Guidelines for the Success of a Business Process Management Initiative
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1 Guidelines for the Success of a Business Process Management Initiative Insert Company Logo June 8 th 2012
2 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
3 Business Process Management Lifecycle
4 Business Process Management Lifecycle IBM Oracle SAP Process Management Lifecycle:
5 Business Process Management Lifecycle Simple Truth: Analyze Improve BPM Lifecycle Design Measure Implement
6 Making change sustainable
7 Transition towards a Process Centric Organization Processes Industrial/Information Age Doing things right Manufacturing mindset Tasks/Activities and Outputs Stocks Products Left to Right, Top to Bottom Customer Age Doing the right things and doing things right Customer Experience Outcomes and SCO's Flows Services Customer Centric Steve Towers - Overview on the shift in focus success@towersassociates.com
8 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? Consultants, Performance Design Labs (PDL)
9 Transition towards a Process Centric Organization Identify Inefficiencies Process Awareness Process Management Align BPM to Strategic Goals Process Centric Organization
10 Sustaining 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
11 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 Declaring victory too soon
12 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 Reinforce Leadership Commitment
13 Business Process Governance
14 Business Process Governance Accountability Framework Policies & Procedures Practices & Standards Performance & Compliance
15 What is Business Process Governance? Accountability Framework Roles, responsibilities and decision-making authority Policies & Procedures BPM Methodology BPM Policies BPM Procedures Performance & Compliance Performance Reporting Enforcing compliance Practices & Standards Process design Artefacts & Templates
16 Role of the Process Owner
17 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.
18 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 Conversant with Organizations BPM Methodology
19 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 Maintain Relationships with Functional Heads
20 Transitioning the Workforce
21 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 Smooth Transition
22 Workforce Transition Activities Organization Architecture Performance Measurement Employee Deployment Employee Readiness Sessions Roles and Responsibilities Competency Assessments Recruitment and Retention
23 Role of the Change Leader/ Agent
24 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 decisions Support
25 Required Competencies for Change Leaders & Change Agents Required Competencies Prerequisites Executive Champions (Change Leaders) Change Agents Inspire Encourages and leads Authority Access Collaborative Approach Established Internal Network Respected among peers Good people skills Working Knowledge of Processes Team Spirit Close Relationships Clear Communication Leadership Experience Experience leading strategic change initiative Exposure to large scale transformation Knowledge of stakeholder engagement principles 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 25
26 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 peers Escalate problems
27 Desired 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-through
28 Understanding 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 concerns
29 Measuring Process Performance
30 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 Choosing between potential process improvement projects
31 Key considerations Key considerations & actions 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 Roles and Responsibilities 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?
32 KPI Types - examples Focus areas Financial Customer Focus Internal business processes Human Resources Candidate Measures Cost, cost categories and cost ratios Revenues, revenue segmentation (industry, size, tax type etc.) Asset values Financial ratios Satisfaction (ratings, focus groups etc.) Problem reports (complaints, advice requests) Support process measurement (turnaround time, waiting time, right first time) Process unit Quantity / Quality /Costs Resource utilization Service quality and defect rates Process ratios Average organization and task experience Education and qualification levels Staff satisfaction / turnover
33 Developing sound BPM policies
34 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
35 Policies, Business Rules and Standard Operating Procedures
36 Relationship between Policy, Business Rules and SOPs Legislation Policy Business Rules Standard Operating Procedure (SOP)
37 Post Implementation / Initiative Evaluation Focus area Financial Customer Focus Internal business processes Human Resources Candidate Questions How much did the initiative cost? What financial benefits achieved/burdens removed? Impact on Asset Utilization Improved client satisfaction? Effect on the client s cost of compliance? Increase/decrease cost of client transactions & support? 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? Improved workforce capability? Increased employee satisfaction? Enhanced utility of internal resources?
38 Questions?
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