The MSS Approach to BPM

Transcription

1 The MSS Approach to BPM Ryan McMahon, PMP MSS Management Consulting

2 Agenda BPM defined MSS BPM Offerings and Approach Key BPM Benefits Q&A - Improve the Big Picture - Identify Problem Areas and Bottlenecks - Capture Promised Benefits of System Implementation - Break Down Siloes Across Teams

3 What is BPM? Business Process Management is a management principle that leads organizations to manage their work efforts via business processes. This principle is enabled through governance, tools/technology, and commitment from the organization. BPM ultimately supports improved performance through operational excellence and business agility. BPM can provide the foundation for cultural shifts in how organizations are managed.

4 Burning Platforms for BPM Organizational Transformation Break down silos and document touch points from processes to business units and teams Support strategic shifts through prioritization and documentation of business processes Identify key activities, employee utilization, and value-add within processes Technology Investment Understand requirements and improvement opportunities through current state modeling Engage business users in process design and prepare for testing by capturing future state processes Ensure promised efficiencies are reached through effective, decentralized governance Mergers & Acquisitions Align process metrics from an acquired company with Parent Strategy Analyze key differences between common processes and adopt best practices Align business processes to common standard industry process framework ROI Realization Recover from missteps from challenging IT deployments Deploy governance to minimize variation within processes Identify key activities, employee utilization, and value-add within processes

5 BPM Offerings The BPM Governance offering focuses on longterm sustainability by building a structure to manage ongoing process improvements through review, metric establishment, and monitoring support. The Process Analysis offering focuses on reviewing existing processes to identify gaps, opportunities, and risks which will support future process improvements. The BPM Assessment offering supports building a BPM strategy through benchmarking, alignment to overall strategy, and creation of a BPM roadmap. The Process Improvement offering is centered on individual process optimization and/or re-engineering. It leverages key methodologies such as Lean, Six Sigma, and Total Quality. The BPM Advisory Services offering is utilized for BPM tool selection as well as advising on BPM efforts already in-flight at our potential clients.

6 MSS Approach To obtain maximum benefits of BPM, all offerings should be considered as part of an engagement but these can also stand alone for specific projects. Assessment of business process needs to determine scope and strategy leads to Analysis of current state processes for gap identification and a roadmap for Improvement of processes through future state design, deployment, and control. Governance establishes an overall structure & perspective to ensure processes are managed strategically while maintaining accountability & ownership All of these offerings together serve as the basis for an organization s BPM Strategy

7 BPM Maturity Assessment Most organizations are here Level 2 Level 3 Level 1 16% of organizations are classified at the highest level of BPM maturity APQC study 2010 (281 respondents from a multiple industries)

8 Improving the Big Picture Improved View of The Big Picture by aligning daily efforts to business strategy and prioritizing future process changes - Scope must be understood first - Processes can then be aligned to strategy - Roadmap can be built to direct process efforts - Also provides clear view to IT on how enterprise architecture will need to evolve to support operations - Ultimately gets leadership on same page

9 Strategy Map A tool to ensure alignment between the corporate strategy and BPM initiatives Not a strategy redefinition A starting point to map how metrics cascade throughout the organization A proven methodology developed by Kaplan and Norton, pioneers of balanced scorecards and corporate performance management Strategy Map Example

10 Assessment Offering Key Steps BPM Scope Strategic Alignment Client Scenarios BPM Starting Point: No internal knowledge of how to implement BPM in an organization. Organizational Transformation: Break down silos and document touch points from processes to business units and teams. Mergers & Acquisitions: Align processes and metrics from an acquired company with Parent Strategy. Technology Upgrade/Purchase: Introduction of a new technology requires that processes be completely revamped and/or improved. Greater Rate of Return: Need to deliver higher yield in the process while holding existing resources constant. Benchmarking Business Case BPM Strategy Benefits Improved View of The Big Picture : Align daily efforts to business strategy and prioritize future process changes. Ability to Automate Processes via Technology: Identify problem areas and bottlenecks for process improvement. Implementation ROI: Capture promised benefits of system implementations by understanding impacts. Effective Metrics: Measure success of realigned processes. 10

11 Identify Problem Areas and Bottlenecks Identify Problem Areas and Bottlenecks for Process Improvement - Create process inventory - Ask probing questions to get to gaps in current processes - Understand how processes are measured and managed today - By skipping this step, future-state process design becomes less effective as opportunities may be missed - Most important gaps are tackled in first iteration and a list of all gaps is maintained for future iterations - Bad Processes are Bad Processes - do not try to optimize defective processes. They must be re-engineered.

