PROJECT NAME: PREPARED BY: DATE (MM/DD/YYYY): Andrea Lambert, Senior Business Process Consultant, OE Program Office 09/15/2014 PROJECT CHARTER VERSION HISTORY VERSION DATE COMMENTS (DRAFT, SIGNED, REVISED CURRENT STATUS) (MM/DD/YYYY) 1.0 06/25/2014 Approved by sponsor 1.1 09/15/2014 Updated project participants DOCUMENT PURPOSE The Project Charter documents the formal conversation between the Project Sponsors and the Project Manager/Team, including the definition of success for the project. Once approved, the Project Charter communicates the current agreement between the Project Sponsor and the Project Team throughout the lifecycle of a project. The Charter provides a high- level overview of the project including the definition of project success, and project resource (people and funds) requirements. Requests and additions to the project scope are considered out- of- scope for the current project. When a scope change is required, document a change request that includes an impact analysis of project cost, resources, schedule, and risk. The Project Sponsor then formally approves the scope change request. The project manager will retain additional documents that provide detail on the management of the project, including a communications plan, an issues log, a risk log, a change management plan, a budget, and a work schedule. REVIEW & APPROVAL (The Project Sponsor signature indicates approval of the Project Charter, and authorizes the Project Manager/Team to use identified resources to proceed with the detailed planning and execution of the project; using this charter as guide.) EXECUTIVE SPONSOR S NAME SIGNATURE DATE John Wilton, Vice Chancellor Administration & Finance WORKING SPONSORS NAMES SIGNATURE DATE Peggy Huston, Director Operational Excellence Program Office CASE FOR CHANGE (What is the Current Situation?) As OE projects have moved into implementation, we have found that full realization of the benefits of new administrative operations requires that we work collaboratively across campus units rather than in silos. After many attempts to redesign cross- boundary business processes, many are still not meeting the expectations of campus users. Investigation as to the source of the problem reveals that too often it is difficult to identify or agree upon the person accountable for the success of the process from end- to- end. There are multiple decision makers operating independently and making decisions that benefit one part of a process but often cause issues in other parts of the process - - either upstream or downstream. This situation prevents the full realization of the benefits of several OE projects. To achieve efficiency, improve and sustain the effectiveness of administrative operations, and continuously improve how we serve the campus we must have a shared understanding and commitment to business process outcomes and a standard for managing our business processes. The management of and responsibility for end- to- end business processes crosses many units including departments and schools, central campus units, and Campus Shared Services. In order to ensure that our administrative processes are as efficient as possible and meet the needs of the faculty, staff, and students being served, it is essential that we develop a comprehensive Project Charter Page 1 of 7
framework to ensure consistency in approach to managing processes across boundaries. This will serve the success of each unit as well as support the development of One Administration that can effectively serve Berkeley s larger mission of world- class teaching, research, and public service. PURPOSE (What problem will be solved by the project? What value does this project add to the organization? How does this project align with the strategic priorities of the organization? What benefits are expected once the project is completed?) Many staff are currently responsible for designing and re- designing business processes. Lacking a Business Process Management strategy and framework for VCAF, these efforts are challenged by the following: Leaders and staff do not understand what business process management is and why it is important Vertical hierarchies have limited appreciation of the horizontal flows of work needed to produce valuable services The VCAF inventory of core business processes is incomplete Lack of a framework for determining which processes are a priority for business process improvement projects There are no standards and few metrics for managing end- to- end business processes Either we have no ownership of end- to- end processes or multiple owners who do not agree Many subject matter experts participate but we lack clearly identified decision- makers Requirements for handoffs from one piece of the process to the next are not clearly defined We do not know whether or not we are meeting internal control objectives Because of ineffective communication, many well- intentioned individuals and/or small groups are doing substantial business process improvement work that is making minimal progress Policy, process, and systems/technology are not aligned An explicit Business Process Management System with defined accountabilities and methodology will provide a structure for managing our important end- to- end processes. Building on the work of Operational Excellence, VCAF leaders and staff will be able to lead campus administrative operations toward a widely shared understanding of process management that