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Achieving Immediate & Sustainable Business Value Through BPM, Standards & Governance

John Suzanne, DSA, PMP, MBB

© IDS Scheer AG www.processworld.com

Overview

• Speaker Introduction - John Suzanne• Key Definitions• Program Charter - Defined• BPM Governance Charter - Example

o Strategic Alignmento Visiono Scopeo Missiono Objectiveso Lifecycleo Milestone Deliverables

• Generally Accepted Modeling Principles (GAMP) 8

• Governing Principles - Example• References• Notices


Speaker Introduction - John Suzanne

• Experienceo 20+ years global cross-industry

Manufacturing, Defence, Government, Finance, Services, Transportation, Finance, Communications, Aerospace, Automotive, Pharmaceutical, Medical Devices, Technology, Vision Systems and Customer Service

o 15+ years Business Process Architecture, Data Architecture and Enterprise Architecture

o 11+ years Management


Speaker Introduction - John Suzanne

• Registrations and Certificationso Project Management Professional (PMP)o Six Sigma: Green Belt, Lean Belt, Black Belt, Master Black Belto DSA 9 - State Department of Civil Service. The DSA 9 is recognized by

the United Nations as being congruent to a Doctorate in Systems Analysis/Architecture for inter-governmental transfers and immigration purposes.

• Educationo University of Michigan – Bachelor of Arts and Science - Economics

and Computer Scienceo Villanova University – Masters Certificate in Six Sigmao Christian Brothers University – MBA Program, Strategic Focus

Capstone® MBA competency exam successfully completed Guided Capstone® simulation team to 99th percentile among 500+

teams such as: Wharton, Purdue, Rice, University of Texas, Texas A&M, Rensselaer Polytechnic, Notre Dame and Louisiana State


Key Definitions

• Six Sigmao Elimination of defects and unplanned variationo Data driven decisionso Structured problem-solving toolsetso 3.4 defects per million or 99.9997% yieldo Stable approach that delivers sustainable results

• Lean Six Sigma 1

o Focus on process velocity (process speed, cycle time)o Analysis of process flow and delay times at each activity in the

processo Separates value-add versus non-value-add (waste) activity with

emphasis in eliminating the root cause of non-value-add and its associated cost

o Quantifies and eliminates cost of complexityo More immediate benefit than Six Sigma aloneo “Conquer complexity and achieve major cost reductions in less than a

year” 1


Key Definitions

• TRIZ – a method for sustainable innovationo Russian acronym for the “Theory of Innovative Problem

Solving”o Artshuler’s categorizations as summarized by Glen Mazur 2


Key Definitions

• Business Process Modeling: “…the capture, documentation and analysis of business process” 9

• Business Process Management (BPM)o “a deliberate and collaborative approach to systematically and

systemically – managing all of a company’s business processes. BPM is enabled by business process thinking and process-centric information technologies…” 4

o “a management discipline whose goal is to improve agility and operational performance.” 12

o “a structured approach that employs methods, policies, metrics, management practices and software tools to manage and continuously optimize an organization's activities.” 12

• “Business Process Management (BPM) is to business as Einstein’s Unified Field Theory is to Physics” a common sentiment held by many leading BPM experts 5


Key Definitions

• Governance defined using an analogous methodo Corporate Governance - is the set of processes, customs,

policies, laws and institutions affecting the way a corporation is directed, administered or controlled. 6

o BPM Governance - is the set of processes, customs, policies, laws and institutions affecting the way a Business Process Management program is directed, administered or controlled.


Program Charter - Defined

• Executive Sponsorshipo Approves Charter conferring authority and resources

• Scope o Boundaries of the effort – it is critical that the authority of the

executive sponsor(s) aligns with the scope. • Vision

o Direction given by the business leaders which aligns the program with overall organizational strategy

• Missiono Means to achieve the vision

• Objectiveso High-level goals that must be attained to accomplish the

mission


Program Charter - Defined

• Lifecycleo The program’s top level process or roadmap, typically iterative

at points with potential spiral processes at lower levels• Milestone Deliverables

o Considered a “rough-cut” in the beginning and decomposed in later phases to be more specific


BPM Governance Charter - Example

• Scopeo X corp. Customer Information Services - World Revenue Operationso Note: Scope is subject to the “triple-constraint” of time, quality and

available resources: Fast, good or cheap – pick two. • Vision

o Establishment of a BPM governance system aligned with the organizational strategy that creates the conditions for immediate and sustainable business value.

• Missiono Integrate appropriate and consistent BPM decision making and review

at the lowest levels possible. Ingrain BPM-centric thinking and systems into the cultural DNA of the organization.

• Objectiveso Facilitate executive behaviors conducive to BPMo Ingrain BPM into all Revenue and governance processeso Establish/modify Key Process Indicators to support BPM



• Lifecycle Exampleso Lean PDCA (Deming Cycle)

Plan-Do-Check-Acto Six Sigma DMAIC

Define Measure Analyze Improve Control

o Project Management Institute IPECC Initialize Plan Execute Control Close



• Deliverableso Stakeholder analysis

Organization and representationo Communication Plano Governing Principleso Stakeholder Validationo SWOT Analysiso Work Breakdown Structure (WBS)o Work culture integration, transition to operationso Other subsidiary Plans/Projects as needed i.e.

