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Establishing a BPM COE Creating a BPM discipline, developing BPM capability, integrating BPM efforts.

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Presentation on theme: "Establishing a BPM COE Creating a BPM discipline, developing BPM capability, integrating BPM efforts."— Presentation transcript:

1 Establishing a BPM COE Creating a BPM discipline, developing BPM capability, integrating BPM efforts

2 How to Develop a Process Enterprise
There are many different models available for developing a high performance process enterprise, however, their basic components are usually the same. The items in blue were covered previously, and the items in grey will be covered in later class sessions. Align strategy with processes (sessions 4 and 5) and process metrics (previous presentation) Develop a process-oriented culture (session 9) Create a BPM Group or Center of Excellence Develop infrastructure to support a process enterprise Establish a process or BPM community of practice (COP) (sess. 10) Assign process roles and responsibilities in the organization (session 10) BA 553: Business Process Management

3 4. Develop infrastructure to support a process enterprise
An infrastructure to support a process enterprise includes items such as: Information systems that support the efficiency and effectiveness of cross-functional processes, rather than just departments (session 12) Company policies and procedures that are process-based Training approach based on processes HR processes (job descriptions, hiring, indoctrination, promotion) that are process-oriented Reward and recognition systems that are focused on processes as well as outcomes BA 563: Business Process Management

4 3. Create a BPM Center of Excellence (COE)
A Center of Excellence is a work group responsible for the overall BPM effort for the organization. It is similar to a functional group, in that it has a senior manager and employees focused on a specific discipline (in this case, BPM) The BPM COE is responsible for activities such as: Governance Ensuring BPM efforts are aligned with strategic plans Integrating process change efforts Assessing BPM maturity/capability and closing needed gaps Knowledge development and retention Developing and providing training in BPM methods and tools Hiring and managing BPM professionals Documentation Maintaining the process architecture (network) Collecting and documenting process metrics BA 563: Business Process Management

5 BPM Group Core Processes
What Does a BPM COE Do? BPM Group Core Processes Assemble information on existing processes Document new processes Identify processes needing improvement Conduct strategic planning effort Collect daily / monthly data on process performance Hire/promote new managers within the business Develop job descriptions for process role s Identify requirements for BPM professionals External demands for process documentation and measures A. Create & maintain the enterprise business process architecture, maintain proc. inventory/repository Maintain up-to-date process architecture Work with strategy group to estimate implications of changes Undertake BPM projects Report on corporate process performance Identify problems and recommend solutions Develop plans to address process maturity gaps Manage process owners’ BPM scorecards and evaluations Train new managers in BPM Acquire BPM tools Manage BPM projects Prepare reports for Sarbanes-Oxley and ISO 9000 documentation B. Identify, integrate, prioritize, and scope BPM projects, and manage process change resources C. Help create, maintain & manage the process performance measure-ment system, and assess maturity D. Help create and support the process manager/owner system and provide training E. Recruit, train, and manage BPM COE professionals, standardize on BPM methods and tools F. Manage risk / standards / compliance reporting and documentation Note: items in blue have been covered previously, items in red are in this class session, green is in future sessions. Harmon, Paul (2007), Managing the Process-Centric Organization, presentation, BPMTrends. BA 563: Business Process Management

6 BPM COE Value Chain This slide and next: Jesus, L. et. al. (2009), A Framework for a BPM Center of Excellence, white paper, BPMTrends. BA 563: Business Process Management

7 Main Services of the BPM COE
Process Architecture Maintenance Definition and/or updating of the organization's value chain and business process architecture that illustrate its mission, vision and main attributions. Dissemination of process-based vision throughout the organization Process Modeling (AS IS) Modeling and/or updating of the way work is performed. Models usually include activities and events, responsibilities, related systems and documents and are displayed in notations like BPMN, EPC, IDEF. It can also include identification of improvement opportunities Process Improvement (TO BE) Redesign of existing processes based on the analysis of improvement opportunities and prioritization of identified solutions. It can also refer to the design of a new process Process Documentation Creation and/or updating of procedures and manuals that detail processes models and can serve as a basis for work execution Process Change Management Definition of an action plan to incorporate improvements in existing processes. Tracking of action plan's status, intermediate results and difficulties Process Performance Measurement Definition of a structure of business process measures. Measurement, monitoring and reporting of process performance. Establishment and tracking of actions to improve performance Process Management Education and Training Employees' training and education on BPM concepts, methods and tools Process Compliance Periodic process checking. Verification of the adherence of the process models to reality Process Maturity Management Process maturity evaluation, based on existing maturity models Process Benchmarking and Innovation Benchmarking and dissemination of internal and external best practices related to project execution BA 563: Business Process Management

8 B2. Integrate BPM Projects
In most organizations undertaking process documentation or process change efforts, the high-level enterprise process network and process inventory have not been established In these situations, it is common that the various process efforts will involve some overlap This results in inefficiency and potential conflicts, as parts of a larger process may be undergoing changes by multiple groups within the organization In order to achieve the full potential of the investment in process change, it is critical that the organization first identify and document the existing process efforts and any overlaps among them - an example is shown on the next two slides Once overlaps or conflicts are identified and analyzed, some efforts may need to be redirected or stopped - this will need to be discussed with the team members involved The next step is to ensure the integration of future process projects by aligning them with the process inventory and the organization’s strategy BA 563: Business Process Management