shifts attention from vertical hierarchies to the horizontal flow of work. Moving from the competition and isolation of individual departments to cooperation and communication across boundaries will: enable us to achieve our goals of savings, efficiency, and continuous improvement; promote a transition to One Administration across boundaries to better serve the needs of our customers and our academic mission; strengthen our capability to more nimbly manage organizational change. RESULTS (What does success look like? How do we know that the problem described above is resolved? This typically involves clarifying metrics for operations once the project is completed.) # SUCCESS MEASURE 1 Focus on process performance Administrative operations will evaluate process performance driven by critical campus requirements; Senior leaders will lead from a process perspective, translating functional assignments to process performance requirements Beliefs and assumptions regarding the root causes of problems will focus on processes rather than people 2 Improved metrics A Business Process Management System will enable us to measure the effectiveness of business process improvement projects and eventually the performance of individual processes. 3 Greater horizontal thinking Business process owners and administrators will be able to more quickly anticipate, identify, and address process issues; they will understand the upstream and downstream impact of their piece of the process. Administrative staff and units will be able to avoid redundancies and will therefore be able to work more efficiently and effectively Greater collaboration across unit boundaries to resolve process issues Project Charter Page 2 of 7
4 Clearly defined roles and responsibilities Process owners and decision makers will be clearly identified for campus- wide business processes. Process users and SMEs will have a clearer understanding of who does what within a process and who has decision authority for each piece of each process and the process overall 5 Standardized BPI methodology & repository Business process analysts/consultants will have a standard methodology and toolkit that they will utilize for business process improvement projects Staff, faculty, and students will easily be able to access up- to- date documentation for campus end- to- end business processes. Staff who are new to the campus or new to a particular job can get up to speed more quickly by easily referencing current business processes 6 BPM system embedded in units Unit leadership and staff will understand how to access resources to support business process improvement within their units Supervisors and managers will shift from firefighting to structured, team- based problem solving using standardized process improvement tools SCOPE (The scope defines the boundaries in terms of where the project begins and ends. The scope describes what will be delivered - where, when, and how. It describes the services, functions, systems, solutions, or tangible products for which the sponsor will take delivery.) In- Scope Define and launch a Business Process Management System that enables us to reliably deliver administrative services that meet campus needs. Establish a governance structure to manage business processes horizontally across boundaries Develop a methodology for managing business processes VCAF- wide Establish a standard methodology for the (re)design of business processes Embed the management of business processes into VCAF operations and other departments that are interested in working toward One Administration in support of our academic mission In collaboration with L+OD, develop and launch a program to educate leaders and staff about business process management and business process improvement methodologies Use a few, critical Business Process Improvement Projects to inform and test our Business Process Management System. Identify criteria for prioritizing and prioritize top 5 business process for re(design) Identify the roles and responsibilities for each selected end- to- end business process Identify resources (from existing UC Berkeley resources) for design/re- design work Identify the decision escalation procedure for each process Identify resources (from existing UC Berkeley resources) for (re)design work Identify design requirements including a clearly defined scope, internal control objectives, and handoff requirements Assess and measure the effectiveness of BPM System for each pilot project. Out- of- Scope While this project will address some selected business process issues, it will not address ALL the business process improvement needs for the campus. PROJECT CONSTRAINTS & ASSUMPTIONS (List the known and anticipated constraints, and the initial assumptions for the project.) # NAME 1 Dependency on campus business process experts: the success of this project is dependent on inclusion of and active participation from campus business process consultants/analysts. Thus: Business process consultants and other BP experts from campus will be involved in the design of our BPM strategy Project Charter Page 3 of 7
