MANAGING BUSINESS PROCESS TRANSFORMATION. Brett Champlin President Association of Business Process Management Professionals
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1 MANAGING BUSINESS PROCESS TRANSFORMATION Brett Champlin President Association of Business Management Professionals
2 Association of BPM Professionals Non-profit, vendor-independent, professional organization Dedicated to the advancement of business process management concepts and its practices Practitioner-oriented and practitioner-led Founded Active US Chapters, 6 more forming Affiliations with BPM groups in other countries Guide to BPM Body of Knowledge BPM Model Curriculum Certified Business Professional (CBPP) 2007 Brett Champlin 2
3 Guide to BPM Body of Knowledge 2007 Brett Champlin 3
4 What is BPM? BPM is a Management Discipline -oriented thinking Manage end-to-end processes Strategy is carried out through process assessment, analysis and design performance over functional performance Enabled by an evolving set of technologies discovery and definition execution and orchestration monitoring and control Performance Decision Support 2007 Brett Champlin 4
5 The Case for BPM Survey of over 700 companies, 52% in US, 19% UK/Europe, 13% Asia more than 80% of the world s leading organizations are actively engaged in BPM programs, many of these on a global scale the practice of BPM as a primary means to manage business has already gained substantial adoption 2007 Brett Champlin 5
6 APQC 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 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 Brett Champlin 6
7 Primary 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. Source: Gartner 2007 Brett Champlin 7
8 vs. Functional Management Traditional methods of performance management focus on department & functional unit performance BPM focuses on the management of cross functional processes. This involves continuous monitoring, evaluation, measurement (e.g., cost, quality, cycle time) and process innovation Businesses are organized into departments or functional units Management teams are established Clearly defined & documented business processes performance objectives are defined Performance management is functionally oriented - Reduce costs by $x - Etc. management / team established Performance management is process oriented - Response time, order to delivery time, etc Brett Champlin 8
9 PROCESS MATURITY MODEL Integration Integrated (6) Coordinated Cooperative Optimization Basic Management Control Definition Measurement Repeatable (2) Stable Control Defined (3) Standard Managed (4) Measured Controlled Environment Optimized (5) Effective Consistent Execution Quality and Productivity Improvement Continuing Improvement Initial (1) ad hoc Chaotic 2007 Brett Champlin 9
10 Management Maturity Management Maturity Maturity Need Management Regulation Recognize/ Organize (2) Need Quality Management Program Support/ Direct (3) Need Enterprise Integration Participate/ Control (4) Ignored (1) Manage/ Plan (5) Consistent Steward/ Lead (6) Disciplined Procedures Predictable Continuously Improving Cooperative 2007 Brett Champlin 10
11 PROCESS TRANSFORMATION CONTINUUM Re-Design Reengineering Improvement Time Cost Degree of Innovation Improvement is incremental Re-Design is end-to-end re-thinking of what we are doing Reengineering is a blank slate approach Innovation involves changing the model, not just improving its efficiency 2007 Brett Champlin 11
12 TRANSFORMATION PLANNING ASSESSMENT Integrated (6) Coordinated Optimized (5) Effective Managed (4) Measured Defined (3) Standard Repeatable (2) Stable Initial (1) ad hoc PRESCRIPTION Focus on Improved Integration Continual Improvement Improvement, Six Sigma/ABC Redesign Reengineering/ Redesign Radical Reengineering GOAL Coordination and Collaboration Integration - Level 6 Refinement - Level 5 Control - Level 4 or better Leverage What Works - Level 4 or better Obliterate and Innovate - Level 4 or better Source: Brett Champlin, 2007 Brett Champlin 12
13 WORDS 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 2007 Brett Champlin 13
14 Business Meta Model PERIOD PROCESS PURPOSE PRODUCT PEOPLE PLACE Adapted from Don Soulsby 2007 Brett Champlin 14
15 Domains Business Operations Technical 2007 Brett Champlin 15
16 Exercise your mind Put these in order from the lowest level to the highest MAGAZINE Article Letter Magazine Paragraph Sentence Word MAGAZINE Letter Word Sentence Paragraph Article Magazine 2007 Brett Champlin 16