9 Example: Current Process-Related Efforts
Project A: A project designed to develop and implement targeted, sustainable improvements in fuels value chain optimization processes, technology / information and organizational capabilities Project B: A project scoped with standardizing business processes related to ERP and HR systems, and consolidating 88 business systems and 64 HR systems and related data Project C: This project designed to identify opportunities for global process standardization in Production and determine ways to greater align Marketing and Customer support functions Project D: This project is restructuring a regional operations organization and redesigning the associated operations processes Operations Center of Excellence (COE): This group has as part of its mandate to document, standardize, and improve where necessary operations processes as well as assessing and improving organizational capability within operations personnel Capability Group: This group will develop sustainable organizational capabilities, establish standardized processes and systems, and implement a new integrated business model Project E: A project that will provide the systems and solutions needed to enable the vision and goal of doubling the department’s bottom line in five years Business Process Initiative (BPI): This effort involves documenting, standardizing, and improving selected processes requested by the business and developing organizational capability in process documentation and improvement, while integrating with other ongoing process efforts Loss Prevention System (LPS): A system to prevent or reduce losses (including injuries, inefficiencies, compromises in product quality, reliability issues, etc.). It is focused on identifying, observing, and eliminating risky behaviors within processes Business Process Management (BPM): This initiative is institutionalizing a business architecture methodology project across the organization. A BPM Community of Practice (COP) has been developed BA 563: Business Process Management

10 Overlaps of Current Process-Related Efforts
1. These efforts are integrating with regard to the process documentation methods and tools used Loss Prevention System (LPS) 11 2. Both of these efforts involve standardizing processes for supply business systems (HR and ERP) and improving the systems used Building Capability Group Business Process Management (BPM) 3. These efforts are integrating with regard to the process documentation methods and tools used Project E 4. These efforts are integrating with regard to process standardization and centralization 10 5. The project is restructuring the organization and redesigning the processes Business Process Initiative (BPI) 9 6. These two efforts will integrate in the development of the capabilities of operations personnel 8 Operations Center of Excellence 6 7. These efforts are integrating with regard to the foundational work (tools, methods, training) 7 8. These efforts include as part of their effort improving selected support processes Project A 9. These efforts include as part of their effort improving selected core processes 1 Project B Project D 3 5 10. These efforts are changing some of the key systems to increase business capabilities Project C 11. The LPS integrates with many of the other process efforts in that they’re all focused on reducing losses from business inefficiencies 2 4 12 12. The Business Architecture group is advancing a BPM methodology across the organization BA 563: Business Process Management

11 Integrating Enterprise-Wide Improvements
While non-BPM company projects may have a primary purpose of changing systems or infrastructure, they are also likely to result in process changes For example, installing a new IT system or software will often change the processes of end users, including their performance The resulting process changes need to be documented as the new way of doing things, and put into the process library It is therefore critical to ensure that, if the Project Management Office and the BPM Center of Excellence do not fall under the same management structure, there is at least a requirement for regular integration between the groups to ensure there is no conflict or overlap in their activities It is useful if the governance bodies of the two groups have common members This integration is made much easier if all of the change efforts for the year are identified as part of the organization’s strategic planning effort In cases where they are identified later in the year due to changing circumstances, they must be aligned with the existing strategy (session 3) BA 563: Business Process Management

12 B3. Prioritize BPM Projects
Once a process inventory has been developed and the current process efforts have been identified, future process efforts can be prioritized using a scoring system Examples of criteria that might be evaluated when prioritizing efforts include: Alignment with strategy: Whether the process change is aligned with the organization’s strategic goals (more alignment would score higher) Importance to customer: Whether the process is part of the primary or secondary value chain items (primary items would score higher) Level of standardization: Whether the process is standardized across all regions (non-standardized processes would score higher) Impact of change: Whether the process is currently performing well (more poorly-performing processes or processes with no existing metrics would score higher) Speed of results: Whether the effort can be accomplished in a timely manner (processes that can be improved more quickly would score higher) Cost/benefit: Whether the cost of the change will be greatly outweighed by the benefit (processes with higher cost/benefit would score higher) Risk: Whether the change will incur other risks, for example, require major systems changes (processes with less risk would score higher) BA 563: Business Process Management

13 E. Roles in the BPM COE: BPM Manager
Authority and location in the business: Authority over the BPM COE (may be regional BPM Managers depending on the size of the organization) Has joint leadership of the BPM Steering Committee (with the Sponsor) Senior manager at the global or regional level (depends on company size) Responsibilities: Establishing the BPM COE and its products and services Developing a BPM master plan and implementing that plan Supervising team of organization-wide process experts Managing all BPM activities at the group or regional level Using KPIs and other measures to communicate BPM’s effectiveness Defining the process architecture Required capabilities/skills: Detailed knowledge of the enterprise and its processes Good understanding of the organization’s process architecture Excellent understanding of BPM methodologies and tools Character: well accepted by senior management, good negotiation skills BA 563: Business Process Management

14 Roles in the BPM COE: Process Expert
Authority and location in the business: No authority over individual processes in the business Often centrally located, but may travel to support BPM projects (depends on company size) Responsibilities: Maintaining excellence in BPM methodologies and tools Providing BPM knowledge as needed on projects Supporting project managers on BPM projects Marketing the effectiveness of BPM among the workforce Supporting the BPM Manager in all efforts of the BPM COE (e.g., BPM training, BPM capability assessments, etc.) Required capabilities/skills: Excellent project management skills Profound knowledge of BPM methodologies and tools Good understanding of the organization’s process architecture Character: able to move from one project to another, providing expertise BA 563: Business Process Management

15 Steps in Establishing a BPM COE
Attain executive sponsorship (session 9) Define goals and success criteria (sessions 3 and 4) Define governance structure (session 10) Establish BPM framework, tools, and standards (session 10) Set up the BPM library/repository and process architecture (sess. 5) Define BPM COE approach for managing process change (sess. 8) Develop inventory of documented processes Prioritize process improvements based on strategic objectives (session 8) Start executing BPM projects Company publication (2010), Process Center of Excellence, white paper, Progress | Savvion. BA 563: Business Process Management


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