Certified Business Process Professional (CBPP®) Exam Overview Part II August 18, 2010

2 How to Prepare  CBOK  Through ABPMP’s eStore at  Download a PDF copy through ABPMP’s member section at mmon.cfm?an=1&subarticlenbr= mmon.cfm?an=1&subarticlenbr=1 39  Study Guide (available at participating Chapters)

3 BPM CBOK® Knowledge Areas

4 PART II 4.0 Process Transformation Process Design Aligns to Chapter 5-7 of the BPM CBOK®

© ABPMP 5 ABPMP Key Definitions Process  Cross functional  Delivers a significant “end” product  Broken apart organizationally Workflow  Group of activities and their applications that perform a specific function  The organization and flow of these activities to produce a sub assembly or part of a final “end” product Reengineering  Fundamental rethinking of the business operation around new strategy – conceptual  Radical change of the business design and it’s processes to achieve dramatic improvements in cost, quality, service, and speed  Holistic approach rather than focusing on incremental changes Redesign  End-to-end rethinking of what the process is currently doing – tactical or physical operation  Redesign changes are still based on the fundamental concepts of existing process  Included the business operation, the systems, the rules, the infrastructure, the people’s jobs

© ABPMP 6 ABPMP Improvement Disciplines Six Sigma  Data driven approach for eliminating defects Lean  Management philosophy focused on reducing waste Total Quality Management (TQM)  Forerunner to Six Sigma focusing on process measurement and controls Activity Based Costing/management  ABC – measures the cost and performance of cost objects (outputs), activities, and resources  ABM – management based on ABC and performance measurements Performance Improvement Model  3 layer process alignment framework: Organization, Process, & Activity.

© ABPMP 7 ABPMP Process Improvement and Business Transformation Difference between Improvement and Transformation Difference between process and workflow improvement Process improvement  Big wins fast  Tactical  Composite teams Workflow improvement  Fast improvement  Tactical  Specialized teams Business Transformation  BPR with enabling BPMS technology: the new world  Strategic  Cross functional teams To do either Transformation or Improvement, you must redesign

© ABPMP 8 ABPMP Process Transformation

© ABPMP 9 ABPMP What is Process Transformation? The radical redesign of a significant part of the business operation at the fundamental level - broad scope Strategic in nature but moves to tactical when viewed at low levels of detail Changes through initiatives and their associated projects Long term – may be 3 to 4 years in length Foundation for a move to operational flexibility and continuous improvement

© ABPMP 10 ABPMP Requires a cross functional team of experts – BPM, Business, IT, Business Architecture, Outsourcing Requires a high level business design to form a picture of the business so each part can be built separately but fit into the vision Requires an end to end view of the company and all it’s processes Requires Business Architects to define changes to business capability models and business functions Align organizational workflow models to process and then to function and business capability Align to technical capabilities and data groups Define what process and workflow needs to change to deliver the changes in the business functions and capabilities Determine the IT support that is needed – infrastructure Question EVERYTHING Redesign in improvement project following Process Improvement Design techniques Test at the process level for continuity and quality Process Transformation in action

© ABPMP 11 ABPMP Critical Success Factors Executive Leadership  Executive leadership not only agree to the change but is visibly seen as the promoter, leader and champion of such change Commitment to Investment  Make the necessary investment to ensure the process improvement is successful before the return on the investment is achieved  BPMS Process Ownership and Responsibility  Assign ownership of the process change initiative to the resource who has final authority for delivering process performance and results Incentives and Rewards  Incentive programs built into place and encourage the adoption of the new process and changed roles and behaviors  Must engage staff and get their acceptance Cross-Functional Teams  Seamlessly tie together all of the functions to meet the needs of the customer CoE / BPM standards / terminology standardization Focus on specific improvement

© ABPMP 12 ABPMP Implementation - Key Concepts Business Process implementation must be considered as a critical set of activities even though all the analysis and design has been completed. Execution is the key to successful strategy. Perform risk analysis and management to reduce unpleasant surprises and provide business executives and process owners some degree of comfort. Continue vigorous change management activities—people, in cross- functional relations, are the weakest link in People, Process and Technology. Use multiple channels to communicate frequently with senior management, process owners, and process performers. Reinforce process/management changes with appropriate modifications to incentives and organizational culture. Business Process outsourcing is a challenging process to manage. Appoint trained relationship managers to improve the chance for success.

© ABPMP 13 ABPMP Implementation - Key Concepts (cont’d) Business Process design changes must be minimized during implementation. Yet, the business environmental factors merit continued scanning for changes that could impact the current Business Process implementation actions. Senior management and business process owners, and business process management must remain active and visible to lead successful change. Business Process conversion is meticulous, but an easy trap for implementation failure. The scope and rate of Business Process change should not exceed the capacity of business process owners and performers to absorb change. Evaluate realized vs. expected benefits. Share the wins. Learn from the losses. Inadequate training will lead to business process/management loss of productivity and probable project failure. Choose Business Process implementation techniques to match the scope and complexity of the project requirements.

© ABPMP 14 ABPMP Process Design

© ABPMP 15 ABPMP Process Design Principles Foundation Assuming your “As Is” models are good and that you have captured the right information for each activity, you are ready to redesign the operation Recommend a BPMS tool suite – at least a process modeler Understand the who, what, why, when, where, how, and cost, volume, problems and opportunities for improvement of each workflow Process Redesign/design Define success – what will an optimal solution look like – its characteristics Build composite teams with focused BPM methodologies Redesign, then Automate  Don’t automate a broken, ineffective process  Eliminate white space  Be creative – understand how the business works and think of different ways to do things  Simulate the new design - optimize Ensure Quality at the Beginning – define standards, techniques, tools

© ABPMP 16 ABPMP Process Design Redesign – remember problem resolution, quality and cost improvement Identify and define the activities that will be needed Identify activities to be eliminated or automated/eliminated Identify and define all the rules that will be needed to control the activity and where Define and eliminate handoffs, redundant work, non-value add work, holds, approvals (empower) Redesign the business operation in the process modeler noting application needs Determine break points, risk points, problems points and design performance monitoring to mitigate Define business rules and enter into the rules engine (if you don’t have one, create a rules matrix) Define data use, build interfaces/adaptors, build applets, build web interfaces/applications Simulate the operation of the new design – generate the BPMS applications and operating environment – iterate until acceptable and then continue to improve Create final design and test the business/IT BPMS based environment Modify the IT infrastructure as needed Implement Move to continuous monitoring and improvement

© ABPMP 17 ABPMPImplementation Plan – BPMS, IT, business user Test, test, test and iterate Train and mentor staff Implement in interrelated projects according to the vision and how each project supports others Monitor performance Improve

© ABPMP 18 ABPMP Thank You Questions???? For follow-up questions Dan Morris can be reached through ABPMP or at