bpm case management global summit - building a bpm coe
DESCRIPTION
Overview of steps in developing a BPM CoETRANSCRIPT
© 2014 IBM Corporation
Climbing Mountains –
Implementing a BPM Center
of Excellence
Scott Simmons
Lead BPM Solution Architect
IBM Software Group
2 2 © 2014 IBM Corporation
3 Key Points for Discussion
• BPM projects are often challenged due to ‒ Limited business/IT collaboration
‒ Ineffective requirements gathering and scope creep
‒ Limited BPM expertise and methodology
• CoEs do not just happen – they require work and resources
• Method adoption is key for CoE – Agile BPM is fundamental for success
“Individually, we are one drop. Together, we are an ocean.”
Ryunosuke Satoro
3 3 © 2014 IBM Corporation
AGENDA
• Where Are You Going
• Building the Perfect Beast
• Beware of Falling Objects
4 4 © 2014 IBM Corporation
• Where Are You Going
• Building the Perfect Beast
• Beware of Falling Objects
5 5 © 2014 IBM Corporation
BPM in a Vacuum Does Not Work ...
Didn’t you read the business requirements …. Don’t you
understand that this solution does not match… grrrrr … IT techies!!
You business folks – you just don’t know what you want … first one thing …
and then something else … grrrrr … users!!!
6 6 © 2014 IBM Corporation
In My Work Establishing CoEs – I Get Asked …
• What is the difference between a CoE and
a CoC?
• We have a SOA CoE – can we just use that
as our BPM CoE?
• Will the CoE help with our Lean initiative?
• Business does not want to be involved –
can the CoE be strictly IT?
• CoEs might work in other organizations –
but how can it work here?
• Most of the time – I am the coach … the
teacher … the facilitator …
• BUT sometimes I am the “Terminator” ;-)
7 7 © 2014 IBM Corporation
Let’s First Establish – BPM CoEs Drive BPM Success
80% of the organizations with a COE report some degree of success with BPM
Source: 2009 BPM State of the Market Report, Transformation & Innovation
http://www.bpm.com/2009-bpm-state-of-the-market-report.html
8 8 © 2014 IBM Corporation
BPM Challenges e.g. Why BPM “Hits The Wall”
• Enterprise Competency and BPM Adoption ‒ Lack of coordination between organizational boundaries
‒ Duplication of resources across the organization
‒ Lack of critical mass of skills
• Business/IT Collaboration ‒ Lack of collaboration across Business and IT
‒ Difficulty with identifying process owners in the business
• Process Discovery and Project Coordination ‒ Poor communication of business intent and requirements
‒ Wrong project scope and/or scope creep
‒ Outcomes are not the expected or required ones
‒ Long delivery time
• BPM Methodology and Governance ‒ Waterfall-based development lifecycle
‒ Inconsistent BPM approaches across the organization
8
9 9 © 2014 IBM Corporation
What is a Center of Excellence?
Definition: Whatever you call them, a Center of Excellence (CoE) should, at a most basic level consist of: A team of people that promote collaboration and using best practices around a specific focus area to drive business results. This team could be staffed with full- or part-time members.
http://agileelements.wordpress.com/2008/10/29/what-is-a-center-of-excellence/
Jon Strickler Walter White OR
Heisenberg?
10 10 © 2014 IBM Corporation
Governance Prioritize initiatives & implement governance processes
Develop Skills Identify skill gaps & create development roadmaps
Process Optimization Analyze trends and alert process owners to situations that need attention
Promote Adoption Manage process standards to reduce project risk and accelerate delivery
Thought Leadership Set direction and vision for process management
Best Practices Capture, communicate and enforce best practices and methods
Center of
Excellence
But … What Does a BPM Center of Excellence Do?
