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Brett ChamplinPresident ABPMP International
Adjunct Faculty, University of ChicagoManager, Business Performance Improvement
© 2009 Brett Champlin 2
BPM is a Management PracticeBPM is a Management Practice◦ Process-oriented thinking◦ Manage end-to-end business process◦ Strategy is carried out through process◦ Process assessment, analysis and design◦ Process performance over functional performance
Enabled by an evolving set of Enabled by an evolving set of technologiestechnologies◦ Process discovery and definition◦ Process execution and orchestration◦ Process monitoring and control◦ Process performance decision support
© 2009 Brett Champlin 3
“BPM is the way best-practice organizations conduct business”
While the APQC research participants agreed that technology, by itself, does not constitute “Business Process Management”, they concluded that much of the promise of BPM initiatives will not be realized without powerful, flexible and user-friendly IT solutions to support them.
Four of the five of APQC’s best practice partners cited technology support being a key success factor for managing, aligning and integrating business processes---thus impacting profitability and their ability to compete in today’s competitive, global market.”
Source: APQC
© 2009 Brett Champlin 4
Two Forrester Surveys
◦ 449 decision makers in North America and Europe60% were already using BPMan additional 19% plan to do so in next 12 months
◦ 160 US and UK enterprise architects85% were actively planning or already had BPM deployments under way
◦ BPM Centers of Excellence (COEs) are the catalyst for BPM success
Source: Forrester
© 2009 Brett Champlin 5
BPM enables business agilityBPM enables business agility
BPM is how you change your businessBPM is how you change your business
BPM is about managing changeBPM is about managing change
o Managing Process Change Managing Process Change
o Managing how people accept changeManaging how people accept change
© 2009 Brett Champlin 6
Managing organizations through successful changes
Being aware of a need to manage change throughout planning and implementation of change programs
Understanding and influencing how people affected by change experience change
© 2009 Brett Champlin 7
Accelerate the 4 stages of natural reaction:
◦ Denial
◦ Resistance
◦ Exploration
◦ Commitment
Helping People Adapt to Change
◦ Everybody has to go through this
◦ They all go through it at their own pace
◦ Some of them have to go through these stages many times before they are fully committed
© 2009 Brett Champlin 8
Communications & Activities◦ Be honest about where you are
◦ Be honest about where you want to go
◦ Be honest about how you are going to get there
◦ Status reports, what’s new, how are we doing
◦ How this will affect “you”
◦ What can “you” do to prepare
◦ What “you” should do now
◦ How “you” can contribute to success
© 2009 Brett Champlin 9
Style Characteristics Imperative
Cultural Agressives
• Holistic Coordination• Seize Advantage• We change the rules of the market• We welcome rapid change• People at all levels embrace new ideas
Stay Ahead
Cultural Moderates
• Local Optimization• Seek Parity• We follow fast behind market leaders• We can cope with a few moderate changes• New ideas flow top-down through
managers
Get Leverage
Cultural Conservatives
• Central Control• Reduce Pain• We seek mature markets, then compete
on price• We prefer status quo; discourage
exceptions• New ideas are limited to job descriptions
purview
Catch Up
Source: Gartner
© 2009 Brett Champlin 10
Continuously Improving Process
Predictable Process
Disciplined Procedures
Consistent Process
Cooperative Process
Need Quality Management
Program
Need Management Regulation
Ignored(1)
Manage/Plan(5)
Participate/Control
(4)
Support/Direct
(3)
Recognize/Organize
(2)
Steward/Lead
(6)Need Enterprise Integration
Process Management MaturityProcess Maturity
© 2009 Brett Champlin 11
Mission, strategy, goals, and objectives
Business ProcessBusiness Process
WorkflowDesign
Information
Systems
Motivation &
Measurement
Policies and Rules
Human Resource
s
Facilities(or other)
•Performers•Steps &
decisions•Sequence
and flow•Handoffs
