting
Delivery
Nivå Modelltype Type symboler og objekter
9 Copyright © 2009 Capgemini. All rights reserved.
Process modelling and tool support: It is important to find ”the right tool for the right job
”Drawing” tools
Example: Microsoft VISIO, Powerpoint
Benefits
Purchase cost is low
Existing user familiarity
”Freedoms” of drawing
Drawbacks
Information usage: No common modelling conventions, industry references or standards
Maintenance: No common repository, process hiearki, navigation structure, task relationships,
No support for analyis, simulation, governance, monitoring, reporting
No effective publishing solution,
Dedicated modelling tools based on a common repository are best suited to support the organisations in long term/enterprise adoption of BPM practices.
Modelling tools
Example: ARIS, Mega, Metastorm
Benefits
Information usage: Common modelling repository, process hierarki, object relationships
Supporting business analyis, model comparison, reporting based on process repository
Maintenance: Easy to update information, approve and publish updates
Established modelling conventions, standards, filter and automatic templates
Drawbacks
License costs of tool
Training to achieve familiarity by users
10 Copyright © 2009 Capgemini. All rights reserved.
Contents
Business Process Management The strategic objectives and process services that delivers them
Process mapping and documentation Communicating effectively and laying the foundation
Process analysis and improvement Analysing and improving processes to make them more effective and efficient
Process performance measurement Measuring performance against targeted levels
Processs governance and continuous improvement Aligning peformance with strategic priorities and taking actions for improvement
11 Copyright © 2009 Capgemini. All rights reserved.
Documenting and analysing processes lays the groundwork for further
process improvement
Migration and
deployment actions
GAP analysis between
As-Is and To-Be
Design implementation
plan, including training
and communication
Establish framework,
responsibility and
procedures for
measurement, follow-up
and continous
improvement
Process analysis and
improvement
Determine new
performance
requirements
Design To-Be
processes
Analysis of processes
and improvement
(Lean, SixSigma etc.
Define KPIs and
metrics
Status, capability and
maturity
Determine need for
process work and
backgroun, root-cause,
context, expectations,
performance gaps,
goals
Collect and validate
existing documentation
Identify reference-
models and best-
practise
Initial recommendations
Process mapping
Understand and
document As-Is
processes
Identify missing
information, deficiency
and improvement
opportunities
Identify roles and
responsibilities across
functions and units
Map IT systems and
applications
12 Copyright © 2009 Capgemini. All rights reserved.
The methodology for process improvement will depend on the current
performance and the degree of improvement required
Limited Radical Degree of performance improvement required
Incremental process improvement
Implement changes within the
context of existing business
processes
Defined as part of a proactive
program of continuous incremental
improvement
Often oriented towards solving
performance issues or quality
defects
Metaphor: Fixing a leaking roof
Business process redesign
Larger impact redesign of business
processes
Influences how business and
management processes, new
working procedures and
governance/responsibility/roles
Major improvement targets through
changing existing practises and
execution model
Metaphor: Putting down a new roof
Business process reengineering
Re-engineering is a radical
restructuring of business processes
from scratch – often involves a
change in the entire operational
business model
Design typically breaches with
current thinking and status
Radical changes in process
execution – often leads to
organisational restructuring
Metaphor: Building a new house
13 Copyright © 2009 Capgemini. All rights reserved.
Often missed during process analysis: to manage and execute
processes on target they need to have governance and support in place
Core process
Goal and target
Organization
Infrastructure
Competence
Policy and guidelines
Technology
Governing-
elements
Enablers
Management processes provde governing elements in order
to set targets and requirements for
execution
Support processes deliver
critical enablers in order to execute
processes
14 Copyright © 2009 Capgemini. All rights reserved.
Contents
Business Process Management The strategic objectives and process services that delivers them
Process mapping and documentation Communicating effectively and laying the foundation
Process analysis and improvement Analysing and improving processes to make them more effective and efficient
Process performance measurement Measuring performance against targeted levels
Processs governance and continuous improvement Aligning peformance with strategic priorities and taking actions for improvement
