Upload
sudhirpatil6
View
8
Download
0
Embed Size (px)
DESCRIPTION
BPM
Citation preview
OrganizingEnterprisewideITEffortsUsingAPQC'sProcessClassificationFramework
AcasestudyexampleByMichelleCowan
Organizations use process frameworks for a variety of purposes. Models like APQC's ProcessClassificationFramework(PCF)aredevelopedasguidesfororganizationstothinkabouttheirbusinessesintermsofprocess.Concentratingonendtoendprocessesratherthanonfunctionordepartmentspecificworkflowschangesthewayanorganizationvisualizesitselfandpromotesamoreholisticviewoftheactivitiestakingplaceenterprisewide.
The IT functionwithinanorganization, inparticular,oftenhasanobligation tounderstandenterpriseactivitiesatleastthoserequiringspecifictechnologiesonamuchbroaderscale.Toeffectivelyservethe entire organization while minimizing costs and streamlining systems, IT must understand theconnectionsthatexistbetweenvariousgroupsandtheapplicationsandprogramstheyuse.
TheITorganizationwithinoneAPQCmembercompanyrealizedthattheonlywaytoachievethekindofalignmenttheyneededwouldbetomapeverypartofthebusinesstospecificprocessesandthenmapthoseprocessestotheapplicationsused.Iftheycoulddothis,ITwouldknowwhichapplicationswouldworkforeachprocess,nomatterwhereitoccurredwithinthevastanddispersedenterprise.Theycouldalsorecordwhichtechnologiesandapplicationswereemployedwithinparticularfunctionssothat ifachangewaseverneeded,ITcoulddetermineanyconflictsordependenciesthatmightexistbetweentheaffectedapplications.
IT'sMappingApproach
Function Process Application
Figure1
CHALLENGESDRIVINGTHEADOPTIONOFAPQC'SPROCESSCLASSIFICATIONFRAMEWORK
Prior toattempting thiseffort, the IT functionat thisAPQCmemberorganizationhadadifficult timedeterminingthedifferencesbetweentechnologysystemsusedbyvariousareasoftheenterprise.TheFortune500company that the IT function supports spans150countriesandprovidesmanydifferentkindsofproductsandservices,includingtechnologicalequipmentandsupport.Theorganizationworks
Foradditionalinformation,[email protected]. K01497 Page1of5
directlywithcustomersand leverageshundredsofapplications tosupport itsmultiplebusinessunits.Ordercaptureandinvoicinginparticularrequireasignificantnumberofuniqueapplications.
Before IT beganmapping applications to processes and functions, itwas impossible to knowwheretechnological overlaps and duplicate processes existed. Therefore, solutions to simplify or enhanceworkflow inonegeographic locationorbusinessunit typicallywerenotapplied tootherareasof theenterprise.Ifsolutionslikethesewerereplicated,ittookaconsiderableamountoftimeandeffortforITtopinpointtheother locationswheretheenhancementwouldbeappropriate.This lackofknowledgealsoprevented IT fromquicklydiagnosingpotentialconflictsbefore theversionupgradesor softwarechangeswereinstitutionalized.
Thebest solution appeared tobe aligning allof thedifferentbusinesses in theenterprise (and theirprocesses) to one standard process framework. If IT could merge and revise the lexicons used todescribe theprocessesatall thediversebusinessunits intoa single standard, itcould identifyplaceswhere IT efforts could be simplified or replicated, roll out application updates or changessimultaneously,reduceconflicts,anddecreasecosts.
IT leaders lookedat severalprocess frameworks,butnone couldbeappliedasholisticallyasAPQC's.Executivesrejectedsmallerframeworkstargetedatspecificbusinesssegments,assertingthattheydidnotencompass thebusinessasawholeandwouldnotpaintanaccuratepictureof theenterprise. ITneeded something more robust. Version 4.0 of APQC's PCF came closer than the rest, but theorganizationstillhadreservationsaboutsomeoftheprocessareasthatwerenotcovered inasmuchdetailastheenterpriserequired.
Luckily,theorganization'sframeworkselectionprocesscoincidedwiththereleaseofAPQC'sPCFversion5.0andseveralindustryspecificPCFs.ThesepublicationsfilledinmanyoftheprocessgapstheITteamhadstruggledwithinthe4.0version.BasedontheAPQCstructureandterminology,theteamwasableto start tweaking the framework to a custom version thatwould represent their organizationmoreaccuratelyandbemoreacceptedenterprisewide.
BUILDINGTHEBUSINESSCASEFORITINITIATIVESBYBUILDINGTHEBUSINESSCASEFORPCFSTANDARDIZATION
Historically, IT had a difficult time proving its case to business executives for certain upgrades ortechnology changes. The IT organization could not communicate its goals or the reasons for itssuggestions in terms that executives could understand it. IT came to leadership speaking itstechnologicallanguage,whenwhatleadershipneededwasabusinesscasetiedtothebusinessstructureintermsthatcomplementedtheexecutiveviewoftheorganization.SeniorleadersneededtoseewheretheirdollarsweregoingandhowITfitintothemakeupoftheenterprise.
