Evolutionary BPM. A New Process Methodology. Published: Oct. 17, Authors: Eli Stutz, Bruce Hardy
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1 A New Process Methodology Published: Oct. 17, 2013 Authors: Eli Stutz, Bruce Hardy
2 Introduction This white paper describes a new methodology for BPM (Business Process Management) Software development projects. This methodology is related to the Agile approach, but is unique to the field of BPM. It is employed by PNMsoft and by PNMsoft partners such as Solutions BPM. The intended result of this approach is that the company which employs it will attain rapid ROI on their BPM investment, and better value on the long term as well. The Waterfall Approach The waterfall model is a sequential design process, often used in software development processes, in which progress is seen as flowing steadily downwards (like a waterfall) through the phases of Conception, Initiation, Analysis, Design, Construction, Testing, Production/Implementation, and Maintenance. The waterfall development model originates in the manufacturing and construction industries; highly structured physical environments in which after-the-fact changes are prohibitively costly, if not impossible. Since no formal software development methodologies existed at the time, this hardware-oriented model was simply adapted for software development. [1] [1] Problems: Impossible to achieve perfection first time around Changing requirements No time to learn from each stage Important lessons only become available as project progresses Time to solution >> PNMsoft 2
3 PNMsoft 3
4 Agile Software Development In February 2001, 17 software developers met at the Snowbird, Utah, resort, to discuss lightweight development methods. They published the Manifesto for Agile Software Development to define the approach now known as agile software development. Some of the manifesto's authors formed the Agile Alliance, a non-profit organization that promotes software development according to the manifesto's principles. The Agile Manifesto reads, in its entirety, as follows: We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools, Working software over comprehensive documentation, Customer collaboration over contract negotiation, Responding to change over following a plan. That is, while there is value in the items on the right, we value the items on the left more.[2] [2] Daily Cycle Planning Product Increment Preparation Process Release Update Backlog Review Analysis PNMsoft 4
5 Agile 12 Principles 1. Customer satisfaction by rapid delivery of useful software 2. Welcome changing requirements, even late in development 3. Working software is delivered frequently (weeks rather than months) 4. Working software is the principal measure of progress 5. Sustainable development, able to maintain a constant pace 6. Close, daily cooperation between business people and developers 7. Face-to-face conversation is the best form of communication (co-location) 8. Projects are built around motivated individuals, who should be trusted 9. Continuous attention to technical excellence and good design 10. Simplicity the art of maximizing the amount of work not done is essential 11. Self-organizing teams 12. Regular adaptation to changing circumstances [2] PNMsoft 5
6 Where Does BPM Fit In? So where should BPM fit in between the Agile and Waterfall approaches? BPM To answer this question let s compare a traditional software development cycle with our new Evolutionary BPM Methodology. Traditional Software Methodology Traditional Software Development cycle might look like this: PNMsoft 6
7 There are a couple of things to note about this approach: 1) project phases are completed as silos. The 1st silo must be completed prior to beginning the 2nd silo. 2) there is a hand-off between each silo. This hand-off takes the form of specifications, documentation, meetings, etc. The success of each silo is largely affected by the quality of the hand-off. The moral to this story, is that silos and hand-offs are bad things and we should limit them as much as possible in the software development process. Evolutionary BPM Methodology At PNMsoft and Solutions BPM, we have embraced an agile development approach with a unique BPM flavor. It is called Evolutionary BPM, because the idea is that we are evolving the process over time. Here s what the Evolutionary BPM Development cycle looks like: In the evolutionary approach, note that process development is cyclical. It s a repeating cycle of Design / Document / Validate with all stakeholders present. An important aspect of this cycle is the time-phasing of each phase. In the perfect world, the time-phasing is real time, instantaneous. That is, when a requirement is defined, it is built in and validated by the users before moving forward. Obviously, many, many iterations of this cycle must be completed before the job is done. PNMsoft 7
