BPM with a KM Twist Using the APQC Model to Guide Process & Knowledge Management
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1 BPM with a KM Twist Using the APQC Model to Guide Process & Knowledge Management Sondra Holt, Manager Business Processes Matt Foste, Sr. Business Process Analyst APQC 2010 Member Meeting November 4-5, 2010
2 APQC 2010 Member Meeting November 4-5,
3 * Footnote: Most of Williams midstream and interstate natural gas pipeline assets are held through its 80-percent ownership interest in Williams Partners L.P., a publicly traded master limited partnership that Williams established in APQC 2010 Member Meeting November 4-5,
4 Williams Organization Overview BUSINESS UNITS Williams Exploration and Production (E&P) Midstream Gas Pipes NATURAL GAS PROCESS APQC 2010 Member Meeting November 4-5,
5 Williams Assets APQC 2010 Member Meeting November 4-5,
6 E&P Process Group Organizational Alignment Aligned within E&P Business Unit Shared service across organization Projects in multiple areas of the business unit Group consists of 3 Analysts/ Specialist, 1 Technical Writer, 2 Support Staff, 1 Rotational Analyst Analysts are aligned to Processes rather than location APQC 2010 Member Meeting November 4-5,
7 History of BPM Process Methodology introduced to Williams IT BPM Practice formed (2001) First E&P Process Initiative with E&P Accounting (2002) Enterprise SOX documentation begins foundation of early process work (2003) LAUNCH OF PROCESS MANAGEMENT FRAMEWORK & STANDARDS DEVELOPMENT Enterprise BPM Standards Team Formed After Participation in APQC BPM Study (2004) BPM Standards Team identifies APQC as Benchmark (2005) Standards Team Establishes BPM Methodology & WMB Process Model (2005) Procurement process documented & first process team created (2005) BPM Standards Team participates in BPM Tech study (2006) E&P Core Processes defined and documented through Mgmt System Framework project (2006) BUSINESS UNIT PROCESS FOCUS E&P Common Process Team formed (2007) Formation of Business Process group in E&P (2007) Creation of BPM governance framework and Process Support Team (2007) Optimization of Barnett Shale Drilling & Production Operations Rolled out Key Performance indicators for Key Processes (first Asset Team 2009) Development of Knowledge and Records Management strategy and Plan (2009) Development & roll-out of SharePoint for Knowledge/ Content Management (2010) APQC 2010 Member Meeting November 4-5,
8 Aligning with the APQC Framework BACKGROUND Framework adopted in Has been refined over the years as the processes have changed Framework serves as a high level industry neutral enterprise model Focused on energy Allows internal departments to see activities from a cross-functional process viewpoint Process Classification Framework used within organization to catalog and segment process documentation APPLICATION Processes are placed within Framework structure governed at enterprise level Governance & maintenance of framework lies within Business Process Group Responsibilities 8 Point model below APQC PCF was adopted to separate types of process documentation (i.e. Process Maps, Standards, Policies, Tools, etc.) Process Documentation displayed via internal Knowledge Repository site, but documentation housed on secure shared drive location 8 Point Process Documentation Model (1) Policies (2) Standards (3) Process Maps (4) Procedures & Tools (5) Supporting Docs (6) Process Measures (7) Projects (8) Catalogs APQC 2010 Member Meeting November 4-5,
9 BPM Approach Three Levels of Performance* E&P BUSINESS ORGANIZATION PROCESS JOB / PERFORMER SUPPLIERS CUSTOMERS Vision, Strategy, Policy, Standards Processes, Measures, Scorecards Procedures, Training Documentation Process Catalog, Relationship Map, Framework, Policies, Standards RACI, Process Maps, Process Measures Supporting Documentation, e.g., Procedures, Templates, Forms, etc. APQC 2010 Member Meeting * Based November on Rummler 4-5, 2010 Model 9
10 Process Management Roadmap Identification Of Processes Process Support Team Review Identification Of Process Owner APQC Process Classification Framework Placement Knowledge Management Identify KPIs/Metrics Complete Process Documentation Records Management Continuous Improvement APQC 2010 Member Meeting November 4-5,
11 Williams E&P Process Model Aligned to Framework CORE PROCESSES INPUT Identify New Areas to Drill Assess Reserve Potential (2.0) Acquire Ownership (9.0) Develop Reserves (2.0) Optimize Production & Operations (4.0) Market & Sale (3.0) OUTPUT Produce Product Pre-Drill (4.3.1) PAD Construc tion Facility Drill Well (4.3.3) Complete Well (4.3.4) Well Head Operations (4.3.5) Close/ Abandon (4.3.6) Gathering (4.3.2) PSM Facilities Non-PSM Facilities ENABLING PROCESS Yellow = Critical High Risk Processes Vision, Strategy, Ensure Compliance (Planning) (1.0) Information Technology (7.0) Human Resources (6.0) Environmental Health & Safety (10.0) Finance & Accounting (8.0) Manage Bus Improvement & Change/ KM. (12.0) APQC 2010 Member Meeting November 3-4,
