Guidelines for the Success
of a Business Process
Management Initiative
June 8
th
2012
Agenda
• Business Process Management Lifecycle
• Making change sustainable
• Business Process Governance
• Transitioning the Workforce
• Measuring Process Performance
• Developing sound policies
• Policies, Business Rules and Standard Operating Procedures
• Aligning Process management initiatives to Strategic Priorities
Business Process
Business Process Management
Lifecycle
SAP – Process Management Lifecycle: IBM OracleSimple Truth:
BPM
Lifecycle
Analyze Design Implement Measure ImproveBusiness Process Management
Lifecycle
Transition towards a Process Centric
Organization
Processes
Industrial/Information Age Customer Age
Doing things right Doing the right things and doing
things right
Manufacturing mindset Customer Experience
Tasks/Activities and
Outputs Outcomes and SCO's
Stocks Flows
Products Services
Left to Right, Top to
Bottom Customer Centric
Steve Towers - Overview on the shift in focus [email protected]
Transition towards a Process Centric
Organization
Characteristics of a Process Centric Organization • A well-articulated business process architecture • Business process architecture is institutionalized • Management system is process-centered
• Capabilities to transform and evolve are in place
Alan Ramias & Cherie Wilkins - The Process-Centered Organization: Do You Know Where you’re Going?
Transition towards a Process Centric
Organization
Identify Inefficiencies Process Awareness Process Management Align BPM to Strategic Goals Process Centric OrganizationSustaining Change & Managing
Perceptions
Key priorities in Sustaining Change and Managing Resistance:
• Engage leadership in strategic conversations • Corporate culture, values and identity
• Focus Groups • Success stories
• Recognize supporters • Monitor new behaviors • Change Agent Network
Why many Change Initiatives fail
• Management Buy-In
• Communicate the vision
• Understand the need for change
• Too much complacency
• Anchor changes in corporate culture
• Short-term results
Making Change ‘Stick’
Consider these:
• Voice the Vision
• Enlist the ‘Evangelists’ • Identify Relevant KPIs • Rewards for Responses • Corrective Action
• Note the new ‘normal’ • Monitor Fatigue
Business Process
Governance
Business Process Governance
• Accountability Framework • Policies & Procedures
• Practices & Standards
What is Business Process Governance?
Policies & Procedures
• BPM Methodology • BPM Policies
• BPM Procedures
Practices & Standards
• Process design
• Artefacts & Templates Accountability Framework
• Roles, responsibilities and decision-making authority
Performance & Compliance
• Performance Reporting • Enforcing compliance
Process Owner / Process Steward
Process Owner
• A Process Owner is responsible for the process as a whole as it runs across different functional departments
Process Steward
• A Process Steward is the Process Owner’s representative in a specific functional department that forms part of the
process, and is responsible for the part of the process which falls in his/her functional department.
