dimensions of change

Dimensions of Business Dimensions of Business Process ChangeProcess Change

Brett Champlin, President, Brett Champlin, President, Association of BPM ProfessionalsAssociation of BPM Professionals

© 2000-8 Brett Champlin 2

ABPMPAssociation of BPM ProfessionalsAssociation of BPM Professionals www.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• 10 Active US Chapters, many more forming• Affiliations with BPM groups internationally• Guide to BPM Common Body of Knowledge (BPM CBOK™) • BPM Model Curriculum • Certified Business Process Professional (CBPP)™


ABPMPABPMP’s Guide to aABPMP’s Guide to aBPM Common Body of KnowledgeBPM Common Body of Knowledge


ABPMPWhat is BPM?What is BPM?

• BPM is a Management DisciplineBPM is a Management Discipline– Process-oriented thinking

– Manage end-to-end business process

– 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


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.”

Source: APQC


ABPMPBPM Has Become MainstreamBPM Has Become Mainstream

• Two recent Forrester Surveys (Sept-Oct 2007)

– 449 decision makers in North America and Europe60% were already using BPMan additional 19% plan to do so in next 12 months

– 160 US and UK enterprise architects85% were actively planning or already had BPM deployments under way

– BPM Centers of Excellence (COEs) are the catalyst for BPM success

Source: Forrester


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


ABPMPProcess vs. Functional Process vs. Functional ManagementManagement


ABPMPFunctional vs Cross-Functional Functional vs Cross-Functional Process ManagementProcess Management

President

HumanResources

Marketing FinanceInformationTechnology

Process ManagementWithin Functional Areas

Cross Functional Process Management

President

Marketing SalesField

OperationsUnderwriting

Source: Dan Madison, “Process Mapping, Process Improvement and Source: Dan Madison, “Process Mapping, Process Improvement and Process ManagementProcess Management


ABPMPAlternate Process Management StructuresAlternate Process Management Structures


ABPMP

11

Mission, strategy, goals, and objectives

Business ProcessBusiness Process

WorkflowDesign

Information

Systems

Motivation &

Measurement

Policies and Rules

Human Resource

s

Facilities(or other)

•Performers•Steps &

decisions•Sequence

and flow•Handoffs

•Applications•Information

•Employee assessment

•“Reward and punishment”

•Process performance indicators

•Constraints•Business

rules that the process enforces

•External & internal

•Skills•Matching

jobs to tasks

•Selection and placement

•Workplace design

•Equipment•Furniture…

enables

enables enables enables enables

Culture, core competencies,and management systems

SupportsConstrains

enables

Source: Alec Sharp, Source: Alec Sharp, ClariteqClariteq

Business Process DynamicsBusiness Process DynamicsBusiness Process DynamicsBusiness Process Dynamics


ABPMPBusiness Process “Meta Model”Business Process “Meta Model”

PURPOSEPURPOSE

PEOPLEPEOPLE PLACEPLACE

PROCESSPROCESS

PRODUCTPRODUCT

PERIODPERIOD


ABPMPProcess DomainsProcess Domains

Business

Operations

Technical


ABPMPPerspectivesPerspectives


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


ABPMPPROCESS “MATURITY” MODELPROCESS “MATURITY” MODEL

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


ABPMPProcess Management “Maturity”Process Management “Maturity”

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


ABPMPTransformation Personality ProfileTransformation Personality Profile

Style Characteristics Imperative

Cultural Agressives

• Holistic Coordination• Seize Advantage• We change the rules of the market• We welcome rapid change• People at all levels embrace new ideas

Stay Ahead

Cultural Moderates

• Local Optimization• Seek Parity• We follow fast behind market leaders• We can cope with a few moderate changes• New ideas flow top-down through managers

Get Leverage

Cultural Conservatives

• Central Control• Reduce Pain• We seek mature markets, then compete on

price• We prefer status quo; discourage exceptions• New ideas are limited to job descriptions

purview

Catch Up

Source: Gartner


ABPMP

Primary (Core Operational/Value Chain) ProcessPrimary (Core Operational/Value Chain) Process

