business process transformation - cam-i · process transformation continuum • process improvement...
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MANAGING BUSINESS MANAGING BUSINESS PROCESS TRANSFORMATIONPROCESS TRANSFORMATION
Brett ChamplinBrett ChamplinPresidentPresidentAssociation of Business Process Management ProfessionalsAssociation of Business Process Management Professionals
© 2007 Brett Champlin 2
ABPMPAssociation of BPM ProfessionalsAssociation of BPM Professionalswww.ABPMP.orgwww.ABPMP.org
• Non-profit, vendor-independent, professional organization
• Dedicated to the advancement of business process management concepts and its practices
• Practitioner-oriented and practitioner-led• Founded 2003• 8 Active US Chapters, 6 more forming• Affiliations with BPM groups in other countries• Guide to BPM Body of Knowledge • BPM Model Curriculum • Certified Business Process Professional (CBPP)™
© 2007 Brett Champlin 3
ABPMPABPMP Guide to ABPMP Guide to BPM Body of KnowledgeBPM Body of Knowledge
© 2007 Brett Champlin 4
ABPMPWhat is BPM?What is BPM?
•• BPM is a Management DisciplineBPM is a Management Discipline– Process-oriented thinking– Manage end-to-end processes– Strategy is carried out through process– Process assessment, analysis and design– Process performance over functional performance
•• Enabled by an evolving set of technologiesEnabled by an evolving set of technologies– Process discovery and definition– Process execution and orchestration– Process monitoring and control– Process Performance Decision Support
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ABPMPThe Case for BPMThe Case for BPM
• Survey of over 700 companies, 52% in US, 19% UK/Europe, 13% Asia
– “…more than 80% of the world’s leading organizations are actively engaged in BPM programs, many of these on a global scale”
– “…the practice of BPM as a primary means to manage business has already gained substantial adoption”
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ABPMPAPQC BPM Benchmarking StudyAPQC BPM Benchmarking Study• “BPM is the way best-practice organizations conduct business”• It also confirmed that regardless of where an organization stands in
terms of process ‘maturity’, technology continues to play a vital role. • While the APQC research participants agreed that technology, by itself,
does not constitute “Business Process Management”, they concluded that much of the promise of BPM initiatives will not be realized without powerful, flexible and user-friendly IT solutions to support them.
• Four of the five of APQC’s best practice partners cited technology support being a key success factor for managing, aligning and integrating business processes---thus impacting profitability and their ability to compete in today’s competitive, global market.”
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ABPMPPrimary Reasons for Investing in BPMPrimary Reasons for Investing in BPM
The good news is that you can get all of these
benefits from BPM. You don’t need to choose just one.
The good news is that you can get all of these
benefits from BPM. You don’t need to choose just one.
Source: Gartner
© 2007 Brett Champlin 8
ABPMPProcess vs. Functional Process vs. Functional ManagementManagementTraditional methods of performance management focus on department & functional unit performance
Businesses are organized into departments or functional units
Performance management is functionally oriented
- Reduce costs by $x- Etc.
Management teams are established
Process 3
Process 1
Process 2
Process 5
Process 4
Process 3
Process 1
Process 2
Process 5
Process 4
Clearly defined & documented business processes
Process performance objectives are defined
Process management / team established
BPM focuses on the management of cross functional processes. This involves continuous monitoring, evaluation, measurement (e.g., cost, quality, cycle time) and process innovation
Performance management is process oriented
- Response time, order to delivery time, etc.
