process day 2010 - elogroup – apresentação no process day

“Leadership on BPM ideas, methods and results in Brazil”

A Framework for a BPM Center A Framework for a BPM Center ofofExcellenceExcellencece e cece e ce

Leonardo Leonardo ProcessDaysProcessDays –– July26th 2010July26th 2010

Leandro JesusLeandro JesusManagingManaging PartnerPartner ELO Group ELO GroupManagingManaging PartnerPartner, ELO Group, ELO Group

AboutAbout the speakerthe speaker

Leandro Jesus, MSc.

• Managing Partner ELO Group consultingManaging Partner ELO Group consulting

• Auxiliary Professor Federal University of Rio de Janeiro

• Vice‐President ‐ Association of Business Process Management Professionals (ABPMP) Chapter Brazil;

• Curriculum vitae: h // li k di /i /l d jhttp://www.linkedin.com/in/leandrojesus

• E‐mail: [email protected]

© ELO Group all rights reserved.22

About ELO Group

ELO Group is a Brazilian consulting enterprise focused in Business Process Management and Governance, Risk and Compliance solutions. g , p

Founded in COPPE’s Technological and Industrial Cluster, at Federal University of Rio de Janeiro, one of the most advanced Research and Development Centers in Latin America.

Counts on a group of professionals with solid Academic Formation and experiences through relevant Academic Institutions in Brazil USA and experiences through relevant Academic Institutions in Brazil , USA and Europe

International Cooperation with BPTrends, Queensland University ofInternational Cooperation with BPTrends, Queensland University ofTechnology and Leonardo Consulting

Organizer of the Brazilian International BPM Seminar


Our Clients Portfolio

Conselho da Justiça Federal


Our Values

Strong academic links, allowing ELO Group to bring to the market the state of the art in management solutions and best practices;

Focus on collaborative development of customized organizational solutions;

Always strive for solutions that are innovative, long lasting and that leverage organization performance;

Constant know‐how transfer to our clients;

Internal work logic focused on dynamic specialization among professionals with high specialization in different knowledge areas;

Ethics, agility and adaptability throughout the service provisioning cycle;

Learning and continuous improvement

© ELO Group all rights reserved.

Learning and continuous improvement.

55

Food for thought…

What people usually ask us about BPM CoEs:

• Where should a Center of Excellence be placed within the organization? Whom it should report to?

• Which are the responsibilities that should be centralizedpinto a BPM CoE and which responsibilities can remaindecentralized?

• How do these responsibilities change over time?

• How to evaluate a a BPM CoE’s effectiveness?How to evaluate a a BPM CoE s effectiveness?


INTRODUCTION CHALLENGES FACING INTRODUCTION: CHALLENGES FACING MODERN ORGANIZATIONS

BPM GOVERNANCE AND THE NEED FOR A CENTER OF EXCELLENCE

BPM CENTER OF EXCELLENCE MAIN CHARACTERISTICS

BPM CoE FRAMEWORK – HISTORY AND GENERAL VIEW

BEYOND BPM CoE – OTHER ROLES AND RESPONSIBILITIESRESPONSIBILITIES

The old way to manage…

Organizations are facing the 21st century environment but still adopt management practices that were built considering the 20th century.

Previous organizational focus:S l• Scale

• Efficiencyi h d l• Hierarchy and control

© ELO Group all rights reserved88

... and some implications


Source: Compliance Week, December, 200699

Rules are changing...

Most demanding customersg

Global competition

Focus on individuals, knowledge and innovation Focus on individuals, knowledge and innovation

Greater complexity and uncertainty (risk) in operations

Need for more flexibility and agility


Need for more flexibility and agility

Intensive use of IT in business1010

New Paradigm for the 21st Century

Old organization’s paradigm Emergent organization’s paradigm

STABILITY DYNAMISMFLEXIBILITY

CENTRALIZATION COOPERATIONCENTRALIZATION COOPERATION

CONTROL AUTONOMY

COMMODITIES AND PROPERTY

SERVICESAND EXPERIENCES


AND PROPERTY AND EXPERIENCES

1111

New Paradigm for the 21st Century

© ELO Group all rights reserved.Source: http://www.slideshare.net/reynolds/web-20-business-models-presentation

Be prepared to changes…


... And treat them appropriately

According to McMinsey’s survey, only a third of respondents said their organizations have had success in making changes with greater impact! (McKinsey, 2008);

Researches shows that 82% of organizations are developing some form of change initiative, that 70% of these initiatives failand 68% of these organizations don’t evaluate the success of these initiatives (Kottler, Harvard Business Review …);

Most of strategies haven’t failed because they were poorly conceived, but because they were poorly implemented (Norton & Kaplan).