THE ROLE OF THE CoE OFTEN DIFFERS BY ORGANIZATION
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IT-led Business-led
Centralized
Federated
BPM CoEs Depend on Organization and Culture
Business and IT Collaboration and Alignment is Key
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Key Responsibilities for a BPM CoE
• Enterprise Competency and BPM Adoption ‒ Provide coordination/consistency between organizational boundaries
‒ Central design clearinghouse e.g. leading practices, technical future, resources
‒ Manage BPM Adoption and Training
• Business/IT Collaboration ‒ Ensure communication/collaboration between groups
‒ Technical AND business leadership for BPM initiatives
• Process Discovery and Project Coordination ‒ Support BPM project prioritization and scope
‒ Manage expectations and outcomes
‒ Optimize Time-to-Market for new BPM applications
• BPM Methodology and Governance ‒ Provide Agile BPM as a consistent approach to BPM delivery
‒ Establish consistent BPM governance and reuse approach
‒ Manage/conduct Design Reviews
‒ Support for multiple styles of BPM e.g. CASE, STP, Content
‒ Support for key BPM capabilities e.g. Cloud, BAM, Social, Mobile
13 13 © 2014 IBM Corporation
• Where Are You Going
• Building the Perfect Beast
• Beware of Falling Objects
14 14 © 2014 IBM Corporation
BPM CoE Goals Vary By Organization
Support Demand Generation via BPM adoption
Support for Business Transformation programs
Enable enterprise BPM governance
Support Demand Fulfillment – Projects
prioritization and completion (time/budget)
Provide a shared infrastructure for business
Support an approach which fosters re-use
Provide specialized skills/resources
Many options … up to you to decide …
15 15 © 2014 IBM Corporation
Core BPM CoE Components
Charter/Mission
Organization and Executive Sponsorship
Relationships with organizations
Other CoEs, governance teams, etc.
Re-use of existing practices and models
BPM Governance Policy/Enforcement
Prioritization of projects
Taking business strategy into account
Includes understanding of technical risks
Communication
Additional Considerations
Evangelism
Methodology and Open Standards
Reuse of assets such as style guides
Measurement – metrics, timers, KPIs
Open Standards e.g. CMIS, BPMN, BPEL
Consultancy
Accelerate BPM projects and adoption
Consistency across BPM domains
Currency
Keeping up with latest trends, product
announcements, etc.
The Anatomy of a BPM CoE
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Number of continuous improvement projects
ROA - % of asset (process) reuse
Baseline client satisfaction
% variance of budget and schedule
Number of processes captured
% of redundancy eliminated
% of manual work automated
Reduction of policy exceptions
Mission
Act as central point for BPM work across enterprise
Set and govern end-to-end method policies and
procedures
Support taskforces in cross divisional
collaboration/convergence initiatives
Champion innovation which support BPM strategies
Manage BPM communication
Establish rules of engagement across lines of
businesses and follow formalized engagement
process including how to manage exceptions
Conduct periodic and ad-hoc project audits & status
and monthly sponsor checkpoints
Follow formalized communication process
Conduct user group meetings
Track and manage approved initiatives in a pipeline
and prioritize projects based on stakeholder priorities
Conduct annual budget plan
Operating Principles
Success Measurements
Support users, best practices, issues; validate models
Recognize BPM opportunities to inject into cross
divisional collaboration/convergence efforts
Conduct education across the enterprise
Scope: enterprise-wide, cross-divisional collaboration
efforts
BPM Project roadmap and dashboard
BPM Governance Methodology
BPM Development Methodology
Reusable BPM assets
SME Contacts, Reference Examples
Best Practice Solutions, Perform Guides / Project
Workbooks
Custom Tools to Assist and Automate
Services, Scope, Deliverables
Critical First Step – Developing the BPM CoE Charter
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CoE Staffing 1
7
2. Plan, Prioritize &
Evangelize
3. Build Leverage &
Reuse
4. Deliver Solutions
5. Build & Manage
Infrastructure
Solution and Transformation Teams
Solution B Solution C
Platform / Infrastructure Team
Solution A
Steering Committee
CoE Governance
Discipline Authorities
…
• Expand and Scale
• Manage and Tune
• Implement Infrastructure
• Monitor Usage
• Senior Sponsorship
