buid proces skills up and down your organisation
TRANSCRIPT
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Build Process Skills Up And Down Your Organization To Scale TransformationConnie Moore, Vice President, Research Director
Forrester Research
October 14, 2010
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. . . but need new skills to be successful.
Business Process pros are at the center of business transformation . . .
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Business process professionals stand at
the crossroads between business and IT . . .
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Imagine . . . producing a musical with new actors
Source: Flickr (http://www.flickr.com/photos/cyndipix/4366759809/)
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Different views of business processes
Focus on automation,
not the process
• Groping toward new roles for process analysis and architecture
• Process group has deep knowledge in Lean and Six Sigma
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Meet the business process team . . .
Change agent Guru
Prodigy Wannabe Operator
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Most business process improvement is driven by business execs
March 5, 2010 Business Process Pros Hold The Key To 21st Century Business Transformation, Forrester Report
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Business process pros need better ways to learn and develop skills
Base: 83 IT professionals involved in BPM or process improvement projectsSource: May 2010 Global Process Management/Improvement Online Survey
“Where do you turn to for learning/developing business process management skills?” (Check all that apply)
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What do “change agents” need?
Strong business case
A peer-to-peer network
BPM center of excellence
Clear understanding of
Lean, Six Sigma, and
BPM
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“Change agents” must evangelize, monetize and communicate, communicate, communicate!
“The change agent is in a never-ending questfor sponsorship.” -Kenny Klepper, COO Medco
“The change agent musttake cost out of thebusiness to fundtransformation.”-Kenny Klepper, COO Medco
“I definitely spend a lot of timetalking to the business aboutwhat [it needs]. What isworking? What isn’t working?” -Sr. manager, large bank
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Management area
Maturity level 1Ad hoc
Level 2Inconsistent
Level 3Defined
Level 4Managed
Maturity level 5Optimized (BT)
Strategy
•Objectives•Scope•Value
Ad hoc planning, weak-link business, and IT objectives
•Integrated business and IT plans•BPM plans focused on value chain innovation and transformation
•Customer value synchronized with corporate performance
Process gov.
•Life-cycle budget•Decision-making•Portfolio•Waste
No evaluation process, arbitrary decisions, no link from investments to resource commitments
•Enterprise portfolio, biz metrics•Local and global decisions coordinated•BPM investments cross-linked to performance
•Proactive waste elimination
Org. structure
•Gov. bodies•Demand•Service mgmt.
No steering committee, projects funded on request, no formal biz relationship
•Appropriate levels of investment, sponsorship, and involvement
•Demand incorporates C-level decision-making
•BPM through shared services
Performance
•Measurements•Communications
IT tracks operational metrics, not business measures; communication on request
•Board-level and investor monitoring of tech business results
•Transparency provided to employees, management, investors, and partners
Culture
•Cultivated skills•Environment•Orientation
Technical skills limited to specific tasks, few cultural norms, reactive orientation
•Businesswide education and careers•Strong brand and reputation•Entrepreneurial orientation•Emphasis on customer outcomes and behavior
Immature
Aspiring
Mature
The journey to transformation follows several stages
Value
inno
vatio
n
Was
teel
imin
atio
n
January 20, 2010 A Lean Business Technology Maturity Matrix For BPM Governance, Forrester Report
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Value to shareholders
Level of Stakeholders
ProcessExecution
Knowledge
Efficiency
IT agility
Compliance &consistency
Processmonitoring
Business insight
BPM adoption maturity ProcessOptimization
Transformation
Workers, supervisors and managers CIO CFO CXO CEO
lower higher
higher
lower
Customers and partners
SOA
Another way to look at BPM maturity
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Change agents must move the org from function to services & processes
Vertical / Functional
Functional / Process Overlays
Process / Functional Overlays
Service / Process Organisation
From Traditional Line Management
To Processes & Services Management
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Medco has fully embraced this new business model
BP COE — technologists working with
next-generation, configurable solutions
Business innovation and agility
centers — combination of IT/BT,
looking at marketplace demand, for
growth and differentiation
Business operations — operational
excellence for the company
Operational owners — internal focus
across the business process
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Including . . . new job titles
Business innovation and agility
leaders
Process champions (operational
owners)
CoE leaders (responsible for
construction of business process
capabilities)
Deeper in the organization:
- Modelers (focus is on user experience,
in operational and business groups,
some in IT)
- Business architects (in business and
IT)
- Designers (technologist)
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One “change agent’s” perspective on people skills
“We leaned very heavilyon our vendor for professional services; now we’re standing on our own two feet.”
