7 steps. success. A Pragmatic Approach to Leveraging BPM Technology for Business Success. by Mark McGregor. sponsored by
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1 7 steps COVER to success A Pragmatic Approach to Leveraging BPM Technology for Business Success by Mark McGregor sponsored by
2 Executive Summary Business Process Management or BPM as it is commonly referred is itself a management discipline. The technology associated with it is more commonly referred to as a Business Process Management Systems or BPMS. Sometimes the terms are used interchangeably which has led to confusion in the marketplace. The confusion has caused much misunderstanding and quite a bit of infighting among competing process groups, both inside and outside of organisations. Some see process as a technology issue that simply involves automation or system implementation of some kind. Others, such as some in the Quality or Lean/Six Sigma arena believe that technology is not required. Many of the improvements businesses seek do not require an automation solution and can be achieved simply be altering the way that people are working While it could be said that both camps are wrong, equally they are both right! Many of the improvements businesses seek do not require an automation solution and can be achieved simply be altering the way that people are work. However, from an analysis and design perspective smart use of technology has many advantages over simple pen and paper approaches. This paper provides the reader with a 7 Step model that seeks to suggest ways in which organisations can maximise their business returns. The model sets out to blend the benefits of non-technology approaches with the more technological ones. Further it aims to aid the reader in thinking about the ways in which the different types of tools and technologies fit together in order to provide the complete perspective. For example, even if one is not intending to automate a process, use of appropriate technology is still important when considering how to assess impacts and to communicate information effectively. For ease of understanding, the examples presented here are based upon the Casewise product set, however, other combinations of products may be used to achieve the same linkages and results. Similarly, it may be that some vendors are better able and more willing to support you during the nontechnology phases than others.
3 Introducing the 7 Steps In should be stated right from the outset, the 7 Step model was never intended to be definitive or prescriptive. It only sets out to suggest one way on which you can harness the power of some of the various technologies available for BPM today. 7 Steps to BPM(S) Success 6 7 Monitor & Manage (Continuous) Generate & Execute (Operationalize) 5 Simulate & Optimize (Resources) 4 Design & Improve (Effective Process) 3 Publication & Animation (Communicating) 2 Capture & Document (Information Capture) 1 Discover & Simplify (Waste Elimination) It does however place a great emphasis on starting without technology and engaging the people in the process. This is no accident as there is now increasing evidence that starting with a technology focus can cause some people to be disengaged with the process and for others myopia when looking at solutions. As with all good projects, the starting point should always be understanding what the desired outcome is, from this you can assess at which step the objectives can be achieved and then undertake the preceding steps in order to ensure that when your objective is achieved, it is done in the most effective manner and one in which the gains you make can be held on to. STEP Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 FOCUS Waste Elimination Information Capture Effective Communication Process Effectiveness Resource Optimisation Operationalizing Models Continuous Improvement Each of the 7 steps has associated a Focus, this being the suggested objective of that step. The details of the focus for each step can be found in the table. As you can see, the steps provide a logical progression toward achieving the BPM excellence that many organisations seek. It should also be clear from looking at the steps some of the reasons why traditional BPM projects fail to deliver all that was hoped. By starting at step 6, we are already potentially building fat into our systems and we have potentially alienated some of the very people who might be affected by the new systems. If you start from step 1 then you can be sure that you will only be eating the elephant one small bite at a time and you will be delivering business benefits on a more regular basis.
