Applying A Business Process Management Implementation .

Applying a Business Process ManagementImplementation FrameworkAssociation of Business Process ManagementProfessionals - Chicago Chapter2009 August 12Daniel C Baumgartner

Discussion Topics Client CEO ObjectivesBusiness Process Management ImplementationFrameworkEducate management, train Steering Committee andProject Teams members, and launch projectsLessons learned2009 Aug 122

Client CEO Objectives Introduce process change as a business practice intothe organization – beyond organizational andtechnology changeProvide education/training in business processimprovement (management)Launch process improvement projectsNurture continuous improvement culture2009 Aug 123

What is Business Process Management The achievement of an organization’s objectives throughthe improvement, management and control of essentialbusiness processes Achievement – realizing the valueImprovement – making more efficient and effectiveControl – manage end-to-end business processes with theability to measure correctlyProcess – all things we do to provide someone who careswith what they expect to receiveMore than just softwareIncludes managerial issuesIntegral part of managementBeyond modeling, includes analysis2009 Aug 124

What is the problem Operational business systems are implemented, but theoperational effectiveness is more difficultWhy is this hard Black box syndrome – do not know the details, so whydelve into itLooking at the edges syndrome – processes andassociated people are treated as sacred objects – neversolving the problem, only the symptomsAutomating something does not fix its underlyingproblems – the outcomes only occur more quickly2009 Aug 125

When should you do BPM Perspective categories: Organization: high growth, Management: high performance culture, Employees: high turnover, Customers/suppliers/partners: low satisfaction, Product and services: long lead time, Processes: too many hand-offs, Information technology: new business systems, Success is strongly aligned with the focus towards acommon goal2009 Aug 126

Who should be involved Management of business processes Integral part of management – can not be delegatedGoverned by the business objectivesStrategic, tactical and operational managementManagement of business process improvement Identification, development and roll-out of improvementsBPM managersCenter of excellence2009 Aug 127

What is important in BPM implementationOrganizational strategy Creates an opportunity to question and challenge someof the stubborn and ignored tacit assumptions andconstraints Why not considered There is no explicit strategy availableObtaining the strategic information will take too longPeople involved are not capable of strategic thinkingWe have already prepared a list of wishes; we do not needto involve strategy2009 Aug 128

What is important in BPM implementationProcess architecture All relevant information is made explicit Why not considered We already have process modelsCreating the process architecture is more effort that thebenefits to be derived from it are worthWe have process architecture, but no one is using itWe have agreed on a common process architecture, but noone sticks to it2009 Aug 129

What are the critical success factors Leadership – attention, support, funding, commitmentand timeBPM experienced business project managerLinkage to organization strategyProcess architecture – guidelinesA structured approach to BPM implementationPeople change managementPeople and empowermentProject initiation and completion – alignedSustainable performanceRealizing value2009 Aug 1210

BPM project nderstandLaunch padOrganizationstrategyProcessarchitectureProject management2009 Aug 12People change managementemancrofrpenableiatsSuRealize valueBusiness Process ManagementPractical Guidelines toSuccessful ImplementationsJohn Jeston and Johan NelisSecond Edition 2008Published by Elsevier Ltd.ISBN-13: 978-0-7506-6921-4ISBN-10: 0-7506-6921-711

BPM implementation framework - phases Organization strategy Process architecture Establishes rules, principles, guidelines and models for theimplementation of BPMLaunch pad Strategy (purposeful process) needs to be understood bythe project teamSelection of where to start the initial BPM projectAgreement of the process goalsEstablishment of the selected projectsUnderstand Understand current process (project 1,2, ) enough toenable Innovate phase2009 Aug 1212

BPM implementation framework - phases Innovate People Ensure activities match the organization strategy andprocess goals (project 1,2, )Develop Creative activities (project 1,2, )Build all components (project 1,2, ) – IT, infrastructure,and organization changeImplement Roll-out (project 1,2, ) new processes, roll-out of thenew role descriptions, performancemanagement/measures, and training2009 Aug 1213

BPM implementation framework - phases Realize value Realize value – ensure benefit outcomes realized (project1,2, )Sustainable performance Establish a process structure to ensure processimprovements are sustainable2009 Aug 1214

BPM implementation framework - essentials Project management People change management Fundamental for any projectRequires an experienced BPM project managerImplementation of the personnel aspects is the hard partLeadership Must have committed, attentive and understandingsupport from senior management2009 Aug 1215

BPM implementation framework - essentialsProject managementProjectVisibility lineLeadershipBusinessas usualPeople change management2009 Aug 1216

Guidelines on how to use the framework Multiple paths through the framework and it hasiterative componentsStrategy-driven approach Executed by the leadership teamOrganization strategy, process architecture, launch pad,projectsOperational-initiative approach Addresses a business problemLaunch pad, organization strategy (partial), processarchitecture (partial), projects (focused and incremental)2009 Aug 1217

BPM project framework – ovateUnderstandLaunch padOrganizationstrategyPeople change managementemancrofrpenableiatsSuRealize valueProcessarchitectureProject management2009 Aug 1218

