business process management: implementing continuous improvement in your organization
DESCRIPTION
Business Process Management: Implementing Continuous Improvement in Your OrganizationTRANSCRIPT
Business Process Management:Implementing Continuous Improvement in Implementing Continuous Improvement in Your Organization
Henry ChandraSolution Architect
VP Relationship, IASA Indonesiahttp://www.linkedin.com/in/henrychandra+62 856 138 58 98, [email protected]
Hotel Menara Peninsula, Jakarta
14 November 2008
Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured ApproachPatrick’s Structured Approach
What Patrick’s trying to tell you
From here…
Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured ApproachPatrick’s Structured Approach
What Patrick’s trying to tell you
From here…
Meet Patrick
� A 35 year old guy
Meet Patrick
� A 35 year old guy
� Patrick works in …
Meet Patrick
� A 35 year old guy
� Patrick works in …
� He is a …
Meet Patrick
� A 35 year old guy
� Patrick works in …
� He is a …
� He lives in …
Meet Patrick
� A 35 year old guy
� Patrick works in …
� He is a …
� He lives in …
� He drives a …� He drives a …
Meet Patrick
� A 35 year old guy
� Patrick works in …
� He is a …
� He lives in …
� He drives a …� He drives a …
� And this is his story …
In ACME…
� Business People Think IT People are from Mars
In ACME…
� Business People Think IT People are from Mars
� IT People need to be more than a ‘Librarian’
In ACME…
� Business People Think IT People are from Mars
� IT People need to be more than a ‘Librarian’
� IT needs to convert from Cost Center into providing
Information Leadership for Business
Cost CenterInformation Leadership
Patrick’s Mission:
ACME
Budget Cuts
Increased Competition
Faster Time-to-Market
Deliver IT without fuss, get involved in
business improvement and give
business good leadership
(Terry White, What Business Really Wants from IT)
Patrick is looking at Business Process Management
The achievement of an organization’s objectives through the
improvement, management and control of essential
business processes.
(Jeston and Nelis)
BUSINESS PROCESS MANAGEMENT IS NOT AN IT “TOY”IT HAS TO CLOSE THE DISTANCE BETWEEN IT AND BUSINESS
BPM IS NOT ABOUT BPM IS NOT ABOUT TECHNOLOGYTECHNOLOGY
BPM IS NOT ABOUT BPM IS NOT ABOUT DIAGRAMSDIAGRAMS
BPM IS ABOUTBPM IS ABOUTMAKINGMAKING
BUSINESSBUSINESSRUNS FASTER ANDRUNS FASTER ANDMORE EFFICIENTMORE EFFICIENT
IT HAS TO CLOSE THE DISTANCE BETWEEN IT AND BUSINESSIT HAS TO INVOLVE BUSINESS AND IT TOGETHER
BPM: Through the years
No BPM
UI
Enterprise Application(internal and proprietary protocols,
program and logic in monolithicprograms)
UI UI UI
Monolithic Enterprise Application
BPM: Through the years
BPM: 1990
No BPM
Workflow in the Brain
UI
Enterprise Application(program and logic inmonolithic programs)
UI UI UI
BPM: Through the years
BPM: 1990
BPM: 1993
No BPM
Task Management
UI
Enterprise Application(program and logic inmonolithic programs)
UI UI UI
BPM: Through the years
BPM: 1990
BPM: 1993
BPM: 1996
No BPM
Workflow Routing
UI
Enterprise Application(program and logic inmonolithic programs)
UI UI UI
BPM: Through the years
BPM: 1990
BPM: 1993
BPM: 1996
BPM: 2002
No BPM
Services Integration
Enterprise Application
Logic and SOA
Svc Svc Svc
UI UI
BPM: Through the years
BPM: 1990
BPM: 1993
BPM: 1996
BPM: 2002
BPM: 2007
No BPM
Composite Services
Enterprise Application
Logic and SOA
Svc Svc Svc
UI UI
ESB
Patrick understands
The first rule of any technology is that automation applied to an efficient operation will magnify the efficiency.The second is that automation applied to an inefficient operation will magnify the inefficiency.