Business process consultants who are currently leading business process improvement projects throughout campus will be utilized to conduct the business process (re)design needed for this project 2 Limited bandwidth of SMEs/business process consultants: there is limited bandwidth of SMEs and business process consultants to engage in business process improvement projects. Thus: Availability of SMEs and appropriate business process consultants will be considered at the time that projects are selected Senior leaders will communicate the importance of each selected project to managers and supervisors who have staff involved and help remove barriers to participation 3 Technology: we will use currently available campus technology tools for the documentation, performance tracking, and repository of business process documentation 4 Decision- making: the project will have a clearly defined decision- making and escalation process to ensure that the Project Team has sufficient delegated authority to make decisions 5 Guiding principles: the project will be conducted in alignment with the following guiding principles: Use an inclusive and collaborative approach that is responsive to the voice of the customer and builds the capability of staff to improve processes Provide accountabilities for decision making and process management at all levels Promote innovation in designing processes that promote savings, efficiencies, and continuous improvement Strive for simplicity; promote common solutions where possible and custom solutions only where necessary Promote decisions that are data driven and based on customer satisfaction metrics, timeliness, quality, and cost Provide stellar service driven by campus requirements Promote alignment of processes with associated systems and policies PROJECT MILESTONES & DELIVERABLES (List the major milestones and deliverables of the project.) MILESTONE DELIVERABLES DATE Develop charter Project Team launched Charter approved by sponsors May 15, 2014 Jun 30, 2014 Develop BPM governance BPM governance proposal drafted BPM governance documented, approved, and communicated Jul 31, 2014 Sep 30, 2014 Determine BPI methodology BPI methodology proposal drafted BPI methodology approved, documented, and communicated Aug 29, 2014 Oct 31, 2014 Develop BPI training curriculum BPI training curriculum proposal drafted Sep 30, 2014 Establish BP documentation and repository standards Oversee the (re)design of 2-3 selected business processes Complete BPM System; close project; transition to operations BPI training curriculum piloted Technology tool for repository of BPI project docs selected BPI project documentation uploaded into selected technology tool BPI pilot projects prioritized and selected 2-3 processes (re)designed utilizing BPM system and tools Note: The majority of the (re)design of the selected BPI pilot projects will be conducted by the BPI teams assigned to those projects BPM System documented, approved, and communicated Transition plan documented and approved. Includes: o Roles and responsibilities going forward; o on- going administration of the BPM system; o on- going administration of a BP document repository; o proposed metrics opportunities and strategy. Feb 28, 2014 Jul 31, 2014 Ongoing Aug 29, 2014 Feb 28, 2015 Mar 31, 2015 Project Charter Page 4 of 7
IMPACT STATEMENT (List the impact this project may have on existing systems and populations.) POTENTIAL IMPACT WHAT AND WHO IS IMPACTED RATING (1-5) Leaders, business process consultants, and SMEs will be expected to use standardized business process methodologies when conducting business process improvement Campus constituents will easily be able to locate/view business process documentation Increased clarity about decision- making rights All VCAF staff Campus constituents who choose to adopt our standards Current system(s) that are being utilized Faculty and staff who want access to business processes SMEs/business process analysts who need a decision to complete business process (re)design Processes that need (re)designed 1:Low 3: Med 5: High 4 FINANCE DESCRIPTION (Provide a high level narrative overview on the estimated investment requirements, the savings targets, and the ongoing funding model.) The Project Manager and associated project expenses will be covered by the OE Program Office. Expenses for business process analysts/consultants, SMEs, and other roles as well as related expenses will be covered by their respective units. Investments for developing and implementing training related to the project will be clarified by L+OD and where they exceed available budget will be presented to ELT for funding. Note: We will work to determine savings metrics to track savings of business process management strategy. RISKS (Identify the high- level project risks and the strategies to mitigate them.) RISK MITIGATION STRATEGY Inadequate leadership Provide regular updates on progress of project to Sponsors and ELT Facilitate communication among leaders to ensure they appreciate the impact of their participation in and support of creating an effective BPM System Resistance to standardization Include decision makers and SMEs in negotiations for standardization Workload demand exceeds resource supply Identify and get agreement on priorities; determine what must happen right away and what can wait. Include resource availability in determining priority processes. Clearly communicate expected time commitments for each role Commitment to keep documentation updated on an Provide easy access to repository ongoing basis Identify resources to help with documentation updates/uploading During the course of the project, manage documenting rigorously to embed behavioral change with BP consultants and SMEs Inefficient change management and communications Ensure