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Dimensions of Business Dimensions of Business Process ChangeProcess Change
Brett Champlin, President, Brett Champlin, President, Association of BPM ProfessionalsAssociation of BPM Professionals
© 2000-8 Brett Champlin 2
ABPMPAssociation of BPM ProfessionalsAssociation of BPM Professionals www.ABPMP.orgwww.ABPMP.org
• Non-profit, vendor-independent, professional organization • Dedicated to the advancement of business process
management concepts and its practices• Practitioner-oriented and practitioner-led• Founded 2003• 10 Active US Chapters, many more forming• Affiliations with BPM groups internationally• Guide to BPM Common Body of Knowledge (BPM CBOK™) • BPM Model Curriculum • Certified Business Process Professional (CBPP)™
© 2000-8 Brett Champlin 3
ABPMPABPMP’s Guide to aABPMP’s Guide to aBPM Common Body of KnowledgeBPM Common Body of Knowledge
© 2000-8 Brett Champlin 4
ABPMPWhat is BPM?What is BPM?
• BPM is a Management DisciplineBPM is a Management Discipline– Process-oriented thinking
– Manage end-to-end business process
– Strategy is carried out through process
– Process assessment, analysis and design
– Process performance over functional performance
• Enabled by an evolving set of technologiesEnabled by an evolving set of technologies– Process discovery and definition
– Process execution and orchestration
– Process monitoring and control
– Process performance decision support
© 2000-8 Brett Champlin 5
ABPMPAPQC BPM Benchmarking StudyAPQC BPM Benchmarking Study
• “BPM is the way best-practice organizations conduct business”
• It also confirmed that regardless of where an organization stands in terms of process ‘maturity’, technology continues to play a vital role.
• While the APQC research participants agreed that technology, by itself, does not constitute “Business Process Management”, they concluded that much of the promise of BPM initiatives will not be realized without powerful, flexible and user-friendly IT solutions to support them.
• Four of the five of APQC’s best practice partners cited technology support being a key success factor for managing, aligning and integrating business processes---thus impacting profitability and their ability to compete in today’s competitive, global market.”
Source: APQC
© 2000-8 Brett Champlin 6
ABPMPBPM Has Become MainstreamBPM Has Become Mainstream
• Two recent Forrester Surveys (Sept-Oct 2007)
– 449 decision makers in North America and Europe60% were already using BPMan additional 19% plan to do so in next 12 months
– 160 US and UK enterprise architects85% were actively planning or already had BPM deployments under way
– BPM Centers of Excellence (COEs) are the catalyst for BPM success
Source: Forrester
© 2000-8 Brett Champlin 7
ABPMPPrimary Reasons for Investing in BPMPrimary Reasons for Investing in BPM
The good news is that you can get all of these
benefits from BPM. You don’t need to choose just one.
The good news is that you can get all of these
benefits from BPM. You don’t need to choose just one.
Source: Gartner
© 2000-8 Brett Champlin 8
ABPMPProcess vs. Functional Process vs. Functional ManagementManagement
© 2000-8 Brett Champlin 9
ABPMPFunctional vs Cross-Functional Functional vs Cross-Functional Process ManagementProcess Management
President
HumanResources
Marketing FinanceInformationTechnology
Process ManagementWithin Functional Areas
Cross Functional Process Management
President
Marketing SalesField
OperationsUnderwriting
Source: Dan Madison, “Process Mapping, Process Improvement and Source: Dan Madison, “Process Mapping, Process Improvement and Process ManagementProcess Management
© 2000-8 Brett Champlin 10
ABPMPAlternate Process Management StructuresAlternate Process Management Structures
© 2000-8 Brett Champlin 11
ABPMP
11
Mission, strategy, goals, and objectives
Business ProcessBusiness Process
WorkflowDesign
Information
Systems
Motivation &
Measurement
Policies and Rules
Human Resource
s
Facilities(or other)
•Performers•Steps &
decisions•Sequence
and flow•Handoffs
•Applications•Information
•Employee assessment
•“Reward and punishment”
•Process performance indicators
•Constraints•Business
rules that the process enforces
•External & internal
•Skills•Matching
jobs to tasks
•Selection and placement
•Workplace design
•Equipment•Furniture…
enables
enables enables enables enables
Culture, core competencies,and management systems
SupportsConstrains
enables
Source: Alec Sharp, Source: Alec Sharp, ClariteqClariteq
Business Process DynamicsBusiness Process DynamicsBusiness Process DynamicsBusiness Process Dynamics
© 2000-8 Brett Champlin 12
ABPMPBusiness Process “Meta Model”Business Process “Meta Model”
PURPOSEPURPOSE
PEOPLEPEOPLE PLACEPLACE
PROCESSPROCESS
PRODUCTPRODUCT
PERIODPERIOD
© 2000-8 Brett Champlin 13
ABPMPProcess DomainsProcess Domains
Business