4 Step 1 Process Discovery and Simplification This first step affords you the opportunity to get people involved, the more you get them involved, then the easier your life will be when you come to implement potential changes that you might make. The use of workshops and good old fashioned brown paper and post-it notes is highly recommended, beyond its simplicity it also has psychological benefits that are sometimes overlooked. For example, because the map is created by everyone physically sticking their ideas on the single piece of paper, the resultant map belongs to everyone. So often when someone acts as a scribe people use the excuse that was not what I meant and they perceive the scribe as the owner. The group you will work with should be as cross functional as possible, ensuring the biggest range of perspectives can be obtained. Very often participants in these sessions will comment on the fact that it is the first time they appreciated what others do, or understood how what they do fits in. This is important as it can very quickly identify duplicated activities or other activities that are no longer required. The purpose of this stage is only to speed the effective discovery of what is currently happening, and identifying quick and easy ways to simplify the process. If used well it can also be used to identify rules, breakpoints in the process and potential customer interactions with the process. In order to make the most of the opportunity afforded by this step it is advisable to ensure that your processes start and end with the customer e.g. from order to delivery or order to pay. The simplification parts of this step will usually fall easily out of the process as people start to question why some activities take place at all, although it can be thought of as Lean thinking,...and The Focus is on The Customer it does not have to follow the detail of Lean, but of course it can if it suits you better. Finally, everyone will manage their workshops differently, which is good as long as we do this step without technology. Technology gets in the way and slows things down.
5 Step 2 Process Capture and Documentation For some people, the capturing and documenting of processes has been their end game. We saw much of this in the quality world, and where the project is driven by regulation such as Sarbanes Oxley, it may still be the case today. Very often among process professionals or technology vendors there is a tendency to forget that many organisations still do not have their processes and procedures captured and documented in a meaningful way. Of course building a business case for those who have not yet done it is also very challenging. automodeler...use The Tools You Know Many of those who have already captured processes have done so using simple diagramming tools such as Visio, while others may have collected information in tools like Excel. It is easy to criticise these tools or point out the problems, but the reality is that is what people have and so we need to work with that reality. The best way to leverage the assets that you already have is to ensure that all such maps and diagrams are captured in some kind of central storage or repository. In fact taking the outputs from step 1 and converting them into Visio diagrams may be perfectly suitable in some situations; in others, a full blown modelling tool may be better. The key is to focus on the objective, which is to capture, document and collate all your process information in one place, using the tools you are familiar with. At this stage, if capturing and documenting is your goal then worrying about standards, notations and tooling is to detract from that. In many cases it is the time taken to undertake this phase that concerns business managers; it can be hard to prove value. So the idea of doing it quickly and effectively usually has great appeal. As Analysts, our job is to guide and facilitate this step in the same way as step 1; done well this will also increase user buy in. Many BPMS tools provide support for importing Visio models.
6 Step 3 Process Publication and Animation Historically, one of the reasons for a lack of acceptance by users of process models was the way the information was presented. With some tools today this is still the case, but on the whole the publishing side of processes is getting better, although there is still work to be done. The key point of this step is to remember that it is the user s data and processes and it is our job to present it to them in the way they desire. It used to be that the expected format was via Word or other documents, but today we increasingly see that more use is made of intranets and portals. For some, mobile devices are also being used on a wider basis, especially in environments where companies are making real use of their process models as the work guides for employees. Some newer vendors have carved a market niche out of their ability to easily publish and share process information. If a picture paints a thousand words, then a movie paints an entire library. Easier to Show than to Tell! Word, HTML, Intranet, Portal Your Data presented Your Way As the focus of this step is communication, it is also worth pointing out that animation can be really useful here. Sometimes it is easier for people to understand what happens when they can see objects moving along a process. Time and money spent in getting the publication and communication of your models right will pay dividends. Some large organisations spend tens of thousands of dollars ensuring that the documentation is branded correctly and that users enjoy the experience. It has been shown that the easier it is to use then the more often it will be used, the more often it is used then the more likely it is that people will want it kept up to date. This cycle helps to ensure that people in the business are on the same page and will almost certainly feed back issues with the documentation (assuming that as part of this step you make it easy for them to provide feedback to the process team.) For many organisations or parts of organisations, this is as far as they either need or wish to go on their journey. Certainly time spent on these first three steps will satisfy many regulatory and compliance requirements. At the end of step 3 you will in effect have a living, breathing, effective operations manual.
