2. Business Process’s Blue Print Pertemuan 3 Matakuliah: M0734-Business Process Reenginering Tahun: 2010

3. BPM Foundation Phase BPM Foundation Phase :  Why ?  How ?  Outputs  Risks 3

4. Why ? The platform from which BPM projects are scoped, established and launched This phase will not only provide a way of starting; it will also complete the steps necessary to establish the project for success. These include : Each subsequent project launched from this BPM Foundation will be able to benefit from synergies and lessons learned from previous BPM projects, rather than starting from scratch and/or reinventing the wheel every time Project scope Project team selection and structure Stakeholder expectations, establishment and engagement The establishment of the initial process goals The use of the process start architecture to provide a fast start for the project from an architectural perspective 4

5. How ? 5

6. Step 1 : Communications How the project will impact on personnel? How personnel can expect management to conduct themselves? How people will be treated as a result of the change, how information will be shared and how often, and details of opportunities for people to participate (always be open and honest) Always anticipate questions and objections and handle them in a proactive way Communication must continue throughout the phase, and the entire project, as the project scope and plans are refined, this includes : Identify a person to be responsible for communications and human change management, and make that person accountable for this task 6

7. Step 2 : Stakeholders Build rapport with stakeholders (stakeholders management) Obtaining a high level understanding of the business issues Identification of quick wins Initial Stakeholder Interviews Follow the processes within the business unit on an end-to-end basis to provide an excellent overview of how the business is conducted Discuss with the IT department to provide a high level overview of how the business applications and infrastructure (IT architecture) interact High Level Process Walkthrough with Stakeholders Who the project stakeholders are (both from internal and external perspectives) Keep the stakeholders informed, involved in and committed to the project Canonical Data Model and Data Transformation Rule “Effort invested in redesigning, developing and implementing new process (es) would be wasted if stakeholders (including customers or suppliers) refused to use them” 7

8. Step 3 : Workshop : Scope Define and determine the ‘Width’ of the effort in Improvement Phase, agree and document the target, scope and approach of the Improvement Phase Simply want incremental or small improvements in its business processes ? Wish to redesign the existing processes to make them better (more efficient, effective, improved quality, reduced costs)? Want to take the opportunity of totally redesigning its business by the use of process innovation ? Wish to evaluate the industry value chain and redesign it? Does the business : Must change – external or internal forces are demanding process change ? Wants to change – there is a realization that unless the processes change, the organization may not survive in its current form; or, there needs to be a substantial increase in the level of customer service; or, there needs to be a significant reduction in the cost model or increase in quality ? Can change – the maturity of the organization is such that managers now understand that it can change and, perhaps, for the first time, know how to achieve change successfully on a repeatable scale Does the Organization : 8

9. Step 3 : Workshop : Scope 9

10. Step 3 : Workshop : Goals SMART : Specific, Measurable, Achievable, Realistic and Time-related 10

11. Step 3 : Workshop : Goals It is six weeks after the completion of the project and you are sitting back at home in front of the fireplace having a red wine and reflecting on the project. You decide that it has been outstandingly successful. Why? Success ChecklistResponsibility Deliver the project on time and on budgetXX At the end of the Understand phase, there is a general understanding of the current end-to-end processes by the business and agreed metrics X Key internal and external stakeholders and management understand the root cause of process issues XX Staff are excited and understand the way forwardX Quick wins in the processes are identified and implemented along the way X ProjectBusiness 11

12. Step 3 : Workshop : Business Processes The end-to-end process model provides an overview of the main processes for the organization. If it has already been created, then review it to confirm its relevance for this business unit The Process Selection Matrix (PSM) is a way of showing all the business processes within the business unit and prioritize projects Keen Process Worth Matrix (Keen, 1997) is a matrix to determine which business process to invest in 12 It is important to ensure that the processes identified cover the end-to-end business process The processes that should be selected for a BPM redesign project are those that will add value to the organization

13. Step 3 : Workshop : Business Processes 13 Process Selection Matrix (PSM)

14. Step 3 : Workshop : Business Processes 14 Process Worth Matrix (PWM)

15. Step 4 : Business Case At the start of the project, it will provide the information to allow a decision regarding whether to approve and fund the proposed project During the project, it will provide guidance to ensure that the project is still on track After the project, it will enable the business and project team to evaluate whether the project has delivered the expected results (benefits) and contributed to the specified objectives, within the agreed budget and timeframe Three Main Functions of a Business Case It includes 15 an Economic Value Add (EVA) analysis Internal proposal preparation Documentation of any non-quantifiable operational costs, benefits, and EVAs, and examination of the risks of each Present pros and cons of the various options Use scenarios and performance evaluation criteria

16. Step 5 : Project Team 16 Infrastructure & Architecture Facilities Management Coordination Quality Management Human Resources People Change Management

17. Step 6 : Initial Project Plan 17 Covers Elaboration Phase in detail, with a bit of Improve Phase Elaboration Phase workshops should be done with no more than four three hour workshops per week Tidy up models, review and analyze the findings within the business and gather complete metrics analysis Build contingency into the plan

18. Outputs  Definition of stakeholders involved or associated with the project  Stakeholder engagement and commitment  Stakeholder documented and agreed expectations  Process Selection Matrix  A list of identified business processes and initial metrics  A list of agreed process goals  Prioritized processes for the Elaboration phase  Project management :  Project charter document  Project scope document  Initial draft of the project plan  Initial communications strategy  Initial risk analysis  Development of the initial business case 18

19. Risks Mitigation Strategy Stakeholders are not identified and engaged This is critical function for the project manager and/or engaged in the project and the project sponsor, and every attempt must be made to identify all the stakeholders and engage them Lack of BPM experience for project manager 1. Replace the project manager with an experienced BPM person 2. Provide coaching and mentoring for the project manager from an experienced BPM project manager 3. Continue with the inexperienced project manager, recognizing the increased risk to the project Ill-defined project scopeThe project manager must clarify the scope with the project sponsor, and the project should not proceed until the scope is well defined, agreed and signed off Lack of fundingRefer to the Project Sponsor for further funding or stopping of the project until funding is available 19