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File 1 of 4. This features growing the skills to ensure BPM & CEM success. From early 2007.
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Developing theDeveloping the BPM skill-set for long term successlong term successJanuary 2007
Steve TowersCEOTowers AssociatesTowers Associates
steve@stevetowers.com
www.stevetowers.com 1
2
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
1976 On the inside
A little background…
INDUSTRIALENGINEERING
1976 On the inside..Inland RevenueBritish GasGatewayNationwide
SYSTEMSENGINEERING
NationwideCitigroup & CitibankBPM GroupTowers Associates
On the
OPERATIONSENGINEERING
On the outside..14 years55 companies
ENGINEERING
THOUGHT
Financial ServicesAirlinesPharmaTHOUGHT
ENGINEERING
2007
Pharma GovernmentUtility
www.stevetowers.com 3
In fact13 industries
37 countries
4 What are wehere for?
Our Successful Customer Outcome
today?today?
Provide you with new thinking andProvide you with new thinking and insights that will help you to
maximize the benefits provided bymaximize the benefits provided by Business Process Management
immediately– immediately, for now and forever
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
5
D l i Th N E lDeveloping The Necessary Employee Skills Needed To Sustain BPM Efforts
In The Long TermIn The Long Term
We all live under the same sky... ...but we don’t all have the same horizon.
(Konrad Adenauer)
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
6 Business Process Management
“Business Process Management (BPM) isBusiness Process Management (BPM) is a natural and holistic management
approach to operating business pp p gthat produces a highly efficient, agile, innovative and adaptive organizationinnovative, and adaptive organization
that far exceeds that achievable through traditional management approaches ”traditional management approaches.
Steve Towers & Terry Schurter
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
Evolution of Business Process thinkingbased on Research 2005-6 (800+ organizations)Evolution of Business
Process thinking
CUSTOMER EXPECTATION MANAGEMENT
ES
Process thinking
BUSINESS PROCESS MANAGEMENTO
UTC
OM
Eut
ion
SUCCESSFULCUSTOMERO
CES
S
Ong
and
Exe
cu
CUSTOMEROUTCOMESSIX SIGMA
AL
P
RO
Und
erst
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EFQMUN
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www.stevetowers.com 7INSIDE Focus OUTSIDE
F
8 It’s all about Performance
The single most compelling reason to The single most compelling reason to improve and manage the enterprise’s end-to-end business processes and end-to-end business processes and
technology is
i f to improve performance
and thereby create value and thereby create value
for customers and shareholders.
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
9An Observation
However…the challenge.
“The significant problems we face cannot be solved at the same level
of thinking we were at when we created them.”
Albert Einstein
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
10 How good is your Organization?
Some questions to think on:
l d h hHow aligned are you through your– Information SystemsInformation Systems–People–Processes and–Strategygy
To achieve a Successful Customer Outcome (everytime?)
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
Outcome (everytime?)
11
The Challengeg
The Current State
The Evolutionary Model
Pointers to the futurePointers to the future
Recommendations
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
12 Disruptive Pressures That are creating the Challenge
Customer Expectations
Globalization Globalization
Innovative new ways of doing business
A il th d t k f id hAgile methods to keep pace of rapid change
Compliance to regulations
Focus on process (rather than functional specializm)
Business needs greater control
Continuous productivity improvements
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
p y p
The pervasive nature of technology
13The Current State
Key Issues
Tension between ‘business’ and ‘technology’
Roles in a state of flux
Structures for delivery not effective
BPM still perceived ‘inside-out’– Rewardse a ds
– Outcomes
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
14The Evolutionary Model
Migration of roles
Development of discipline and professionalism
Combination approaches include people, processes, strategy and technology
Steady state is an illusion
Dynamic, agile structures mature
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
15 Business Process Owner Role
Business Process OwnerAuthority over organizational processesAuthority over organizational processesAuthority is senior and exceeds line rolesDotted line to "Chief Process Officer“
ProvideDirection
Responsibilities:Owns the process infrastructure
Articulate &Improve
ProcessesProcess
ManagementSet
ObjectivesinfrastructureEnsures compliance with process policies Defines process metrics that support
f bj iMeasure
Performancecorporate performance objectivesManages infrastructure for usersand stakeholders of the business processes.