How do you transforman organization ?...

BETTERBETTERATITUDES &

COMPETENCES

BETTERINTERFACES,ALIGNMENTS

ACCOUNTABILITIES

BETTERSYSTEMS

“SIMPLER” &INNOVATIVE

SERVICES

BETTER

SERVICES

CONTRACTS& PARTNERS

BETTERCONTROL &VISIBILITY

BETTERPOLICIES, BUSINESSRULES &

STANDARDS

BETTEREQUIPMENTS &

INFRA-STRUCTURE

© ELO Group all rights reserved

STANDARDS INFRA STRUCTURE

1515

Which areas providethese transformations ?

BETTERBETTERATITUDES &

COMPETENCES

BETTERINTERFACES,ALIGNMENTS

ACCOUNTABILITIES

Human Human ResourcesResources &&CommunicationCommunication

StrategyStrategy

BETTERSYSTEMS


SERVICES

InformationInformationTechnologyTechnology

CustomerCustomer &&ProductProductManagementManagement

BETTER

SERVICESgygy

ContractContract IT & IT & RiskRisk

ManagementManagement

CONTRACTS& PARTNERS


ContractContractManagementManagement

IT & IT & RiskRiskManagementManagement

BETTERPOLICIES, BUSINESSRULES &

STANDARDS

BETTEREQUIPMENTS &

INFRA-STRUCTURE

ComplianceCompliance &&Standards Standards

AssetsAssetsManagementManagement


STANDARDS INFRA STRUCTURE

1616

So... why do you need business process management ?

If business process management:Doesn’t develop systems (except for BPMSs)Doesn t develop systems (except for BPMSs)Doesn’t manage competencesD ’ i Doesn’t review contractsDoesn’t design new productsDoesn’t create dashboardsDoesn’t project layout

If h t HR IT Ri k

p j y

If we have mature HR, IT, Risk Management, process do we really

need Business Process Management ??


Think again...What’s the big issue ?

BETTER

1) 1) ProvideProvide educationeducation oror2) 2) IdentifyIdentify keykey competencescompetences

BETTERATITUDES &

COMPETENCES

BETTERINTERFACES,

ALIGMENTSACCOUNTABILITIES

2) 2) IdentifyIdentify keykey competencescompetencesThatThat enhaceenhace thethe impactimpact

OfOf business business resultsresults

BETTERSYSTEMS


SERVICES

1) 1) DevelopDevelop systemsystemoror 2) 2) UnderstandUnderstand

BusinessBusiness

BETTER

SERVICESrequirementsrequirements

1) 1) CreateCreate dashboarddashboardoror 2) Design 2) Design MetricsMetrics

CONTRACTS& PARTNERS


) g) gandand controlscontrols toto

effectiveeffective SupportSupportdecisiondecision makingmaking

1) 1) InstitutionalizeInstitutionalize andandBETTER

POLICIES, BUSINESSRULES &

STANDARDS

BETTEREQUIPMENTS &

INFRA-STRUCTURE

1) 1) InstitutionalizeInstitutionalize andandFormalize businessFormalize business

GuidelinesGuidelines, , oror 2) Debate2) Debateandand reachreach agreementagreement withwith


STANDARDS INFRA STRUCTUREbusiness business areasareas aboutabout rulesrules

1818

Organizations need better TransformationCapability to convert good ideas into process

redesign and implementation

1) 1) ProvideProvide educationeducation oror2) 2) IdentifyIdentify keykey competencescompetences2) 2) IdentifyIdentify keykey competencescompetences

ThatThat enhaceenhace thethe impactimpactOfOf business business resultsresults

1) 1) DevelopDevelop systemsystemoror 2) 2) UnderstandUnderstand

BusinessBusinessrequirementsrequirements

1) 1) CreateCreate dashboarddashboardoror 2) Design 2) Design MetricsMetrics) g) g

andand controlscontrols totoeffectiveeffective SupportSupportdecisiondecision makingmaking

1) 1) InstitutionalizeInstitutionalize andand1) 1) InstitutionalizeInstitutionalize andandFormalize businessFormalize business

GuidelinesGuidelines, , oror 2) Debate2) Debateandand reachreach agreementagreement withwith


business business areasareas aboutabout rulesrules

1919

What about your BPM approach? Is it Transformation Oriented?