Change Management, Training Plan, Knowledge Management, Test Plans etc.

o Work culture integration, transition to operations, project close-outs


Generally Accepted Modeling Principles (GAMP) 8

• Correctnesso Close compliance to the structure and behavior of “reality”

• Relevanceo Only relevant portions of the real-world system should be

modeled• Cost versus benefit

o Cost of model versus usefulness of model• Clarity

o Model is understandable for its users, especially as the model is broken down or decomposed

• Comparabilityo Consistent framework, naming conventions and detailing result

in models that can be easily compared• Systematic Structure

o Single meta-model produces consistent alternate views


Governing Principles - Example

• Strategic Alignment• Break down unneeded organizational and functional silos• Global visibility and transparency of the business process and

value stream• Current State Modeling

o Model the Reality according to GAMP 8 (Principles)o Emotional Intelligence

Vulnerability Acceptance



• Proposed State Modelingo Model according to GAMP 8 (Principles)o Focus on the process

If the process is inadequate, focus on and improve the process. Keep it positive and obtain operational approval.

Keep it simple (i.e. break into manageable pieces, align activities to be self-governing where possible)

o Enhance Customer Value (Experience) Reduce cycle time to closure Corrective Action / Preventive Action Utilize metrics that measure customer value through desired

results i.e. time-to-task completion (resolution) versus average handle time 10



• Proposed State Modeling-continuedo Enhance Business Value (Cost/Revenue/Profit)

Enable Lean, Six Sigma and TRIZ methods to provide value, increase operational efficiency and reduce unplanned variance

Enhance upstream & downstream value and maintainability. Validate work with semantic checks and simulation comparisons against current state 7.

Consider fitness for use when selecting available tools, models, objects and relations

Consider impacts. i.e. The upstream, downstream and behavioral impacts of proposed changes such as reports, metrics

Where practical - encapsulate 11

Self contained Able to be maintained as a single unit of work Largely unaffected by changes outside of self Highly reusable and easily swapped with like objects or models


References

1 George, Michael L. LEAN SIX SIGMA FOR SERVICE How to Use Lean Speed & Six Sigma Quality to Improve Services and Transactions. New York: McGraw Hill, 2003.2 Mazur, Glen. Theory of Inventive Problem Solving (TRIZ). 26 February 1996. <http://www.mazur.net/triz/>.3 "Business Process Management." Wikipedia, The Free Encyclopedia. 6 Jan 2007, 18:17 UTC. Wikimedia Foundation, Inc. 11 Jan 2007 <http://en.wikipedia.org/w/index.php?title=Business_Process_Management&oldid=98911739>. 4 Spanyi, Andrew. BUSINESS PROCESS MANAGEMENT IS A TEAM SPORT Play it to Win! Tampa: Anclote Press, 2003.5 Smith, Howard and Peter Fingar. Business Process Management (BPM): The Third Wave. Meghan-Kiffer Press; 1st edition (January 2003) 6 "Corporate governance." Wikipedia, The Free Encyclopedia. 20 Nov 2006, 14:18 UTC. Wikimedia Foundation, Inc. 12 Jan 2007 <http://en.wikipedia.org/w/index.php?title=Corporate_governance&oldid=89011155>. 7 Eurotherm and the Pharmaceutical Project Lifecycle. 2002 Issue 1. <http://download.eurotherm.co.uk/downloads/DL/GAMP_027654U001_1b.pdf >.


References

8 Scheer, A.W. ARIS – Business Process Frameworks. Berlin, Heidelberg, New York: Springer, 1999. (Generally Accepted Modeling Principles)9 Davis, Rob. Business Process Modeling with ARIS, A Practical Guide. Berlin, Heidelberg, New York: Springer, 2001. (Business Process Modeling definition)10 Larson, James A. et al. Ten Criteria for Measuring Effective Voice User Interfaces. November 2005. <http://www.larson-tech.com/Writings/10UICriteria.htm>.11 Kassabgi et al. Primary Technical Editor: John Suzanne. Special Edition: Using Progress V8. Indianapolis, Indiana: Que Publishing, 1996. (Encapsulation)12 Kerremans, Marc; Davies, Jim. How BPM Can Enhance the Eight Building Blocks of CRM. Gartner Research ID: G00146588. 6 April 2007.


Notices

• Do not attempt to recreate without the guidance and supervision of a relevantly experienced and certified professional

• The opinions expressed by Mr. Suzanne are exclusively his own and do not necessarily represent the views of IDS Scheer or any other person or legal body.

• Copyright 2007, subject to the Suzanne & Associates LLC Standard Service Agreement.

• Trademarks and service marks are the property of their respective holders.

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