7 Step 4 Process Design and Improvement Corporate Modeler Modelling the way You Prefer For some people Step 4 might be undertaken before Step 3, as has been said, it all depends on your overall objective. For the most part, getting information out, shared and used as quickly as possible can be highly beneficial. The time taken to properly undertake this phase can be quite long, especially as the one + More Choice + More Flexibility + More Productivity Visio process you were working on will now have to link up and connect with other processes. You are also likely to need to consider the organisational and data models required to support the process or changes to the process. So it is highly likely that you will find it advantageous to make use of a professional modelling tool at this stage. The market for modelling tools has exploded in terms of choice over the past couple of years, however most of these have been single process focused and have not tended to be repository based. As mentioned, having central storage or a repository will prove vital in managing artefacts effectively. Via Web Browser = Lower Cost The key is to have choice, the ability to decide + Easier Deployment whether you want some people to have quick + Easier Buy-In lightweight modelling via the web, or whether = Less Resistance you would like more business centric users to continue using Visio. Of course for your serious analysts you will want them to have access to a high end professional tool. The work you are going to require of them cannot yet be done in the more lightweight environments. The key for this stage is process effectiveness, and to be effective we have to be able to link back to strategy and goals, look across multiple processes and to connect with our data, application and network architectures. In many ways this stage could be described as fleshing out the Business Architecture and making sure that all the pieces fit together. To date, many BPM projects have potentially gone down the same route as 4GL environments before them, focusing so much on one element and ignoring the other. This is also the step where we may need to capture and model business rules. Once we think we have the answers we were looking for, we can move on.
8 Step 5 Process Simulation & Optimisation There are many in the BPM community who speak out against simulation, however it can play a major part in many projects. In part this has been due to misunderstandings over how and when best to apply it saw a lot of publicity around major projects where if throughput had been simulated first then problems may not have occurred. It is also true to say that for some smaller projects the cost of gathering data can outweigh the benefits. Simulation functionality though can enable us to more accurately optimise resources, understand and assess the impacts of change and predict peaks and bottlenecks in process. Although the experimentation approach will work for some, the risks associated may be too great for others. Another challenge when using the technology can be the level of understanding of those attempting to use the tools. This does not have to be the case and much can be gained by even basic scenario based planning. Once again the key is to be clear on what you want to achieve, in the manufacturing Six Sigma community the use of statistical analysis is seen as a key tool in understanding root causes and for finding problems that evade simple process analysis. Others have seen that in financial services, being able to asses and predict resource requirements is extremely useful. The purpose here is to illustrate where simulation fits in to your overall strategy, and in this case it requires well specified models on which to operate. Using the right type of simulation capability makes it easier to test and optimise before implementation and also to once again assess the impact of changes in one part of your process or system against others. It may not be a must have for you, but you would be wise to ensure that you have the capability and knowledge to use it where appropriate.
9 Step 6 Process Generation and Execution This is the step that has been the driver for many of today s BPM projects; as we have seen there is much that needs to be done before this step if you want to achieve the maximum benefits. The generation of workflows from process models is a major advantage of the professional modelling tools over the use of the relatively simple workflow designers included with many BPMS systems. Part of the challenge faced by many who have used this as a starting point has been how to connect the various processes together or to conduct impact analysis when changing flows. The use of the term workflow as opposed to process flow is used purposely. There are many different ways of expressing a process flow map/ model/ diagram, any of which may serve the purpose of simplification or communication. But, if you want to generate and execute a system then the workflow description has to be very precise. If looked at another way, the workflow model is nothing more than a visual representation of a computer program, and we all know that if you were to write a program then you have to be very specific. This challenge over precision against lack of precision is the cause of many of the debates in the process community today. Ideally you should be looking at an environment that will easily allow you to link the precise workflow models with the imprecise process models and that will allow you to then generate the workflows and execute them in your chosen engine. The ability to be able to trace forwards and backwards through the various elements (process model, workflow model, application element) will make your life much easier. It should be stated that linguistically it is more important to have a described by linkage than an inheritance type linkage, as you navigate up you will invariably identify increased vagueness this is normal and is advantageous from a business standpoint.