Mapping ITapplications to thebusiness (viaprocesses)wouldhelpachieve thebusinessalignment ITneeded.ItwouldfacilitatecommunicationbetweenexecutivesandITrepresentatives,withtheprocesstaxonomyproviding a shared language.To set the stage for thisproject, ITbeganholding talkswithbusinessunitleadersaboutitsplantoaligntheorganizationtooneprocessframework.ThesemeetingsForadditionalinformation,[email protected]. K01497 Page2of5
were essential because IT would need the support of those decision makers to get the time andresourcesrequiredtomapveryspecificsegmentsofthebusinesstotheframework.
Going into these meetings, IT changed its usual tactics. Instead of trying to secure leadership tounderstandwhereitwascomingfrom,ITdecidedtogointoeachmeetingwiththegoalofspeakingtheexecutives' language.RatherthansellinganITagenda,ITapproached leaderswithavisionto improvetheefficiency,cost,andqualityofworkacrosstheenterprisebyaligningapplicationswithprocesses.
Thesemeetings initiatedanexercisewherefunctional leadersmappedtheactivitieswithin theirunitsto APQC's Process Classification Framework. The effort began in supply chain, which is usually thefunctionwithinanorganizationmostreadytoapplyprocessthinking.Manysupplychainactivitiesfallinclearprocesslines,sotheywereeasyforITtomaptotheframework.ITthenmappedthesupplychainprocessestotheITapplicationscurrentlyinplace.
Aftermapping justonepartoftheenterprise,therelationshipsbetweentechnologiesbecameclearer.As IT understood the work that was being performed in a more tangible way, they could see theinterconnectionsbetweenapplicationsandwheretheycouldsimplifythesystems. ITgainedadeeperpictureofhowthebusinessoperatedwhichithadpreviouslylacked.
Having taken supply chain leaders through the process mapping exercise, IT could more effectivelyarticulate todecisionmakers the changes itwanted tomake. The lines IT couldnowdrawbetweenapplicationsandbusiness results (from the startof theprocess to theoutput) supported its case forchanges inawayexecutivescouldunderstand.Leaderscouldsee the impact thatgivingextradollarsgiventoITwouldmake,suchasreapinglongtermcostsavingsfromreplacingonemanagementsystemwithanother.
Previously,executivesasked for IT to reducecosts,and ITwasunable toprove thatan investment insystemreorganizationorreplicationwouldresultinanetsavings.Now,ITcouldshowleadersnotonlythe costs associated with a single system or piece of technology, but also the overall impact thatinvestmentsinatechnologycanhaveonprocessesfrominitiationtocompletion.
SPREADINGPCFMAPPINGENTERPRISEWIDE
Afterhavingsuccessmappingsupplychainprocesses,ITbeganaddressingotherareasofthebusiness,including product development. At this point, APQC's industryspecific PCFs came into play moreheavily.Developingacombinationofthe industryPCFswithversion5.0ofthecrossindustryPCFwasnecessarytoensurethatallactivitieswerecovered, inparticularservicerelatedprocessescommontofunctions like product/service development, sales, and customer service. Without these gaps filled,leadershipwouldnotsupporttheproject.
Currently,theorganization'scustomamalgamofAPQC'scrossindustryPCFversion5.0andaselectionofindustryspecificprocessescovers90percentofprocesseswithinanyportionofthebusiness.IttookITacoupleofyearsofrefiningtheframeworkincooperationwiththevariousbusinessunits,butnow,theprocess framework isaligned to theneedsof theentireenterpriseand increasinglyembracedby
Foradditionalinformation,[email protected]. K01497 Page3of5
leadership.Becausedecisionmakersseethecongruencies inthePCFmorereadilythanthegaps,theirreceptivitylevelhasincreasedsignificantly.
Thegreatestchallenge IT facedwas introducing theprocessconcepttotypicallynonprocessorientedpartsof thebusiness, likegotomarket sales.Because thisgroupdidnot see itsactivitiesaspartsofpredictablelinesofprocesses,ithadthemostdifficulttimemappingitstechnologicalneedstospecificactivities.Salesdelayedthemappingtimeandtimeagain.
However, the lack of a process roadmap eventually became a red flag for executives, who wereappreciating the benefits of process mapping more and more. Leadership saw other areas of thebusinessdevelopingroadmaps(functionstoprocessestoapplications)andconsequentlydemonstratingcostsavings,higherefficiency,andenhancedITsupport.Therefore,executivesrequiredthatthegotomarketfunctionfollowtheirlead.
