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PROCESS RENEWAL GROUPPRG-Architecture-1
Business Process ManagementThe Foundation for Alignment and Traceability
Roger T. BurltonThe Process Renewal Consulting Group Inc.
www.processrenewal.com+1-604-945-7352
PROCESS RENEWAL GROUPPRG-Architecture-2
Copyright
Business Process Management:
This seminar contains proprietary methods and materials developedby The Process Renewal Consulting Group Inc..
They may not be copied, recorded, transmitted or reused without theexpressed permission of the author. All rights reserved.
PROCESS RENEWAL GROUPPRG-Architecture-3
Time To Profit
PROCESS RENEWAL GROUPPRG-Architecture-4
Improving Time To Profit and Time in Profit
Reduce Costs Reduce Time to Market
Increase Revenue
PROCESS RENEWAL GROUPPRG-Architecture-5
Provide Capability
The Role of Process in Business Performance
Owner'sRequirements
Rules andRegulations
Consumable Resources
Business
CustomerLoyaltyCustomer Requirements
Data
100110011110011010010100111010101100
Information andKnowledge
BusinessPressures
Goods and ServicesProcesses
FacilitiesC & C Technology Staff
Understand
PROCESS RENEWAL GROUPPRG-Architecture-6
BusinessEnvironment
Understanding
StakeholderRelationshipManagement
KnowledgeManagement
ProcessManagement
TechnologyManagement
As business product cycles are changing more and more rapidly and each organization is required to form an individual and unique relationship with each of its customers and other stakeholders, only flexible processes and maneuverable technologies can enable knowledgeable staff to make the commitments required to continuously adapt.
Alignment of Critical Competencies
PROCESS RENEWAL GROUPPRG-Architecture-7
Balanced Scorecard:No single measure is sufficient: we must have multiple areas of focus
Traditionally – Financial bottom line
Now we need other indicators such as customer satisfaction, internal processes and innovation and learning
We need predictive measures not just after the fact reports.
The construction of a connected measurement system is critical to take overall targets, and develop strategy down to the level of what people do every day.
“What you measure is what you get” Kaplan and Norton.
Strategy and Measurement in the Knowledge Age
PROCESS RENEWAL GROUPPRG-Architecture-8
Stakeholder* Relationship Management:
Multiple Stakeholders Play a Role
What happens if any one is missing or ignored?
* A Stakeholder is anyone or any group that has a vested interest in or can influence the organization’s performance.
Suppliers
Staff
Community
Customers
Owners
Enterprise
Itself
What happens if the
requirements are in conflict?
PROCESS RENEWAL GROUPPRG-Architecture-9
Explicit Relationship Attributes
Current StateFor Each Type & Sub Type• Values / Principles• KPI’s and Actual Performance
Measurements• Interactions
• Business Events / Outcomes• Flows (Things, Data,
Knowledge, Commitments)• Health
Future StateFor Each Type & Sub Type• Values / Principles• Vision / Expectations• KPI’s and Performance Targets• Interactions
• Business Events / Outcomes
• Flows (Things, Data, Knowledge, Commitments)
• CSF’s
Start with the Customer Lifecycleand then work to the Suppliers /
Partners and then other supporting relationships in the value chain
PROCESS RENEWAL GROUPPRG-Architecture-10
Start with the criteria for the Customer Relationships then look at theSupplier and Partner Relationships which are critical to the value chain and then look at any others that may be required.
From Customers to Other Stakeholders
Organizationin Focus
Customer Type 1
Customer Type 2
Customer Type 3
Supplier Type 1
Supplier Type 2
Staff
OwnersCommunity Start with
these
Then do the rest
Then these
PROCESS RENEWAL GROUPPRG-Architecture-11
Evaluation Criteria for Planning, Prioritization and Decision Making
What criteria will your organization use to decide among competing options for change ?
Without Business Context these questions cannot be answered:
BusinessDrivers
BusinessStakeholder
Strategy
ProcessMgmt
BusinessContext
What? How?Where?
When?Who?
Why?
Whence?
N
PROCESS RENEWAL GROUPPRG-Architecture-12
The complex Stakeholder Relationships can only be managed through Business Processesworking at optimum performance.
Process Management
Customer Type 1
Customer Type 2
Customer Type 3
Supplier Type 1
Supplier Type 2
Staff
OwnersCommunity
Everything which flows must link to at least one process
PROCESS RENEWAL GROUPPRG-Architecture-13
Business Process as Primary Enabler
Is triggered by an external event involving a stakeholder
Is comprised of all the actions necessary to provide the appropriate business outcomes in response to the triggering business events.
