BPM Implementation - Success Criteria and Best Practice

BPM Implementation -
Success Criteria and Best

Practice
Alan McSweeney
What is a Business Process?
AA business process is a collection of related , structured activities that produce a
processes
service or product that meet the needs of a client. These proces ses are critical to any
organisation as they generate revenue and often represent a significant
significant proportion of
costs.
Order
Order
improvementt and
Documenting business processes enables understanding, improvemen
Documenting
provides control
November 26, 2009 2
What is Business Process Management (BPM)?
• Business Process Management (BPM) is a method of

efficiently aligning an organisation with the wants and
needs of clients
• Itis a complete management approach that promotes
business effectiveness and efficiency while striving for
innovation, flexibility and integration with technology
• As organisations look to achieve their objectives, BPM
attempts to continuously improve processes - the
process to define, measure and improve your processes
— a ‘process optimisation' process
November 26, 2009 3

Lessons Learned From Large Systems Implementation
80 % More attention on process optimisation

65 % Align systematically to company goals
60 % Pay more attention to understanding the subject area spanned
55 % Implementation of a management information system as part of scope
50 % Outsource project management of the project to a third party
45 % Increase investment in training
35 % Greater employees involvement
35 % Enforce changes more courageously
30 % Identify and capture proof of benefits and saving as part of scope
20 % Avoid big-bang implementations
November 26, 2009 4
Processes Are Key To Business Success
• Understanding your processes
are key in a number of business
initiatives
• Often this is done in isolation
and in different ways
• And using different tools
November 26, 2009 5

A Single, Consistent View of the Truth is Critical
• Having a single repository of

business process information
enables…..
• Common standards
• Re-use / best practice
• Improved decision support
• Significant time savings
• = increased efficiency & effectiveness
November 26, 2009 6

Key Business Drivers for BPM
• Save money — Do things better with optimised processes

− Build better new processes faster
− Know what you are doing (right or wrong) through current process
understanding
− Get control of parallel processes by consolidating to core processes
− Get non-value added work through automation of manual processes
Business process outsourcing

• Implement ERP software better
• Stay ahead of compliance
• Move faster through scenario building for agility and policy
management
November 26, 2009 7

Benefits of Business Process Management
Reduced process costs 10 - 15 %
Increased quality / reduced number of errors 20 - 30 %
Reduced process throughput times 10 - 30 %
Reduced training time / expenses 10 - 30 %
Reduced number of (internal) support requests 15-

15- 30 %
Reduced number of customer complaints 20 - 30 %
Increased forecast accuracy 15 - 30 %
• Real benefits from BPM

• Intangible benefits also: better information quality
November 26, 2009 8
How do Organisations Improve?
• Major changes must start at the top

• Ultimately, everyone must be involved
• Effective
change requires a goal and knowledge of the
current process
• Change is continuous
• Change will not be retained without effort and periodic
reinforcement
• Improvement is continuous
November 26, 2009 9

Why Business Process Management?
• Symptoms of Poor Business Process Management and

Design
− No standard process/method for addressing how to define
business requirements and when to improve business
processes
− When automation of processes is commissioned, “Business”
says that they do not always get what they think they have
asked for
− The processes used to document and communicate business
processes and requirements are neither easy nor documented
− Our business programs frequently exist in a culture of reacting
to cross-functional problems/emergencies
− IT has responsibility for creating and maintaining business
process flows, business requirements, and business rules
November 26, 2009 10
Why Business Process Management and Design —
Common Problems
1. Lack of an integrated process for capturing the business

domain
2. Techniques that are used are not consistently applied
3. We cannot/do not differentiate key stakeholders’ views and

different business views
4. We are working without a common language across

business, IT and our other partners/vendors
5. Inadequate root cause level business process analysis yields

inadequate business requirements and rules to facilitate
process optimisation/automation

