Business Process Maturity Model Overview-OMG-Webinar

© 2006

The Business Process Maturity Model (BPMM)

The Business Process Maturity Model (BPMM)

Dr. John Alden – Managing Partner

Dr. Bill Curtis – Chief Scientist

Dr. John Alden – Managing Partner

Dr. Bill Curtis – Chief Scientist

An Overview for OMG Members

2© Capability Measurement, 10-2006

AgendaAgenda

•Kick off, introductions and purpose-John Alden•Overview of BPMM-Bill Curtis•Fit with OMG standards-John Alden

•Discussion-all*

* Questions and comments forward to:

[email protected]

Or IM’s:

Yahoo: johnwalden1019

AIM: aldensails


OMG standards relationships: OMG standards relationships:

Organizational Capability:

BPMM

•People CMM (SEI)

•Other standards for measurement: •ITIL, COBIT, and CMMI(SEI)

Business targeted standards:•BMM

•OSM

•BPMN

•SBVR

Software targeted standards:•SPEM

•BPDM

•MDA/MOF/UML


The Ecology of Failed SystemsThe Ecology of Failed Systems

Inconsistentmaterials

Workoverloads

Lack ofmeasures& definedprocesses

Cascadingrework

Siloedfunctionalprocesses

Inconsistentprocedures foridentical tasks

Unmanagedcommitments

Unintegratedbest practices


History of Maturity ModelsHistory of Maturity Models

AcquisitionCMM

PeopleCMM

SystemEng. CMM

CMMI

CMM forSoftware

Humphrey’sProcessMaturity

Framework

Crosby’sQualityMaturity

Grid

Shewart,DemingSPC &PDCA

BusinessProcess

MMDeveloped by two authorsof the CMM for Software


Maturity Model TypologyMaturity Model Typology

OrganizationalCapability

Processmaturity

Desc

ripti

ve

state

sPre

scri

pti

ve

pra

ctic

es

Locus of Transformation

Level ofImplementation

Detail

ITIL Org.Growth

Crosby QualityMaturity Grid

CMMIContinuous

COBIT MaturityRatings

ITIL MaturityRatings

CMMIStaged

PeopleCMM

BusinessProcess MM

SOA MMs


The Five Maturity LevelsThe Five Maturity Levels

Level 1Initial

InconsistentInconsistentmanagementmanagement

Repeatablepractices

Level 2Managed

Work unitWork unitmanagementmanagement

Standardized

best practices

Level 3Standardized

Business lineBusiness linemanagementmanagement

Quantitativelymanaged

practices

Level 4Predictable

CapabilityCapabilitymanagementmanagement

Level 5Optimizing

ChangeChangemanagementmanagement

Continuously

improvingpractices


How the BPMM WorksHow the BPMM Works

Level 5Optimized

Implement continual proactive improvements to achieve business targets

Capable processesPerpetual innovationChange management

Level 4Predictable

Manage process and results quantitatively and exploit benefits of standardization

Predictable resultsReuse/knowledge mgt.Reduced variation

Level 3Standardized

Develop standard processes, measures, and training for product & service offerings

Productivity growthEffective automationEconomies of scale

Level 2Managed

Build disciplined work unit management to stabilize work and control commitments

Reduced rework Repeatable practicesSatisfied schedules

Level 1Initial

Motivate people to overcome problems and just “get the job done”

Mistakes, bottlenecksAd hoc methodsHero worship


Structure of the BPMMStructure of the BPMM

Level 5

Level 4

Level 3

Level 2—

Managed

Level 1

MaturityLevels

Organizational Business Goverance

Organizational Process Leadership

Work Unit Requirements Mgt.

Work Unit Planning and Commitment

Work Unit Monitoring & Control

Work Unit Performance

Sourcing Management

Work Unit Change Management

Process and Product Assurance

Level 2Process Areas

SG1: Requirements are identified and evaluated

SG2: Requirements baseline is maintained

InG: Process is institutionalized

Work UnitRequirements

Mgt. GoalsSP1: Identify requirements

SP 2: Clarify requirements

SP 3: Evaluate requirements for implementation

SP 4: Negotiate requirements

SP 5; Maintain agreed to requirements

SP 6: Conduct regular requirements review

In 1: Describe the process

In 2: Plan the process

In 3: Provide knowledge and skills

In 4: Control the process

In 5: Objectively assure adherence

Work UnitRequirementsMgt. Practices


Institutionalizing PracticesInstitutionalizing Practices

“The practices for [process_area]are institutionalized.”

Process Area

SpecificPractices

(Implementation)

Monitoring& Control

ProcessAssurance

Process Planning

Skills & Training

Process Description


Level 1 – Initial OrganizationsLevel 1 – Initial Organizations

IndividualisticIndividualistic People rely on personal methodsfor accomplishing work

InconsistentInconsistent Little preparation for managing a work unit

InefficientInefficient Few measures for analyzingeffectiveness of practices

StagnantStagnant No foundation or commitmentfor improvement

UndisciplinedUndisciplined Few repeatable processes, oftensacrificed under pressure


Initial OrganizationsInitial Organizations


Level 2 – Managed OrganizationsLevel 2 – Managed Organizations

RepeatableRepeatable Work units use local procedures that have proven effective

CommittedCommitted Executives commit organization to improving operations

ManagedManaged Commitments are balanced with resources

ProactiveProactive Managers take responsibility forwork unit operations & performance