BPM project framework – elopInnovateUnderstandLaunch padOrganizationstrategyPeople change managementemancrofrpenableiatsSuRealize valueProcessarchitectureProject management2009 Aug 1219

Applying the Framework Educate management in BPM implementationframework (30 senior management including CEO anddirect reports) – 1 dayWork with CEO to select projects Revenue management (2)Expense managementRecruiting/hiring2009 Aug 1220

Applying the Framework Train Steering Committee and Project Teams members GuidelinesTemplatesTechniquesChecklistsLaunch projects Review workplansMonitor progressDevelop recommendationsImplement recommendations2009 Aug 1221

BPM Training – Quick Guide It’s all about human change - address organizationalculture and align performance measurementManagement must be an active leader in the processimprovementFramework - a path to insure the change adds value tothe strategyDo not solve all problems at once, yet focus on acommon goalAssign an experienced BPM project managerChanging any component (people/organization, process,technology) around the strategy affects the othercomponents and requires appropriate projectmanagement2009 Aug 1222

BPM Training – Quick GuideProcessStrategyPeopleTechnologyProject Management2009 Aug 1223

ActivitiesPlanningPhasesBPM implementation framework - modifiedOrganization StrategyProcess ArchitectureLaunch PadAs IsUnderstandTo BeInnovatePeopleDevelopImplementImplementRealize ValueSustainable PerformanceChange/Commitment Planning and ExecutionPlanFor SCApproval2009 Aug 1224

BPM Implementation Plan - TOC Executive SummaryQuick WinsTo Be RecommendationsProposed Implementation Approach Suggested Implementation TimingRecommended Project StructureChange Management Strategy Leadership SupportArgument for ChangeTactics for Sustaining MomentumTracking Feedback2009 Aug 1225

BPM Implementation Plan - TOC Risk AnalysisRelated Projects Benefits Analysis Impacted ProjectsFuture ProjectsSoft SavingsHard SavingsAppendix A: Project CharterB: As Is Flows and Key FindingsC: To Be FlowsD: Proposed Organization ChangesE: Proposed Policy ChangesF: Other (form samples, )2009 Aug 1226

Lessons Learned - Success! Project Execution 95% of project participants felt thatthe overall execution of this projectwas above average100% of participants believed theirproject would increase service at theenterprise level when implemented83% of participants would like toparticipate on a future BPM initiativeFigure 1. Participant perception of project qualityTeam Building Nearly 80% of participants would liketo work with the same team on afuture projectAdditionally, 80% of participants feltthat internal team communication waseffective2009 Aug 12Figure 2. Participant estimation of the impact of projectimplementation on operations27

Lessons Learned - Recommendations Each project team delivered valuable improvementrecommendations from many hours of effort to theSteering CommitteeProject Duration BPM projects average project duration 9.5 monthsRecommendation: Limit project duration to 3-6 months tokeep teams active and engagedTemplates 75% of participants said they would use templates againin their individual departmentsRecommendation: Modify templates to increase userfriendliness, reduce redundancies, and adapt templatelanguage2009 Aug 1228

Lessons Learned - Steering Committee Recommendation: Review the composition andobjectives of the steering committee Continuing with the same committee composition, butnarrowing their oversight responsibilitiesDeveloping a senior management team that is responsiblefor serving as the steering committeeAssigning a single individual to oversee all BPM initiatives2009 Aug 1229

Lessons Learned - Training Training feedback focused largely on the creation of acentralized, internal BPM training planAdditional suggestions include: Intersperse training throughout the project at keymilestonesProvider greater depth to the curriculumOffer further BPM training for interested parties2009 Aug 1230

BPI Initiative – thoughts – management Leading change – hard to doStay the course – hard to doEncourage innovationKeep timeframe short – focus effortEstablish accountability for resultsArticulate and reinforce key messages BPI is a part of every person’s day job, not an add-onEveryone’s focus is on how to best service customersEveryone thinks beyond their immediate job descriptionPermit project teams to challenge and recommendchanges to business as usual31

BPI Initiative – thoughts – project teams Continue to invest in BPM project managementContinue to build internal BPM capabilitiesUtilize project team learningsLeverage the BPM framework process andchecklist/templates, yet be practicable/realisticProclaim the reason/value for change – cost vs benefitImplement some process change and continuouslyimprove the process2009 Aug 1232

BPI Initiative – thoughts – success Create/sustain enthusiasm from launch to conclusion –management and project teamsMake time for change within my real/day jobAddress change implementation issuesaggressively/consistently – not just about the processredesignPersevere when facing set backs2009 Aug 1233

Questions2009 Aug 1234

Business Process Management Practical Guidelines to Successful Implementations John Jeston and Johan Nelis Second Edition 2008 Published by Elsevier Ltd. ISBN-13: 978-0-7506-6921-4 Project management ISBN-10: 0-7506-6921-7 Leadership People change management Process architecture Organization strategy Launch pad Understand Innovate Implement .