Business Process Management: Implementing Continuous Improvement in Your Organization

Business Process Management:Implementing Continuous Improvement in Implementing Continuous Improvement in Your Organization

Henry ChandraSolution Architect

VP Relationship, IASA Indonesiahttp://www.linkedin.com/in/henrychandra+62 856 138 58 98, henry@iasahome.org

Hotel Menara Peninsula, Jakarta

14 November 2008

Why am I standing here?

Meet Patrick of ACME

Patrick’s Structured ApproachPatrick’s Structured Approach

What Patrick’s trying to tell you

From here…

Why am I standing here?

Meet Patrick of ACME

Patrick’s Structured ApproachPatrick’s Structured Approach

What Patrick’s trying to tell you

From here…

Meet Patrick

� A 35 year old guy

Meet Patrick

� A 35 year old guy

� Patrick works in …

Meet Patrick

� A 35 year old guy

� Patrick works in …

� He is a …

Meet Patrick

� A 35 year old guy

� Patrick works in …

� He is a …

� He lives in …

Meet Patrick

� A 35 year old guy

� Patrick works in …

� He is a …

� He lives in …

� He drives a …� He drives a …

Meet Patrick

� A 35 year old guy

� Patrick works in …

� He is a …

� He lives in …

� He drives a …� He drives a …

� And this is his story …

In ACME…

� Business People Think IT People are from Mars

In ACME…

� Business People Think IT People are from Mars

� IT People need to be more than a ‘Librarian’

In ACME…

� Business People Think IT People are from Mars

� IT People need to be more than a ‘Librarian’

� IT needs to convert from Cost Center into providing

Information Leadership for Business

Cost CenterInformation Leadership

Patrick’s Mission:

ACME

Budget Cuts

Increased Competition

Faster Time-to-Market

Deliver IT without fuss, get involved in

business improvement and give

business good leadership

(Terry White, What Business Really Wants from IT)

Patrick is looking at Business Process Management

The achievement of an organization’s objectives through the

improvement, management and control of essential

business processes.

(Jeston and Nelis)

BUSINESS PROCESS MANAGEMENT IS NOT AN IT “TOY”IT HAS TO CLOSE THE DISTANCE BETWEEN IT AND BUSINESS

BPM IS NOT ABOUT BPM IS NOT ABOUT TECHNOLOGYTECHNOLOGY

BPM IS NOT ABOUT BPM IS NOT ABOUT DIAGRAMSDIAGRAMS

BPM IS ABOUTBPM IS ABOUTMAKINGMAKING

BUSINESSBUSINESSRUNS FASTER ANDRUNS FASTER ANDMORE EFFICIENTMORE EFFICIENT

IT HAS TO CLOSE THE DISTANCE BETWEEN IT AND BUSINESSIT HAS TO INVOLVE BUSINESS AND IT TOGETHER

BPM: Through the years

No BPM

UI

Enterprise Application(internal and proprietary protocols,

program and logic in monolithicprograms)

UI UI UI

Monolithic Enterprise Application

BPM: Through the years

BPM: 1990

No BPM

Workflow in the Brain

UI

Enterprise Application(program and logic inmonolithic programs)

UI UI UI

BPM: Through the years

BPM: 1990

BPM: 1993

No BPM

Task Management

UI

Enterprise Application(program and logic inmonolithic programs)

UI UI UI

BPM: Through the years

BPM: 1990

BPM: 1993

BPM: 1996

No BPM

Workflow Routing

UI

Enterprise Application(program and logic inmonolithic programs)

UI UI UI

BPM: Through the years

BPM: 1990

BPM: 1993

BPM: 1996

BPM: 2002

No BPM

Services Integration

Enterprise Application

Logic and SOA

Svc Svc Svc

UI UI

BPM: Through the years

BPM: 1990

BPM: 1993

BPM: 1996

BPM: 2002

BPM: 2007

No BPM

Composite Services

Enterprise Application

Logic and SOA

Svc Svc Svc

UI UI

ESB

Patrick understands

The first rule of any technology is that automation applied to an efficient operation will magnify the efficiency.The second is that automation applied to an inefficient operation will magnify the inefficiency.