Why Business Modelling — The Problems
1. Lack of an integrated process for capturing the business

domain
2. Techniques that are used are not consistently applied
3. We cannot/do not differentiate key stakeholders’ views and

different business views
4. We are working without a common language across

business, IT and our other partners/vendors
5. Inadequate root cause level business process analysis yields

inadequate business requirements and rules to facilitate
process optimisation/automation

More Than a Picture
A Picture . . . .
Provides information
Has no enforceable rigour
Cannot be reused easily
Cannot be updated easily
A Model can be . . . .
Analysed
Reported on
Used to navigate through relationships
Used for simulation
Trigger workflows
Used to drive business process
management

Finding the Right Project
• Key characteristics of right project

− The process or project is related to a key business issue
− You have/can get customer input on the issue
− Management assigns this project a high priority
− Process owner and key stakeholders are defined
− The problem is stated as a target or need and NOT a solution
− The sponsor of this project can commit time and resources to this project
− The business process(es) will not be changed by another initiative at any
time in the near future
− Focus on:
• Which process is the most critical
• Which process contributes the most
− Ensure the benefits of an improvement project do not degrade over time

Critical Success Factors
• Linked to business strategies and goals

• Linked to customer value
• Ability to implement incremental value added change
• Ability to track results and measure success
• Ability to be aligned with the business

Successful Business Process Analysis, Design and
Implementation Projects Have
• Understood the Business Architecture — Business

Process, Metrics, Strategy and Goals
• Engaged stakeholders and defined process ownership
• Taken an iterative and incremental approach
• Tackled the right project at the right time
• Implemented internal and external standards and the
right level of governance
• Understood the role of information
• Incorporated process improvement
• Achieve business results with a series of small successes
Do Not Ignore Organisational Change
• Thefailure to manage the human side of business

changes is a major contributor to the reasons
programme, projects and initiatives fail
• Organisations
may not have the experience necessary
to manage the speed and complexity of the large-scale
changes
• Managers are all too frequently concerned with tactical,
operational issues and have not had the time to
consider organisational changes

Process Analysis within Service Orientation
• Process Driven Integration

− Services Based Integration
− Cut integration costs and reduce development
• New Business Initiatives
− Agility, Growth — New Products and Services
− Increased Delivery Channels
• Process Improvement
− Optimising business processes
− Straight Through Processing
• IT Regeneration
− Enterprise IT Architecture — Aligning more with Business
− Legacy Replacement
• Extending the Enterprise
− Partnering, B2B
Intelligent Use of BPM
• Help prioritising intelligent cuts: via a business process

architecture and a good process measurement system
• ProcessOptimisation: BPM teams can quickly examine
processes and suggest changes to eliminate waste
− Good BPM teams can almost always identify some quick
changes that will save 10-30%

Intelligent Use of BPM
• Reorganisations
− Changes in status also require that new processes and business
rules be implemented throughout the organisation
• Additional Regulation
− New regulations require new practices and new business rules

Service Orientation — Aligning IT with Business
Dynamic
Shareholder Value Customer Service Governance
Business
Drivers
Reduce Cost New Services New Channels Accountability Visibility
Automation of Support Business Efficient Better Business

Existing Requirements Delivery Of Information Requirements
Processes Faster New Services insight
Business
Processes
Standard Integration
Business Business Business Business Business
Service Service Service Service Service
of Services
Services Services Services Services Services

Reusable,
Standard Services
Static
IT Assets
Web Sites Legacy Systems Databases Core Applications Trading Partners
AR

Dynamic
Business
Drivers

Business
Processes
of Services

Reusable,
Standard Services
Mixed IT IT Assets
Static
Systems and Web Sites Legacy Systems Databases Core Applications Trading Partners
Applications AR

Business
Model
Dynamic
Business
Drivers

Business
Processes
of Services

Reusable,
Standard Services
IT Assets
Static
AR

Dynamic
Business
Drivers

Business /
Business
IT Gap Processes
of Services

Reusable,
Standard Services
IT Assets
Static
AR

Dynamic
Business
Drivers
Business
Processes Automation of Support Business Efficient Better Business
Bridges the Processes Faster New Services insight
Gap
Business
Processes
of Services

