Business Process Management

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1 Busess Process Management Straight Through Processg Process Engeerg at Deutsche Börse Group Alexander Höptner Process Management Agenda Busess Process Management Back up Process house CMM Level 1 5 End-to-end Busess Process Six Sigma Project Lean BPM Project 1

2 Busess Process Management From functional view to process perspective Incremental approach contuous measurable benefits Busess Process Management improvg efficiency 2 Busess Process management Complexity on four layers Customer / Market Product-Layer Process-Layer IT System-Layer Product-Layer Complexity- Factor 10 Process-Layer Complexity- Factor 10 Resource-Layer Infrastructure-Layer You cannot solve a problem on the same level of thkg you were at when you created it. Albert Este 3

3 Challenges of project success Reduction of complexity Project success depends on focus on all complexity layers Product-Layer Process-Layer Product-Layer Process-Layer IT System-Layer IT System-Layer Infrastructure-Layer Infrastructure-Layer Traditional project approach of IT driven companies Busess Process Management as tegral approach 4 Managg processes Applyg the process view Optimizg processes a functional organization requires a fresh, process oriented view From the functional view Board to a process perspective Board Dep. A Dep. B Dep. C Dep. D 5

4 Capability Maturity Model (CMM) Process maturity = process capability Level 5 Industrialized process Level 4 Managed process Level 3 Defed process Level 2 Repeatable process Level 1 Initial process Out 6 Busess Process Management Agenda From functional view to process perspective Incremental approach contuous measurable benefits Busess Process Management improvg efficiency 7

5 Green field approach New developments alienate employees Performance 100% Phase 1 : apprehension concern Phase 2 : shock astonishment Phase 3 : negation defiance Phase 4 : rational acceptance frustration Phase 5 : emotional acceptance dolor Phase 6 : openg curiosity Phase 7 : tegration self-confidence performance upside performance downside project setup exploration/ planng announcement Concept / implementation pilot release Roll Out Time 8 Startg with as-is process Buy- of employees on current level possible Performance 100% Phase 1 : apprehension concern Phase 2 : shock astonishment Phase 3 : negation defiance Phase 4 : rational acceptance frustration Phase 6 : openg Phase 5 : curiosity emotional acceptance dolor Phase 7 : tegration self-confidence performance upside performance downside project setup exploration/ planng announcement Concept / implementation pilot release Roll Out Time 9

6 Incremental approach limits risks and creases staff buy- CMM Level 5 Process Reengeerg Industrialized Process Incremental Approach Possible to start with as-is processes Limited Risks Clear results over a short period Staff buy- ensured CMM Level 4 Process Management Managed Process Breakthrough Breakthrough Big Bang Approach High risks Long periods of limited results Staff buy- questionable CMM Level 3 Process Execution Defed Process One-off-trag Approach Quick but little results No sustaed success warranted Time 10 Busess Process Management Agenda From functional view to process perspective Incremental approach contuous measurable benefits Busess Process Management improvg efficiency 11

7 Busess Process Management Improvg efficiency Coachg Trag Process Reengeerg Industrialized process Prerequisites Defed & implemented end-to-end SLAs Resource planng implemented Contuous improvement program established Managed process Prerequisites KPI Cockpit implemented Process Management Project Management Program Management Benefits Sourceable process Scalable process Contuous efficiency optimization Benefits Manageable process Proactive Risk Management established Defed process Process Execution Prerequisites Defed & Documented process Measure pots implemented Benefits Standardized, repeatable process Audit compliant Process controllg possible 12 Busess Process Management Offerg portfolio Trag Trag on Process Management methods process documentation DMAIC Six Sigma Trag and Certification White Belt Green Belt Black Belt Champion Coachg Project team support structurg planng realization controllg reportg moderation Project Management Responsible for structurg planng controllg reportg moderation Program Management Responsible for project selection and prioritization multi project planng and coordation Trag on Process Management tools ARIS Visio 13

8 Thank you for your attention! 14 Back up 15

9 Process house Deutsche Börse Group Economies of scope Back office Settlement Clearg Tradg Front office Load Operate Build Busess model Sell technology Insource Volume Full service 16 CMM Level 1 Discover itial process Process attributes Not predictable Out Model Process perception Process management Based on assumptions Not manageable 17

