building out business process capabilities with business process centers of excellence

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Business Process Excellence (PEX):Building-out Business Process Capabilities

At Centric, we deliver unmatched client experiences that center on

collaboration. Working together, we implement lasting solutions that work.

Solutions that matter.

AGENDA

• Introduction to Process Excellence• Business Process Capability Maturity Model• Leveraging COE’s as an Accelerator

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WHAT DO ALL THESE METHODS HAVE IN COMMON?

Business Process Excellence (PEX): Achievement of superior business performance through

ongoing process management and resulting process

optimization.

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KaizEn

TQM

Continuous Improvement

Most companies employ a relatively small team of BPI/PEX practitioners

that tend to report across a multitude of departments within organizations

SIZE AND REPORTING RELATIONSHIP OF PROCESS TEAMS

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2%

2%

4%

8%

13%

16%

17%

25%

0% 5% 10% 15% 20% 25% 30%

Human Resources

Engineering

IT

COE

Quality

Business Units

Operations

Process Improvement Group

Departmental Responsibility

Many organizations

do deploy PEX

practitioners through

Centralized Teams

SOURCE: SPECIAL REPORT: ALIGNING STRATEGY WITH OPEX TO DRIVE SUSTAINABLE,

ENTERPRISE-WIDE TRANSFORMATION; PEX PROCESS EXCELLENCE NETWORK 2015/16

6%

5%

8%

24%

58%

0% 10% 20% 30% 40% 50% 60% 70%

200+

100 - 200

50 - 100

10-50

0-10

BPI Team Size(FTE’s)

Business Process Improvement: involves the redesign of core

business processes to achieve dramatic improvements in cost,

productivity, cycle-times and quality.

WHY PROCESS EXCELLENCE?

• Service & Quality: Meeting and

exceeding customer expectations

around quality, customer service

and responsiveness. Producing

with minimal defects.

• Cost Effectiveness: Managing

total costs to enhance customer

and shareholder value as well as

drive competitive advantage in the

marketplace

• Reliability: Maintaining

predictable, repeatable and

consistent operational

performance.

• Scalability: Providing the

operational foundation to

effectively scale and support top

line growth without large increases

in headcount and cost

• Flexibility & Responsiveness: Enabling the organization to pivot

and better respond to shifting

market and customer demants;

Typical

Performance

Impacts

What Does PEX Enable?


Client

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WHY EVOLVE TO A MORE ROBUST BPE CAPABILITY? FINANCIAL OPPORTUNITIES

Integrated BPI / Technology initiatives often provide significant tangible

benefits to the organization and result in better aligned business &

technology solutions

Survey of Business Process Initiatives

ROI After Project Roll-Out

* BPTrends; A Survey of Business Process Initiatives, 2007

Developing a broader PEX Capability helps provide visibility to project cost

benefit as well as improving overall project ROI

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om

7

BUSINESS PROCESS CAPABILITY MATURITY MODEL

Stage 1: Process Aware

Stage 2: Coordinated

Process

Stage 3: Cross-Functional

Process Mgmt

Stage 4: Goal-Driven Processes

Stage 5: Optimized Processes

Developing BPE Capabilities reduces reliance on external consultants

Though there is a critical mass of companies at more advanced maturity

levels, the vast majority of your peers are in early stages of process

maturity

WHERE ARE YOUR PEERS RELATIVE TO THE PROCESS MATURITY CURVE?


10%

13%

15%

26%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

No PEX Program

Small Scale Process Pilot

Have FTE's But No Formal Program

One or More BU's

Enterprise Wide Program

Scope of Process Efforts

Majority of

organizations

are at CMM

level 0 -2



3 column grid

Our recommended BPI Program approach is to leverage a centralized

Enterprise BPI Enablement Team/Center of Excellence (CoE).

Process Team/BU

3

Process Team/BU

2

Process Team/ BU

1

BPI CoE

BPI Program/Project Governance

Provide Cross-Organization Governance & Coordination

• Drive governance, standards and policy

• Provide leadership and expertise pertaining to business process improvement and operational excellence

• Be the central utility in the identification, prioritization and coordination of cross-organization BPI efforts

• Maintain overall implementation roadmap / change plan

• Facilitate BPI Advisory Team / Steering Team involvement

Enable a Process Driven Culture to Accelerate Value Delivery

• Provide education to the business on BPI

• Assist operating groups in identifying & prioritizing opportunities

• Facilitate process improvement across functional areas/business units to increase savings (minimize sub-optimizations)

• Provide expert process and technology skills and resources to help deliver initiatives

• Develop, maintain and make available best practice methodologies, templates and tools

• Facilitate knowledge transfer of best practices, opportunities and lessons learned across company

• Provide flex resource capacity for operating groups

Build Sustaining Capability throughout Organization

• Assist operating groups in the development of internal operational improvement and BPI technology capabilities (infrastructure, training, leadership development, performance mgmt., etc.) to manage process on an on-going basis

BPI CENTER OF EXCELLENCE ENABLEMENT MODEL

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FUNCTION OF THE BPE COE - POTENTIAL OPERATING MODEL

The BPE COE acts as an internal consultancy that provides services to multiple

BPE projects, programs and initiatives. It also establishes BPE guidelines,

standards and tools, and provides services that enable the enterprise to adopt and

evolve its BPE competency over time.