Transforms inputs of all types into outputs, according to guidance(policies, standards, procedures, rules etc.), employing reusable resources of all types.
Contains logical steps which usually cross functions and often organizational units.
Has performance indicators for which measurable objectives can be set and actual performance evaluated.
Delivers a product or service to an external stakeholder or another internal process
Capture
Trigger
Manipulate/Transform
Retrieve
Store
Manipulate/Transform
Manipulate/Transform
Manipulate/Transform
Guide
Enable
DeliverOutcomes
Anatomy of a ProcessHand-off
PROCESS RENEWAL GROUPPRG-Architecture-14
CORE business processes are linked directly to external customers and require knowledge to deliver optimum value.
GUIDING business processes provide direction, rules and practices by embedding or embodying knowledge.
ENABLING business processes provide facilities, tools and access mechanisms to embedded or embodied knowledge.
Objects of Process Transformation :
Physical Materials
Data / Information
Commitments
Knowledge
Process and Knowledge Interdependence
PROCESS RENEWAL GROUPPRG-Architecture-15
Sample Process Architecture Diagram
Note:
Lines represent major relationships only !
Note:
Lines represent major relationships only !
8. Provide Post Sales
Service
Guides to all Other
Processes
7. Supply Human
Resources
5. Develop and Maintain
Facilties (Need to
Retirement)
16. Purchase Supplies / Manage Logistics
9. Plan Strategies
10. Set Policy, Rules,
Interpretations
2. Change Processes
and Enablers
12. Provide Information Technology
Services
11. Provide Financial Services
14. Ensure Compliance
Enablers to all Other
Processes
6. Report Business Results
14. Develop Products
13. Understand Market and
Acquirre Customers
3. Make Customers
Aware
4. Manufacture /
Acquire Product
1. Fulfill Orders
PROCESS RENEWAL GROUPPRG-Architecture-16
Greatest Affinity / Importance Ranking
Biggest
Gap
Ranking
1 12 33 44 85 56 137 168 149 6
10 1511 712 1213 214 915 1016 11
16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
1
2
3
Process Migration Strategy
Process Number
PROCESS RENEWAL GROUPPRG-Architecture-17
123456789
1011121314151617181920
20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Knowledge Area Affinity / Business Value Rank
Accessibility
Gap
Rank
Knowledge Area Migration Strategy
PROCESS RENEWAL GROUPPRG-Architecture-18
123456789
10111213
13 12 11 10 9 8 7 6 5 4 3 2 1
Technology Potential Rank
Ease
of
Deployment
Rank
Technology Migration Strategy
PROCESS RENEWAL GROUPPRG-Architecture-19
Business Strategy
Business Architecture
Program Management
Alignment: The Basis for Traceability
Business Process
Architecture
Technology Architecture
Information Architecture
Org/HR Strategy
OtherStrategies
Migration Strategy
Project Portfolio
Business Drivers
Business Stakeholder
Strategy
ProcessMgmt
AlignmentTraceability
PROCESS RENEWAL GROUPPRG-Architecture-20
The ongoing delivery of measurable business performance through synchronized optimization of:
whole processes
their guiding factors
their enablers
What is Business Process Management ?
Local Resturant
Finance & Administration
Marketing & Sales
Purchasing
Transporation
CateringBanquet Services
Accounts Payable
Accounts Receivable
Legal Sevices
Faciliticies Management
Human Resources
Customer Service Information Systems
Operations
Food Preparation
Logistics
Credit
Delivery
Roles& Jobs
Organization
StructurePolic
ies,
Rul
es,
Regu
latio
nsFacilities
Processes
Business
BusinessPerformance
Human
Resources Com
putin
g &
Com
mun
icat
ions
Tech
nolo
gy
PROCESS RENEWAL GROUPPRG-Architecture-21
The Process Management Framework
BusinessContext
Architect&
Align
Vision
Understand
Renew
Redevelop
Implement
Nurture &Continuously
Improve
Political Commitment Management• Awareness• Understanding• Willingness
Quality / Risk Management• Risk / Reward• Gating Checkpoints• Resource Commitment• Opportunity Cost
Project Management• Communications• Perceptions• Commitments
Technology Enablers• Infrastructure• IT Applications• Communications• Front End Devices
Human Enablers• Skills• Capabilities• Attitudes• Incentives
PROCESS RENEWAL GROUPPRG-Architecture-22
Required Reading
For articles, training courses and professional services in Process Management, see
www.processrenewal.com or contact Roger Burlton [email protected]