(Bill Gates, Microsoft Corporation)
� Black Box Syndrome
� Looking at the edges
Syndrome
He knows what’s critical and what he needs to do
Regatta Metaphor
Speed ↔ EffectivenessBeing the fastest ↔ make processes more effective and efficient
EfficiencyUse energy + enthusiasm to realized desired result
↕
Everyone is contributing towards realizing desired result
BalanceMake sure boat doesn’t lean sideways or tip over
↕↕
Make sure all implementation aspects are considered
CohesionTeam rows as one, same rhythm and technique
↕
All implementation elements are in alignment
Process1st Oar, dictates speed to other rowers
↕
Business leads implementation, technology follows
ManagementSteers the boat in a straight line to finish, do not go off course
↕
Sets and maintains trajectory to meet desired results
Patrick wants to get it right!
23
Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured ApproachPatrick’s Structured Approach
What Patrick’s trying to tell you
From here…
Patrick’s Structured Approach
BPM Implementation FrameworkBPM Implementation Framework
Organization FoundationProcess Foundation
Technology FoundationBPM Foundation
ElaborationImprovement
People and Technology DevelopmentDeployment
Monitor and Benefit RealizationContinuous Improvement
The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
How are we going to achieve the goals and objectives?
etc..
How do the processes in your organization support it’s vision and mission?
How well organized are they?How well organized are they?
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
What do we need to do to prepare the technology skills and knowledge?
etc..
The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
How are we going to achieve the goals and objectives?
etc..
How do the processes in your organization support it’s vision and mission?
How well organized are they?
UNDERSTANDING YOUR ORGANIZATION,IT’S VISION, MISSION, STRUCTURE, ETC.
How well organized are they?
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
What do we need to do to prepare the technology skills and knowledge?
etc..
The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
How are we going to achieve the goals and objectives?
etc..
How do the processes in your organization support it’s vision and mission?
How well organized are they?
UNDERSTANDING YOUR ORGANIZATION,IT’S VISION, MISSION, STRUCTURE, ETC.
How well organized are they?
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
What do we need to do to prepare the technology skills and knowledge?
etc..
UNDERSTANDING THE PROCESSES INSIDEYOUR ORGANIZATION, END – TO – END
The Foundations
What does the organization strive to ‘be’?
What is the organization in business to ‘do’?
How are we going to achieve the goals and objectives?
etc..
How do the processes in your organization support it’s vision and mission?
How well organized are they?
UNDERSTANDING YOUR ORGANIZATION,IT’S VISION, MISSION, STRUCTURE, ETC.
How well organized are they?
How well do we understand the processes?
etc..
Have we identified the required technology to support our BPM?
How proficient are we with them?
What do we need to do to prepare the technology skills and knowledge?
etc..
UNDERSTANDING THE TECHNOLOGY TO SUPPORTYOUR BPM INITIATIVE
UNDERSTANDING THE PROCESSES INSIDEYOUR ORGANIZATION, END – TO – END
Ready to Launch –BPM Foundation
Launch Pad for all BPM projects in the organization
Project Launch Pad
Business Case
Project Team Project Plan
Executing BPM Project
Monitor and Benefit
Realization
ElaborationDeployment
Understanding and Elaboration of Current
ProcessSolutions and Process Improvements are
brought to life
Realizingbenefits Elaboration
ImprovementPeople and Technology
Development
Deployment
Make the process(es) within the scope of the project as efficient and effective as possible.
Prepare and develop people and
technology solution
benefitsand
gettinglessonslearned
Elaboration – The ‘What is’ Phase
Workshops
Metrics Analysis and Gathering
Root Cause Analysis
Always ask when is the right time to
stop, if it is, then stop!
Root Cause Analysis
People Capability Matrix
Improvement – The ‘What if’ Phase
Improvement Workshops
Simulations
Analysis Creative
Get the process ‘right’ before
automating it
Simulations
People Capability Matrix and Capacity Planning
Business Case
Development – People and Technology
People Strategy
Activity Definition and Role Redesign
Presentation
Orchestration
Integration
…if you put a good performance against a bad system, the
system will win almost every time.