(Bill Gates, Microsoft Corporation)

� Black Box Syndrome

� Looking at the edges

Syndrome

He knows what’s critical and what he needs to do

Regatta Metaphor

Speed ↔ EffectivenessBeing the fastest ↔ make processes more effective and efficient

EfficiencyUse energy + enthusiasm to realized desired result

↕

Everyone is contributing towards realizing desired result

BalanceMake sure boat doesn’t lean sideways or tip over

↕↕

Make sure all implementation aspects are considered

CohesionTeam rows as one, same rhythm and technique

↕

All implementation elements are in alignment

Process1st Oar, dictates speed to other rowers

↕

Business leads implementation, technology follows

ManagementSteers the boat in a straight line to finish, do not go off course

↕

Sets and maintains trajectory to meet desired results

Patrick wants to get it right!

23

Why am I standing here?

Meet Patrick of ACME

Patrick’s Structured ApproachPatrick’s Structured Approach

What Patrick’s trying to tell you

From here…

Patrick’s Structured Approach

BPM Implementation FrameworkBPM Implementation Framework

Organization FoundationProcess Foundation

Technology FoundationBPM Foundation

ElaborationImprovement

People and Technology DevelopmentDeployment

Monitor and Benefit RealizationContinuous Improvement

The Foundations

What does the organization strive to ‘be’?

What is the organization in business to ‘do’?

How are we going to achieve the goals and objectives?

etc..

How do the processes in your organization support it’s vision and mission?

How well organized are they?How well organized are they?

How well do we understand the processes?

etc..

Have we identified the required technology to support our BPM?

How proficient are we with them?

What do we need to do to prepare the technology skills and knowledge?

etc..

The Foundations

What does the organization strive to ‘be’?

What is the organization in business to ‘do’?

How are we going to achieve the goals and objectives?

etc..

How do the processes in your organization support it’s vision and mission?

How well organized are they?

UNDERSTANDING YOUR ORGANIZATION,IT’S VISION, MISSION, STRUCTURE, ETC.

How well organized are they?

How well do we understand the processes?

etc..

Have we identified the required technology to support our BPM?

How proficient are we with them?

What do we need to do to prepare the technology skills and knowledge?

etc..

The Foundations

What does the organization strive to ‘be’?

What is the organization in business to ‘do’?

How are we going to achieve the goals and objectives?

etc..

How do the processes in your organization support it’s vision and mission?

How well organized are they?

UNDERSTANDING YOUR ORGANIZATION,IT’S VISION, MISSION, STRUCTURE, ETC.

How well organized are they?

How well do we understand the processes?

etc..

Have we identified the required technology to support our BPM?

How proficient are we with them?

What do we need to do to prepare the technology skills and knowledge?

etc..

UNDERSTANDING THE PROCESSES INSIDEYOUR ORGANIZATION, END – TO – END

The Foundations

What does the organization strive to ‘be’?

What is the organization in business to ‘do’?

How are we going to achieve the goals and objectives?

etc..

How do the processes in your organization support it’s vision and mission?

How well organized are they?

UNDERSTANDING YOUR ORGANIZATION,IT’S VISION, MISSION, STRUCTURE, ETC.

How well organized are they?

How well do we understand the processes?

etc..

Have we identified the required technology to support our BPM?

How proficient are we with them?

What do we need to do to prepare the technology skills and knowledge?

etc..

UNDERSTANDING THE TECHNOLOGY TO SUPPORTYOUR BPM INITIATIVE

UNDERSTANDING THE PROCESSES INSIDEYOUR ORGANIZATION, END – TO – END

Ready to Launch –BPM Foundation

Launch Pad for all BPM projects in the organization

Project Launch Pad

Business Case

Project Team Project Plan

Executing BPM Project

Monitor and Benefit

Realization

ElaborationDeployment

Understanding and Elaboration of Current

ProcessSolutions and Process Improvements are

brought to life

Realizingbenefits Elaboration

ImprovementPeople and Technology

Development

Deployment

Make the process(es) within the scope of the project as efficient and effective as possible.

Prepare and develop people and

technology solution

benefitsand

gettinglessonslearned

Elaboration – The ‘What is’ Phase

Workshops

Metrics Analysis and Gathering

Root Cause Analysis

Always ask when is the right time to

stop, if it is, then stop!

Root Cause Analysis

People Capability Matrix

Improvement – The ‘What if’ Phase

Improvement Workshops

Simulations

Analysis Creative

Get the process ‘right’ before

automating it

Simulations

People Capability Matrix and Capacity Planning

Business Case

Development – People and Technology

People Strategy

Activity Definition and Role Redesign

Presentation

Orchestration

Integration

…if you put a good performance against a bad system, the

system will win almost every time.

