guidelines for the success of a business process ...€¦ · transition towards a process centric...
TRANSCRIPT
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Guidelines for the Success of a Business Process
Management Initiative
June 8th 2012
Insert Company Logo
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Agenda
• Business Process Management Lifecycle
• Making change sustainable
• Business Process Governance
• Transitioning the Workforce
• Measuring Process Performance
• Developing sound policies
• Policies, Business Rules and Standard Operating Procedures
• Aligning Process management initiatives to Strategic Priorities
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Business Process Management Lifecycle
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Business Process Management Lifecycle
SAP – Process Management Lifecycle:
IBM
Oracle
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Simple Truth:
BPM Lifecycle
Analyze
Design
Implement Measure
Improve
Business Process Management Lifecycle
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Making change sustainable
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Transition towards a Process Centric Organization
Processes
Industrial/Information Age Customer Age
Doing things right Doing the right things and doing
things right
Manufacturing mindset Customer Experience
Tasks/Activities and
Outputs Outcomes and SCO's
Stocks Flows
Products Services
Left to Right, Top to
Bottom Customer Centric
Steve Towers - Overview on the shift in focus [email protected]
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Transition towards a Process Centric Organization
Characteristics of a Process Centric Organization
• A well-articulated business process architecture
• Business process architecture is institutionalized
• Management system is process-centered
• Capabilities to transform and evolve are in place Alan Ramias & Cherie Wilkins - The Process-Centered Organization: Do You Know Where you’re Going? Consultants, Performance Design Labs (PDL)
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Transition towards a Process Centric Organization
Identify Inefficiencies
Process Awareness
Process Management
Align BPM to Strategic Goals
Process Centric Organization
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Sustaining Change & Managing Perceptions
Key priorities in Sustaining Change and Managing Resistance:
• Engage leadership in strategic conversations
• Corporate culture, values and identity
• Focus Groups
• Success stories
• Recognize supporters
• Monitor new behaviors
• Change Agent Network
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Why many Change Initiatives fail
• Management Buy-In
• Communicate the vision
• Understand the need for change
• Too much complacency
• Anchor changes in corporate culture
• Short-term results
• Declaring victory too soon
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Making Change ‘Stick’
Consider these:
• Voice the Vision
• Enlist the ‘Evangelists’
• Identify Relevant KPIs
• Rewards for Responses
• Corrective Action
• Note the new ‘normal’
• Monitor Fatigue
• Reinforce Leadership Commitment
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Business Process Governance
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Business Process Governance
• Accountability Framework
• Policies & Procedures
• Practices & Standards
• Performance & Compliance
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What is Business Process Governance?
Policies & Procedures
• BPM Methodology
• BPM Policies
• BPM Procedures
Practices & Standards
• Process design
• Artefacts & Templates
Accountability Framework
• Roles, responsibilities and
decision-making authority
Performance & Compliance
• Performance Reporting
• Enforcing compliance
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Role of the Process Owner
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Process Owner / Process Steward
Process Owner
• A Process Owner is responsible for the process as a whole as it runs across different functional departments
Process Steward
• A Process Steward is the Process Owner’s representative in a specific functional department that forms part of the process, and is responsible for the part of the process which falls in his/her functional department.
