Upload
patrick-dawson
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
Business Process Management (BPM)
Discussion of Real Steps Toward Improving Processes to Strengthen Business and IT
Collaboration
SIM WorkshopFebruary 1, 2005
Prepared by: Graham Tasman
Agenda
Introductions 5 mins
Business Process Management (BPM) Overview G. Tasman 15 mins
Interactive Discussion All 25 mins
Factors of Successful BPM G. Tasman
10 minsHow to deploy BPM in your IT function & company G. Tasman
What are the people, change, and organization implications
G. Tasman
Examples of Successful BPM Projects SIM Group 20 mins
Implications of not doing BPM well G. Tasman
10 minsExamples of where BPM is emerging as mission critical
G. Tasman
Guiding Principles G. Tasman
Question…
Who in IT has faced either of the following scenarios?
IT has had a process improvement initiative thrust upon them by the business and didn’t have the means to respond effectively
IT has initiated improvements in business processes and has had difficulty in getting the business interested and engaged
Business Process Management (BPM) Overview
In today’s world, leading companies recognize that maintaining competitiveness in the marketplace requires effective management and control of key business processes.
BPM, as defined by Gartner:
“is an umbrella term describing the methodologies, metrics, processes, and systems used to monitor and manage an enterprise’s business performance.”
Business Process Management (BPM) Overview
True BPM provides both a way to effectively manage how work gets done and a framework to drive continuous process improvement.
BPM as a Strategic Enabler: In order to sustain the benefits from Process Improvement initiatives, organizations are beginning to leverage best-in-class BPM capabilities including automation software to accurately and precisely control processes in an organization
Traditional Process Improvement vs. BPM
Process Improvement Initiatives that improve an organization’s current baseline
processes to a more efficient and effective future state through evolutionary (not revolutionary) change
Size & scope can run the gamut from small informal initiatives run by ad-hoc teams to large enterprise-wide initiatives managed by dedicated process excellence teams
BPM Takes on a prominent role after process improvement has
taken place – including ongoing monitoring and management of changed processes, measuring performance, and seeking continuous improvement
BPM may or may not involve business process automation (BPA) software
BPM Example
Situation:
The “business customer” has asked IT to manage a project to streamline its procurement process and views the problem as a system issue and expects IT to deliver a system solution. Based on its past BPM initiative experience, and having done preliminary analysis of the business customer’s problem, IT has confirmed that the solution is really about changing processes and coming up with a better way for the business customer’s employees to do their work.
BPM Example
Solution: The IT function deploys an internally developed pool of process management
experts The process team maps out current state (base line), identifies gaps & designs
future state process flows Process team calculates expected payback from operational savings of the future
state process Obtain Stakeholder buy-in to proposed changes Catalog policy & procedure changes Develop / modify the consequence system Implement general purpose process automation software to coordinate process
flows Provide training Roll-out Implement performance tracking
BPM Example
Outcomes: The business achieved desired levels of productivity
increases without making a major system investment IT created real, measurable value for the business IT continues to be the go-to resource for enhancing
business performance through better Business and IT Collaboration
How does BPM Create Value for IT and for the Business?
Facilitating better relationships Businesses can gain better control of their
processes and reduce the burden on IT to deliver solutions
IT can become more efficient by leveraging the reuse of existing resources
IT can respond rapidly to deploy new business solutions
Businesses can adapt quickly to new opportunities and competitive threats, while IT can quickly change existing systems
How does BPM Create Value for IT and for the Business?
Improving IT’s Alignment and Ability to Respond, Adapt, and Drive Value Back to the business Promotes greater visibility into actual company
performance Reduces cycle times and processing costs Improves efficiency within IT and the business Enables processes and IT to adapt quickly to
changing business conditions
Discussion Questions…
1. In your IT organizations, who sees BPM as an opportunity for IT to deliver higher-level customer satisfaction for the business and IT?Why?
2. Who of you sees the opportunity to better align with your business executives through BPM solutions?
3. How do you or would you approach BPM?
4. Does the business value this? What do you think the perceived value might be?
5. Can you measure the value or the benefits you create?
More Questions…
6. For those of you who do not utilize BPM, why not?
7. Do you think it is an important IT service offering to provide?
8. What do you need to be doing in order to make this service available?
What are the factors for successful BPM?