(Keen, 1997: 65)

RASCI Model

Integration

And lotsa testing…

Development – People and Technology

People Strategy

Activity Definition and Role Redesign

Presentation

Orchestration

Integration

…if you put a good performance against a bad system, the

system will win almost every time.

(Keen, 1997: 65)

RASCI Model

Integration

And lotsa testing…

Deployment – Live!

Deployment Strategy

Marketing Strategy

Training

Roll Out

Monitor and Benefit Realization –A look back

Project Results and Performance Measurements

Lessons Learned and Corrective Actions

Feedback Loop for Future Implementations

Business as Usual

� What happens after project has gone life and handed over to

Business??

Visibility Line

Project

Visibility Line

Business As Usual

Business as Usual

� What happens after project has gone life and handed over to

Business??

Visibility Line

Project Project Management

Visibility Line

Business As Usual People Change Management

Business as Usual

� What happens after project has gone life and handed over to

Business??

Visibility Line

Project Project Management

LeadershipVisibility Line

Business As Usual People Change Management

Leadership

Business as Usual

� What happens after project has gone life and handed over to

Business??

Visibility Line

Project Project Management

LeadershipVisibility Line

Business As Usual People Change Management

LeadershipWe had improvement programs. But the real difference came when we decided it was no longer a program, it was a business strategy.

(Stephen Schwartz, IBM)

Continuous Improvement

Process improvements without

The considerable investment made in any project

Processes must continuously be improved and

Continuous Improvement

without sustainability is not worth the effort

in any project must be maintained and enhanced over time

improved and redesigned

Process Governance

Continuous Improvement Monitoring

Maintain Process Models

Technology Perspective of Things: BPM and SOA

Technology Perspective of Things: BPM and SOA

Business Process ManagementBusiness and Management Process

Improvement Practice

Service Oriented ArchitectureArchitectural Philosophy for Standard-

based Services Design

BPM without SOA would require custom coding for

SOA without BPM allows design and building of custom coding for

system integrationbuilding of services

Technology Perspective of Things: BPM and SOA

Business Process ManagementBusiness and Management Process

Improvement Practice

Service Oriented ArchitectureArchitectural Philosophy for Standard-

based Services Design

BPM without SOA would require custom coding for

SOA without BPM allows design and building of

SOA +BPM unifies and orchestrates business processes with underlying standard-based service infrastructurecustom coding for system integration

building of services

standard-based service infrastructure

It is a concert that will bring agility and process efficiency to business audience

Technology Perspective of Things:BPM and SOA

How BPM is aligned with SOA…

Why am I standing here?

Meet Patrick of ACME

Patrick’s Structured ApproachPatrick’s Structured Approach

What Patrick’s trying to tell you

From here…

He can do it, you should too!

Structured Approach to BPM Implementation

He can do it, you should too!

Structured Approach to BPM Implementation

Execution PhasesUnderstand

Improve

Business As Usual

Foundation Phases

BPM Foundation

Improve

Develop

Monitor

What Patrick is trying to tell you…

Business Process Management brings IT and Business together

• It is not an IT toy

• It has to be lead by Business and supported by IT

A Structured Approach to BPM Implementation is required to minimize risks and help to ensure successminimize risks and help to ensure success

• Process improvement is paramount prior to process automation

• All implementation aspects of BPM needs to work together achieving common goal

• BPM is supported by pillars of People, Process and Technology

• BPM Implementation Structured Approach includes solid foundations, proper execution methodology and continuous improvement phase to ensure process improvement is sustainable

BPM and SOA are aligned to bring seamless integrated business process platform to support agility and process efficiency

Why am I standing here?

Meet Patrick of ACME

Patrick’s Structured ApproachPatrick’s Structured Approach

What Patrick’s trying to tell you

From here…

Help Patrick refine the framework

Business Process Management Implementation Framework is a work-in-progress that still needs further fine-tune and adjustments

Call to action to all IASA members or IT practitioners in Call to action to all IASA members or IT practitioners in general to work together in formalizing and crystallizing an implementation framework for BPM

Contact IASA Indonesia to contribute

http://indonesia.iasahome.orghenry@iasahome.org

Q&A

Thank YouThank You