A traditional BPM approach

Several BPM techniques used today were Several BPM techniques used today were designed for the “old paradigm”


Objective of traditional BPM approaches

Aumento dafi bilid d

Reduce variabilityand increase

bilit confiabilidadeorganizacionalreability

Foco ComumAvanço no

desempenhoorganizacional Improve

performanceMudança da Expectativa do Consumidor

performance around the currentparadigm!

© ELO Group all rights reservedDesempenho

EsperadoDesempenho

Atual

p g

2222

What we currently see

Organizations are investing in many BPM initiatives but many of them lack a clear focus

Many times results are not reached. When they are, they are not clearly communicated

BPM initiatives with different purposes are conducted in an isolated way inside an

g i tiorganization

S ti BPM di i li till l k Sometimes BPM as a discipline still lacks a natural home and official identity


The focus of BPM application should move pptowards the transformation of the

organization through the implementation oforganization through the implementation ofsignificant improvements and sustainable

changeschanges


Some challenges for an effective transformation based on BPM

Understand processes as relevant assets to be

managed

Create a BPM identity and disseminate its benefits

Gain sponsorship on BPM initiatives

Create alignment among transformation efforts

l hDemonstrate results with BPM initiatives!






BEYOND BPM CoE – OTHER ROLES AND RESPONSIBILITIESRESPONSIBILITIES

BPM Governance

BPM Governance relates to the definition and enforcement of guidelines and rules that drive activities and decisions galong the process lifecycle, as well as the consequent definition of responsibilities and accountabilities for BPM

i j d l lactions on project and program management level

Effective BPM Governance has to reinforce the strategic alignment among process management activities and business priorities, clearly define and enforce the accountabilities of each involved stakeholder and avoid redundancies related to BPM initiativesredundancies related to BPM initiatives.


Many focus for BPM initiatives and lack of convergence


Source: BPTrends, 2010

Need for BPM Governance

NewOrganizational

Context

Organizations

BPM initiativesevolution

BPM ProblemsProblems BPM ProblemsProblems

BPM Governance


Source: Barros, 20092929

Elements related to BPM Governance

1. Roles and Responsibilities

2. Standards 4. Services3. Structure

GOVERNANCEMODEL

6. Objectives5. ControlMechanisms

7. Evaluation andReward Mechanisms


Source: Barros, 20093030





BEYOND BPM CoE – OTHER ROLES AND RESPONSIBILITIES


RESPONSIBILITIES

Need for a BPM Need for a BPM CoECoE

A BPM Center of Excellence is an important organizational p gmechanism that has been widely adopted by enterprises aiming at institutionalizing BPM initiatives and perpetuating its benefits throughout the organization in a more centralized approach.


Need for a BPM CoE

Research with 91 national organizations found that many (49%) do not have yet a formal as the “owner of the BPM initiatives”, for example a Process Office

Source: ELO Group & iProcess , 2009

Similar research shows that only 20% among the largest gl b l i d t h BPM G Thi global companies do not possess such BPM Group. This shows the establishment of BPM Groups as a global trend.



Some NomenclaturesSome Nomenclatures

Process Office

BPM Center of Excellence

Process Team

BPM GroupBPM Group

BPM Support Officepp

Etc.


Location of a BPM CoE



Typical rolesTypical roles

1. Internal Consulting: 1. Internal Consulting: • Performs (or provides support to) BPM services within the

organizationorganization

2. Knowledge Provider:• Assures process knowledge dissemination and reinforces a

process‐oriented culture within the organization

3. Standards Guardian:• Assures process management standards are being followed Assures process management standards are being followed

throughout the organization


Detailing some typical rolesDetailing some typical roles

Guardian of the process management methodologies (standards, rules, performance measures, etc…);, p , );

Management of BPM projects activities (modeling, analysis, improvements implementation, evaluation of results);p p , );

Training on business process management best practices;

Consolidation of records &documentation evaluation and Consolidation of records &documentation, evaluation and dissemination of best practice and lessons learned;

Support process owners to monitor and evaluate processes;Support process owners to monitor and evaluate processes;

Delivering on the dialogue process between process owners and senior managementsenior management.


