Business Process’s Blue Print Pertemuan 3

Matakuliah : M0734-Business Process ReengineringTahun : 2010

BPM Foundation Phase

BPM Foundation Phase :Why ?How ?OutputsRisks

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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

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How ?

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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 informationwill be shared and how often, and details of opportunities for peopleto 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

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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 providean excellent overview of how the business is conducted

• Discuss with the IT department to provide a high level overview of how thebusiness 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

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 ofprocess 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 organizationmay not survive in its current form; or, there needs to be a substantial increase in the levelof customer service; or, there needs to be a significant reduction in the cost model orincrease in quality ?• Can change – the maturity of the organization is such that managers now understand thatit can change and, perhaps, for the first time, know how to achieve change successfullyon a repeatable scale

Does the Organization :

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Step 3 : Workshop : Scope

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Step 3 : Workshop : Goals

SMART : Specific, Measurable, Achievable, Realistic and Time-related10

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 Checklist Responsibility

Deliver the project on time and on budget X X

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

X X

Staff are excited and understand the way forward X

Quick wins in the processes are identified and implemented along the way

X

Project Business

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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

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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 thatwill add value to the organization

Step 3 : Workshop : Business Processes

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Process Selection Matrix (PSM)

Step 3 : Workshop : Business Processes

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Process Worth Matrix (PWM)

Step 4 : Business Case

• At the start of the project, it will provide the information to allow adecision regarding whether to approve and fund the proposed project• During the project, it will provide guidance to ensure that the project is stillon track• After the project, it will enable the business and project team to evaluatewhether the project has delivered the expected results (benefits) andcontributed to the specified objectives, within the agreed budget andtimeframe

Three Main Functions of a Business Case

It includes

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• an Economic Value Add (EVA) analysis• Internal proposal preparation• Documentation of any non-quantifiable operational costs, benefits, andEVAs, and examination of the risks of each• Present pros and cons of the various options• Use scenarios and performance evaluation criteria

Step 5 : Project Team

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Infrastructure & ArchitectureFacilities Management CoordinationQuality ManagementHuman ResourcesPeople Change Management

Step 6 : Initial Project Plan

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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

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

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RisksRisks 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 scope The 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 funding Refer to the Project Sponsor for further funding or stopping of the project until funding is available

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