10 CMM Level 2 Build repeatable process Process attributes Repeatable Stable Model Process perception System Process management Documented (high level) Not manageable 18 CMM Level 3 Operate defed process Process attributes Repeatable Standardized Controllable plan check simulate steer Model measure Process perception Defed Documented System Process management Measurable Audit compliant 19

11 CMM Level 4 Load managed process Process attributes Repeatable Standardized Stable Controllable Scalable plan check simulate steer Model measure Process perception Defed Documented System Process management KPIs implemented Audit compliant Manageable Risk Management 20 CMM Level 5 Leverage dustrialized process Process attributes Repeatable Standardized Stable Controllable Scalable Sourceable plan check simulate steer Model measure Process perception Defed Documented SLA managed SLA System Factory SLA Process management Manageable KPIs implemented Audit compliant Risk Management Resource planng 21

12 X7 X8 X10 Material Measurements Maschen Change Request Klassifizierung ist nicht edeutig Auswertung ist falsch Vorgaben waren ungenügend Fehlerklassifizierung Spezif ikation Bucktrackg Tool (Mantis,..) Fehler werden X2 nicht erfasst Templates Zuwenig Testdaten Fehlererfassung Test daten Testumgebung Vitria Bug Esatz Quality Manager X1 Fremdsystemfehler Erfahrung Environment /Tool Know-How Programmierfehler X5 X9 Missverständnis Tippfehler Mitarbeiter Performance Mappg Ke Unklare Defition Releasemanagement zu wenig Zeit Fehlende Zeitmangel Komplexe Kee Testkonzeption Anwendung falsch Schemavalidierung umgesetzte möglich zuwenig getestet Spezifikation zuwenig Testdaten X4 Testtool X3 Konfig. falsch Ke Review gemacht Codg X6 Kee Zeit Methoden Anzahl gemeldeter Bugs nach Auslieferung Pro ausgeliefertem "Service Entsteht durchschnittlich ca e Fehler je Service Sigma Level: 2,61 Apr. Defe 2. Quartal Measure Analyze Aug. 3. Quartal Improve Control Sept. End-to-end Busess Processes Focus on 20 % of busess processes # Resources 20% of all busess processes bd 80% of all resources # Processes 22 Six Sigma Project Results each phase Mai Juni Juli Defe Project charter Process map Measure Data collection Data collection plan and results Fishbone Analyze Process analysis; FMEA; Analysis of variance Validation of factors of fluence Improve Ideas for Improvement Decision Design Matrix Implementation of Improvements Implementation plan, SOP Control Verify the results of the new process Data collection plan and new results Control chart Leverage analysis 23

13 X10 Material Measurements Maschen Change Request Klassifizierung ist nicht edeutig Auswertung ist falsch X7 Vorgaben waren ungenügend Fehlerklassifizierung Spezifikation Bucktrackg Tool (Mantis,..) Fehler werden X2 nic ht erfass t Templates Zuwenig Testdaten Fehlererfassung Testdaten Anzahl gemeldeter Bugs Testumgebung nach Auslieferung Vitria Bug Esatz Quality Manager X1 Pro ausgeliefertem "Service X8 Fremdsystemfehler Entsteht durchschnittlich ca e Fehler je Service Erfahrung Environment Sigma Level: 2,61 /Tool Know-How Programmierfehler X5 X9 Missverständnis Tippfehler Mitarbeiter Performance Mappg Ke Unklare Defition Releasemanagement zu wenig Zeit Fehlende Zeitmangel Komplexe Kee Testkonzeption Anwendung falsch Schemavalidierung umgesetzte möglich zuwenig getestet Spezifikation zuwenig Testdaten X4 Testtool X3 Konfig. falsch Ke Review gemacht Codg X6 Kee Zeit Methoden Lean BPM Project Results each phase Defe Project charter Process map Measure not applicable Analyze Process analysis; FMEA Fishbone Improve Ideas for Improvement Decision Design Matrix Implementation of Improvements Implementation plan, SOP Control Leverage analysis 24

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