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Automation Centers of Excellence: Addressing the Challenges of Leading RPA Change
October 4, 2016
© 2016 Alsbridge Proprietary & Confidential 2
Introductions
Craig Nelson, Managing Director. Mr. Nelson has over three decades of experience as a senior executive, consultant and sourcing advisor. Before joining Alsbridge he managed IBM’s global sourcing spend and was COO of MetaSolv Software. Mr. Nelson is a process design expert having earned his Six Sigma Black Belt designation from Motorola University and is leader of Alsbridge’s RPA change management offering. He has over the last five years focused his expertise on robotic process automation change management. Craig’s unique blend of process reengineering, automation and operational redesign, combined with his leadership experience make him a rare and sought after resource for organizations considering RPA implementation and governance. He has been instrumental in orchestrating complex change management and business turn-arounds in organizations from $250M to $30B in nearly every industry sector and size. Additionally Mr. Nelson has held directorships with Mercer Consulting, Towers-Watson, and Ernst & Young.
Jeff Frazer, Managing Director. Jeff’s background spans more than 20 years of enabling clients to solve diverse business issues and create transformative Business Process Outsourcing (BPO) solutions. Prior to joining Alsbridge, Jeff was Managing Director and Country Head for Xerox Services Canada with responsibility for BPO solution development and business growth. Jeff was an executive for Hewlett Packard in The Americas and for IBM in North America, where he led commercial strategy and solution development for multi-tower BPO & IT Outsourcing (ITO) client engagements. Jeff has been highly successful in the development of complex commercial outsourcing strategies involving the analysis of business objectives, financial baselines, competitive landscape, benchmarking, executive decision making processes, and financial models across a broad cross section of outsourcing solutions including IT, F&A, SCM, HR, and C
© 2016 Alsbridge Proprietary & Confidential 3
Session Abstract
§ Robotic Process Automation (RPA) is redefining the sourcing marketplace and driving transformational change for both enterprise clients and service providers. Amidst this fundamental change, however, many underlying sourcing strategy considerations remain constant. For example, the basic question of, “What do we outsource and what do we keep in-house?” is critically relevant to effective deployment of RPA solutions. Failure to properly delineate what functions are best-suited to third-party oversight and which ones require direct control leads to a wide range of risks, including scheduling issues, inefficiency and loss of business value.
§ This SIG Roundtable will examine how an RPA Center of Excellence can help buy-side enterprises develop an effective sourcing strategy around automation. Specific topics to be explored include:
• Characteristics of an RPA CoE, including organizational structure and roles and responsibilities − Key sourcing questions related to RPA − Risks of ineffective RPA sourcing − Steps sourcing executives can take to develop and implement a CoE
§ This interactive discussion will be led by Craig Nelson, an Alsbridge Managing Director.
© 2016 Alsbridge Proprietary & Confidential 4
Agenda
§ The Business of Automation § Components of an RPA CoE § Changes in Technology Innovation Sponsorship § Change Management and Operational Alignment § Metrics and Measurement § Summary CoE Functions and Capabilities
© 2016 Alsbridge Proprietary & Confidential 5
The Business of Automation
© 2016 Alsbridge Proprietary & Confidential 6
Are Business Leaders Embracing RPA
© 2016 Alsbridge Proprietary & Confidential 7
Why are Business Leaders Embracing RPA
© 2016 Alsbridge Proprietary & Confidential 8
§ Components of an RPA CoE
© 2016 Alsbridge Proprietary & Confidential 9
CoE Top Level View
RPA Assessment Baseline and
Strategy
Organization and Staffing
Technical and Performance
Standards
IT Alignment and Change
Management
Methodologies for New
Automations
Monitoring, Support and Maintenance
Functional Accountability
of the CoE
Maximize Business Impact
Deliver Value
Enable Process Changes
Objectives Key Functions of the RPA CoE
© 2016 Alsbridge Proprietary & Confidential 10
Operating Model Components