15 Copyright © 2009 Capgemini. All rights reserved.
Performance measurement needs to be considered in an cross-
functional context that drives enterprise performance Typically – each department will initate improvement without considering the complete picture
Manufacturing department view Sales department view
Problem: Drop in customer satisfactions
Desired results
Order cycle time of 1 day
Current results
Order cycle time of 9 days
Order fulfillment process
Problem: Inaccurate & late order forms
Desired reesults:
Zero incomplete order forms
100% acccurate order forms
Orders submitted daily
Current results
Between 1-10 incomplet order forms
83% accurate orders
Orders submitted weekly
Problem: Loss of market share
Desired results
Market share of 80%+
Current results
Market share of 66%
Marketing department view
Sales director Head of of Supply Chain Vice President of Marketing
It’s a problem with
the order cycle
variation – I am
starting a SixSigma
initiative
There is a marketing
problem – I am going
to hire som
consultants
Activity level
Process level
Enterprise level
It’s a problem with
the order forms – I
am going to create a
new IT system
Adopted from Gaery Rumler -
16 Copyright © 2009 Capgemini. All rights reserved.
Process Performance Management
Performance gaps have to been in context with strategic importance
Performance data for processes must be seen in the context of delivering on strategic goals, KPIs and operational execution
The strategic impact rates how important the outcome of the process is in relation to strategic operationalisation
The process performance gap in delivering business outcome rates how effective the process is in delivering its product and services – its ”hit-rate” for customer needs
Process effeciency relates to the amount of resources consumed to deliver this outcome.
The strategic impact and outcome gap needs to evaluated together in order to priortise processes for business process improvement
The priority will determine which processes will receive support and allocated resources, time, and money
Evaluation of process performance
Str
ateg
ic Im
pac
t
Business outcome gap Low High
Lo
w
Hig
h
Process Performance Evaluation
Target quadrant
P1 P2
P3
P4 P1
P2
P3
P4
Performance - Process 1
Performance - Process 4
Performance - Process 3
Performance - Process 1
P5
P5 Performance - Process 5
17 Copyright © 2009 Capgemini. All rights reserved.
Contents
Business Process Management The strategic objectives and process services that delivers them
Process mapping and documentation Communicating effectively and laying the foundation
Process analysis and improvement Analysing and improving processes to make them more effective and efficient
Process performance measurement Measuring performance against targeted levels
Processs governance and continuous improvement Aligning performance with strategic priorities and taking actions for improvement
18 Copyright © 2009 Capgemini. All rights reserved.
Typical benefits with initial increase in process maturity:
Clear control, accountability and responsibility through process
Describe key activities as processes and
reduce the amount of written procedures
Ensure compliance with laws, regulations and other goals
and requirements through their relations with processes
Connect deliverables, risk, reliability, safety and targets to
processes – enable further process improvement,
standardization and follow-up
Clarify the employees responsibility, roles and activities
through their relationship with the process
19 Copyright © 2009 Capgemini. All rights reserved.
As BPM maturity increases in the organisation the processes are
consistently managed and improved in order to drive business value
Source: Modenhetsmodell - OCEB
Strengthen
control
Standardise
execution
Systematic
performance
improvement
Best-in-class
reference
Level1: Initial
Processes are executed inconsistently and sometimes ad-hoc
The organisationdoes not offer stable support for the processes
Services often function – but they og beyond the planned time and budget
Tendency to promice more that the organisation can deliver – and deviates from process during crisis
Level 2: Managed
Processes are defined, understood and described in standards, procedures and tools
Execution of processes have different controls across locations
Process adherence is controlled on an ad-hoc basis and information rarely shared
Level 3: Defined
Best-practises processes are actively used as sources of
learning to standardise processes across locations
Initial use of measurement and control to ensure that
deliverable requirement are being met
Nivå 4: Managed
Process performance is measured proactively - .
