Architecting BPM Through a Center of Excellence at Wells Fargo Bank Paul Tazbaz, Enterprise Architect, Wells Fargo, California, USA

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1 Building & Managing a Successful BPM CoE 11:00-11:30 Architecting BPM Through a Center of Excellence at Wells Fargo Bank Paul Tazbaz, Enterprise Architect, Wells Fargo, California, USA

2 Architecting BPM Through a Center of Excellence at Wells Fargo Bank Process Days Conference July 28th, 2010 Paul Tazbaz, Enterprise Architecture

3 Agenda Background & Value Proposition Organizational Structure Roadmap & Current Activity Best Practices & Lessons Learned Questions

4 Wells Fargo The Company Diversified financial services company with 1.3 Trillion in assets Banking, insurance, investments, mortgage and consumer finance Decentralized organization with over 80+ lines of business serving customers in all 50 states

5 Enterprise Architecture Head of TOG Technology Operations Group (TOG) managed by Avid Modjtabai Enterprise Hosting Mainframe/Midrange TOG touches more customers than any other group in Wells Fargo Enterprise Strategy Enterprise Architecture Risk/Security & Network/Desktop Customer Service & Operations We touch them every time they transact business online, at the ATM, by telephone, or in a store more than 8 billion times a year We impact them through availability and security We touch them indirectly through our business partners who deliver valueadded products and services 5

6 Background of BPM Program at Wells Fargo EA sponsors current state analysis of BPM at WFC Goal: Knowledge Sharing, Collaboration, Awareness Focus Areas: People, Process, Technology Initial Participation: Multiple LOB Results presented to senior management Based on diversity findings, surveyed interest among LOB in forming working group to support cross collaboration Drive cost reduction and improve efficiencies in managing processes Establish best practices, standards, technology re-use, target architecture and roadmap Architect BPM for Sustainability 1Q07 2Q07 3Q07 4Q07 1Q08 2Q10 Initial findings published in whitepaper 10+ LOB focused on BPM in siloed efforts 20+ technology products in use COE kickoff Current Accomplishments Membership: 45 LOB, 300+ members 28 business line presentations Showcasing cost saves upwards of $30m\yr 30+ business lines have adopted BPM standards and products promoted by EA $1M+ in savings from re-use 75+ hands-on consultations for business lines Centralized BPM training program established 400+ team members completed a class $450K+ in savings versus external providers 5 new BPM programs entrenched in business units Formation of sister group focused on BRM

7 Partnership with Business & IT Practitioners Retail Banking Organic Growth Strategy vs. Ivory Tower Mandate IT Lending BPM Center of Excellence Enterprise Processes Wholesale Wealth Management Other Business Lines

8 Consensus Driven Roadmap 2010 & Beyond Current State Baseline Analyze current state of BPM including skill sets, methodologies\ analysis techniques, process portfolios and core technology Identify re-use opportunities from current state analysis Identify best practices\standards at WFC and make them repeatable Reconcile tactical guidance (if different from target state) Tactical Triage on Projects Provide guidance on BPM to project teams Leverage current state and best practice insights to guide re-use of skill sets, analysis techniques, technologies and subject matter expertise Target State & Enterprise Roadmap Identify gaps between current state capability and target state needs Develop target state inclusive of people, process, and technology standards Develop roadmap and program plan for achieving target state capabilities

9 Marketing BPM Value Contribution through Knowledge Sharing, Consulting & Governance Case studies of the People, Process & Technology needed to make BPM projects a success 28 Business line presentations completed from Business\IT stakeholders in attendance per session Best Practice - Common templates used to drive common understanding and target recommendations People Process Technology Architecting BPM as a Sustainable Capability How are groups organized to address BPM? What are their skillsets? What are the various approaches and artifacts used to implement BPM? What are the core BPM technologies involved? 9

10 Business Process Dependencies SOA Example Operating Models and Service Re-use Process to Service Matrix 10

11 Case Studies, Case Studies, Case Studies! Value Chain Contribution to Wells Fargo Retailer Dealer Setup Process Business Problem: Needed to simplify process for dealers to do doing financing through Wells Fargo. 100 dealer applications received each week,142 steps required to set up. Solution: Lean event streamlined the process. Solution team developed workflow automation. Business Results: Process for dealer set up went from three weeks to one day. Product Management Sales Verification Origination Servicing Collection & Closures Credit Risk Management Monitoring, Control and Customer Insight Monitoring the Disposition of Non-Real Estate Loan Applications Business Problem: Driven by ECOA/Regulation B, needed to ensure 200,000+ non-real estate applications were dispositioned in a consistent and timely manner Solution: Lean event and workflow automation solution to simplify process. Business Results: Projection was 10 FTE, only 2-3 needed. Cost saving of k annually.

12 Case Studies (cont d) Value Chain Contribution to Wells Fargo Check Order Process Business Problem: 2,000 check orders missing the 5 day SLA, along with missing data. Solution: Process monitoring solution implemented to provide real time visibility into check orders Business Benefits: 99.75% improvement in SLA. Product Management Sales Verification Origination Servicing Collection & Closures Credit Risk Management Monitoring, Name, Control Title and & Address Customer Change Insight Process Business Problem: Customer accounts did not receive updates for over one year. BPM Solution: Process monitoring solution Business Benefits: Process monitoring identified the issue/resolution, resulting in cost avoidance of service requests going unfulfilled annually.

13 Additional COE Best Practices BPM product demonstrations from each LOB Commercial and Open Source Market analysis from research firms such as Gartner, Forrester People, Process, and Technology Case Studies from Industry Common communication and social networking via BPM portal Shared Documentation, Calendar of Events, Surveys Real-time Alerts, Group Discussion, Links, Membership Roster, Product Catalog and Expert Listing Frequent communication at all levels of the enterprise. Build adoption from both the bottom up and top down Avoid theoretical discussion and focus on providing guidance that is directly actionable in a business unit. Lead by example. Business lines are much more willing to adopt new disciplines if they have a true partner that can lead the way 13

14 Top Action Items for Starting a COE 1. Partner with business lines looked upon as thought leaders within the company Accelerates momentum and awareness 2. Act as the facilitator and not the owner. Build the forum and framework for communication that ultimately enables the community to drive towards adoption Facilitate the knowledge transfer that empowers the business to do the heavy lifting 3. Identify internal success stories that can be shared. They are much more impactful than generic case studies, especially if the internal business line is looked upon as a thought leader in the company 4. Look for change events to accelerate adoption of business process management disciplines and technologies Merger with Wachovia, Legacy system migration, other 14

15 Questions & Contact Info For more information, contact: Paul Tazbaz Enterprise Architecture Wells Fargo Bank, N.A. All rights reserved.