Process TypesProcess Types

Sub Process

Sub Process

Sub Process

Sub Process

Sub Process

Support ProcessesSupport ProcessesHR

ServicesFinancial Services

Information Services

Facilities Services

Procurement Services

Management ProcessesManagement Processes

Planning Directing Monitoring Controlling Transforming


ABPMPImpact and Approach

Point of Approach Within Organization

Redesign of Industry Value Chain

Redesign of Business

Redesign of Processes

Improvement of Sub Processes

IncrementalImprovements

Imp

act

on

O

rgan

izat

ion

Source: Jeston & Nelis


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 Innovation

Cost


ABPMPManaging Process Transformation Managing Process Transformation

En

d-t

o-E

nd

Pro

cess

Act

ivit

y/S

ub

Pro

cessS

cop

e o

f C

han

ge

Short Long

Time

Process Improvement

Bu

sin

ess

Mo

del

Process Re-Design

Process Reengineering

Source: Jeston & Nelis


ABPMPMap Processes to Business StrategiesMap Processes to Business Strategies

Business Processes

Major Impact

Moderate Impact

Major Impact

Moderate Impact

EngageCustomers

TransactBusiness

FulfillExpectatio

ns

ProvideServices

Reduce Costs

Reduce Time-to-Market

Improve Quality

Gain Market Share

Broaden Product Line

Business Strategies

Adapted from Bob CurticePerformance Improvement Associates"


ABPMPEstablish Performance DiagnosticsEstablish Performance Diagnostics

Business Processes

Diagnostics

+++

0World Class

Better Than Competitors

Equal to Competitors

Worse Than Competitors

4.3 0.7

Years since last major improvement effort

Benchmark Grade

3 Yr Efficiency Metrics

3 Yr Effectiveness Metrics

Process Cost ($ bln)

2 4 1 3

++

0+

2.1 1.4

EngageCustomers

TransactBusiness

FulfillExpectatio

ns

ProvideServices



ABPMPAssess the PortfolioAssess the Portfolio

EngageCustomers

TransactBusiness

FulfillExpectatio

ns

ProvideServices

Reduce CostsReduce Time-to-

MarketImprove Quality

Gain Market Share

Broaden Product LineYears since last major improvement effort

Benchmark Grade

3 Yr Efficiency Metrics

3 Yr Effectiveness Metrics

Process Cost ($ bln)4.3 0.7

2 4 1 3

++ 0+

2.1 1.4Adapted from Bob CurticePerformance Improvement Associates"


ABPMPWhy Process Portfolio Management? Why Process Portfolio Management?

Looking at one process at a time is not optimal • How can we be sure this process is the most critical one to

improve at this point in time?• How do we know which process(es) improvement will contribute

the most to achieving business objectives?• How can we ensure the benefits of an improvement project do

not degrade over time?

Managing a Process Portfolio

• Ensures some level of attention is paid to all important processes even when there is no major improvement project underway

• Provides a rationale to focus attention on the most critical process(es) needing improvement

• Provides a framework for on-going performance measurement of all processes



ABPMP

OPPORTUNITIES

THREATS

Internal Factors

Exte

rnal Fa

ctors

STR

EN

GTH

SW

EA

KN

ESS

ES

Leve

rage

Constraints

ObstaclesVul

nera

bilit

ies

Exte

rnal Fa

ctors

Internal Factors

Map to Decision Support Tools Map to Decision Support Tools

Engage Customer

ProvideService

Transact Business

Fulfill Expectations


ABPMP

Str

ateg

icT

acti

cal

Deg

ree

of

Ch

ang

e

Short Long

Time

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


ABPMPImpact and Involvement

Involvement of Business Manager

Imp

act

on

O

rgan

izat

ion

Low

High

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-

ambiti

ous

Exceeding

mandate

LowSource: Jeston & Nelis


ABPMP11stst Order Change Order Change

PLACEPLACE

PEOPLEPEOPLE

PURPOSEPURPOSE

PROCESSPROCESS

PRODUCTPRODUCTPERIODPERIOD

• Tasks & Nature of Work


ABPMP22ndnd Order Change Order Change

PLACEPLACE

PEOPLEPEOPLE

PURPOSEPURPOSE

PROCESSPROCESS


• Tasks & Nature of Work• Attitudes, Values & Skills


ABPMP33rdrd Order Change Order Change

PLACEPLACE

PEOPLEPEOPLE

PURPOSEPURPOSE

PROCESSPROCESS


• Tasks & Nature of Work• Attitudes, Values & Skills• Motivation & Relationships


ABPMP44thth Order Change Order Change

PLACEPLACE

PEOPLEPEOPLE

PURPOSEPURPOSE

PROCESSPROCESS



• Structure & Culture


ABPMP55thth Order Change Order Change

PLACEPLACE

PEOPLEPEOPLE

PURPOSEPURPOSE

PROCESSPROCESS



• Structure & Culture• Relationships with External

Partners & Community


ABPMPA PARTING THOUGHT...A PARTING THOUGHT...

“You don’t have to change.

Survival isn’t mandatory.” - Dr. W. Edwards Deming

Dimensions of Business Dimensions of Business Process ChangeProcess Change

Brett ChamplinBrett ChamplinPresident, ABPMPPresident, ABPMPwww.ABPMP.org www.ABPMP.org [email protected]

mailto:[email protected]

dimensions of change

Business

process process assessment

process improvement

orchestration process

process mapping

process repeatable

standard process

stable process

measured process