applying a business process management implementation framework · 2018. 4. 3. · linkage to...
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Applying a Business Process Management Implementation Framework
Association of Business Process Management Professionals - Chicago Chapter
2009 August 12
Daniel C Baumgartner
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2009 Aug 12 2
Discussion Topics
� Client CEO Objectives
� Business Process Management Implementation Framework
� Educate management, train Steering Committee and Project Teams members, and launch projects
� Lessons learned
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2009 Aug 12 3
Client CEO Objectives
� Introduce process change as a business practice into the organization – beyond organizational and technology change
� Provide education/training in business process improvement (management)
� Launch process improvement projects
� Nurture continuous improvement culture
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2009 Aug 12 4
What is Business Process Management
� The achievement of an organization’s objectives through the improvement, management and control of essential business processes� Achievement – realizing the value
� Improvement – making more efficient and effective
� Control – manage end-to-end business processes with the ability to measure correctly
� Process – all things we do to provide someone who cares with what they expect to receive
� More than just software
� Includes managerial issues
� Integral part of management
� Beyond modeling, includes analysis
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2009 Aug 12 5
What is the problem
� Operational business systems are implemented, but the operational effectiveness is more difficult
� Why is this hard
� Black box syndrome – do not know the details, so why delve into it
� Looking at the edges syndrome – processes and associated people are treated as sacred objects – never solving the problem, only the symptoms
� Automating something does not fix its underlying problems – the outcomes only occur more quickly
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2009 Aug 12 6
When should you do BPM
� Perspective categories:
� Organization: high growth, …
� Management: high performance culture, …
� Employees: high turnover, …
� Customers/suppliers/partners: low satisfaction, …
� Product and services: long lead time, …
� Processes: too many hand-offs, …
� Information technology: new business systems, …
� Success is strongly aligned with the focus towards a common goal
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2009 Aug 12 7
Who should be involved
� Management of business processes
� Integral part of management – can not be delegated
� Governed by the business objectives
� Strategic, tactical and operational management
� Management of business process improvement
� Identification, development and roll-out of improvements
� BPM managers
� Center of excellence
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2009 Aug 12 8
What is important in BPM implementation
Organizational strategy
� Creates an opportunity to question and challenge some of the stubborn and ignored tacit assumptions and constraints
� Why not considered
� There is no explicit strategy available
� Obtaining the strategic information will take too long
� People involved are not capable of strategic thinking
� We have already prepared a list of wishes; we do not need to involve strategy
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2009 Aug 12 9
What is important in BPM implementation
Process architecture
� All relevant information is made explicit
� Why not considered
� We already have process models
� Creating the process architecture is more effort that the benefits to be derived from it are worth
� We have process architecture, but no one is using it
� We have agreed on a common process architecture, but no one sticks to it
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2009 Aug 12 10
What are the critical success factors
� Leadership – attention, support, funding, commitment and time
� BPM experienced business project manager
� Linkage to organization strategy
� Process architecture – guidelines
� A structured approach to BPM implementation
� People change management
� People and empowerment
� Project initiation and completion – aligned
� Sustainable performance
� Realizing value
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2009 Aug 12 11
BPM project framework
Business Process Management
Practical Guidelines to Successful Implementations
John Jeston and Johan NelisSecond Edition 2008Published by Elsevier Ltd.ISBN-13: 978-0-7506-6921-4ISBN-10: 0-7506-6921-7
Project management
People change m
anagement
Leadership
Processarchitecture
Organizationstrategy
Launch pad
Understand
Innovate
Implement
People Develop
Realize valueSusta
inable per
formance
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2009 Aug 12 12
BPM implementation framework - phases
� Organization strategy
� Strategy (purposeful process) needs to be understood by the project team
� Process architecture
� Establishes rules, principles, guidelines and models for the implementation of BPM
� Launch pad
� Selection of where to start the initial BPM project
� Agreement of the process goals
� Establishment of the selected projects
� Understand
� Understand current process (project 1,2, …) enough to enable Innovate phase
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2009 Aug 12 13
BPM implementation framework - phases
� Innovate
� Creative activities (project 1,2, …)
� People
� Ensure activities match the organization strategy and process goals (project 1,2, …)
� Develop
� Build all components (project 1,2, …) – IT, infrastructure, and organization change
� Implement
� Roll-out (project 1,2, …) new processes, roll-out of the new role descriptions, performance management/measures, and training
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2009 Aug 12 14
BPM implementation framework - phases
� Realize value
� Realize value – ensure benefit outcomes realized (project 1,2, …)
� Sustainable performance
� Establish a process structure to ensure process improvements are sustainable
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2009 Aug 12 15
BPM implementation framework - essentials
� Project management
� Fundamental for any project
� Requires an experienced BPM project manager
� People change management
� Implementation of the personnel aspects is the hard part
� Leadership
� Must have committed, attentive and understanding support from senior management
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2009 Aug 12 16
BPM implementation framework - essentials
Project management
Leadership
People change management
Visibility line
Project
Businessas usual
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2009 Aug 12 17
Guidelines on how to use the framework
� Multiple paths through the framework and it has iterative components