Onlyessentialgotomarketsystemswouldbefundeduntilthesalesfunctioncouldaligntheirbusinessactivitiesandtechnologicalneedswithprocessterms.Thisrequiredmovingarepresentativefromtheenterprise architecture team (the internal group that oversees the IT alignment initiative) into theorganization to assist with the task. Currently, gotomarket mapping efforts are well underway,resulting in a better understanding of gotomarket activities and their relationships to differentapplications.
ITUSEOFTHEPCFANDLESSONSLEARNED
Bycreatingaprocessframeworkthatdepictsallenterpriseactivities,ITcanpaintanaccuratepictureofhow its services and technologies are deployed and what the interactions and commonalities arebetweenthosedeployments.WorkbeingdonenowtobuildroadmapswillmakecontinuedupkeepofITsystemsmucheasier. IT caneasily tie their applications tobusinessoutcomes,nomatterwhere theapplication is employed. And if ingenious technological solutions or packages are developed for aparticularpartofthebusiness,ITcanreplicatetheminotherlocations,animportantfeaturewithinanorganizationasgloballydispersedandcostandqualityfocusedasthisoneis..
TheleadersofthisITinitiativeofferthreelessonstheylearnedtoothersthinkingaboutimplementingaprocessapproach:
Startwiththemostrobustframeworkpossible. Speaktoleadersintheirlanguage,oratleasthavethegoaloflearningtheirlanguageandapplyingit
toyourownproposals. Start in an areaof thebusiness conducive toprocess thinking (like supply chain); then, you can
demonstrate success to parts of the organization that may be more resistant to the processparadigmshift.
Foradditionalinformation,[email protected]. K01497 Page4of5
Foradditionalinformation,[email protected]. K01497 Page5of5
Interestingly,ITitselfdoesnotuseAPQC'sPCFprocesscategory7.0ManageInformationTechnologytomap its internalprocesses. Instead, itusesvarious,highly ITspecificframeworks like ITIL1andCOBIT2.The model employed for this IT group demonstrates the fact that organizations must customizeframeworkssothattheyapplymostcloselytotheirparticularbusinesses.Ifaframeworkdoesnotapply,itwillnotbeembracedandmaynotevenbeuseful.
Inthiscase,APQC'sPCFhasenabledITtoreachouttootherfunctionsandbusinessunitsandstartanenterprisewisemovement toward process thinking,which has helped the enterprise understand itsmany components and how they relate to each other and to outcomes. Equipped with a betterunderstanding of howwork is actually accomplished, IT can offer better,more targeted service andprovidemoreappropriateapplications.ThesharedprocesslanguagethathasbeendevelopedallowsITtobettercommunicatewith leadershipabout itsneeds; italsohelpsexecutives frame theirvision forthe enterprise inmorepractical termsofwhat theyneed from IT andwhere theyneed it.Businessrelationshipshavebeenimprovedfromallsidesbecauseaprocessframeworkhasbeenimplementedinwaysthataccuratelyreflectandinformtheenterprise.
ABOUTAPQC
For over 30 years, APQC has been on the leading edge of improving performance and fosteringinnovationaroundtheworld.APQCworkswithorganizationsacrossallindustriestofindpractical,costeffective solutions todriveproductivityandquality improvement.Weareamemberbasednonprofitcurrentlyservingmorethan500organizationsinallsectorsofbusiness,education,andgovernment.
CONTACTINFORMATION
123NorthPostOakLane,ThirdFloorHouston,TX770247797phone:+17136814020or8007769676fax:+17136818578email:[email protected]
1TheInformationTechnologyInfrastructureLibrary(ITIL)isacollectionofbestpracticeapproachesandmodelsforIT,aregisteredtrademarkoftheOfficeofGovernmentCommerceintheUnitedKingdomandothercountries.2ControlObjectivesforInformationandrelatedTechnology(COBIT)isawidelyusedframeworkforITmanagementcreatedbytheInformationSystemsAuditandControlAssociation(ISACA)andtheITGovernanceInstitute(ITGI).
IT's Mapping ApproachFigure 1 CHALLENGES DRIVING THE ADOPTION OF APQC'S PROCESS CLASSIFICATION FRAMEWORKBUILDING THE BUSINESS CASE FOR IT INITIATIVES BY BUILDING THE BUSINESS CASE FOR PCF STANDARDIZATION SPREADING PCF MAPPING ENTERPRISE-WIDEIT USE OF THE PCF AND LESSONS LEARNED Start with the most robust framework possible. Speak to leaders in their language, or at least have the goal of learning their language and applying it to your own proposals. Start in an area of the business conducive to process thinking (like supply chain); then, you can demonstrate success to parts of the organization that may be more resistant to the process paradigm shift.
ABOUT APQCCONTACT INFORMATION