Engagement Mgt

& DeliveryPlanning, preparing and

delivering engagements

at the highest quality

level

COE

Strategic

Intent

Mobilization

& Prep

Delivery

Quality

Assurance

Pipeline Mgt /

Prioritization

Opportunity

Identification

Awareness/

Relationship

Mgt

Financial

Mgt

Training/

Resource

Development

Demand &

Resource

Planning

Toolset /

Methodology

Development

Alliances

Governance

Opportunity

IdentificationGenerating demand for BPE COE

services and management of

opportunity pipeline.

COE Practice MgtDeveloping and managing

the COE practice required

to support day-to-day

operations

COE Functions to be Considered

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ESTABLISHING A PEX COE

• Reporting Structure of the PEX COE: Initially BPE

COE’s typically report to either the IT or the Business and

evolve to a hybrid model over time.

• COE Charter, Services and Operating Vision: Determine the scope of the COE and how it will operate

within business units and across the Enterprise

• COE Resource Model: Define roles, skill-sets, and

capacity required. Close on approach to source, develop,

and manage BPE practitioners across the Enterprise and

the BU’s

• Common Methodology and Tools: Collaboratively

determine relevant BPE methodologies and tools for use

within the Enterprise. Decide on governance model to

ensure consistency

• Implementation Approach and Plan: Evaluate

potential implementation and phasing options and decide

on approach, staging and high-level timing of standing up

the COE.

• Don’t Overburden or

Complicate Process Work: Making process work too

bureaucratic and overly complicated

can derail a PEX program.

• Modeling - avoid requiring as-is

models in detail (task-level) and

for every process

• Project Work Plans - create

project templates to accelerate

project startup, and ensure

consistency; however, avoid

requiring burdensome amounts

of detail and upkeep

• Align with and Avoid

Redundancy with Other

Governance Efforts: Avoid

overlaps with other established

groups and governing bodies as this

could lead to diminished

accountability and conflicts of

interest.

Key decisions and common pitfalls to avoid:

Decisions Common Pitfalls

Source: Elise Olding. “Best Practices and Pitfalls for Business Process Competency Center Success” Gartner, March 22, 2010


3 column grid

12

The CoE collaborates with and enables Business Units to become self-

sufficient over time by building BPI capabilities within their businesses

transitioning to a Federated model augmented by a centralized CoE.

Level of

Support

FacilitatedCOE Led BU Led

Progression over time to BU’s

becoming self-sustaining

CoE Collaboration and Engagement Model

CoE and Business Unit Complete

Business Diagnostic and Determine

Highest Impact Projects

CoE and Business Unit Jointly

Complete High Impact Delivery Projects

Business Unit Begins to Own and Lead

Continuous Improvement Efforts

BPI CoE

Business

Units* Each business unit

leveraging BPI

needs to plan to

allocate, hire, or

augment externally

these roles for on-

going BPI Projects

dependent upon the

project scope and

their resource

bandwidth

* Our clients typically leverage

external BPI SMEs (subject matter

experts) to build internal

capabilities/train resources

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BPI COE ENABLEMENT & GOVERNANCE MODEL

EPMPO / BU ROLE IN BPE GOVERNANCE

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BU’s will conduct discrete projects, participate in enterprise project portfolio

decisions and contribute resources to cross-BU business process work

BU COO’s are members of the EPMO Steering Committee which assesses and approves projects across the enterprise

BU COO’s and their respective BPE Leads will participate in defining the Charter and Strategy of the Enterprise BPE COE

BU COO’s Contribute their respective BU BPE resource participation on cross – enterprise BPE projects

BU COO’s can solicit assistance from Enterprise COE resources on select BPE engagements within their BU

BU COO’s work with their respective BPE Teams to ensure adherence to Enterprise BPE guidelines and project controls / phase-gates

BU COO’s hire and develop BU level BPE resources and capacity based on projected needs

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Companies who that have committed to evolving Business Process

Excellence capabilities are focused on using it to deliver on their most

strategic initiatives

ROLE OF PROCESS / OPERATIONAL EXCELLENCE FUNCTION


9%

12%

17%

23%

33%

0% 5% 10% 15% 20% 25% 30% 35%

A way to deliver culture and leadershipchange across the organization

A way to improve the quality of a product orservice

A way to cut costs by improving productivityand/or reducing headcount

A way to improve customer satisfactionthrough better quality and efficiency

A way to help organization deliver itsstrategic objectives

Role of Process/Operational Excellence

Within Organizations



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Questions?

Chicago Land Business Consulting Lead: Mark Buchynski

[email protected]

National Centric PEX Lead : Thomas Ujvagi

[email protected]

mailto:[email protected]

mailto:[email protected]