“It takes people time to get up to speed”
“The number of peopleWho know about thistechnology isscarce and expensive.”
CIO, financial services company
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COEs often start small
A financial service company's COE started with:– four developers– one business analyst– one enterprise architect.
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Business CaseDevelopment
BPM CoE
BPM CoE
BPM CoE
BPM CoE
CoEs evolve over time as maturity grows
Process Methods & Tools
Process Analysis/Modeling
BPM ProjectManagement
BusinessArchitecture
BPM Suites Training
CIO orIT Exec
Governance Council
BPM CoE
BPM CoE
C LevelExec
Line Of Business
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Potential CoE service portfolio
Facilitate process governance– Portfolio management and
prioritization of BPM roadmap– BPM maturity assessment– Budget allocation– Track benefits delivery; Reuse
Business architecture– Overall process architecture– Global v local guidelines– M&A support
Manage organizational change– Organizational role definition
and workforce planning– Rationalize other CoEs (Lean,
Six Sigma, BSC, etc)– Institutionalize process
improvement methods
Manage BPM projects– Develop project business cases– Education & training support to
the BPM project
Model & analyze processes– Rationalize metrics, dashboard
and scorecard creation– Simulate potential changes– Business rules development
Advise on IT integration– Develop library of integration
components– Master data management
Assess technology, methods, tools, standards – Train & develop specialists– Knowledge management
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COEs need a blend of technical and business skills
“[You] can do thiswithout code — that’strue — but it doesn’tmean a business personcan do it.”
“These suites stillrequire you to have [a]software engineeringskill set.”
“[You] can’t create a businessprocess without a softwareengineering background —[you] need to know howfunctions work; [you] need toknow how loops work.”
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But, BPM competency centers are not ubiquitous
“Do you have a BPM competency center?”
Base: 83 IT professionals involved in BPM or process improvement projects
Source: May 2010 Global Process Management/Improvement Online Survey
“What types of individuals staff your BPM competency center?” (Check all that apply)
Yes37%
No57%
Don’t know6%
Base: 31 IT professionals involved in BPM or process improvement projects who have a BPM
competency center
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SaaS is one way to ramp up quickly with limited IT/process skills
• Goal: efficient and profitable
• SaaS BPM allowed an incremental approach.
– Promotion by promotion
– Paced by business users
– 12 weeks for development
• Minimal involvement from IT
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What do “process gurus” need?
Sometimes, it’s BPM 101
they need (Lean experts)
Business process role
separated from
enterprise architects
Certification
Great process analysts
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One guru’s perspective
“The biggest challengeis how to develop reallygood processarchitects. . . ”
“When a company is in theearlier stages and doesn’thave the expertise, [it] willneed at least some transitionalassistance with processarchitecture.”
“[I] don’t think there is atraining or certificationprogram where you cansend a processarchitect.”
Manager, BPM COE
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What do “prodigies” need?
Pairing with a vendor
expert for knowledge
transfer
Certification training
Pairing with a business
analyst or SME for
learning
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“Gurus” and “prodigies” have different expertise
“The business architect is highly influential and a master facilitator.
They ‘own’ keeping the views of their respective architectures up to date.”
Director of BPM, global manufacturer
“The process analyst facilitates and manages process improvement efforts.
“They receive guidance from the business architect.
“They usually analyze one process and have limited ability to see beyond the effort in front of them.”
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Lean, Six Sigma are most important to BPM pros
Base: 83 IT professionals involved in BPM or process improvement projects
Source: May 2010 Global Process Management/Improvement Online Survey
“How important are these methodologies/certifications to your organization’s BPM skills development?”