•Applications•Information
•Employee assessment
•“Reward and punishment”
•Process performance indicators
•Constraints•Business
rules that the process enforces
•External & internal
•Skills•Matching
jobs to tasks
•Selection and placement
•Workplace design
•Equipment•Furniture…
enables
enables enables enables enables
Culture, core competencies,and management systems
SupportsConstrains
enables
Source: Alec Sharp, Clariteq
© 2009 Brett Champlin 12
Process Improvement is incremental Process Re-Design is end-to-end re-thinking of what we are doing Process Reengineering is a “begin with end in mind” approach Process Innovation involves changing the model, not just improving
its efficiency
ProcessImprovement
ProcessReengineering
ProcessRe-Design
Time
Cost
Degree of Innovation
© 2009 Brett Champlin 13
Managing Process Managing Process Transformation Transformation
En
d-t
o-E
nd
Pro
cess
Act
ivit
y/S
ub
Pro
cessSco
pe
of
Ch
ang
e
Short Long
Time
Process Improvement
Bu
sin
ess
Mo
del
Process Re-Design
Process Reengineering
Source: Jeston & Nelis
© 2009 Brett Champlin 14
Point of Approach Within Organization
Redesign of Industry Value Chain
Redesign of Business
Redesign of Processes
Improvement of Sub Processes
IncrementalImprovements
Imp
act
on
O
rgan
izat
ion
Source: Jeston & Nelis
© 2009 Brett Champlin 15
Scope of Change
Sco
pe
of
Ch
ang
e M
anag
emen
t E
ffo
rts
Marketplace, General Public
Senior Leadership, Business Partners
Middle Management, Customers
Support Staff, Area Mgt
Workers, Supervisors
IncrementalImprovementsImprovement of Sub Processes
Redesign of Processes
Redesign of Business
Redesign of Industry Value Chain
© 2009 Brett Champlin 16
Internal◦ Value Chain◦ Support◦ Control
External◦ Customer◦ Regulatory◦ Business Partner
© 2009 Brett Champlin 17
EngageCustomers
TransactBusiness
FulfillExpectatio
ns
ProvideServices
Reduce CostsReduce Time-to-
MarketImprove Quality
Gain Market Share
Broaden Product Line
4.3 0.7
2 4 1 3
++ 0+
2.1 1.4Adapted from Bob CurticePerformance Improvement Associates"
© 2009 Brett Champlin 18
OPPORTUNITIES
THREATS
Internal Factors
Exte
rnal Fa
ctors
STR
EN
GTH
SW
EA
KN
ESS
ES
Leve
rage
Constraints
ObstaclesVul
nera
bilit
ies
Exte
rnal Fa
ctors
Internal Factors
Map to Decision Support Tools Map to Decision Support Tools
Engage Customer
ProvideService
Transact Business
Fulfill Expectations
© 2009 Brett Champlin 19
© 2009 Brett Champlin 20
Business Process “Meta Model”Business Process “Meta Model”
PURPOSEPURPOSE
PEOPLEPEOPLE PLACEPLACE
PROCESSPROCESS
PRODUCTPRODUCT
PERIODPERIOD
© 2009 Brett Champlin 21
11stst Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PRODUCTPRODUCT
PROCESSPROCESS
PURPOSEPURPOSEPERIODPERIOD
• Tasks & Nature of Work
© 2009 Brett Champlin 22
22ndnd Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PRODUCTPRODUCT
PROCESSPROCESS
PURPOSEPURPOSEPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills
© 2009 Brett Champlin 23
33rdrd Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PRODUCTPRODUCT
PROCESSPROCESS
PURPOSEPURPOSEPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills• Motivation & Relationships
© 2009 Brett Champlin 24
44thth Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PRODUCTPRODUCT
PROCESSPROCESS
PURPOSEPURPOSEPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills• Motivation & Relationships
• Structure & Culture
© 2009 Brett Champlin 25
55thth Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PRODUCTPRODUCT
PROCESSPROCESS
PURPOSEPURPOSEPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills• Motivation & Relationships
• Structure & Culture• Relationships with External
Partners & Community
© 2009 Brett Champlin 26
Change Management
Str
ateg
icT
acti
cal
Deg
ree
of
Ch
ang
e
Short Long
Time
Process Improvement
Process Re-Design
Enterprise Process Alignment/
Process Portfolio Management Process
Reengineering
Business Process ManagementBusiness Process Management
Managing Process Managing Process Transformation Transformation
Low Hanging Fruit/ Quick Hits
© 2009 Brett Champlin 27
© 2009 Brett Champlin 28
YOU DON’T HAVE TO CHANGE.YOU DON’T HAVE TO CHANGE.
SURVIVAL ISN’T MANDATORY.SURVIVAL ISN’T MANDATORY.
-- DEMING
Brett ChamplinBrett [email protected]@theChamplins.com