10 Step 7 Process Monitoring and Management Assuming that your end objective is the ongoing management of your business, then having a proper dashboard is essential. As with Step 3, the way you share this is important and it is highly likely that mangers today may want access to such data either via mobile devices or as alerts. However, the objective of the dashboard is to monitor and alert, not to reconfigure systems. The complexity of businesses means that it is highly likely that any single process exists in isolation. The alerts serve to enable managers to assign staff in an appropriate manner to consider the issues. In some cases it may be true that a simple reassigning of resource might be possible, but in other cases it may require reworking or a process. In these cases it is important that an analyst be used, so as to look at the issue as a whole. Effective Process dashboards are more than a simple graphic indicator; they are the window through which you can view what is happening in your business, not just in your software application. Ideally your dashboard will tie in to your corporate Balanced Scorecard, if you have one. When an analyst opens the hood they will need to be able to drill either to workflows, in the case of potential system issues, or into process flows in the case of more systemic issues. Having the ability to directly navigate around and across your process and data architecture is vital if you are to avoid a silo mentality. For many organisations today there is a real risk that they will simply move from functional silos to process silos. The only way to avoid this is to ensure that you keep looking across as well as up and down, and that you constantly monitor impacts outside of the process. When done right, this management information system will enable you to continuously improve your processes; however it is strongly advised that you do not limit improvements to managing what is and always consider what else.
11 Conclusion it can be easier to; increase buy-in for change, deliver real business results quickly; leverage the tools you have; and build on the knowledge that already exists with your organisation. As stated, the steps outlined here are not the only way of organising your BPM project, they do provide a solid basis upon which you can develop and build your own steps. They demonstrate a way of starting without technology and then bringing in the appropriate technology as required. Through these steps it can be easier to; increase buy-in for change, deliver real business results quickly; leverage the tools you have; and build on the knowledge that already exists with your organisation. Furthermore, an approach such as this can also be a way of integrating the competing process groups within an organisation. A way in which the operational excellence teams can work with the Lean/Six Sigma teams, while all can benefit from the value the IT team bring to the party, and in a way that keeps the risk/compliance team onside too. Fundamentally, BPM is about change and change is about people. So whether you choose to use this model or another, the key to your success will be how well you engage a wide group of people, staff, customers and stakeholders and how well they buy-in to your program. Finally, as has been said, the 7 Step process can be applied using many different combinations of vendor s products. It may be that you will find it useful to ask potential vendors how they will support you through the various steps when assessing new products or suppliers. About The Author Mark has worked in the IT Industry for over 30 years, he has held executive positions with a number of software vendors. Well known for his ability to help companies bridge the gap between business and IT, more recently he has focused helping business understand how to maximise the value of process programs, from both a people and systems perspective. Mark has authored five books People-Centric Process Management, In Search of BPM Excellence, Thrive! How to Succeed in The Age of The Customer, Winning With Enterprise Process Management and Extreme Competition (Contributor). The range and depth of his experience lead him to be sought after for speaking, advice and workshops by users, vendors, analysts and conference organisers alike. Mark can be contacted via mark@markmcgregor.com or
12 About The Sponsor Established in 1989, Casewise provides software and consultancy solutions to over 3,000 major global organizations for Business Process Analysis, Business Process Management, Enterprise Architecture and Governance, Risk & Compliance purposes. Our leading enterprise modelling products and solutions enable organizations to visualize, understand, analyse, improve, audit and continually enhance complex operating processes and IT infrastructures. With offices in London, New Jersey, Connecticut, Paris, Brussels and Frankfurt and a network of global resellers Casewise provides thought leadership and solutions which enable stronger strategic planning, better decision making and improved business efficiencies. From Design to Execution - BPM solutions to Empower your Organization Corporate Synergy from Casewise provides the necessary tools to create, implement, automate and manage business processes efficiently and effectively without the need of IT involvement. The end result sees the total alignment of the organization from being functionally driven to process driven. Access real-time management information Increase speed of solution to market Increase productivity & efficiency Improve communications between the Business and IT function Reduced operational costs Automate manual processes Improved communication. Combined with Casewise s comprehensive modelling toolset the Corporate Modeler Suite, users have the total and complete solution to map, model and execute process workflows easily and a effectively. Copyright Mark McGregor All rights reserved
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