guidelines for the success of a business process ...€¦ · transition towards a process centric...
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Guidelines for the Success of a Business Process
Management Initiative
June 8th 2012
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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
Business Process Management Lifecycle
Business Process Management Lifecycle
SAP – Process Management Lifecycle:
IBM
Oracle
Simple Truth:
BPM Lifecycle
Analyze
Design
Implement Measure
Improve
Business Process Management Lifecycle
Making change sustainable
Transition towards a Process Centric Organization
Processes
Industrial/Information Age Customer Age
Doing things right Doing the right things and doing
things right
Manufacturing mindset Customer Experience
Tasks/Activities and
Outputs Outcomes and SCO's
Stocks Flows
Products Services
Left to Right, Top to
Bottom Customer Centric
Steve Towers - Overview on the shift in focus [email protected]
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)
Transition towards a Process Centric Organization
Identify Inefficiencies
Process Awareness
Process Management
Align BPM to Strategic Goals
Process Centric Organization
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
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
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
Business Process Governance
Business Process Governance
• Accountability Framework
• Policies & Procedures
• Practices & Standards
• Performance & Compliance
What is Business Process Governance?
Policies & Procedures
• BPM Methodology
• BPM Policies
• BPM Procedures
Practices & Standards
• Process design
• Artefacts & Templates
Accountability Framework
• Roles, responsibilities and
decision-making authority
Performance & Compliance
• Performance Reporting
• Enforcing compliance
Role of the Process Owner
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.
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
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
Transitioning the Workforce
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
Workforce Transition Activities
Recruitment and Retention
Competency Assessments
Roles and Responsibilities
Employee Readiness Sessions
Employee Deployment
Performance Measurement
Organization Architecture
Role of the Change Leader/ Agent
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
Required Competencies for Change Leaders & Change Agents
25
Executive Champions
(Change Leaders)
• Inspire
• Encourages and leads
• Authority
• Access
• Leadership Experience
• Experience leading strategic change initiative
• Exposure to large scale transformation
• Knowledge of stakeholder engagement principles
Change Agents
• Collaborative Approach
• Established Internal Network
• Respected among peers
• Good people skills
• Working Knowledge of Processes
• Team Spirit
• Close Relationships
• Clear Communication
• 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
Prerequisites Required Competencies
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
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
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
Measuring Process Performance
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
Key considerations
Key considerations & actions Roles and Responsibilities
• 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
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 ?
KPI Types - examples
Focus areas Candidate Measures
Financial
• Cost, cost categories and cost ratios • Revenues, revenue segmentation (industry, size, tax type etc.) • Asset values • Financial ratios
Customer Focus
• Satisfaction (ratings, focus groups etc.) • Problem reports (complaints, advice requests) • Support process measurement (turnaround time, waiting time,
right first time)
Internal business processes
• Process unit Quantity / Quality /Costs • Resource utilization • Service quality and ‘defect’ rates • Process ratios
Human Resources • Average organization and task experience • Education and qualification levels • Staff satisfaction / turnover
Developing sound BPM policies
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
Policies, Business Rules and Standard Operating
Procedures
Relationship between Policy, Business Rules and SOPs
Legislation
Policy
Business Rules
Standard Operating Procedure (SOP)
Post Implementation / Initiative Evaluation
Focus area Candidate Questions
Financial • How much did the initiative cost? • What financial benefits achieved/burdens removed? • Impact on Asset Utilization
Customer Focus • Improved client satisfaction? • Effect on the client’s cost of compliance? • Increase/decrease cost of client transactions & support?
Internal business processes
• 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?
Human Resources • Improved workforce capability? • Increased employee satisfaction? • Enhanced utility of internal resources?
Questions?