Performance
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
p
Process Management is a journey, not a destination
16Pointers to the future
People policies (discussion in context of t f )recent performance)
– Zara
Vi i– Virgin
– South West airlines
Citi– Citigroup
Outside-In
Customer Expectation Management
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
17 Business Process ManagementCenter of Excellence (COE)
The CPO focuses on the human, organizational and value stream Board
BPM Center of Excellence
organizational and value stream aspects of business processes and their transformation:
Gaining consensus of internal gconstituents around new concepts
Identifying business performance and incentive metrics
Chief Process Officer (CPO)
Drafting organizational alignment requirements
Designing the organization's Change ManagementC di t
Mentor
Designing the organization s hierarchy of process for reusability
Leading the execution of building
Coordinator
Process KnowledgeManager
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
Leading the execution of building and sustaining a process-managed organization
Business ProcessAnalyst/architect
18 Business Process Management Center of Excellence
Charter:Alignment of processes to achieve SCO
DiscoveryDiscovery
ImproveImprove AnalyzeAnalyze
Alignment of processes to achieve SCO Maintain control and accountabilityDevelop Outside-In thinking and Praxis ImproveImprove AnalyzeAnalyze
DesignDesignControlControl
Optimize OperationsDeliver ComplianceProvide end-to-end visibility
ValidateValidateImplementImplement
DesignDesignControlControl
Services:Coaching and facilitating
Create sustainable agility
ValidateValidate
IntegrateIntegrate
ppTraining, education and professionalizationBest practicesBusiness case creation
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
Business case creationBusiness process architectures
19 Facilitating Roles Within the COE, Part 1
Change ManagementCoordinator
Mentor
Chief Process Officer (CPO) Business Process Analyst/Architect
E di i
Process Knowledge Manager
Change ManagementCoordinator
Mentor
Chief Process Officer (CPO)
Process KnowledgeManager
Business ProcessAnalyst/architect
Ensures co-ordination on process definitions, notations and next practice
Ensures Outside-In alignment and encourages next practice integration
Process KnowledgeManager
Business ProcessAnalyst/architect
Developing a consistent process rule and business
Developing process approaches that all business process (in or out) must adhere to
p
process, rule and business monitoring architecture
Mentoring process analysts
Acting as a liaison with the
Maintaining a reference of best practices and methodologies from (in and out) of the organization
C i bili h h Acting as a liaison with the information and systems teams
Providing a framework for process evolution
th 8 O h
Creating capability through development of professionally qualified coaches and practitioners
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
e.g. the 8 Omega approach
www.8Omega.com
20 Facilitating Roles Within the COE, Part 2
Mentor
Understanding process M t
Chief Process Officer (CPO)
Change Management Coordinator
Mentor
Chief Process Officer (CPO)
Understanding process disciplines and approaches being able to build a coalition and gain consensus among key
Change ManagementCoordinator
Mentor
Process KnowledgeManager
Business ProcessAnalyst/architect
Educating business professionals and process stakeholders around
Change ManagementCoordinator
Mentor
Process KnowledgeManager
Business ProcessAnalyst/architect
Facilitating workshops aimed at l d f
Working closely with process owner project manager
consensus among key process stakeholders
stakeholders around BPM disciplines
securing early adoption of BPM practices and process changes
Demonstrating techniques for uncovering hidden process
owner, project manager and business process analyst to craft process change objectives for workshops
uncovering hidden process capabilities
Growing internal skill-sets to ‘do this stuff ourselves’
Identifying enterprise level disconnects and through appropriate approaches e.g. DADVIICI create an SCO aligned
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
organization
21Recommendations
Understand that organizational structure and staffing are not "one size fits all"
Id if hi d k k h ld i Identify process ownership and key stakeholders prior to starting any BPM initiative
View implementation of BPM as a root and branch effort using proven approaches
Realize that no one group implements the BPM initiative
Understand there must be a visionary, and senior leadership Understand there must be a visionary, and senior leadership must share the vision
Demonstrate the closer you move process accountability to the coal face the greater the chance of successcoal face the greater the chance of successBPM requires you to rethink the organization:
– New disciplines
N i ti l t t
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
– New organizational structures
– New views of organizational processes
22 What are wehere for?
Our Successful Customer Outcome
today?today?
Provide you with new thinking andProvide you with new thinking and insights that will help you to
maximize the benefits provided bymaximize the benefits provided by Business Process Management
immediately– immediately, for now and forever
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
23 Find out more
Thank you!steve@stevetowers.com
All Material © Bizchange & Steve Towers 1992-2006 unless otherwise stated – All Rights Reserved
Join us at www.towersassociates.com to see how we are bridging the gap between IT and Business
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