12 Business Processes Alignment - Framework CORE PROCESSES 2.0 Design, Sale, Market Services 3.0 Market & Sell 4.0 Produce & Deliver 5.0 Manage Customers Reserves Land Deal & Execution Gas Mgmt Gas Marketing Procurement Operations GIS Measurement Gas Nominations Gas Marketing 1.0 Develop Vision & Strategy 6.0 Develop & Manage HR ENABLING PROCESSES 7.0 Manage Info Resources & Tech BLUE = Managed External to E&P 8.0 Manage Financial Resources A&D Exploration Policy Creation Planning & Forecasting Strategic Initiatives On-Boarding Staffing Compensation Information Technology IT Security Operation Acct Joint Venture Acct Close AP Process Tax 9.0 Manage Physical Infrastructure 10.0 Manage EH&S 11.0 Manage Legal, Reg, & Compliance 12.0 Manage Improvement & Change/ KM Asset Mgmt Records Mgmt Environmental, Health & Safety Legal Stakeholder Feedback Business Process Mgmt Knowledge Mgmt APQC 2010 Member Meeting November 3-4,
13 Process Focused Progression FUNCTIONAL-BASED PROCESS-THINKING PROCESS-FOCUSED PROCESS-BASED Hierarchical in practice Manage people who perform vertical process activities. Difficult to respond to rapidly changing markets and customer needs. Activity groups seen as processes Understanding how processes work together Begin to define and document processes Management of end-to-end critical processes Key performance metrics identified and begin to drive improvements Leaders shifts from hierarchical to horizontal management. Begin to integrate processthinking with the organizational structures, business objectives, and people Reorganize &manage completely around processes with an end-toend focus on work flow that creates value for the customer. Functional activities are embedded in the processes A senior executive is responsible for the inter-enterprise process. Organize work starting at the customer interface to final service or product delivery. GUIDING PRINCIPLES Non-disruptive to Operations Practical Cost Effective PRIORITIZATION CRITERIA Cost Containment, Cash Management Position for re-bound Compliance (SOX, Audit, etc.) Initial State Current State Target APQC 2010 Member Meeting November 4-5,
14 Consolidated Approach Process, Knowledge & Records Management Records Mgmt Compliance: Becoming Process Focused: Mgmt of end-to-end processes Roles/responsibilities are clearly defined Key performance indicators drive performance Leaders manage horizontally Process Mgmt OPTIMIZED PROCESS Records Mgmt Mgmt of records from creation to disposal Electronic, Paper, Applications Records are inventoried Files structures applied Retention schedules applied Knowledge Mgmt Knowledge Access Effectively connects the right people to the right information at the right time. One source of information Available thru multiple entry points End-user has all tools needed to perform job in one place APQC 2010 Member Meeting November 4-5,
15 Guiding Principles for Adopting a Process Framework DO s DONT s Utilize existing tools as a foundation (e.g., APQC PCF) Align framework to existing business model Apply centralized governance of framework Reinforce use of model in all aspects of process management and optimization Create a framework that s transparent to Process Owner Overcomplicate your framework Create a model that s not easily adjustable Make the framework the focal point APQC 2010 Member Meeting November 4-5,
16 Guiding Principles for Integrating Knowledge Management & Business Process Management 1 2 Integrate Process & Knowledge Management efforts consistent with business strategy & process model Begin with creating and optimizing business processes then focus on Knowledge Management 3 Treat Knowledge Management as a part of the process Not an initiative 4 Align Business Process, Knowledge and Records Management as a natural progression 5 Keep it Simple Integrate where it makes sense when it makes sense 6 Ensure approach is non-disruptive to normal business operations, practical and cost effective APQC 2010 Member Meeting November 4-5,
17 What s on the Horizon in Williams E&P Further alignment of Process to Key Performance Indicators Automation Expansion to lower risk processes Continue process focused sites to enable Knowledge Management Expand to include formation of Knowledge Management Process team APQC 2010 Member Meeting November 4-5,
18 Process Catalog Links Enterprise framework to E&P specific processes Segmented by process Categorizes and lists all process documentation including policies, procedures, maps, tools, etc. Stored on Knowledge Repository for process owner and employees to view APQC 2010 Member Meeting November 4-5,
19 BPM Framework: Knowledge Repository APQC 2010 Member Meeting November 4-5,
20 KM Framework: SharePoint APQC 2010 Member Meeting November 4-5,
21 Questions? > Sondra Holt Manager, Business Processes PEOPLE > Matt Foste Sr. Business Process Analyst PROCESS TECHNOLOGY APQC 2010 Member Meeting November 4-5,
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