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BPM, Lean and Six Sigma: Better Together
BPM
BPM provides the framework ..to manage change in process and workflow models
BPM provides the environment to support the speed of change
BPM tools and technology can expedite the adoption of a process centric view ...
BPM provides
• Framework
• Environment
•Tools to accelerate
Leanand Six Sigma
Some view Lean and Six Sigma and BPM as competing disciplines
Lean and Six Sigma can provide insight and the measures to support potential improvements
Lean Six Sigma target inefficiency with a broad range of tools and toolkits
All 3 are complimentary and can be leveraged to achieve greater results
Lean and Six Sigma provide
Methodology
Insight
Metrics
Source: Gabrielle Field, ABPMP, Raymond James Financial
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What do “wannabes” need?
Realistic expectations
Pairing with a process
expert for at least two to
three months
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One change agent’s view on process analysts
“Process experts are arare type of talent.”
“When people don’t get it, theydon’t ever get it. Either peoplehave the makeup to be in acolocated, intensiveenvironment or they don’t.”
“We thought thetraditional businessanalyst would be the rightsource, but we werehorribly disappointed.”
BPM director, large automotive
manufacturer
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Retool the business analyst
Today’s tools are inadequate.
– Most still rely on Word, Excel, and Visio.
Requirements management tools are:
– Too complex and not user friendly.
– Too costly to purchase and administer.
– Too text centric, without support for rich, graphical artifacts.
– Too siloed — lacking integration with other tools.
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Process skills are migrating out of IT
Applicationdevelopment
Enterprisearchitecture
VP of business process improvementBusiness architect
Process architect and analystManager of IT business systems
Evolving business analyst
Process and
information
architects
Businessprocess
COE
IT
Manager of
IT business
systems
Evolving BA
Process maturity
High
Low
Traditional BA
Humanresources
expert
Finance &accounting
expert
Procurementexpert
Salesexpert
Operationsexpert
Businessdomains
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• Immature:• Investigate how big your process initiatives are•Look at SaaS BPM to jump-start skills
•Aspiring:•Conduct a process skills assessment; involve HR.•Assess how you develop new skills (mentoring, pairing, training).•See how effective cross-training is in the COE.•Consider in-house training on BPM, Lean, and Six Sigma.•Look at ABPMP certification.
•Mature:•Add BPM to your training
The next 90 daysThe next 90 days
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•Immature•Consider a BPM COE if there are enough projects to warrant.
•Aspiring•Consider creating your own in-house certification program.•Work with HR to develop career paths, training programs, andnew job titles.
•Focus on IT and business training/development.•Focus on senior-level jobs in addition to architect/analyst jobs.
•Mature•Make sure BPM is properly positioned and understood withinthe company.
Longer termLonger term
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Thank you
Connie Moore+1 540.882.4040
@cmooreforrester
http://blogs.forrester.com/connie_moore
www.forrester.com
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Recommended reading for change agents
Warren Bennis, On Becoming a Leader
James C. Collins, Good to Great
Rick Delbridge, et al., The Exceptional Manager: Making the Difference
George Eckes, The Six Sigma Revolution
Tom Hayes, Jump Point: How Network Culture is Revolutionizing
Business
John C. Jeston, Beyond Business Process Improvement, On To
Business Transformation: A Manager’s Guide
Edgar H. Schein, Organizational Culture and Leadership
James P. Womack and Daniel T. Jones, Lean Thinking: Banish Waste
and Create Wealth in Your Corporation
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Business and process architects/analysts should read these
Yvonne Lederer Antonucci, et al., Business Process Management Common
Body Of Knowledge
John Bicheno, The New Lean Toolbox
Barry Boehm and Richard Turner, Balancing Agility and Discipline: A Guide
for the Perplexed
David M. Dikel, David Kane, and James R. Wilson, Software Architecture:
Organizational Principles and Patterns
John Jeston and Johan Nelis, Business Process Management: Practical
Guidelines to Successful Implementations
Eberhardt Rechtin, Systems Architecting: Creating & Building Complex
Systems
Andrew Spanyi, Business Process Management (BPM) is a Team Sport:
Play it to Win!