Governance How we make, sponsor and enforce the right decisions
Interactions How we interact to deliver consistent RPA services 3
Roles & Organization Who is accountable for doing the work
5
6
1 Functions & Capabilities
The building blocks that define how we deliver the scope (a function is a group of capabilities)
2 Processes How we execute the work
Metrics How we measure effectiveness
4
How The Work Will Be Done And/Or Supported By The RPA CoE
RPA CoE Operating
Model
Functions, Capabilities, Process
and Interactions How we control and
execute the work
Governance
How we make, sponsor and enforce the right
decisions for RPA
Metrics
How we measure process automation
effectiveness
Roles and Organization
Who supports and executes on the work
© 2016 Alsbridge Proprietary & Confidential 11
§ Changes in Technology Innovation Sponsorship
© 2016 Alsbridge Proprietary & Confidential 12
Key Interactions Map
Organization Area
Legend:
This chart depicts the areas of functional support required by the RPA COE and other RPA-significant organizational entities
Learning Support
Opportunity Identification and prioritization
Process Documentation
Program Management / Continuous Improvement
RPA Project Level Measures
IT
Infrastructure Support
IT Vendor Governance
Central Security Services
Business Units
Opportunity Identification and
Prioritization
Process Documentation
Environment Coordination
UAT
Maintain RPA Solutions
BU Level Change Management
Program Communication
Program Training
Change Programs (Knowledge, Skills,
Reinforcement)
RPA COE
Governance & Standards
Organization Enablement
RPA Development (RPA Factory)
Program Management
Support Activity
Incident/Problem Management
Technology Support To Enable More RPA
Collaborate on RPA initiatives and support
Collaborate on best practices and standards
Collaborate on IT-related issues and opportunities
© 2016 Alsbridge Proprietary & Confidential 13
RPA Delivery RACI Chart – Page 1
Ope
ratio
ns VP
Process A
nalyst
Process O
wne
r
CoE Assigned
Lead Con
figurator
Process E
nginee
r
Director PDO
Dir A
pplication / D
evelop
men
t
Solutio
n /Enterprise Archite
ct
Director of Infrastructure
Director Help De
sk and
Sup
port
Director Security
Busine
ss Analyst
Develope
r / Dev M
gr.
Release Manager
Archite
cture Re
view
Board
Executive Stee
ring Co
mmittee
Capital Com
mittee
Finance
Procurem
ent
Legal
HR Corp. Com
pliance
Head of the
CoE
RPA Team
Lead
Lead Analyst /B
RM
Lead Con
figurator
Configuration Manager
1 Governance Oversight C I C I C I C I I C C I I I I I I I A R
2 Process Definition I R R C C C C C I C C C C C A R C C C
3 Product Documentation R A R R R R R
2 Break/Fix, Robot Modifications/Enhancements I I I C I I I C I I C I I I I I A R C C R
6 Robot Portfolio Management I C C R A R C
RPA Configuration Development1 Solution Engineering & Design I C R R C C C A R C C R
Change Request Management1 Create & Maintain Procedures and Policy A C
Program / Project Management 4 Review and Approval A C C C C R C C C C I I I I I I I C A R
Automation Testing, Release and Deployment Management1 Create and Maintain Procedures and Policy I I I I I I I I I I I I I A I I I I I I I I
Automation Demand Management5 Prioritization and Scheduling of Automation Projects A I C C C R C C C C I C I I I I I I A R C C C
Incident Management1 Create and Maintain Procedures and Policy C I C C C C C C C C I C I I A R C C C
Business Relationship / Customer Satisfaction Management1 Initiate Customer Satisfaction Survey Process I C C C C I I I I I I I C C I I I I I A R C
ABC Corporate RPA CoE
RPA Operations
RPA Delivery
RPA Team Management
RPA Support and Maintenance
RPA Governance
Business Unit ABC IT
RACIR=Responsible A=Accountable C=ConsultedI=Informed
© 2016 Alsbridge Proprietary & Confidential 14
§ Change Management and Operational Alignment
© 2016 Alsbridge Proprietary & Confidential 15
Phase Value Risk if Not Done Properly
Transition Planning • Vision of the path forward • Anticipation of potential areas of transition
challenge • Established change management team, transition
plan and capabilities prior to transition
• Business disruption during transition • Poor transition execution, leading to longer lead
time to cost/benefit realization • Failure to deliver the promised savings • Impact on quality of service
Communications Management
• Develop communications strategy and plan considering all stakeholders
• Effective employee communications and messaging
