Global Process Innovation Value Proposition

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1 Global Process Innovation Value Proposition 1 Global Process Innovation will help your organization implement sustainable Business Process Management that delivers strategic value. With active support from leaders, implementation will be efficient, effective, and powerful.

2 Who is Jim Boots? Principal and owner of Global Process Innovation, a BPM consulting firm based in Danville, California ( Over twenty-five years developing process management capabilities at Chevron; primary builder of Chevron s BPM infrastructure from Principal at the Innovation Value Institute (IVI) and Lead Architect of IVI s BPM Critical Process Author of BPM articles and an upcoming book Sought-after speaker at conferences, seminars, and workshops 2 address:

3 What is Business Process Management? The B in BPM stands for Business Profitability Risk management Portfolio management Customer satisfaction The P in BPM stands for Process The activities of the enterprise organized to produce desired outputs An inherently hierarchical construct from high level functional activities to low level tasks The means by which strategy and policy are translated into action The M in BPM stands for Management A responsibility of managers 3 A practice involving goal-setting, assessment, planning, monitoring, reinforcement, review, learning and adjustment

4 Gartner Definition of Business Process Management 4 "BPM is a management discipline that treats business processes as assets to be valued, designed and exploited in their own right. It is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimize an organization's activities and processes. It aims to improve agility and operational performance. - Gartner

5 Why is BPM Important? 5 BPM Improves: Knowledge Capture & Transfer Reliability & Efficiency Profitability Compliance & Risk Management Product Quality Agility Growth Innovation Through Collaboration Accountability Workforce Empowerment Global Goodwill

6 Common Areas of Big Value through Better Process 6 Supply Chain of any organization handling physical goods Interface-rich environment contracts, supply, production, logistics, forecasting, transactions Break-through examples from Wal-Mart, Apple, Dell Big leverage in high inventory/high capital businesses Frequent, high-impact processes that involve many resources On-boarding and off-boarding employees and contractors Managing resolution of IT tickets Managing employee performance evaluation and salary treatment Procurement High value processes The content, flow, and linkage between strategic planning, tactical planning, and operational planning Portfolio management, seismic analysis (for an oil exploration company) Equipment reliability assurance (for an equipment manufacturer) Whatever the processes are which should exemplify your organization s core competence High risk and/or compliance processes Standard operating procedures and behavioral reinforcement in high-risk environments Processes involving high potential liability in the event of non-compliance or major incident Businesses with high compliance assurance costs

7 Accelerating Maturity, Increasing Value It is not unusual for an organization to start its process management journey by undertaking process documentation, process improvement, and/or process automation projects. These efforts can yield significant tactical benefits by improving a specific activity or set of activities in an organization. As the value of improving processes becomes more apparent, some organizations develop a systematic way to address the entire set of processes so the value from process efforts can be maximized. This is the beginning of serious Business Process Management. 7 Global Process Innovation can help you progress from wherever you are on the maturity curve.

8 Global Process Innovation: What We Do, How We Do It, and What You Get What We Do How We Do It What You Get BPM Implementation Learning & Planning Workshop BPM Assessment & Implementation Plan Development Strategic Guidance for BPM Implementation Process Architecture Documentation Process Improvement or Automation Custom Dialogues & Services Hold onsite session with up to 12 attendees An interactive workshop using as a framework the IVI BPM maturity model (see next slide) Engage with management sponsor Conduct online surveys and face-to-face interviews Discuss alternative action plans with leaders Hold weekly monitoring, development, and guidance sessions until BPM capability is selfsustaining Mostly phone & web-sharing with occasional site visits; 1-2 days per week on average Collaborate with selected subject matter experts to detail organization s processes and their relationships Collaborate with subject matter experts using Lean Six Sigma methodology to improve a specific, impactful process Automate a process (if technology in place) 8 An understanding of BPM capability An action plan for enabling BPM implementation A detailed assessment of current BPM capabilities, risks, and opportunities A one-year BPM Implementation Plan: key decisions, communications, and actions Assurance that implementation is optimized per management objectives and that exceptions are addressed promptly A highly articulated process model which improves collaboration and decision-making at every value stream hand-off point An improved process, typically demonstrated by increases in efficiency, reliability, agility, and/or quality of output Per client specifications Better understanding of how to address issues associated with BPM capability development

9 At Global Process Innovation, to discuss BPM capability we rely on this adaptation* of a BPM Capability Model that is part of the Innovation Value Institute s Information Technology Capability Maturity Framework. It may seem a lot to take on, but our approach keeps it simple and tailored to client needs. BPM Capability Model 9 Category Capability building block Description Foundation Application BPM Organization and Personnel BPM Standards and Methods BPM Technologies Stakeholder Management and Communication Scope of Implementation Process Architecture Process Governance Process Improvement Process Automation The structure, competencies, resource levels, and roles and responsibilities of personnel involved with the governance, development, dissemination, and implementation of processrelated standards, methods and technologies. The set of standards and methods that foster effective process management, including a glossary, modelling and notation standards, modelling and improvement methods, governance structures and practices, assessment of implementation effectiveness, and measurement of value. Technologies for documenting, organizing, evaluating, and supporting the execution of the organisation s activities. The management of communications with business and IT stakeholders about process management approaches, success stories, lessons learned, potential value opportunities, and value realized. The organizational context in which BPM is being used including the range of processes being addressed. Structure and documentation of processes, including names, definitions, objectives, roles, flows and relationships. Development and implementation of principles, policies, roles, responsibilities, and measures for process governance and ownership. This also includes alignment of process management with planning and implementation activities of the organization. The use of evaluation, redesign and improvement methods to drive change in processes. The use of technologies to simulate, eliminate, automate, monitor, and optimise steps in a process. * The adaptation is a generalization of the second category from one having an IT orientation to one that applies to any organizational entity or function; also, spelling has been Americanized.

10 One of the Keys to Success: Integrating BPM into Business Planning 10 From a 2010 McKinsey paper*: the real game changers will be breakthrough innovations created by companies: history shows that a majority of productivity growth more than two-thirds comes from product and process innovation. Through annual planning activities, management addresses investment in assets facilities, products, people, IT. Processes also need to be recognized as valuable assets to be managed. Ideally, performance targets and projects related to processes will be included in the business plan and discussed regularly in management reviews. Needs Plans * The Productivity Imperative, by Peter Bisson, Elizabeth Stephenson, and S. Patrick Viguerie

11 A Vision for BPM Governance & Sustainability BPM Governance Board at an enterprise level ensuring a capable BPM structure is in place and operating with the proper scope and focus 11 BPM infrastructure development and support organization covering standards, methods, training, and technology selection and support BPM Steering Committees at operating company and business unit levels owning the organization s process architecture, prioritizing process efforts BPM BPM Coordinator at business unit level ensuring proper use of infrastructure elements, overseeing and orchestrating Process Sponsors and Advisors in line with Steering Committee guidance

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