Responsibilities of a Process Owner
The Process Owner:
• Accountable
• Track Process Performance • Perform Executive Functions
• Maintain Stakeholder Relationships • Ensure Overall View of Processes
• Responsible for Impact of Process Change
• Ensuring Alignment with Organizational Strategy • Aware of Environmental Factors
• Lead Process Change Initiatives
• Communications and Change Management
Responsibilities of a Process Steward
The Process Steward: • Key Stakeholder
• Ensure Effective Execution
• Aware of Environmental Factors • Familiarity with Process Design
• Advise Process Owners on Process Change Analysis • Conduit of Process Change
Importance of Workforce Transition
Large Transformation Programs
Change the way work is conducted
Impacts existing roles and responsibilities
Prepare Organization for these Changes
Train Employees / Stakeholders
Workforce Transition Activities
Recruitment and Retention Competency Assessments Roles and Responsibilities Employee Readiness Sessions
Employee Deployment Performance Measurement
Role of the Change Leader/
Agent
Key Responsibilities of Change Leader
•
Communication•
Visible Champions•
Access to people and resources•
Influence•
Change vision•
Buy-in•
Alignment•
Translate project vision•
Deliver context for the initiative•
Key decisionsRequired Competencies for Change
Leaders & Change Agents
25 Executive Champions (Change Leaders) • Inspire
• Encourages and leads
• Authority
• Access
• Leadership Experience
• Experience leading strategic change initiative
• Exposure to large scale transformation
• Knowledge of stakeholder engagement principles
Change Agents
• Collaborative Approach
• Established Internal Network
• Respected among peers
• Good people skills
• Working Knowledge of Processes
• Team Spirit
• Close Relationships
• Clear Communication
• Project Experience
• Understand project objectives
• Willing to talk about projects to peers
• Listen to concerns
• Clarify misunderstandings
• Positive Attitude
• Assist team in understanding concerns, issues, barriers
Prerequisites Required Competencies
Key Responsibilities of a Change Agent
•
Review communications•
Tailor communications as needed•
Distribute communications•
Communicate with other employees and the Network regularly, including:
Participate in informal communication opportunities
Collect feedback•
Encourage peersDesired Attributes of a Change Agent
•
Ability to influence•
Strong communication skills•
Good Listener•
Ability to work effectively with all levels of the organization•
Strong, informal network of peers•
Good time management skills•
Capable to get tough jobs done quickly•
Cares about how people are treated•
Cares about how people are able to do their jobs•
Committed to delivering and follow-throughUnderstanding and Addressing Change
Resistance
When dealing with resistance, the focus should be on:
•
Dealing with staff one-on-one•
Communicating an honest message•
Using both logic and emotion•
Establishing trust•
Promoting positive benefits•
Addressing rumors or misinformation•
Keeping lines of communication open•
Tackling questions or concernsMeasuring Process
Performance
Reasons for Measuring Process
Performance
• Comparing performance with historical performance
• Determine if targets are being achieved
• Reviewing business cases and evaluating process improvements
• Planning other process improvement projects
Key considerations
Key considerations & actions Roles and Responsibilities
• Proposed change likely to yield benefits OR have benefits been realised
• Qualitative and Quantitative measurements • Balanced view of inputs processes & business
outcomes.
• Combination of continuous measurements • Clear rationale for measurement
• Focus on high-value measures
Sample questions that guide the allocation of roles and
responsibilities:
• Responsibility for deciding portfolio of KPIs to be used
• Who is responsible for measurement?
• Accountability for deriving business value from metrics ?
KPI Types - examples
Focus areas Candidate Measures
Financial
• Cost, cost categories and cost ratios
• Revenues, revenue segmentation (industry, size, tax type etc.) • Asset values
• Financial ratios
Customer Focus
• Satisfaction (ratings, focus groups etc.)
• Problem reports (complaints, advice requests)
• Support process measurement (turnaround time, waiting time, right first time)
Internal business processes
• Process unit Quantity / Quality /Costs • Resource utilization
• Service quality and ‘defect’ rates • Process ratios
Human Resources
• Average organization and task experience • Education and qualification levels
Developing sound BPM
policies
Policy
Role of Policy:
• Organization’s position on a specific business issue. • Provides guiding principles, rules and guidelines. • Sets boundaries for decisions and actions.
• Not to be confused with SOPs • Identifies Business Issues
• Guidance to achieve objectives • Needs supporting SOPs
Policies, Business Rules and
Standard Operating
Relationship between Policy, Business
Rules and SOPs
Legislation
Policy
Business Rules
Post Implementation / Initiative Evaluation
Focus area Candidate Questions
Financial
• How much did the initiative cost?
• What financial benefits achieved/burdens removed? • Impact on Asset Utilization
Customer Focus
• Improved client satisfaction?
• Effect on the client’s cost of compliance?
• Increase/decrease cost of client transactions & support?
Internal business processes
• Improved ability to meet client needs?
• Improved quality of our activities and services? • Improved efficiency ratios?
• Has organization effectiveness improved?
• Improved Management Ability?
• Increased Agility?
Human Resources
• Improved workforce capability? • Increased employee satisfaction?
