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BPM Maturity

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What is BPM Maturity?

BPM Maturity Model is a tool that can assist organizations inbecoming MORE SUCCESSFUL with BPM

BPM Maturity and adoption model provides guidance for howany organization can more easily navigate the challenges of

becoming PROCESS MANAGED BPM Maturity model is an evolutionary roadmap for

implementing the VITAL PRACTICES from one or more

domains of organizational process.

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Why BPM Maturity?

FEW STANDADRDS FOR APPRAISING the maturity ofbusiness process workflows

To establish FIDELITYbetween how tasks are actuallyperformed and how they are described in model-based

representations Appraising a SUPPLIERS CAPABILITYfor delivering

outsourced IT and other business services

To implement the business process foundations required forORGANISATIONAL AGILITYand lower operating costs

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Foundation Principals

ATTRIBUTE of a process can be EVALUATED to determine itscapability to contribute to organizational objectives

Capable PROCESSES cannot SURVIVE unless the organizationis mature enough to sustain them

Process improvement is BEST APPROACHED

Maturity level LAYS A REQUIRED FOUNDATION on whichfuture improvements can be built

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Uses of BPm Maturity

Guiding business process IMPROVEMENT programs

Assessing RISKfor developing and deploying enterpriseapplications

EVALUATING the capability of suppliers

BENCHAMRKING of processes

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Generic Process Maturity Hierarchy

Level 1

Initial

Inconsistentmanagemen

t

Repeatablepractices

Level 2Managed

Work unitmanagemen

t

Standardized

bestpractices

Level 3

Standardize

d

Businessline

management

Quantitativelymanaged

practices

Level 4

Predictable

Capabilitymanagemen

t

Level 5

Optimizing

Changemanagemen

t

Continuo

usly

improvingpractices

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To uncover causes ofinefficiencies and poor

performance

SIX phases of BPM Maturity

To create a culture that wants tounderstand its existing

processes and learn where toimprove them

To automate and instrumentprocesses for continuous

improvement

To optimize the relationshipsbetween business processes across

functional barriers, partners andcustomers

To link process results to desiredoperational and strategic outcomesThe creation of best-in-classprocesses that stay sharp in theface of change

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Phases and UNDERLYing Motivation

Phase 0: ACKNOWLEDGE OPERATIONAL INEFFICIENCIES :To uncover causes of inefficiencies and poor performance

Phase 1: BECOME PROCESS AWARE : To create a culture thatwants to understand its existing processes and learn where to

improve them Phase 2: ESTABLISH INTRAPROCESS AUTOMATION AND

CONTROL : To automate and instrument processes forcontinuous improvement

Phase 3: ESTABLISH INTERPROCESS AUTOMATION ANDCONTROL :To optimize the relationships between businessprocesses across functional barriers, partners and customers

Phase 4: ESTABLISH ENTERPRICE VALUATION CONTROL :Tolink process results to desired operational and strategic

outcomes

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BPM Maturity Success Factors

STRATEGIC ALIGNMENT : The continual tight linkage oforganizational priorities and enterprise processes, enabling theachievement of business goals.

CULTURE AND LEADERSHIP : The collective values and

beliefs that shape process-related attitudes and behaviors PEOPLE: The individuals and groups who continually enhance

and apply their process related expertise and knowledge

GOVERNANCE: Relevant and transparent accountability,decision making and reward processes to guide actions

METHODS: The approaches and techniques that support andenable consistent process actions and outcomes

INFORMATION TECHNOLOGY: The software, hardware andinformation management systems that enable and support

process activities

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Going from phase 0 to phase 1

Phase 0: ACKNOWLEDGE OPERATIONAL INEFFICIENCIES :

The primary motivation of Phase 0 is to uncover causes ofinefficiencies and poor performance

TRIGGERS:

1)Organizations monitoring specific business activities,examining what is happening and seeking potentialtrouble spots

2) The common denominator is usually an organization

realizing that any significant productivity/performance gains willhinge on examining processes as a whole, rather thanautomating functional tasks

3) "How do we improve these metrics?

4) The analysis generally leads to understanding thebroader business process

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CRITICAL SUCCESS FACTORS

1) STRATEGIC ALIGNMENT : The organization is alignedaround a functional area, product line and/or geography

2) CULTURE AND LEADERSHIP : The culture is a functionalhierarchy, and leadership is focused on local operational metrics

3) PEOPLE : Generally concerned with the health of theorganization and meeting expectations of their immediate

management.

4) GOVERNANCE :The governance structure is mostly focusedon department, division and global organization performancemetrics.

5) METHODS: The IT organization normally deploys solutionsthrough a traditional "waterfall method, seeking out best-of-breed applications to meet functional requirements. Businessleaders think in terms of re-engineering and organizationaltransformation

6) INFORMATION TECHNOLOGY: This is a built-to-lastarchitecture, rather than a built-for-chan e architecture, with

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NEEDED COMPENTANCIES

1) Capability for monitoring and analyzing businessactivities and key performance indicators represents afoundation for process management

2) Overcoming the challenges of knowing when to measure,how often to measure and distilling the correct analysis

3) Capturing real-time information and reporting throughdashboards to the line-of-business manager provides neededexposure

POTENTIAL CHALLENGES

It's commonplace during this stage that the IT organizationstill contends that business applications represent businessprocess flows and that reconciling information across theorganization is a higher priority. In this case, business analystscollect application requirements from the lines of business, write

up functional specifications and hand off to developers forcreatin technical s ecifications then codin testin

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Case Study: ThyssenKrupp SteelUSA

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BacKgRound

ThyssenKrupp Steel USA (TKS) is a global steel producer

Invested approximately $5 billion to build the worldsnewest and most efficient steel mill in Mobile County,Alabama.

It is also the largest steel mill built in the US in decades.

The mill began production in July, 2010 and is the largestnon-governmental capital project in the US in decades.

A primary target customer of this new plant is theautomotive industry, which has high quality standards and

low tolerance for supply chain disruption.

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Problem

TKS knew that building state-of-the-art business processsystems to support supplying rolled steel to US customers wasthe only way to compete with older mills investing in newtechnology and newer mills being built in emerging markets.

Iron ore processed into slabs in Sepetiba, Brazil The hot and cold rolling completed near Mobile, Alabama

The centralized slab purchasing and planning managed fromRotterdam, the Netherlands

The vision of a vertically integrated supply chain would have tobe seamless across 3 continents and many thousand miles

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Approach

TKS made the decision to create a process-centric organizationin early 2009.

It realized that aligning a business around transactionalsystems and applications would not be flexible enough to adapt

to the fast changing business requirements. Conversely, aligning every part of the enterprise in a way that

puts business strategy first and human behavior andtransactions as an outcome would serve our competitive needs.

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iBMS modelBased on the APQC

Process ClassificationFramework (PCF), theapplication came to beknown as theIntegrated Business

management System(iBMS).

Each one of these keyareas would be linkedby a central repositoryof process data thatwould be maintainedwithin the processmanagement group.

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Documentation hierarchy

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Process Map hierarchy

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RESULT

iBMS is the established system for managing all aspects ofbusiness process accountability and oversight, training,certification, alignment of business and IT, and continuousimprovement at TKS.

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Questions ?

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Syndicate 1 BPM Maturity