• Risk mitigation for employee actions, loss of key talent
• Unprepared for objections and resistance • Incomplete view of communications requirements
for successful transition • Legal action, failure to meet regulatory
requirements • Communicators unaware of the nuances for
successful RPA transition
Organization Redesign
• Aligned organization for the RPA “era” • Eliminate chaos associated with unknown new
organization structures and new roles • Reduce the likelihood of flight by key personnel • HMS retained employees fully prepared to engage
in transition
• Loss of productivity and quality prior to the initiation of transition
• Employees unprepared for new roles • Ill-timed loss of top talent needed for post RPA
organization
Change Management Phases - Risks
Understanding the risks connected with each change management phase
© 2016 Alsbridge Proprietary & Confidential 16
Phase Value Risk if Not Done Properly
Operational Alignment
• Alignment and clarity on operational interactions and handoffs
• Proactive identification of concerns to resolve during transition
• Ability to sustain work processes during/after transition
• Failure to align new processes with the realities of the business
• Missed hand-offs when moving from before to after transition
• Inability to fulfill business expectations and adapt to changing business conditions
Transition Management
• Best-practice transition management, execution and controls
• Mitigation of value leakage from the business case that occurs due to ineffective transition and governance structures
• Optimized transition operations that ensure clarity performance and reporting accountability
• Strong foundational governance structure
• Sustainable operations damaged by transition conflicts
• Business disruption during transition • Poor knowledge transfer and transition
execution, leading to delay realizing planned business case benefits
• Failure to deliver the promised savings or promised quality of service improvements
• Resistance to organizational changes spikes
Change Management Phases - Risks
Understanding the risks connected with each change management phase (continued)
© 2016 Alsbridge Proprietary & Confidential 17
Overview of the process of implementing change management for RPA, showing key deliverables by phase
Communications Management
Implementation Management
Organization Redesign
Operational Alignment
Service Governance
Operate Deploy Test Configure Design Define
Organizational and Operational Readiness Assessment
Assessment / Strategy
Go / No Go
Strategy Phase Implementation Phase Run Phase
1- 4 Weeks Duration Based on Scope of RPA
Assessment establishes baseline and approach to plan
and manage the change process
Requirements to successfully
implement change
Organization and staffing for
retained organization
Plan for and execution of
communications throughout
implementation
Testing samples change
preparations and readiness
Governance plan and strategy to guide and direct
the operationalization of change
Overall Change Management Process
© 2016 Alsbridge Proprietary & Confidential 18
§ Metrics and Measurement
© 2016 Alsbridge Proprietary & Confidential 19
Business Drivers RPA Project Org Enablement Program
• Program-level ROI • Project – level ROI • RPA resources trained • Cycle time from request to production
• Performance to business case
• Quality improvements / defect reduction
• RPA resources certified • Reuse of modular configurations
• Revenue cycle reduction time
• Customer satisfaction • RPA adoption rate • Compliance improvement / logging
• Human capital resource reduction / hiring avoidance
• Efficiency / capacity gains
• RPA impact – pre / post KPI performance
• Accuracy levels
• Business, operational, & technical cost and cost avoidance
• Operational gains / risk reduction
• RPA impact – pre / post SLA performance
• Risk reduction
• Impact on sales to customer value proposition
• % of processes fully automated
• Customer satisfaction / Employee satisfaction
• Number of sales enabled with RPA as differentiator
• IT / business innovations implemented / quarter
• Demand compliance / quarter
RPA CoE – Performance Metrics
© 2016 Alsbridge Proprietary & Confidential 20
Real Client Cost Savings
© 2016 Alsbridge Proprietary & Confidential 21
Real Client Time Saved
© 2016 Alsbridge Proprietary & Confidential 22
§ Summary Coe Functions, Capabilities
© 2016 Alsbridge Proprietary & Confidential 23