� Strategy-driven approach
� Executed by the leadership team
� Organization strategy, process architecture, launch pad, projects
� Operational-initiative approach
� Addresses a business problem
� Launch pad, organization strategy (partial), process architecture (partial), projects (focused and incremental)
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2009 Aug 12 18
Project management
People change m
anagement
Leadership
Processarchitecture
Organizationstrategy
Launch pad
Understand
Innovate
Implement
People Develop
Realize valueSusta
inable per
formance
BPM project framework – strategy-driven
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2009 Aug 12 19
Project management
People change m
anagement
Leadership
Processarchitecture
Organizationstrategy
Launch pad
Understand
Innovate
Implement
People Develop
Realize valueSusta
inable per
formance
BPM project framework – operational-initiative
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2009 Aug 12 20
Applying the Framework
� Educate management in BPM implementation framework (30+ senior management including CEO and direct reports) – 1 day
� Work with CEO to select projects
� Revenue management (2)
� Expense management
� Recruiting/hiring
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2009 Aug 12 21
Applying the Framework
� Train Steering Committee and Project Teams members
� Guidelines
� Templates
� Techniques
� Checklists
� Launch projects
� Review workplans
� Monitor progress
� Develop recommendations
� Implement recommendations
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2009 Aug 12 22
BPM Training – Quick Guide
� It’s all about human change - address organizational culture and align performance measurement
� Management must be an active leader in the process improvement
� Framework - a path to insure the change adds value to the strategy
� Do not solve all problems at once, yet focus on a common goal
� Assign an experienced BPM project manager
� Changing any component (people/organization, process, technology) around the strategy affects the other components and requires appropriate project management
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2009 Aug 12 23
BPM Training – Quick Guide
Project Management
Process
People Technology
Strategy
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2009 Aug 12 24
BPM implementation framework - modified
Plan
For SCApproval
Organization StrategyProcess Architecture
Launch PadUnderstand
InnovatePeopleDevelop
ImplementRealize Value
Sustainable Performance
Phases
Planning ImplementTo BeAs Is
Activities
Change/Commitment Planning and Execution
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2009 Aug 12 25
BPM Implementation Plan - TOC
� Executive Summary
� Quick Wins
� To Be Recommendations
� Proposed Implementation Approach
� Suggested Implementation Timing
� Recommended Project Structure
� Change Management Strategy
� Leadership Support
� Argument for Change
� Tactics for Sustaining Momentum
� Tracking Feedback
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2009 Aug 12 26
BPM Implementation Plan - TOC
� Risk Analysis
� Related Projects� Impacted Projects
� Future Projects
� Benefits Analysis� Soft Savings
� Hard Savings
� Appendix� A: Project Charter
� B: As Is Flows and Key Findings
� C: To Be Flows
� D: Proposed Organization Changes
� E: Proposed Policy Changes
� F: Other (form samples, …)
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2009 Aug 12 27
Lessons Learned - Success!
� Project Execution� 95% of project participants felt that
the overall execution of this project was above average
� 100% of participants believed their project would increase service at the enterprise level when implemented
� 83% of participants would like to participate on a future BPM initiative
� Team Building� Nearly 80% of participants would like
to work with the same team on a future project
� Additionally, 80% of participants felt that internal team communication was effective
Figure 2. Participant estimation of the impact of project
implementation on operations
Figure 1. Participant perception of project quality
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2009 Aug 12 28
Lessons Learned - Recommendations
� Each project team delivered valuable improvement recommendations from many hours of effort to the Steering Committee
� Project Duration� BPM projects average project duration = 9.5 months
� Recommendation: Limit project duration to 3-6 months to keep teams active and engaged
� Templates� 75% of participants said they would use templates again in their individual departments
� Recommendation: Modify templates to increase user friendliness, reduce redundancies, and adapt template language
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2009 Aug 12 29
Lessons Learned - Steering Committee
� Recommendation: Review the composition and objectives of the steering committee
� Continuing with the same committee composition, but narrowing their oversight responsibilities
� Developing a senior management team that is responsible for serving as the steering committee
� Assigning a single individual to oversee all BPM initiatives
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2009 Aug 12 30
Lessons Learned - Training
� Training feedback focused largely on the creation of a centralized, internal BPM training plan
� Additional suggestions include:
� Intersperse training throughout the project at key milestones
� Provider greater depth to the curriculum
� Offer further BPM training for interested parties
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BPI Initiative – thoughts – management
� Leading change – hard to do
� Stay the course – hard to do
� Encourage innovation
� Keep timeframe short – focus effort
� Establish accountability for results
� Articulate and reinforce key messages
� BPI is a part of every person’s day job, not an add-on
� Everyone’s focus is on how to best service customers
� Everyone thinks beyond their immediate job description
� Permit project teams to challenge and recommend changes to business as usual
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2009 Aug 12 32
BPI Initiative – thoughts – project teams
� Continue to invest in BPM project management
� Continue to build internal BPM capabilities
� Utilize project team learnings
� Leverage the BPM framework process and checklist/templates, yet be practicable/realistic
� Proclaim the reason/value for change – cost vs benefit
� Implement some process change and continuously improve the process
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2009 Aug 12 33
BPI Initiative – thoughts – success
� Create/sustain enthusiasm from launch to conclusion –management and project teams
� Make time for change within my real/day job
� Address change implementation issues aggressively/consistently – not just about the process redesign
� Persevere when facing set backs
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2009 Aug 12 34
Questions