8 PNMsoft Sequence BPM suite is integral to this process because it is the canvas on which we map the process as it is described by stakeholders (design), then we publish the map through Sequence (document), thus creating a working software solution, which is then used to test against what the stakeholders say they do (validate). PNMsoft Sequence App Studio Canvas The power of this approach is essentially real time feedback to user requirements, which eliminates the flood of change orders that roll in after the deploy phase. So What s Different? No Silos to Hand-off Time Collapsed Documentation Not Programming Validation Not Testing Output is a Fully Functional Process-oriented Software System Hot Changes are managed as Time-phased, Engineering Requests PNMsoft 8
9 Evolutionary BPM Steps Here we describe each of the steps in the Evolutionary BPM process: PNMsoft 9
10 Step 1: Identify and Document Process Components Activities Process Flow Hand-offs Decision Points Deliverables / Objectives Publish and Confirm the Sequence Model Repeat if necessary, do not Pass Go until DONE Step 2: Identify all Data Elements By Activity Decide who Sees & Updates What & When Define Validation Rules Publish and Confirm the Sequence Model Repeat if necessary, do not Pass Go until DONE Step 3: Add Special Features Validation Graphics, aesthetics Additional business logic Publish and Confirm the Sequence Model Repeat if necessary, do not Pass Go until DONE Step 4: Finalize Training and Organizational Change Step 5: Pilot 1st Deployment Adjust and Improve Step 6: Continue Deployments PNMsoft 10
11 This approach really only works because of the toolset we use. This is because, unlike other documentation tools, PNMsoft Sequence allows us to test what we heard against what users said in real time. An Example by Bruce Hardy, BPM Consultant I was at a client some time ago working on a process engineering project. The objective was to establish a common business process for several groups of users. This was a highly regulated business, so it was essential that we develop a robust standardized process that was easily audited for compliance. To accomplish this, I had all the process owners meet in a conference room. I asked them to bring their process documentation, including, especially, all the reports they either required or produced from the process. I then asked the owners to walk me through the process activities and identify each hand-off to another user. As the group talked, largely among each other, we documented the process in Sequence. At this point, we are only interested in big things, like activities and hand-offs. Next, we publish the Sequence model and have the users login to our Cloud and, again, describe the process as they executed the model we built. We do this again and again until everyone agrees this is THE PROCESS. Once that is done, we then take the documents the users brought to the meeting and dive into each Activity documenting all the field information needed by the user to complete the Activity and all the field information generated by the Activity needed downstream. We add a few flow-control information items to the Activities and execute the model in the Cloud until satisfied. This is our basic workflow model. We then work offline for a few days to complete adding information fields to the rest of the Activities, along with any validation logic, flow logic, etc. required by the Process. All the while, we leave the model live in the Cloud for users to validate with their colleagues. We continue this iterative process until we are comfortable doing a Pilot. As everyone s comfort builds, we go live at some point. It s not a Big Bang, it s more an evolutionary golive. Because Sequence has Hot-Change technology, the process does not need to be perfect. It will NEVER be perfect. One strength of Sequence is the ability to continue process improvement as the business inevitably changes. PNMsoft 11
12 Greatest Challenges The following are the greatest challenges that must be overcome in a BPM project: #1 User Adoption / Commitment Like any new system, you have to work to earn the trust of Users. So, how do you do that? Here is what we recommend: Show them what is in it for them o Easier, more organized workload o Time savings o Play on familiarity with the old system Give them the big picture o Discuss overall visibility, improvement and cost savings Effective change management o Communication o Training #2 IT Acceptance Demonstrate compliance to accepted IT practices o Phased, Engineering Requests (Hot Change) Involve in project(s) as trusted advisors o Responsibility for all technical aspects Allow opportunities to improve, even build, the BPM Models #3 Resistance to the BPM Concept and Toolsets Understand why procedural coding isn t necessarily better, or even preferred, yet is useful Reference applications of these concepts with over 800 daily users and 100,000 s of transactions annually (people who have done it) Earn your own successes now that you know how! PNMsoft 12