(Keen, 1997: 65)
RASCI Model
Integration
And lotsa testing…
Development – People and Technology
People Strategy
Activity Definition and Role Redesign
Presentation
Orchestration
Integration
…if you put a good performance against a bad system, the
system will win almost every time.
(Keen, 1997: 65)
RASCI Model
Integration
And lotsa testing…
Deployment – Live!
Deployment Strategy
Marketing Strategy
Training
Roll Out
Monitor and Benefit Realization –A look back
Project Results and Performance Measurements
Lessons Learned and Corrective Actions
Feedback Loop for Future Implementations
Business as Usual
� What happens after project has gone life and handed over to
Business??
Visibility Line
Project
Visibility Line
Business As Usual
Business as Usual
� What happens after project has gone life and handed over to
Business??
Visibility Line
Project Project Management
Visibility Line
Business As Usual People Change Management
Business as Usual
� What happens after project has gone life and handed over to
Business??
Visibility Line
Project Project Management
LeadershipVisibility Line
Business As Usual People Change Management
Leadership
Business as Usual
� What happens after project has gone life and handed over to
Business??
Visibility Line
Project Project Management
LeadershipVisibility Line
Business As Usual People Change Management
LeadershipWe had improvement programs. But the real difference came when we decided it was no longer a program, it was a business strategy.
(Stephen Schwartz, IBM)
Continuous Improvement
Process improvements without
The considerable investment made in any project
Processes must continuously be improved and
Continuous Improvement
without sustainability is not worth the effort
in any project must be maintained and enhanced over time
improved and redesigned
Process Governance
Continuous Improvement Monitoring
Maintain Process Models
Technology Perspective of Things: BPM and SOA
Technology Perspective of Things: BPM and SOA
Business Process ManagementBusiness and Management Process
Improvement Practice
Service Oriented ArchitectureArchitectural Philosophy for Standard-
based Services Design
BPM without SOA would require custom coding for
SOA without BPM allows design and building of custom coding for
system integrationbuilding of services
Technology Perspective of Things: BPM and SOA
Business Process ManagementBusiness and Management Process
Improvement Practice
Service Oriented ArchitectureArchitectural Philosophy for Standard-
based Services Design
BPM without SOA would require custom coding for
SOA without BPM allows design and building of
SOA +BPM unifies and orchestrates business processes with underlying standard-based service infrastructurecustom coding for system integration
building of services
standard-based service infrastructure
It is a concert that will bring agility and process efficiency to business audience
Technology Perspective of Things:BPM and SOA
How BPM is aligned with SOA…
Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured ApproachPatrick’s Structured Approach
What Patrick’s trying to tell you
From here…
He can do it, you should too!
Structured Approach to BPM Implementation
He can do it, you should too!
Structured Approach to BPM Implementation
Execution PhasesUnderstand
Improve
Business As Usual
Foundation Phases
BPM Foundation
Improve
Develop
Monitor
What Patrick is trying to tell you…
Business Process Management brings IT and Business together
• It is not an IT toy
• It has to be lead by Business and supported by IT
A Structured Approach to BPM Implementation is required to minimize risks and help to ensure successminimize risks and help to ensure success
• Process improvement is paramount prior to process automation
• All implementation aspects of BPM needs to work together achieving common goal
• BPM is supported by pillars of People, Process and Technology
• BPM Implementation Structured Approach includes solid foundations, proper execution methodology and continuous improvement phase to ensure process improvement is sustainable
BPM and SOA are aligned to bring seamless integrated business process platform to support agility and process efficiency
Why am I standing here?
Meet Patrick of ACME
Patrick’s Structured ApproachPatrick’s Structured Approach
What Patrick’s trying to tell you
From here…
Help Patrick refine the framework
Business Process Management Implementation Framework is a work-in-progress that still needs further fine-tune and adjustments
Call to action to all IASA members or IT practitioners in Call to action to all IASA members or IT practitioners in general to work together in formalizing and crystallizing an implementation framework for BPM
Contact IASA Indonesia to contribute
http://[email protected]
Q&A
Thank YouThank You