Operations
Technical
© 2000-8 Brett Champlin 14
ABPMPPerspectivesPerspectives
© 2000-8 Brett Champlin 15
ABPMPWORDS OF WISDOMWORDS OF WISDOM
• “Always design a thing by considering it in its next larger context -
a chair in a room, a room in a house, a house in an environment, an environment in a city
plan.” - Eero Saarinen
© 2000-8 Brett Champlin 16
ABPMPPROCESS “MATURITY” MODELPROCESS “MATURITY” MODEL
Integrated(6)
Coordinated Process
Initial(1)
ad hoc Process
Repeatable(2)
Stable Process
Defined(3)
Standard Process
Managed(4)
Measured Process
Optimized(5)
Effective Process
Process Control
Process Measurement
Process Definition
Basic Management
Control
Process Integration
Consistent Execution
Controlled Environment
Quality and Productivity
Improvement
Continuing Improvement
Chaotic
Cooperative Optimization
© 2000-8 Brett Champlin 17
ABPMPProcess Management “Maturity”Process Management “Maturity”
Continuously Improving Process
Predictable Process
Disciplined Procedures
Consistent Process
Cooperative Process
Need Quality Management
Program
Need Management Regulation
Ignored(1)
Manage/Plan(5)
Participate/Control
(4)
Support/Direct
(3)
Recognize/Organize
(2)
Steward/Lead
(6)Need Enterprise Integration
Process Management MaturityProcess Maturity
© 2000-8 Brett Champlin 18
ABPMPTransformation Personality ProfileTransformation Personality Profile
Style Characteristics Imperative
Cultural Agressives
• Holistic Coordination• Seize Advantage• We change the rules of the market• We welcome rapid change• People at all levels embrace new ideas
Stay Ahead
Cultural Moderates
• Local Optimization• Seek Parity• We follow fast behind market leaders• We can cope with a few moderate changes• New ideas flow top-down through managers
Get Leverage
Cultural Conservatives
• Central Control• Reduce Pain• We seek mature markets, then compete on
price• We prefer status quo; discourage exceptions• New ideas are limited to job descriptions
purview
Catch Up
Source: Gartner
© 2000-8 Brett Champlin 19
ABPMP
Primary (Core Operational/Value Chain) ProcessPrimary (Core Operational/Value Chain) Process
Process TypesProcess Types
Sub Process
Sub Process
Sub Process
Sub Process
Sub Process
Support ProcessesSupport ProcessesHR
ServicesFinancial Services
Information Services
Facilities Services
Procurement Services
Management ProcessesManagement Processes
Planning Directing Monitoring Controlling Transforming
© 2000-8 Brett Champlin 20
ABPMPImpact and Approach
Point of Approach Within Organization
Redesign of Industry Value Chain
Redesign of Business
Redesign of Processes
Improvement of Sub Processes
IncrementalImprovements
Imp
act
on
O
rgan
izat
ion
Source: Jeston & Nelis
© 2000-8 Brett Champlin 21
ABPMPPROCESS TRANSFORMATIONPROCESS TRANSFORMATIONCONTINUUMCONTINUUM
• Process Improvement is incremental • Process Re-Design is end-to-end re-thinking of what we
are doing • Process Reengineering is a blank slate approach• Process Innovation involves changing the model, not
just improving its efficiency
ProcessImprovement
ProcessReengineering
ProcessRe-Design
Time
Degree of Innovation
Cost
© 2000-8 Brett Champlin 22
ABPMPManaging Process Transformation Managing Process Transformation
En
d-t
o-E
nd
Pro
cess
Act
ivit
y/S
ub
Pro
cessS
cop
e o
f C
han
ge
Short Long
Time
Process Improvement
Bu
sin
ess
Mo
del
Process Re-Design
Process Reengineering
Source: Jeston & Nelis
© 2000-8 Brett Champlin 23
ABPMPMap Processes to Business StrategiesMap Processes to Business Strategies
Business Processes
Major Impact
Moderate Impact
Major Impact
Moderate Impact
EngageCustomers
TransactBusiness
FulfillExpectatio
ns
ProvideServices
Reduce Costs
Reduce Time-to-Market
Improve Quality
Gain Market Share
Broaden Product Line
Business Strategies
Adapted from Bob CurticePerformance Improvement Associates"
© 2000-8 Brett Champlin 24
ABPMPEstablish Performance DiagnosticsEstablish Performance Diagnostics
Business Processes
Diagnostics
+++
0World Class
Better Than Competitors
Equal to Competitors
Worse Than Competitors
4.3 0.7
Years since last major improvement effort
Benchmark Grade
3 Yr Efficiency Metrics
3 Yr Effectiveness Metrics
Process Cost ($ bln)
2 4 1 3
++
0+
2.1 1.4
EngageCustomers
TransactBusiness
FulfillExpectatio
ns
ProvideServices
Adapted from Bob CurticePerformance Improvement Associates"
© 2000-8 Brett Champlin 25
ABPMPAssess the PortfolioAssess the Portfolio
EngageCustomers
TransactBusiness
FulfillExpectatio
ns
ProvideServices
Reduce CostsReduce Time-to-
MarketImprove Quality
Gain Market Share
Broaden Product LineYears since last major improvement effort
Benchmark Grade
3 Yr Efficiency Metrics
3 Yr Effectiveness Metrics
Process Cost ($ bln)4.3 0.7
2 4 1 3
++ 0+
2.1 1.4Adapted from Bob CurticePerformance Improvement Associates"
© 2000-8 Brett Champlin 26
ABPMPWhy Process Portfolio Management? Why Process Portfolio Management?