12 Process Analysis Offering Key Steps Process Measurements BPM Scope Client Scenarios Need for More Efficiency: Want to deliver higher yield from process & operations. Need for End-to-End Perspective: Lack of end-to-end holistic process view. Organization is grouped by silos/function. Organizational Transformation: Break down silos and document touch points from processes to business units and teams. Technology Upgrade/Purchase: Introduction of a new technology requires that processes be revamped and/or improved. Current State Analysis Identify Gaps Roadmap for Future State Design Benefits Identify Opportunities for Improvement: Uncover problem areas, pain points, and bottlenecks for improvement. Current State Analysis forms the basis for success in Future State Design. Understanding of Performance Against Peers: Benchmark process metrics to assess strengths, competitive advantages, and areas for improvement End to End View of Organizational Processes: Clear understanding of business processes to optimize organizational design 12

13 Capture Promised Benefits of System Implementation Capture Promised Benefits of System Implementation - Improve processes first, then fit to system - Need for change management - Define new, improved metrics Finding the True ROI - Improves agility in making future process changes as strategy needs arise - Knowledge loaded into system versus being kept as tribal knowledge with employees - Process way of thinking

14 Key Steps Gap to Resolution Analysis Future State Design Process Improvement Offering Client Scenarios Greater Rate of Return: Need to deliver higher yield in the process while holding existing resources constant; identify ways to optimize a process through waste reduction or other process improvement methods Technology Upgrade/Purchase: Introduction of a new technology requires that particular processes need to be completely revamped and/or improved Predictive Operations: Customer satisfaction depends on the company s ability to create predictable outcomes. Optimize processes to minimize the variance and create a consistent outcome. Deployment Process Control Process Automation Benefits Increased Efficiency in day-to-day operations Greater Productivity from employees Eliminate Bottlenecks and Problem Areas through use of technology to automate Siloed Processes Removed which allows for managing processes more holistically Plan for Continuous Process Improvement and Measurement to ensure processes remain relevant & effective Tools & Methodologies Supported Lean, Six Sigma, TQM, CMMI, 14 ITIL, BPMN, APQC

15 Break Down Siloes Across Teams Break Down Siloes and Document Touch Points from Processes to Business Unit and Teams - Determine value chains - Define handoff protocols - Creates need for process governance

16 Value Chain Example Viewing & treating processes as end-to-end instead of siloed by functional areas is a key step to reaching a higher level of BPM Maturity R&D Procurement Distribution Marketing Finance R&D Procurement Distribution Marketing Finance Develop new product idea Source materials/supplier Plan Inventory & Distribution Create Marketing Materials Set Price New Product Development BPM Governance Ongoing monitoring & improvement Siloed processes usually present communication challenges and the inability to identify areas for improvement that can impact all parties Integrated processes allow for the monitoring, reporting, and governance structure needed to become a processmanaged organization

17 Governance Offering Key Steps Define Scope Review & Classify Processes Client Scenarios Siloed Processes: Processes are siloed and not managed holistically Process Development and/or Documentation Inconsistent: Processes have been documented through previous projects but never utilized or kept up to date Need for a BPM CoE: No focal point for process initiatives, training, and ownership exists Knowledge Management: Intellectual capital (tribal knowledge) is not captured, managed with ongoing updates, and lost with attrition. Establish Metrics Launch Change Review Board Provide Monitoring Support Benefits Implementation ROI: Capture promised benefits of system implementations by driving process adherence Preparation: Understand business processes to optimize strategic decisions and organizational design Continuous Improvement: Drive a process managed culture with sustainable success Knowledge Management: Provide holistic training encompassing system and functional touch points 17

18 Q&A Questions?

19 Additional Questions? (877)