ResponsibleResponsible Work units are capable of meetingtheir commitments


Staff

Work unitmembers

Executives

Ma

na

ge

rs

Level 2 Process Areas

Work UnitRequirementsManagement

Work UnitPlanning andCommitment

Work UnitMonitoringand Control

Work UnitPerformance

SourcingManagement

Process andProduct Assurance

Work UnitChange

Management

Org

an

iza

tio

na

l Pro

ce

ss L

ead

ers

hip

Org

an

iza

tio

na

l Bu

sin

ess

Go

vern

an

ce


Level 3 – Standardized OrganizationsLevel 3 – Standardized Organizations

AdaptableAdaptable Standard processes tailored forbest use in different circumstances

OrganizationalOrganizational Integrate end-to-end businessprocesses across siloed functions

IntegratedIntegrated Establish standard processesfrom best practices in work units

LeveragedLeveraged Common measures and processespromote organizational learning

ProfessionalProfessional Organizational culture emerges from common practices


StandardProcess

This is a process description derived from the local method of

doing itLevel 3

Levels 2 to 3 TransitionLevels 2 to 3 Transition

TailoredProcess

This is a process description derived from the local method of

doing it

WorkUnit 1

WorkUnit 2

WorkUnit 3

WorkUnit 4

WorkUnit 5

Enterprise-wide end-to-end, integrated business process

WorkUnit 5

Procedures

WorkUnit 5

Procedures

WorkUnit 5

Procedures

WorkUnit 4

• Do this

• Do that

Procedures

WorkUnit 2

1. Do this first2. Do this next3. Do this last

Procedures

WorkUnit 2


Procedures

Confederatedwork units

WorkUnit 1

Procedures

WorkUnit 2a


Procedures

WorkUnit 3

Procedures

WorkUnit 4a

• Do this

• Do that

Procedures

WorkUnit 5a

Procedures

Level 2


Managers

Work unit membersStaff

Level 3 Process Areas

Product andService

Preparation

Product andService

Deployment

Product andService

Operation

Product andServiceSupport

Product andService

Management

OrganizationalProcess

Management

OrganizationalCompetencyManagement

OrganizationalResource

Management

ConfigurationManagement


Domain Specific Process Areas

Product andService

Preparation

Product andService

Operation

Product andServiceSupport

Product andService

Deployment

Product andService

Management

MarketEvaluation

MarketCommunication

SalesSupport

ProductSpecification

MarketingManagement

Collection &Dispersement

FinancialReporting

FinancialModeling &Projection

FinancialGovernance

FinanceManagement


Level 4 – Predictable OrganizationsLevel 4 – Predictable Organizations

QuantitativeQuantitative Process variation, performance, and capability understood quantitatively

Multi-functionalMulti-functional Functional processes reengineeredas roles in business processes

PredictablePredictable Outcomes predictable from sub-process capability & performance

StableStable Variation reduced through reuse,mentoring, & statistical mgt.

EmpoweredEmpowered Process data empowers staff tomanage their own work


Managers

Work unitmembers

Staff

Level 4 Process AreasLevel 4 Process Areas

Organizational Common Asset

Management

OrganizationalCapability

Management

Quantitative Process

Management

Quantitative Business

Management

Business Process

Integration


ProactiveProactive Improvements planned to achievebusiness strategies & objectives

SystematicSystematic Improvements evaluated and deployed using orderly methods

PreventativePreventative Defects and problem causes systematically eliminated

AlignedAligned Performance aligned across the organization

ContinualContinual Individuals and workgroups continuously improve capability

Level 5 – Optimizing OrganizationsLevel 5 – Optimizing Organizations


Work unitmembers

Staff

Executives

Level 5 Process AreasLevel 5 Process Areas

Organizational Improvement

Planning

Defect and Problem

Prevention

Continuous Capability

Improvement

OrganizationalPerformance

Alignment

OrganizationalImprovementDeployment

OrganizationalProcess and

Product Innovation


Health Care Services

Objectives: Reduce billing errors

Provide framework for 6 and business process reengineering

BPMM PilotsBPMM Pilots

International Bank

Objectives: Achieve cost reductions

External recognition for efficiency and low risk

Semiconductor Equipment

Objectives: Integrate improvement activities

Extend process maturity benefits to every business process

Gaming

Objectives: Integrate development,

installation, & support processes

Improve efficiency of operations


Transforming the CultureTransforming the Culture

Dis

cipl

ine

Level 5Opportunistic

Improvements,Empowered culture

Level 5Opportunistic

Improvements,Empowered culture

Level 5Proactive

Improvements,Agile culture

Level 5Proactive

Improvements,Agile culture

Organization

Work unit

Individual

Level 4End-to-end process

managed statistically,Precision culture

Level 4End-to-end process

managed statistically,Precision culture

Level 3Organization develops standard processes,Engineering culture

Level 3Organization develops standard processes,Engineering culture

Level 2Project mgrs. establishdiscipline & stability,Commitment culture

Level 2Project mgrs. establishdiscipline & stability,Commitment culture

Level 1Ad Hoc processes,

inconsistent results,Hero-driven culture

Level 1Ad Hoc processes,

inconsistent results,Hero-driven culture

Trust


SummarySummary

1. The immaturity of business processes strictly limits the value and success of IT systems

2. The process maturity framework is a proven roadmap for improving process capability and unlocking the full value of IT systems

3. The Business Process Maturity Model enables greater fidelity between the actual performance of business processes and their model-based representations


AgendaAgenda

•Kick off, introductions and purpose-John Alden•Overview of BPMM-Bill Curtis•Fit with OMG standards-John Alden

•Discussion-all*

* Questions and comments forward to:

[email protected]

Or IM’s:

Yahoo: johnwalden1019

AIM: aldensails

Documents

Business Process Maturity Model Overview-OMG-Webinar