Looking at one process at a time is not optimal • How can we be sure this process is the most critical one to
improve at this point in time?• How do we know which process(es) improvement will contribute
the most to achieving business objectives?• How can we ensure the benefits of an improvement project do
not degrade over time?
Managing a Process Portfolio
• Ensures some level of attention is paid to all important processes even when there is no major improvement project underway
• Provides a rationale to focus attention on the most critical process(es) needing improvement
• Provides a framework for on-going performance measurement of all processes
Adapted from Bob CurticePerformance Improvement Associates"
© 2000-8 Brett Champlin 27
ABPMP
OPPORTUNITIES
THREATS
Internal Factors
Exte
rnal Fa
ctors
STR
EN
GTH
SW
EA
KN
ESS
ES
Leve
rage
Constraints
ObstaclesVul
nera
bilit
ies
Exte
rnal Fa
ctors
Internal Factors
Map to Decision Support Tools Map to Decision Support Tools
Engage Customer
ProvideService
Transact Business
Fulfill Expectations
© 2000-8 Brett Champlin 28
ABPMP
Str
ateg
icT
acti
cal
Deg
ree
of
Ch
ang
e
Short Long
Time
Process Improvement
Process Re-Design
Enterprise Process Alignment/
Process Portfolio Management
Process Reengineering
Business Process ManagementBusiness Process Management
Managing Process Transformation Managing Process Transformation
Organization Change Management
Low Hanging Fruit/ Quick Hits
© 2000-8 Brett Champlin 29
ABPMPImpact and Involvement
Involvement of Business Manager
Imp
act
on
O
rgan
izat
ion
Low
High
High Redesign Business Model
Redesign End-to-End
Process
Improve/RedesignSub Process
Incremental Sub Process/
Activity Improvement
BusinessAs Usual
In the Driver’s
Seat
Pilot Project
Under the
Radar Under-
ambiti
ous
Exceeding
mandate
LowSource: Jeston & Nelis
© 2000-8 Brett Champlin 30
ABPMP11stst Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PURPOSEPURPOSE
PROCESSPROCESS
PRODUCTPRODUCTPERIODPERIOD
• Tasks & Nature of Work
© 2000-8 Brett Champlin 31
ABPMP22ndnd Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PURPOSEPURPOSE
PROCESSPROCESS
PRODUCTPRODUCTPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills
© 2000-8 Brett Champlin 32
ABPMP33rdrd Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PURPOSEPURPOSE
PROCESSPROCESS
PRODUCTPRODUCTPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills• Motivation & Relationships
© 2000-8 Brett Champlin 33
ABPMP44thth Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PURPOSEPURPOSE
PROCESSPROCESS
PRODUCTPRODUCTPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills• Motivation & Relationships
• Structure & Culture
© 2000-8 Brett Champlin 34
ABPMP55thth Order Change Order Change
PLACEPLACE
PEOPLEPEOPLE
PURPOSEPURPOSE
PROCESSPROCESS
PRODUCTPRODUCTPERIODPERIOD
• Tasks & Nature of Work• Attitudes, Values & Skills• Motivation & Relationships
• Structure & Culture• Relationships with External
Partners & Community
© 2000-8 Brett Champlin 35
ABPMPA PARTING THOUGHT...A PARTING THOUGHT...
“You don’t have to change.
Survival isn’t mandatory.” - Dr. W. Edwards Deming
Dimensions of Business Dimensions of Business Process ChangeProcess Change
Brett ChamplinBrett ChamplinPresident, ABPMPPresident, ABPMPwww.ABPMP.org www.ABPMP.org [email protected]