RPA CoE – Functions, Capabilities and Processes
Governance & Standards
Organization Enablement RPA Development (RPA Factory)
Program Management
Process Automation Strategy
Process Analysis Security/Infrastructure Develop & Deploy Change Management
Relationship Management
Demand Management Project Management Metrics And Measures
Controls & Audits Provider Delivery Mgmt Financial Mgmt
Define and Design Build and Test UAT Implementation Planning Go Live Support / Maintenance
Infrastructure Planning & Mgmt
Communication Planning
Milestones and Deliverables
Track Status Of RPA Projects
Catalog RPA Solutions
Monitor and Measure
Report Program Metrics
RPA Continuous Improvement
Deliver Training
Change Programs
Assessment
Proof of Concept
Prioritization Security Design
RPA Center of Excellence
Add ongoing support to RPA Factory
Metrics and Dashboards
Report ROI Results
Compliance Assessments on RPA Deliverables
RPA Library Assessments
Security Assessments
Performance Management
Contract Management
RPA Team Administration
Internal
External
Forecast Demand
Demand Intake and Approval
Fulfill Demand
© 2016 Alsbridge Proprietary & Confidential 24
Governance Stakeholders Roles and Responsibilities
Governance Executive (Informed)
§ Approves substantial changes to scope and business case as deemed appropriate by the Governance team § Consults on key strategic decisions as deemed appropriate by the Governance team
Governance Team (Accountable, Consulted,
Informed)
§ Oversees the governance process of prioritizing, approving and delivering RPA initiatives § Reviews intake requests and approves requests for RPA action and delivery § Stays engaged and informed on the impact to respective business units and RPA build-deploy progress § Reviews and approves material changes to scope, financials, timeline of the initiatives § Communicates progress, successes, challenges back to respective Business Unit/Corporate Center § Provides resolution to escalations for issues, risk and scope § Assures change management plan is developed and implemented
RPA Team Lead Management (Accountable, Consulted,
Informed)
§ Provides strategic direction and priorities support to RPA CoE Lead § Assures alignment of the RPA CoE to prioritization and capacity requirements § Resolves issues escalated by the RPA CoE in a timely fashion § Monitors progress and status of RPA initiatives
RPA CoE Lead (Accountable, Responsible)
§ Overall management of the execution of the RPA functions and services, including RPA automation delivery, support and maintenance
§ Implements the priorities as approved by the Governance team § Recommends prioritization and capacity requirements § Resolves issues escalated by the RPA CoE team, business units and other stakeholders § Communicates results, status and progress to Governance team § Accountable for RPA CoE program deliverables and metrics
BU Representatives (Responsible for representing BU)
§ Initiates, facilitates and ensures communications between BUs and RPA CoE § Represents BU; collects feedback within BU and serves as central point of contact with decision making
authority
Support Functions (e.g. IT, Compliance, Security)
§ Represents each function to the team and vice-versa; provides subject matter expertise and consultative support as needed
§ Leveraged for deeper understanding of processes, risks and issues § Engages cross BU function partners to keep them informed and complete assigned project deliverables § Member of core project team; communicates updates to core team
© 2016 Alsbridge Proprietary & Confidential 25
Project Stakeholders Roles and Responsibilities
Executive Sponsor (Accountable, Consulted, Informed)
§ Overall accountability for the implementation of the approved initiatives § Ensures solution design aligns with approved initiative § Responsible for the realization of the initiative's business case § Ensures alignment of stakeholders with solution design § Provides guidance to the Implementation Lead and team § Removes roadblocks for the implementation team
RPA Team Lead (Responsible for overall effort)
§ Point of escalation § Partners with Project Manager and SMEs to ensure that project deliverables are completed on schedule, in
budget and within scope, and meet the requirements and expectations § Identifies and monitors financial and operational metrics § Informs Governance team
Project Manager (Responsible for Project
Management)