• Set Direction
• Enterprise Process Roadmap
• Prioritize Opportunities
• Manage Talent Plan
• Standardize Designs
• Identify Reuse Potential
• Release Scoping and Definition
• Build and Test
• Deployment and Support
• Establish Funding Model
• Escalation Endpoint
• Standardize Methods
• Drive Consistent Metrics
• Evangelize Process & BPM
• Oversee Execution
• Ensure Solution Robustness
• Solution Risk Management
• Communication & Training
• Measurement & Optimization
1. Align Direction &
Funding
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Riyadh Bank CoE Organization
From IBM IMPACT 2014 – April 2014
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1 to 3 Weeks
Enabling An Agile BPM Methodology: Iterative Playbacks
8 to 10 Weeks 2 to 3
Weeks
1 to 2
Weeks
Test Go
Live Development
Infrastructure
Training/ Mentoring
Definition
How many playbacks … how frequently … what are criteria …. This will vary by organization and process --- but having a representative structure is the key –
Often you will iterate over a given playback a number of times
20 20 © 2014 IBM Corporation
Project Identification and Design Approach
• A key focus of BPM CoEs should be in the BPM project selection/design
• Organizations need an established approach for project identification
and initial process design with key stakeholders
• Process Discovery provides a foundation to drive requirements and
increase the success of the BPM initiatives
21 21 © 2014 IBM Corporation
Process Discovery
Process Discovery enables “business stakeholders” direct
involvement in BPM design – decreasing time-to-market through
better requirement and process definition and increasing the quality
and business acceptance of BPM solutions
Process Discovery provides linkage to Lean Six Sigma Initiatives
22 22 © 2014 IBM Corporation
1. Understand the
Current Environment
2. Define the CoE
Mission and Vision
3. Define CoE Roles, Responsibilities and Mechanisms
9. Get Approval of
Sponsor and Stakeholders
5. Identify CoE
Mentoring and Educational Needs
4. Map Resources
and Mechanisms to CoE Roles
8. Create Transition
Plan
7. Define Education
and Mentoring Plans
6. Identify CoE Processes
Inputs
BPM Roadmap
Current Organization
Assessment
Current IT Environment
Current Organization
Description
Organization Design
Job Roles, Responsibilities,
and Competencies
Outputs
CoE Mission , Vision & Scope
CoE Operating Principles
CoE Transition Plan
CoE Job Roles,
Responsibilities
Governance Operating Model
Governance Processes and
Delegation hierarchy
Governance dispute resolution
mechanism
CoE Organizational Design
CoE Education Plan
CoE Mentoring Plan
Demand management process
Decision criteria
CoE Metrics and
Measurements
Establishing a BPM Center of Excellence
23 23 © 2014 IBM Corporation
Leading Practices for BPM Project Management
• Design Reviews should be ongoing and provide
consensus and steps for optimization
• Executive Sponsorship is critical to success
• Involve business stakeholders from the onset –
collaboration/alignment is mandatory for success
• Process discovery is critical – without a clear
direction, success cannot be achieved
• Define and document project scope to ensure
alignment and expectation management
• Practice “Agile BPM” e.g. “Blueprinting”, Process
Discovery, “Playbacks”, Discovery Workshops
24 24 © 2014 IBM Corporation
CoE Monitoring is Often Overlooked 2
4
Resource Efficiency
Reduce the gap between
Business and IT
Customer Satisfaction
IT ability to respond to business
quicker / more accurately
IT to add value to solution
Quality of Delivery
Accuracy of Delivery
Decision making confidence
Strengthen relationship between
IT and Business
Operational Efficiency
Alignment of Business Processes
Reduction in time to market
Increased business value
Business confidence in solution
/technology
Accuracy of process and data
Consistency of process and data
Project development on track
Strengthen relationship between
IT and Business
Reduction in hardware / software
costs
Increase in % of user education
(Business, Developers,
Administrators)
Reduction in “bug fixes”
Reduction in overall support calls
Reduction in time to close calls
# of project completed in less
time / with less resources
Reduction in development costs
and cycle times
Increased # of business assets
Increased # of artifacts reused
CoEs are like BPM – you cannot manage it if you cannot measure it
What are the measurements of success to maintain Management support?