© 2007 Brett Champlin 9
ABPMPPROCESS PROCESS ““MATURITYMATURITY”” MODELMODEL
Integrated(6)
Coordinated Process
Initial(1)
ad hoc Process
Repeatable(2)
Stable Process
Defined(3)
Standard Process
Managed(4)
Measured Process
Optimized(5)
Effective Process
Process Control
Process Measurement
Process Definition
Basic Management
Control
Process Integration
Consistent Execution
Controlled Environment
Quality and Productivity
Improvement
Continuing Improvement
Chaotic
Cooperative Optimization
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ABPMPProcess Management Process Management ““MaturityMaturity””
Continuously Improving Process
Predictable Process
Disciplined Procedures
Consistent Process
Cooperative Process
Need Quality Management
Program
Need Management Regulation
Ignored(1)
Manage/Plan(5)
Participate/Control
(4)
Support/Direct
(3)
Recognize/Organize
(2)
Steward/Lead(6)Need Enterprise
Integration
Process Management MaturityProcess Maturity
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ABPMPPROCESS TRANSFORMATIONPROCESS TRANSFORMATIONCONTINUUMCONTINUUM
• Process Improvement is incremental • Process Re-Design is end-to-end re-thinking of what
we are doing • Process Reengineering is a blank slate approach• Process Innovation involves changing the model,
not just improving its efficiency
ProcessImprovement
ProcessReengineering
ProcessRe-Design
Time
Degree of InnovationCost
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ABPMPTRANSFORMATION PLANNINGTRANSFORMATION PLANNING
ASSESSMENTASSESSMENT
Initial(1)
ad hoc Process
Repeatable(2)
Stable Process
Defined(3)
Standard Process
Managed(4)
Measured Process
Optimized(5)
Effective Process
Integrated(6)
Coordinated Process
PRESCRIPTIONPRESCRIPTION
RadicalReengineering
ProcessReengineering/
Redesign
Process Redesign
ProcessImprovement,
Six Sigma/ABC
ContinualProcess
Improvement
Focus onImproved
Integration
GOALGOAL
Obliterate and Innovate
- Level 4 or better
Leverage What Works
- Level 4 or better
Process Control- Level 4 or better
Process Refinement
- Level 5
Process Integration
- Level 6
Process Coordination and
Collaboration
Source: Brett Champlin,Source: Brett Champlin,
© 2007 Brett Champlin 13
ABPMPWORDS OF WISDOMWORDS OF WISDOM
• “Always design a thing by considering it in its next larger context -
a chair in a room, a room in a house, a house in an environment, an environment in a city plan.”
- Eero Saarinen
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ABPMPBusiness Process Meta ModelBusiness Process Meta Model
PURPOSEPURPOSE
PEOPLEPEOPLE PLACEPLACE
PROCESSPROCESS
PRODUCTPRODUCT
PERIODPERIOD
Adapted from Don SoulsbyAdapted from Don Soulsby
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ABPMPProcess DomainsProcess Domains
Business
Operations
Technical
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ABPMPExercise your mindExercise your mind……Put these in order from the lowest
MAGAZINE• Article• Letter• Magazine• Paragraph• Sentence• Word
MAGAZINE• Letter• Word• Sentence• Paragraph• Article• Magazine
level to the highest
© 2007 Brett Champlin 17
ABPMPExercise your mindExercise your mind……Put these in order from the lowest
COMMUNITY• City• Continent• Country• County• House• Neighborhood• Room• State• Street
COMMUNITY• Room• House• Street• Neighborhood• City (Toronto)• County (York)• State/Province (Ontario)• Country (Canada)• Continent (North America)
level to the highest
© 2007 Brett Champlin 18
ABPMPExercise your mindExercise your mind……Put these in order from the lowest
SCIENCE• Biology• Chemistry• History• Physics• Psychology• Sociology
SCIENCE• Physics• Chemistry• Biology• Psychology• Sociology• History
level to the highest
© 2007 Brett Champlin 19
ABPMPPerspectivesPerspectives
SYSTEM OPERATOR Working System
BUILDER Applications Specification
SYSTEM DESIGN System Requirements
OPERATIONS Process Improvement
BUSINESS Business Redesign/Reengineering
ENTERPRISE Strategic Planning
Business
Business
Dom
ainD
omain
TechnologyTechnology
Dom
ainD
omain
Operations
OperationsD
omain
Dom
ain
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ABPMP
Operations ModelOperations Model
Business ModelBusiness Model
Workflow ModelWorkflow Model
Systems ModelSystems Model
Measurement & ControlMeasurement & Control
Enterprise ModelEnterprise Model
WHAT/PRODUCT
WHAT/WHAT/PRODUCTPRODUCT
HOW/PROCESSES
HOW/HOW/PROCESSESPROCESSES
WHERE/PLACE
WHERE/WHERE/PLACEPLACE
WHO/PEOPLEWHO/WHO/
PEOPLEPEOPLEWHEN/PERIODWHEN/WHEN/PERIODPERIOD
WHY/PURPOSE
WHY/WHY/PURPOSEPURPOSE
VACHA
LUEIN
VAVACHACHA
LUELUEININ
PROMO
CESSDELS
PROPROMOMO
CESSCESSDELSDELS
ACMO
TIVITY DELS
ACTIACTIMOMO
VITY VITY DELSDELS
TAMO
SKDEL
TATAMOMO
SKSKDELDEL
SPECIFICATIONSPECIFICSPECIFICATIONATION
PRODUCTIONPRODUPRODUCTIONCTION
STRATEGICPLANNINGSTRATEGICSTRATEGICPLANNIPLANNINGNG