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Responsibilities of a Process Owner
The Process Owner:
• Accountable
• Track Process Performance
• Perform Executive Functions
• Maintain Stakeholder Relationships
• Ensure Overall View of Processes
• Responsible for Impact of Process Change
• Ensuring Alignment with Organizational Strategy
• Aware of Environmental Factors
• Lead Process Change Initiatives
• Communications and Change Management
• Conversant with Organizations BPM Methodology
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Responsibilities of a Process Steward
The Process Steward:
• Key Stakeholder
• Ensure Effective Execution
• Aware of Environmental Factors
• Familiarity with Process Design
• Advise Process Owners on Process Change Analysis
• Conduit of Process Change
• Maintain Relationships with Functional Heads
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Transitioning the Workforce
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Importance of Workforce Transition
Large Transformation Programs
Change the way work is conducted
Impacts existing roles and responsibilities
Prepare Organization for these Changes
Train Employees / Stakeholders
“Smooth” Transition
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Workforce Transition Activities
Recruitment and Retention
Competency Assessments
Roles and Responsibilities
Employee Readiness Sessions
Employee Deployment
Performance Measurement
Organization Architecture
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Role of the Change Leader/ Agent
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Key Responsibilities of Change Leader
• Communication
• Visible Champions
• Access to people and resources
• Influence
• Change vision
• Buy-in
• Alignment
• Translate project vision
• Deliver context for the initiative
• Key decisions
• Support
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Required Competencies for Change Leaders & Change Agents
25
Executive Champions
(Change Leaders)
• Inspire
• Encourages and leads
• Authority
• Access
• Leadership Experience
• Experience leading strategic change initiative
• Exposure to large scale transformation
• Knowledge of stakeholder engagement principles
Change Agents
• Collaborative Approach
• Established Internal Network
• Respected among peers
• Good people skills
• Working Knowledge of Processes
• Team Spirit
• Close Relationships
• Clear Communication
• Project Experience
• Understand project objectives
• Willing to talk about projects to peers
• Listen to concerns
• Clarify misunderstandings
• Positive Attitude
• Assist team in understanding concerns, issues, barriers
Prerequisites Required Competencies
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Key Responsibilities of a Change Agent
• Review communications
• Tailor communications as needed
• Distribute communications
• Communicate with other employees and the Network regularly, including:
Participate in informal communication opportunities
Collect feedback
• Encourage peers
• Escalate problems
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Desired Attributes of a Change Agent
• Ability to influence
• Strong communication skills
• Good Listener
• Ability to work effectively with all levels of the organization
• Strong, informal network of peers
• Good time management skills
• Capable to get tough jobs done quickly
• Cares about how people are treated
• Cares about how people are able to do their jobs
• Committed to delivering and follow-through
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Understanding and Addressing Change Resistance
When dealing with resistance, the focus should be on:
• Dealing with staff one-on-one
• Communicating an honest message
• Using both logic and emotion
• Establishing trust
• Promoting positive benefits
• Addressing rumors or misinformation
• Keeping lines of communication open
• Tackling questions or concerns
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Measuring Process Performance
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Reasons for Measuring Process Performance
• Comparing performance with historical performance
• Determine if targets are being achieved
• Reviewing business cases and evaluating process improvements
• Planning other process improvement projects
• Choosing between potential process improvement projects
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Key considerations
Key considerations & actions Roles and Responsibilities
• Proposed change likely to yield benefits OR have benefits been realised
• Qualitative and Quantitative measurements • Balanced view of inputs processes & business
outcomes. • Combination of continuous measurements • Clear rationale for measurement • Focus on high-value measures
Sample questions that guide the allocation of roles and responsibilities: • Responsibility for deciding portfolio
of KPIs to be used • Who is responsible for
measurement? • Accountability for deriving business
value from metrics ?
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KPI Types - examples
Focus areas Candidate Measures
Financial
• Cost, cost categories and cost ratios • Revenues, revenue segmentation (industry, size, tax type etc.) • Asset values • Financial ratios
Customer Focus
• Satisfaction (ratings, focus groups etc.) • Problem reports (complaints, advice requests) • Support process measurement (turnaround time, waiting time,
right first time)
Internal business processes
• Process unit Quantity / Quality /Costs • Resource utilization • Service quality and ‘defect’ rates • Process ratios
Human Resources • Average organization and task experience • Education and qualification levels • Staff satisfaction / turnover
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Developing sound BPM policies
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Policy
Role of Policy:
• Organization’s position on a specific business issue.
• Provides guiding principles, rules and guidelines.
• Sets boundaries for decisions and actions.
• Not to be confused with SOPs
• Identifies Business Issues
• Guidance to achieve objectives
• Needs supporting SOPs
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Policies, Business Rules and Standard Operating
Procedures
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Relationship between Policy, Business Rules and SOPs
Legislation
Policy
Business Rules
Standard Operating Procedure (SOP)
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Post Implementation / Initiative Evaluation
Focus area Candidate Questions
Financial • How much did the initiative cost? • What financial benefits achieved/burdens removed? • Impact on Asset Utilization
Customer Focus • Improved client satisfaction? • Effect on the client’s cost of compliance? • Increase/decrease cost of client transactions & support?
Internal business processes
• Improved ability to meet client needs? • Improved quality of our activities and services? • Improved efficiency ratios? • Has organization effectiveness improved? • Improved Management Ability? • Increased Agility?
Human Resources • Improved workforce capability? • Increased employee satisfaction? • Enhanced utility of internal resources?
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Questions?