target achievement is analysed and controlled
Standard processes are extensively used
across locations and benchmarked with external
sources
Level 5: Optimised
Proactive and continuous
improvement provides
innovative solutions to
achieve strategic targets
20 Copyright © 2009 Capgemini. All rights reserved.
Business management
MANAGEMENT SYSTEM
SUPPORT DECISION MAKING AND
MAKE THE NECESSARY INFORMATION
AVAILABLE IN ORDER TO EFFECTIVELY
MANAGE THE BUSINES
- SUPPORTED BY EFFECTIVE TECHNOLOGY
Effective business management and governance requires both a clear
strategy, organization, processes and a management system
STRATEGY
IDENTIFY, PRIORITISE AND
DIRECT TOWARDS STRATEGIC
AND TACTICAL GOALS
ORGANISATION
GOVERNANCE MODEL WITH
ORGANISATION, ROLES,
AUTHORITY & RESPONSIBILITY
PROCESSES
HOW TO OPERATIONALLY
EXECUTE WORK TASKS IN
ORDER TO ACHIEVE GOALS
supports
Strategikart,
KPI
og målekort
StrategiBI verktøy
Dokumenter
(statisk innhold)
DMS verktøy
Prosess-
modeller
Modellerings-
verktøy
Håndering av
avvik
Verktøy for
avvikshåndtering
Operasjonelle
styrekort
Portal/BI/
Prosess
Process
performance
Operasjonelt
BI verktøy
Felles
inngangsportal
og søk
MinSide
INFORMATION
GOALS
PERFORMANCE
ORG. STRUCTURE
PROCESSES
REQUIRMENTS
INCIDENTS AND ACTIONS
DOCUMENTATION
BUSINESS MANAGEMENT
NEXT LEVEL MATURITY
21 Copyright © 2009 Capgemini. All rights reserved.
BPM takes the strategic objectives and priorities and translates this to
actual execution of the necessary business process improvement
Linking CPM – BPM – BPI
Corporate Performance Management (CPM) utilises BPM as a way of managing overall valuebased organizational performance
The BPM discipline is a ”tool box” and represents a wide set of methods and techniques. The goal is continous process improvment of processes
BPM is a gradual continous approach to improvement, where Business Process Reingeneering was a drastic reorganization and one-time redesign
Six Sigma, ToC and Lean are focused techniques for Business Process Improvments (BPI) and can be used within the BPM process lifecycle to focus on improving specific processes
Corporate
Performance
Management
Business
Process
Management
Business
Process
Improvement
From strategy to operational execution
In order to have an effective BPM focus and priority – the organisational strategy must be clearly defined and related to concrete business outcomes for customers
Linking CPM to BPM can be done by clarifying strategic goals – a good way is by using a Balanced Scorecard and linking strategic improvevement initiatives to releveant processes
BPM will then coordinate and prioritise the process improvement initiatves that will target the strategic goals and make the strategy operational
BPI initiaves will be executed in order to target specific improvement goals. These must be priortized, coordinated and seen in the context of end-to-end business processes.
The BPM lifecycle of continous improvement seeks to improve business value delivered towwards strategic objectives
Continous improvement towards strategic goals
Strategy Tactical Operational
Translation of targets to actual improvement
NEXT LEVEL MATURITY
22 Copyright © 2009 Capgemini. All rights reserved.
TechnologiesComplementary ServicesMain Services
MP01 Strategy Translation into
Processes
MP02 BPM Demands Identification & Analysis
MP03 BPM Services Development Planning
MP04 BPM Services Programming
MP05 BPM Services Monitoring
MP06 BPM Results Evaluation
MP07 Culture Dissemination
CS01 Lean & Six Sigma Oriented Improvement
CS02 Reference Models Implementation
CS03 Systems Specification
CS04 Process Automation
CS05 Business Rules Management
CS06 Process Auditing
CS07 Risk and Internal Control Management
CS08 Competencies Management
CS09 Management of Improvement Projects
CS10 Process Cost Management
MS01 Process Architecture Maintenance
MS02 Process Modeling (AS-IS)
MS03 Process Improvement (TO-BE)
MS04 Process Documentation
MS05 Process Change Management
MS06 Process Performance Management
MS07 Process Management Training &
Education
MS08 Process Compliance
MS09 Process Maturity Management
MS10 Process Benchmarking &
Innovation
T01 Process Modeling & EA Tools
T02 SOA
T03 BAM
T04 ECM
T05 BI
SP01 Administration of Models Repository
SP02 Administration of BPM Roles &
Responsibilities
SP03 Administration of BPM Services Portfolio
SP04 Administration of BPM Human Resources
SP05 Administration of BPM Budget
Management Services
Support Services
Organizing enterprise BPM service delivery on an enterprise level BPM Center of Excellence to support and deliver BPM services in the organisation
The CoE organisation can be virtual, fixed or a hybrid-mix, and will usually consist of a smaller set of core expert members, and a larger set of distributed members in the line organisations. The complete set of BPM services will then be split between the core team and distributed team. Management and support services will usually be handled by the core team, while BPI initiatives in the organisation is delivered by the distributed team members that work in the individual business units.
COE organisational structure
NEXT LEVEL MATURITY
www.capgemini.com/bpm
Copyright © 2009 Capgemini. All rights reserved.
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