BUSINESSANALYSIS BUSINESSBUSINESSANALYSIS ANALYSIS
WORKDESIGNWORKWORK
DESIGNDESIGN
SYSTEMDESIGN
SSYSTEMSYSTEMDESIGNDESIGN
SS
SYSTEMDEVELO
SPMENT
SYSTEMSYSTEMDEVELOPDEVELOP
SSMENTMENT
OPERMONI
ATE/TOR
OPERAOPERAMONITMONIT
TE/TE/OROR
Business Process FrameworkBusiness Process Framework
© 2007 Brett Champlin 21
ABPMPFunctional vs CrossFunctional vs Cross--Functional Functional Process ManagementProcess Management
President
HumanResources
Marketing Finance InformationTechnology
Process ManagementWithin Functional Areas
Cross Functional Process Management
President
Marketing Sales FieldOperations
Underwriting
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ABPMP
End-
to-E
ndPr
oces
sA
ctiv
ity/
Sub
Proc
ess
Short LongTime
Scop
e of
Cha
nge
Process Improvement
Managing Process Transformation Managing Process Transformation
Bus
ines
sM
odel
Process Re-Design
Process Reengineering
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ABPMPImpact and Approach
Redesign of Industry Value Chain
Redesign of Business
Redesign of Processes
Improvement of Sub ProcessesIncrementalImprovements
Point of Approach Within Organization
Impa
ct o
n O
rgan
izat
ion
Source: Jeston & Nelis
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ABPMPImpact and Involvement
Involvement of Business Manager
Impa
ct o
n O
rgan
izat
ion
LowHigh
High Redesign Business Model
Redesign End-to-End Process
Improve/RedesignSub Process
Incremental Sub Process/
Activity Improvement
BusinessAs Usual
In the Driver’s
Seat
Pilot Project
Under the
Radar Under-
ambitious
Exceeding
mandate
LowSource: Jeston & NelisSource: Jeston & Nelis
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ABPMPAlternate Process Governance StructuresAlternate Process Governance Structures
© 2007 Brett Champlin 26
ABPMP
Stra
tegi
cTa
ctic
alDeg
ree
of C
hang
e
Short LongTime
Process Improvement
Process Re-Design
Enterprise Process Alignment/
Process Portfolio Management
Process Reengineering
Business Process ManagementBusiness Process Management
Managing Process Transformation Managing Process Transformation
Organization Change Management
Low Hanging Fruit/ Quick Hits
© 2007 Brett Champlin 27
ABPMPOrganizational Change Organizational Change ManagementManagement• Managing organizations through successful changes• Being aware of a need to manage change throughout planning and
implementation of change programs• Understanding and influencing how people experience change• Communications
– Be honest about where you are– Be honest about where you want to go– Be honest about how you are going to get there– Status reports, what’s new, how are we doing– How this will affect “you”– What can “you” do to prepare– What “you” should do now– How “you” can contribute to success
• Accelerate the 4 stages of natural reaction:– Denial – Resistance– Exploration– Commitment
© 2007 Brett Champlin 28
ABPMPManaging Organizational ChangeManaging Organizational Change
Organizational change follows a predictable patternChange can be planned for, monitored, and managedNumerous models for change management exist
The real power is not in the models, but in getting people aligned and able to adapt
Change Management may minimize resistance, but resistance always accompanies major changeChange Management deals with patterns of behavior that are predictable, and the success of the interventions utilized is measurableChange Management is about Performance
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ABPMPA PARTING THOUGHT...A PARTING THOUGHT...
Wisdom is knowing what to do next…
Skill is knowing how to do it, and…
Virtue is doing it!
- David Starr Jordan
© 2007 Brett Champlin 30
ABPMPReferencesReferences• Process Improvement-Redesign-Reengineering
– “Business Process Change: A Manager's Guide to Improving, Redesigning, and Automating Processes”, Paul Harmon
– “Business Process Management: Practical Guidelines to Successful Implementations”, Jeston & Nelis
– “Business Process Management: Profiting From Process”, Roger Burlton
– "Improving Performance: How to Manage the White Space in the Organization Chart", Geary Rummler & Alan Brache
– "Process Mapping, Process Improvement and Process Management", Dan Madison
– "Workflow Modeling: Tools for Process Improvement and ApplicationDevelopment", Alec Sharp & Patrick McDermott
• Change Management– The Change Management Learning Center
• www.change-management.com– The Change Management Toolbook
• www.change-management-toolbook.com– The Manager.org Knowledgebase
• www.themanager.org/Knowledgebase/Management/Change.htm
THE BUSINESS PROCESS THE BUSINESS PROCESS TRANSFORMATION CONTINUUMTRANSFORMATION CONTINUUMProcess Change ManagementProcess Change Management
Brett ChamplinBrett [email protected]@[email protected]@theChamplins.com