Key to define tangible/measurable metrics for CoE ROI and define in Charter
Intangible Tangible
25 25 © 2014 IBM Corporation
• Where Are You Going
• Building the Perfect Beast
• Beware of Falling Objects
26 26 © 2014 IBM Corporation
Un
iqu
e v
alu
e r
ea
lize
d
1 2 Identify a Project
Extend Initial Project
into a Program 3 Transform by
Integrating Capabilities
Across the Enterprise
Process Transformation
Continuous Process Improvement Across the
Enterprise
Simulate Process Models to Optimize
Process Flow
Value realized
• Develop automated capabilities for
processes and decisions
• Leverage proven methodologies to
implement process and/or decision
automation
• Scale on initial project success
• Extend automation with greater integration
across the enterprise
• Further optimize decisions with situational
context from business events
• Provide detailed visibility into running
processes with configurable dashboards
• Identify opportunities to improve
processes
• Identify opportunities to improve
decision making
• Develop a roadmap for BPM
transformation
• Develop a roadmap for BRMS
transformation
• Identify skills, tools, and, standards
gaps within the organization
• Automate simple processes
Discover & Document a Current Business
Process
Document Policies and Automate Decision Logic
Monitor Process KPIs to Optimize
Effectiveness
Track Process Steps in Real Time
Establish a Center of Excellence Build a Skills
Development Program
Consolidate Governance Activities
Automate Manual Activity Flows
Moving from BPM Project to BPM Adoption
27 27 © 2014 IBM Corporation
Typical Barriers to BPM CoE Success 2
7 People
Competing priorities, silos of activity
Lack of demonstrated ROI
Business demand exceeds IT supply
Pockets of expertise
IT becomes a bottleneck
Lack of time, budget, resources
Data, Technology & Infrastructure
Perceived to be difficult to use, hard to learn
Response times do not meet expectations
Inconsistent meta data, data definitions, security
Silos of data, poor integration
Structured data vs unstructured data
Many different tools, expensive to support/license
Process
Best practices not shared, accessible
Poor/inconsistent methodologies/standards
Lack of adequate skills
Projects not aligned with goals & strategy
Compliance issues, governance, risk
Culture
Lack of senior management commitment
Communication gap between IT and LOB
Process ownership conflicts
Funding Model
Resistance to change
Lack of accountability & ownership for KPIs
28 28 © 2014 IBM Corporation
Summary
• Enterprise BPM requires an top-down
organizational strategy
• Key Guiding Principles for a CoE ‒ C-Level Commitment is critical
‒ Foster/mandate business/IT alignment
‒ Focus on requirements gathering and an
Agile BPM Methodology
‒ Understand CoEs do not just happen
‒ Involve your key vendors – BPM, SOA,
Database, Application etc
• Steps for action ‒ Assess current state
‒ Determine “where you want to be”
‒ Define a plan for the CoE
‒ Execute the plan prudently
‒ Measure, evaluate and evolve
• Work as a Team to achieve Success
29 29 © 2014 IBM Corporation
Questions?
30 30 © 2014 IBM Corporation
References
• Evaluating BPM applications: BPM design reviews and Rubik's Cubes http://www.ibm.com/developerworks/bpm/bpmjournal/1302_col_simmons/1302_col_simmons.html
• Synchronicity: An agile approach to business process management http://www.ibm.com/developerworks/websphere/bpmjournal/1202_col_simmons/1202_simmons.html
• Successful BPM takes a true team-oriented approach http://www.ibm.com/developerworks/websphere/techjournal/1108_col_simmons/1108_col_simmons.html
• SOA governance and the prevention of service-oriented anarchy http://www.ibm.com/developerworks/websphere/techjournal/0609_col_simmons/0609_col_simmons.html
• Scaling BPM Adoption: From Project to Program with IBM Business Process Manager http://www.redbooks.ibm.com/abstracts/sg247973.html
• Creating a BPM Center of Excellence http://www.redbooks.ibm.com/abstracts/redp4898.html?Open