Reusable,
Standard Services
IT Assets
Static
AR

Dynamic
Business
Drivers
Business
Processes Automation of Support Business Efficient Better Business
Bridges the Processes Faster New Services insight
Gap
Business
Processes
of Services
Service
Reusable,
Oriented Services Services Services Services Services
Standard Services
Architecture
IT Assets
Static
AR

Dynamic
Business
Drivers

Business
Business
Process Processes
Management
of Services
Service
Reusable,
Standard Services
Architecture
IT Assets
Static
AR

Dynamic
Business Business
Drivers
Process Reduce Cost New Services New Channels Accountability Visibility
Improvement
Business Business
Processes
Process
Management
of Services
Service
Reusable,
Standard Services
Architecture
IT Assets
Static
AR

Connecting Business and IT
Dynamic
Business
Drivers
Business Automation of Support Business Efficient Better Business

Existing Requirements Delivery Of Information
Analysis Processes Faster New Services insight
Requirements
Business
Processes
SOA Layer Service Service Service Service Service
of Services

Reusable,
Standard Services
IT Assets
Static

Business Challenges
• Business is facing
− Global business competition
− Rapid innovation and fast-changing business requirements
− Regulatory compliance challenges
− Increasing cost pressures
• Technology’s typical response

− Slow delivery times
− High maintenance costs
− Brittle solutions
− Stove piped functional applications
− Redundant development efforts and operations
− Redundant and costly investment in multiple technical solutions
• Can technology be realigned to support the needs of business?

More Information
Alan McSweeney
alan@alanmcsweeney.com

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BPM Implementation -

Success Criteria and Best

• Business Process Management (BPM) is a method of

November 26, 2009 3

80 % More attention on process optimisation

November 26, 2009 5

• Having a single repository of

November 26, 2009 6

• Save money — Do things better with optimised processes

Business process outsourcing

November 26, 2009 7

Reduced process costs 10 - 15 %

Increased quality / reduced number of errors 20 - 30 %

Reduced process throughput times 10 - 30 %

Reduced training time / expenses 10 - 30 %

Reduced number of (internal) support requests 15-

Reduced number of customer complaints 20 - 30 %

Increased forecast accuracy 15 - 30 %

• Real benefits from BPM

• Major changes must start at the top

November 26, 2009 9

• Symptoms of Poor Business Process Management and

1. Lack of an integrated process for capturing the business

2. Techniques that are used are not consistently applied

3. We cannot/do not differentiate key stakeholders’ views and

4. We are working without a common language across

5. Inadequate root cause level business process analysis yields

November 26, 2009 11

1. Lack of an integrated process for capturing the business

2. Techniques that are used are not consistently applied

3. We cannot/do not differentiate key stakeholders’ views and

4. We are working without a common language across

5. Inadequate root cause level business process analysis yields

November 26, 2009 12

November 26, 2009 13

• Key characteristics of right project

November 26, 2009 14

• Linked to business strategies and goals

November 26, 2009 15

• Understood the Business Architecture — Business

• Thefailure to manage the human side of business

November 26, 2009 17

• Process Driven Integration

• Help prioritising intelligent cuts: via a business process

November 26, 2009 19

November 26, 2009 20

Automation of Support Business Efficient Better Business

Services Services Services Services Services

November 26, 2009 21

Automation of Support Business Efficient Better Business

Services Services Services Services Services

November 26, 2009 22

Automation of Support Business Efficient Better Business

Services Services Services Services Services

November 26, 2009 23

Automation of Support Business Efficient Better Business

Services Services Services Services Services

November 26, 2009 24

Services Services Services Services Services

November 26, 2009 25

November 26, 2009 26

Automation of Support Business Efficient Better Business

November 26, 2009 27