Previous list of Previous list of BPM servicesBPM services


Source: Rosemann, 20083838

Results Results ‐‐ EvidenceEvidence








RESPONSIBILITIES

Introduction

With the objective of bringing a structured and detailed reference, ELO Group has developed a Framework for the Operation of a BPM CoE.

This reference framework is based in a wide theoretical e practical research. Best practices from several references and case studies were combined, generating this rich instrument in order to support organizations in implementing and

ti g BPM C Eoperating a BPM CoE.


BPM Services and Internal Processes

Management Process

Main Services

Complementary ServicesServices

BPM technologies

Support processespp p


Internal Processes

Management Processes: The set of processes related to the management of a BPM Center of Excellence internal activities. It includes the translation of strategic and operational demands into includes the translation of strategic and operational demands into BPM services, the analysis, configuration and monitoring of BPM services; the evaluation of results generated by BPM services and the communication and dissemination of BPM culture throughout the organization.

Support Processes: The set of processes that supports the operation of the Center of Excellence It includes the creation and maintenance of the Center of Excellence. It includes the creation and maintenance of methods for all activities within the process lifecycle, establishment of BPM related roles and responsibilities, administration of the BPM

f l d f h hservices portfolio, administration of BPM human resources, charging and funding.


BPM Services

Main Services: These services are central to the implementation of the BPM approach and are the usual responsibilities of a BPM Center of Excellence This set includes services like process modeling process Excellence. This set includes services like process modeling, process improvement and design, process change management, process performance management and process management education/training.

Complementary Services: Services that may not be the direct responsibilities of a BPM Center of Excellence, but are still related to the BPM discipline and its methods and tools This set of services the BPM discipline and its methods and tools. This set of services includes for example process auditing, risk and internal control management, process forensics, systems design, etc.


BPM CoE’s Capabilities Evolution

3. StrategicAlignment and BPM culture

2. Creation of convergence among BPM

initiativesinitiatives

1. Difusion of BPM concepts and benefits


BPM BPM CoE’sCoE’s CapabilitiesCapabilities EvolutionEvolution

The definition of processes and services associated with each stage was built from two surveys of BPM initiatives undertaken by ELO Group with over 150 organizations, and revised with Prof. Michael Rosemann;

It is recommended the adoption of this Framework and customization for each organization The specificity of each customization for each organization. The specificity of each organization as well as its history of initiatives is crucial to define the optimal portfolio of processes and services to be offered by the Office over timethe Office over time.


Capabilities for a BPM CoE (1/3)


MANAGEMENT PROCESSESMANAGEMENT PROCESSES

MP07 MP07 BPM Culture BPM Culture MP07 MP07 BPM Culture BPM Culture DisseminationDisseminationDisseminationDissemination

COMPLEMENTARY SERVICESCOMPLEMENTARY SERVICESMAIN SERVICESMAIN SERVICES

MS01MS01 Process ArchitectureProcess ArchitectureMaintenanceMaintenance

MS02 MS02 Process ModelingProcess Modeling(As(As--is)is)

CS01 CS01 Lean & Six Sigma Lean & Six Sigma Oriented ImprovementOriented Improvement

(As(As is)is)

MS03MS03 ProcessProcess Improvement Improvement (To(To--be)be)

MS04MS04 Process Process MS04MS04 Process Process DocumentationDocumentation

MS05MS05 Process Change Process Change ManagementManagement

SP01SP01AdministrationAdministration of of M d l R iM d l R i

SP01SP01AdministrationAdministration of of M d l R iM d l R i

SP02 SP02 AdministrationAdministrationofof BPM RolesBPM Roles andandR ibilitiR ibiliti


SUPPORTING PROCESSESSUPPORTING PROCESSES

Models RepositoryModels RepositoryModels RepositoryModels Repository ResponsibilitiesResponsibilitiesResponsibilitiesResponsibilities

48

Stage 1 Processes and ServicesCode Name Type DescriptionMS01 Process

Architecture Maintenance

Main Service

Definition and/or updating of the organization's value chain andbusiness process architecture that illustrate its mission, visionand main attributions. Dissemination of process-based visionth o gho t the o gani ationthroughout the organization

MS02 Process Modeling (AS IS)

Main Service

Modeling and/or updating of the way work is performed. Modelsusually include activities and events, responsibilities, relatedsystems and documents and are displayed in notations likeBPMN EPC IDEF It can also include identification ofBPMN, EPC, IDEF. It can also include identification ofimprovement opportunities.