13 BPM: Key Elements of Success The following key events, maybe one would call them phases, that have helped guide our most successful projects. Selection of 1st Project o Important to stakeholders o Visible to decision makers o Widely accepted business impact potential Seek Rapid ROI Seek Quick Go Lives Provide Excellent Training and Support Respond to Issues Quickly There are a couple of assumptions that override our thinking, though. First, get live quickly. The process will NEVER be perfect and we believe it is more important to get live with 80% of a solution, than to drag out a project and risk losing commitment and momentum. Second, the solution will improve rapidly. Because Sequence HotChange allows us to use Engineering Change techniques used in manufacturing for decades, we can add functionality very rapidly without disruption to users. After go-live, organizational change is more a matter to manage than are changes to Sequence using HotChange. PNMsoft 13
14 Case Study: BPM + CRM for a Utilities Company The Challenge: A Utilities Company required an intelligent workflow for its Dynamics CRM to ensure customer service requests were handled optimally. The Evolution: Stakeholders met to model the workflow using PNMsoft Sequence CRM Edition (SCE). The model workflow included all the major human activity steps, and a placeholder for the CRM connection. They ran the model and verified that the flow was what was required. The Data + Flow stage included populating the fields and connection to the CRM case entity. The workflow was tested and went live in its first release. After the release, service speed improved by 60%, a rapid gain. Monitoring the workflow revealed a bottleneck around managerial approval. The workflow was evolved, and after a second iteration, service improved by an additional 30%. PNMsoft 14
15 HotChange TM Facilitates Evolutionary BPM PNMsoft s unique HotChange technology facilitates agile process evolutions, as the process is already in production. HotChange permeates all aspects of PNMsoft Sequence as a product, and enables superior control over rapid change, at the pace of business. PNMsoft 15
16 Benefits Achieve rapid success and ROI, justify investment in BPM. Improve Processes according to real time conditions. React more quickly to changes. Reduce time to implement changes to processes. Ability to keep processes running while making changes (no downtime). Ability to integrate rapidly with existing and new systems. Ability to provide processes interfaces on multiple platforms. Ability to implement new requirements rapidly. Maintain IT governance and control. Demo Watch a demo of how you can rapidly evolve a process using PNMsoft Sequence: Start Your Process Evolution Today Interested in BPM for your company, but not sure where to begin? We offer an introductory BPM workshop to help you explore your options for business process improvement and control. Sign up for a BPM Workshop PNMsoft 16
17 About Bruce Hardy Bruce Hardy is a business consultant in Tulsa, Oklahoma, USA and a PNMsoft Business Partner. Mr. Hardy has a Masters Degree in Business from the University of Tulsa and has worked as a consultant since 1993 to improve the business performance of clients throughout North America. He has worked for one of the world s largest consulting companies. As a veteran Supply Chain consultant, having worked with over 100 clients, Mr. Hardy started Solutions Hosting, Inc. (SHI) in 2002 to provide Balanced Scorecard and similar Business Performance and Business Intelligence tools and related services via the Cloud. Over time, SHI transitioned to the Business Process Management (BPM) model and today provides clients BPM solutions (software and services) via the Cloud. Mr. Hardy s focus has always been on solutions, not simply software or consulting. So, it made sense to partner with PNMsoft in 2007 to build a BPM model for the energy industry, which today is utilized by clients in the Fortune 200. PNMsoft s flagship product, Sequence Kinetics, has proved to be the perfect BPM solution for the ever-changing and critical needs of the US energy industry. To contact Mr. Hardy: Bruce.Hardy@SolutionsBPM.com. Website: About PNMsoft At PNMsoft we believe IT people could and should be the driving force in any organisation s success, if they could constantly adapt its business processes to changing market conditions. Sequence Kinetics, our Intelligent Business Process Management Suite, uses unique HotChange technology to enable rapid build and change of high availability, mobile enabled workflow applications, while maintaining lifecycle governance. PNMsoft has been positioned on Gartner s ibpms Magic Quadrant for Let s put your business processes in motion. Request a Demo: Contact us today: US: UK: + 44 (0) info@pnmsoft.com PNMsoft All rights reserved. Sequence Kinetics TM and HotChange TM are trademarks of PNMsoft. PNMsoft 17
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