§ Partners with RPA and business resources, and other stakeholders as needed, to ensure project deliverables are completed on schedule, in budget and within scope, and meet the requirements and expectations
§ Provides program structure, tracks program deliverables, budget health and emerging risks and issues § Updates/maintains the overall project plan, manages issues, risks and scope § Coordinates preparation of regular updates for Governance and management § Schedules and chairs the project meetings § Provides operational project structure, and tracks project health and emerging risks and issues
BU / SME Lead (Responsible for representing BU)
§ Represents BU to the team, and vice-versa; participates actively in the project, collects feedback within BU and serves as central point of contact with decision making authority
§ Provides Subject Matter Expertise § Initiates, facilitates and ensures solid communication between business units and project team § Reviews and aligns on prioritization of RPA implementation plans and opportunities
BU Representatives (Responsible for work stream
deliverables)
§ Provides Subject Matter Expertise § Completes assigned project tasks/deliverables/milestones on schedule § Represents BU to the team and vice-versa; participates actively in the project, collects feedback within BU and
serves as central point of contact with decision making authority
Support Functions (e.g. IT, HR, Compliance, Security)
§ Represents each function to the team and vice-versa; provides subject matter expertise and consultative support as needed
§ Leveraged for deeper understanding of processes, risks and issues § Engages cross BU function partners to keep them informed and complete assigned project deliverables § Member of core project team; communicates updates to core team
© 2016 Alsbridge Proprietary & Confidential 26
§ Appendix RPA Solutions Overview
© 2016 Alsbridge Proprietary & Confidential 27
Data Elements and “Intelligence”
Learning
Rules-Based
Structured Data Unstructured Data
Cognitive
Robotic Process
Automation
Autonomics
© 2016 Alsbridge Proprietary & Confidential 28
Alsbridge RPA Practice
§ Pioneering RPA since 2011
§ Partnered with major RPA software vendors to deliver services around their products
§ 30+ dedicated resources in North America, Europe and AsiaPac
§ Data-driven methodology, tools, templates and IP
§ Service offerings include:
• Assessments and strategy
• Implementation
• Training
• Organizational change management
Robotics
Autonomics
Cognitive
© 2016 Alsbridge Proprietary & Confidential 29
Current State of the Market
Robotics Autonomics Cognitive
Business Goals Automation of repetitive, algorithmic processes to reduce cost and enhance speed, accuracy, availability and auditability
Automation of repetitive, algorithmic processes to reduce cost and enhance speed, accuracy, availability and auditability
Automation of non-standard, heuristic processes typically requiring human intervention…and pattern recognition in “big data”
Functional Targets Any process involving structured digital data and business rules
IT processes Processes that require voice interaction, image recognition and/or unstructured data
Value Proposition • Automate any process • Without changing the
process or the systems • If/then logic • Low cost to deploy/run • Rapid deployment (4-6
weeks)
• Automate IT processes with traditional integration
• Learning algorithms to dynamically change business rules
• Medium cost to deploy/run • Fast deployment 4-6 mos.)
• Structure unstructured data so that other tools can manipulate it, or…
• Analyze “big data” beyond human capability
• High cost and pilots that run 9-18 mos.
© 2016 Alsbridge Proprietary & Confidential 30
Current Vendors in the Market*
Robotics Autonomics Cognitive
*Example of representative leading vendors in each category. Not intended to be an all-inclusive list.
© 2016 Alsbridge Proprietary & Confidential 31
RPA CoE – Functions and Capabilities
Enterprise Governance &
Standards
Controls and Audit
Organization Enablement
Process Automation
Strategy
Org Change Management
Program Management
Demand Management
Project Management
Provider Delivery
Management
Metrics and Measures
RPA Development (RPA Factory)
Process Analysis
Security/ Infrastructure
Design
Develop and Deploy
Functions
Capabilities
Relationship Management
Financial Management
The key functions of the RPA CoE and the significant capabilities required to achieve success