MS03 Process Improvement (TO BE)

Main Service

Redesign of existing processes based on the analysis ofimprovement opportunities and prioritization of identifiedsolutions. It can also refer to the design of a new process.

MS04 Process Documentation

Main Service

Creation and/or updating of procedures and manuals that detailprocesses models and can serve as a basis for work execution.

MS05 Process Change Management

Main Service

Definition of an action plan to incorporate improvements inexisting processes Tracking of action plan's status intermediateManagement Service existing processes. Tracking of action plan s status, intermediateresults and difficulties.

CS01 Lean & Six Sigma Oriented Improvement

Complem. Service

Improvement initiative focused on process efficiency andproductivity increases, mainly based on Lean & Six Sigmatechniques.

SP01 Models Repository Administration

Support Process

Creation and/or maintenance of BPM methodologies e modelingnotation. Administration of models repository (backups, acesscontrol etc.)

SP02 Administration Support Definition and/or updating of information related to each of the


SP02 Administration of BPM Rolesand Responsibilities

Support Process

Definition and/or updating of information related to each of theBPM roles and responsibilities (process owners, analysts,specialists, sponsors etc.), according to the organization'sprocess management model.


MP07 MP07 BPM Culture BPM Culture MP07 MP07 BPM Culture BPM Culture

MP04MP04 BPM BPM ServicesServicesProgrammingProgramming


MP05 MP05 BPM Services BPM Services MonitoringMonitoring


DisseminationDisseminationDisseminationDissemination


MS01MS01 Process ArchitectureProcess ArchitectureMaintenanceMaintenanceMS01MS01 Process ArchitectureProcess ArchitectureMaintenanceMaintenance

MS02 MS02 Process ModelingProcess Modeling(As(As--is)is)MS02 MS02 Process ModelingProcess Modeling(As(As--is)is)

CS01 CS01 LeanLean & & SixSix Sigma Sigma OrientedOriented ImprovementImprovement

MS06MS06 Process Performance Process Performance MeasurementMeasurement

MS07MS07 Process Management Process Management Training and EducationTraining and Education

CS02 CS02 ReferenceReference ModelsModelsImplementationImplementation

CS06CS06 Process AuditingProcess Auditing

CS07CS07 RiskRisk andand InternalInternalControlControl ManagementManagement(As(As is)is)(As(As is)is)

MS03MS03 ProcessProcess Improvement Improvement (To(To--be)be)MS03MS03 ProcessProcess Improvement Improvement (To(To--be)be)

MS04MS04 Process Process MS04MS04 Process Process

Training and EducationTraining and Education

MS08MS08 Process ComplianceProcess ComplianceCS03CS03 Systems Systems SpecificationSpecification

CS08CS08 CompetenciesCompetenciesManagementManagement

CS09CS09 Management ofManagement ofMS04MS04 Process Process DocumentationDocumentationMS04MS04 Process Process DocumentationDocumentation

MS05MS05 Process Change Process Change ManagementManagementMS05MS05 Process Change Process Change ManagementManagement

CS04 CS04 ProcessProcess AutomationAutomationCS09CS09 Management ofManagement of

improvement projectsimprovement projects

SP01 SP01 AdministrationAdministrationofof ModelsModels RepositoryRepositorySP01 SP01 AdministrationAdministrationofof ModelsModels RepositoryRepository



SUPPORTING PROCESSESSUPPORTING PROCESSESSP04 SP04 AdministrationAdministration

ofof BPM BPM HumanHumanRR

SP04 SP04 AdministrationAdministrationofof BPM BPM HumanHuman

RR

SP03 SP03 AdministrationAdministrationofof BPMBPM ServicesServices

P tf liP tf li


P tf liP tf lip yp yp yp y ResponsibilitiesResponsibilitiesResponsibilitiesResponsibilities ResourcesResourcesResourcesResourcesPortfolioPortfolioPortfolioPortfolio

51

Stage 2 Processes and Services

Code Name Type DescriptionMP04 BPM Services

ProgrammingMgmt. Process

Prioritization and programming of all BPM services being offered according to availability of personnel in Center of Excellence. Definition of responsibilities and targets of each initiative Definition of responsibilities and targets of each initiative.

MP05 BPM Services Monitoring

Mgmt. Process

Monitoring of all BPM services that are being performed and related controls (time, scope, quality, resources etc.)

MS06 P M i D fi iti f t t f b i MS06 Process Performance Measurement

Main Service

Definition of a structure of business process measures. Measurement, monitoring and reporting of process performance. Establishment and tracking of actions to improve performance.