Identify a business champion with the authority to effect change
Leverage past best-practices experience
Identify immediate / quick-hits
Limit reliance on major technology enhancements to achieve process improvements
Leverage best-in-class BPM toolsets for process automation
Leverage existing process templates
Begin with a Pilot Group
Be Exact in Specifying Elemental Process Designs (i.e., avoid broad process scope and high-level designs)
How to make BPM happen in your organization
1. Inventory existing IT skills and “Communicating with the Business” skills
2. Do a first pass mapping against available process improvement and BPM methodologies
3. Determine skill gaps
4. Develop resource strategy for closing gaps
5. Evaluate BPM workflow automation toolsets; select a best-in-class package consistent with the current IT architecture standards
6. Build a client service competency to penetrate the organization and proactively seek out BPM initiatives by “living with the client”
7. Engage in a BPM pilot and measure success in “small wins”
8. Expand into departmental solutions before taking on the enterprise
9. Develop a measurement and monitoring discipline for all BPM initiatives
What are the People, Change, and Organization Implications?
1. How do I identify the right people in my organization for this kind of work?
Skills assessment and identification of gaps is critical
Consider the IT people and the Business people
2. Is my company ready to embrace BPM? Do they understand it? How will the culture respond?
IT must be ready to communicate to, and educate the business on BPM
3. Does the business have faith that IT can execute? Consider building a BPM capability around a larger IT
Transformation initiative geared toward improved client service
Examples of Successful BPM Projects
National Tire Company Problem: Controlling the Certification Process – current
inefficiencies in new product approval process Solution: BPM reengineering with process automation Results: Accelerated time-to-market by reducing general
specification change process approval times by 80%
A National Medical Center in Washington DC Problem: Inefficient paper-based procurement process Solution: Reengineering the process for efficiency and leveraging
process automation Results: Significant reduction in processing time for requisitions
with flexibility for different approval schemes. Able to achieve results without major ERP initiative
Examples of Successful BPM Projects
A World-Leading Children’s Hospital Problem: Ineffective physician credentialing process Solution: Reengineer the process to create more individual
accountability at each process stage Results: Performance measurements and monitoring drive desired
behaviors of accountability to significantly improve credentialing cycle times
GlaxoSmithKline Presented by Chris Anstey
Implications of not doing BPM
Opportunity cost of not converting known challenges to business results (savings or revenue)
Not fully harnessing the value of IT as a Strategic Contributor to the business Continued perception by the Business that IT can
only provide technical value (versus business value)
“Same ‘ole, Same ‘ole” IT Agenda
Lack of Alignment with the Business
Examples of where BPM is emerging as mission critical
Regulatory compliance SOX, HIPPA, Patriot Act
Sarbanes Oxley – what the future holds:Section 409: Real Time Disclosure.
“Issuers must disclose information on material changes in the financial condition or operations of the issuer on a rapid and current basis.”
Guiding Principles for Successful BPM
Sponsorship - Identify a Business champion and an IT Champion with the authority to effect change and build broad sponsorship
Start Small - Start small and build wins; begin with a Pilot Group
Leverage Prior Successes - Leverage past best-practices experience
Quick-Hits - Identify immediate impact opportunities and low-hanging fruit
Process over Technology - Limit reliance on major technology enhancements to achieve process improvements
Enable Automation - Leverage best-in-class BPM toolset (including a graphical process designer, a runtime process execution engine, agility features for real-time updates and modifications, tools to manage and monitor processes, including rich reporting features)
Be Specific - Be Exact in Specifying Elemental Process Designs (i.e., avoid broad process scope and high-level designs)
Measure Success - Define metrics to monitor and determine measures of success
Manage Human Behavior - Don’t assume the control of a workflow solution will be the holy-grail: enlist behavior controls into the Human Capital consequence system
Business and IT Collaboration
“BPM: IT’s Opportunity to Partner in Business
Value Creation”