17 Exercise your mind Put these in order from the lowest level to the highest COMMUNITY City Continent Country County House Neighborhood Room State Street COMMUNITY Room House Street Neighborhood City (Toronto) County (York) State/Province (Ontario) Country (Canada) Continent (North America) 2007 Brett Champlin 17
18 Exercise your mind Put these in order from the lowest level to the highest SCIENCE Biology Chemistry History Physics Psychology Sociology SCIENCE Physics Chemistry Biology Psychology Sociology History 2007 Brett Champlin 18
19 Perspectives ENTERPRISE BUSINESS OPERATIONS SYSTEM DESIGN BUILDER SYSTEM OPERATOR Strategic Planning Business Redesign/Reengineering Improvement System Requirements Applications Specification Working System Business Domain Operations Domain Technology Domain 2007 Brett Champlin 19
20 Business Framework WHAT/ PRODUCT HOW/ PROCESSES WHERE/ PLACE WHO/ PEOPLE WHEN/ PERIOD WHY/ PURPOSE VA VALUE CHA IN IN Enterprise Model STRATEGIC PLANNING NG PRO CESS MO MODELS Business Model BUSINESS ANALYSIS ACTI TIVITY MO MODELS Operations Model WORK DESIGN TA TASK MO MODEL Workflow Model SYSTEM S DESIGN SPECIFICATION Systems Model SYSTEM S DEVELOP PMENT PRODUCTION Measurement & Control OPERA ATE/ MONIT TOR 2007 Brett Champlin 20
21 Functional vs Cross-Functional Management Management Within Functional Areas Cross Functional Management President President Human Resources Marketing Finance Information Technology Marketing Sales Field Operations Underwriting 2007 Brett Champlin 21
22 Managing Transformation Business Model Reengineering Scope of Change End-to-End Activity/ Sub Improvement Re-Design Short Long Time 2007 Brett Champlin 22
23 Impact and Approach Redesign of Industry Value Chain Redesign of Business Impact on Organization Redesign of es Improvement of Sub es Incremental Improvements Point of Approach Within Organization Source: Jeston & Nelis 2007 Brett Champlin 23
24 Impact and Involvement High Impact on Organization Low Redesign Business Model Redesign End-to-End Improve/Redesign Sub Incremental Sub / Activity Improvement Low Exceeding mandate Under the Radar Pilot Project In the Driver s Seat Underambitious Involvement of Business Manager Business As Usual High Source: Source: Jeston Jeston & Nelis Nelis 2007 Brett Champlin 24
25 Alternate Governance Structures 2007 Brett Champlin 25
26 Managing Transformation Business Management Degree of Change Strategic Tactical Low Hanging Fruit/ Quick Hits Enterprise Alignment/ Portfolio Management Improvement Re-Design Reengineering Organization Change Management Short Long Time 2007 Brett Champlin 26
27 Organizational Change Management Managing organizations through successful changes Being aware of a need to manage change throughout planning and implementation of change programs Understanding and influencing how people experience change Communications Be honest about where you are Be honest about where you want to go Be honest about how you are going to get there Status reports, what s new, how are we doing How this will affect you What can you do to prepare What you should do now How you can contribute to success Accelerate the 4 stages of natural reaction: Denial Resistance Exploration Commitment 2007 Brett Champlin 27
28 Managing Organizational Change Organizational change follows a predictable pattern Change can be planned for, monitored, and managed Numerous models for change management exist The real power is not in the models, but in getting people aligned and able to adapt Change Management may minimize resistance, but resistance always accompanies major change Change Management deals with patterns of behavior that are predictable, and the success of the interventions utilized is measurable Change Management is about Performance 2007 Brett Champlin 28
29 A PARTING THOUGHT... Wisdom is knowing what to do next Skill is knowing how to do it, and Virtue is doing it! - David Starr Jordan 2007 Brett Champlin 29
30 References Improvement-Redesign-Reengineering Business Change: A Manager's Guide to Improving, Redesigning, and Automating es, Paul Harmon Business Management: Practical Guidelines to Successful Implementations, Jeston & Nelis Business Management: Profiting From, Roger Burlton "Improving Performance: How to Manage the White Space in the Organization Chart", Geary Rummler & Alan Brache " Mapping, Improvement and Management", Dan Madison "Workflow Modeling: Tools for Improvement and Application Development", Alec Sharp & Patrick McDermott Change Management The Change Management Learning Center The Change Management Toolbook The Manager.org Knowledgebase Brett Champlin 30
31 THE BUSINESS PROCESS TRANSFORMATION CONTINUUM Change Management Brett Champlin
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