effective change management and communications plan Meet with leaders outside of VCAF to communicate and get support for project objectives and strategy. Work with L+OD to provide change management training opportunities for campus leaders and process consultants Process, policy, and system owners are unclear or not During BPI pilot phase work to ensure that there is one owner for each aligned. process and associated system(s) and policy(ies). Failure to resolve ownership issues Project sponsors will help facilitate conversations to gain clarity and consensus on ownership Exercise the decision escalation process Insufficient or unavailable SMEs to re- engineer old Consider SME availability before embarking on (re)design work technologies to support effective process (re)design Work with process owners to secure technical SMEs for projects Project Charter Page 5 of 7 4 5
COMMUNICATION (Highlight the communication requirements between the Sponsor, the Key Stakeholders and the Project Team, including the frequency of check- ins, project reviews, and status reports (in person and written).) A full communications plan will be developed that includes: Bi- weekly check- ins with Working Sponsor Monthly report to Executive Sponsor and VCAF Executive Leadership Team Project page on OE PO website with progress dashboard and monthly updates (based on monthly reports) Project progress communication to key stakeholders Communication to campus at key project milestones APPENDIX A - PROJECT ROLES & RESPONSIBILITIES Name the members of the project team. PROJECT SPONSORS: Provides overall direction, guidance, and funding for the project. RESPONSIBILITIES include setting the vision and strategic direction, approving the project charter and plan; securing resources for the project; confirming the project s goals and objectives; keeping abreast of major project activities; making decisions on escalated issues; and assisting in the resolution of roadblocks. EXECUTIVE SPONSOR NAME John Wilton, Vice Chancellor, Administration and Finance FUNCTIONAL SPONSOR NAME Peggy Huston, Director, Operational Excellence Program Office FUNCTIONAL OWNER: Manages the impact of the project in their functional area. RESPONSIBILITIES include ensuring agreed- upon project tasks and deliverables are completed, incorporating the views of their customers, providing functional expertise in a particular area, articulating requirements, and working to ensure that business needs are met. NAME TBD - an outcome of this project will be to determine governance and functional ownership PROJECT MANAGER: Leads the team in planning and implementing the project from initiation to closure. RESPONSIBILITIES include scope and change management, keeping the project plan current (deliverables, schedule, and resources), issue and risk management, maintaining project documents, reporting project status, and facilitating conflict resolutions within the project and between cross- functional teams.. NAME Andrea Lambert, Senior Business Process Consultant, OE Program Office Describe the roles and responsibilities of the project participants. The PROJECT TEAM includes 6-8 staff with process improvement expertise and experience. RESPONSIBILITIES include understanding the work to be completed, completing the research, data gathering, analysis, and documentation, informing the project manager and team members of issues, scope changes, risks, and quality concerns, and creating recommendations for the design, development, and implementation of a BPM System proactively communicating status and manage expectations. Project Charter Page 6 of 7
NAME Andrea Lambert, Senior Business Process Consultant, OE Program Office ROLE Team Lead NAME Anil Moré, Director of Administration, Physics Department ROLE Team Member NAME Dat Le, Chief Administrative Officer, College of Engineering ROLE Team Member NAME Delia Clark, Organizational Consultant, Learning + Organizational Development ROLE Team Member NAME Denise Cronin, Organizational Consultant, VC Administration & Finance ROLE Team Member NAME Eric Anglim, Director, Property Management & Library Bindery ROLE Team Member NAME Michelle Bautista, IT Operations Manager, Campus Shared Services (CSS) ROLE Team Member NAME Stephane Deblock, Process Transformation Manager, CSS ROLE Team Member APPENDIX B - KEY TERMS & DEFINITIONS FOR THIS PROJECT CHARTER Define key terms unique to this Project Charter. Business Process Improvement (BPI): focuses on improving the effectiveness and efficiency of individual processes for results that benefit the customer and the organization form a business perspective. 1 Business Process Management (BPM): It is a predominant term used today for the overall category. As a business management discipline for the enterprise, BPM encompasses all three bullets above [business process improvement; process automation; management discipline]. When the organization is doing BPM, it is building an organizational process culture, with governance, consistent tools and techniques such as process modeling, metrics, analysis, and standardized applications tools; and it is using these to improve process to increase operational performance and agility. 2 1 Shelley Sweet, The BPI Blueprint: A Step- By- Step Guide to Make Your Business Process Improvement Projects Simple, Structured, and Successful (Altadena, Cody- Cassidy Press, 2014) pg. 1 2 Shelley Sweet, The BPI Blueprint, pg. 2 Project Charter Page 7 of 7