MS07 Process Main Employees' training and education on BPM concepts methods MS07 Process Management Education and Training

Main Service

Employees training and education on BPM concepts, methods and tools.

MS08 Process Main Periodic process checking. Verification of the adherence of the Compliance Service

p gprocess models to reality.

CS02 Reference Models Implementation

Complem. Service

Planning, adoption and maintenance of reference models like ISO9001, SCOR, ITIL, VRM etc., focused on performance impromevents and/or achieving certifications. Implementation impromevents and/or achieving certifications.

CS03 Systems Specification

Complem. Service

Definition of requirements to support software development that can optimize process execution

CS04 Process Complem Implementation of systems that could automate work


CS04 Process Automation

Complem. Service

Implementation of systems that could automate work.

5252



Complem. Service

Definition of requirements to support software development that can optimize process execution


Complem. Service

Implementation of systems that could automate work.

CS06 Process Auditing Complem. Service

Definition and execution of internal auditing tests to evaluate adherence of business processes.

CS07 Risk and Internal Control Management

Complem. Service

Analysis of operational risks in processes and defintion of internal controls to mitigate risks.

CS08 C i C l D fi i i d l i f i d i f CS08 Competencies Management

Complem. Service

Definition and evaluation of required competencies for process execution. Establishment of training plans, HR selection and relocation.

CS09 Management of Complem. Management of major organizational projects that involve improvement projects

Service process improvement efforts (linkage between a PMO and a BPM Center of Excellence)

SP03 Administration of BPM Service P tf li

Support Process

Updating of informations related to BPM services like: responsibilities, methods and tools involved, periodicity of

ti tPortfolio execution etc.SP04 Administration

of BPM Human Resources

Support Process

Definition and updating of profiles, roles, competencies and division of labor of the BPM Center of Excellence team.



MP03MP03 BPM Services BPM Services Development Development

PlannigPlannig

MP03MP03 BPM Services BPM Services Development Development

PlannigPlannig





MP06 MP06 BPM BPM Results Results EvaluationEvaluation

MP06 MP06 BPM BPM Results Results EvaluationEvaluation

MP01MP01 StrategyStrategyTranslationTranslation intointo

ProcessesProcesses

MP01MP01 StrategyStrategyTranslationTranslation intointo

ProcessesProcesses

MP07 MP07 BPM Culture BPM Culture MP07 MP07 BPM Culture BPM Culture MP02 MP02 BPM Demands BPM Demands Identification Identification

MP02 MP02 BPM Demands BPM Demands Identification Identification DisseminationDisseminationDisseminationDisseminationIdentification Identification and Analysisand AnalysisIdentification Identification and Analysisand Analysis


MS01MS01 Process ArchitectureProcess ArchitectureMaintenanceMaintenanceMS01MS01 Process ArchitectureProcess ArchitectureMaintenanceMaintenance

MS06MS06 Process Performance Process Performance MeasurementMeasurementMS06MS06 Process Performance Process Performance MeasurementMeasurement

MS02 MS02 Process ModelingProcess Modeling(As(As--is)is)MS02 MS02 Process ModelingProcess Modeling(As(As--is)is)

MS07MS07 Process Management Process Management Training and EducationTraining and EducationMS07MS07 Process Management Process Management Training and EducationTraining and Education

CS01 CS01 LeanLean & & SixSix Sigma Sigma OrientedOriented ImprovementImprovement

CS02 CS02 ReferenceReference ModelsModelsImplementationImplementation

CS06CS06 ProcessProcess AuditingAuditing

CS07CS07 RiskRisk andand InternalInternalControlControl ManagementManagement(As(As is)is)(As(As is)is) Training and EducationTraining and EducationTraining and EducationTraining and Education

MS03MS03 ProcessProcess Improvement Improvement (To(To--be)be)MS03MS03 ProcessProcess Improvement Improvement (To(To--be)be) MS08MS08 Process ComplianceProcess ComplianceMS08MS08 Process ComplianceProcess Compliance

MS04MS04 Process Process MS04MS04 Process Process MS09MS09 Process Maturity Process Maturity

CS03CS03 Systems Systems SpecificationSpecification

CS08CS08 CompetenciesCompetenciesManagementManagement

CS09CS09 Management ofManagement ofMS04MS04 Process Process DocumentationDocumentationMS04MS04 Process Process DocumentationDocumentation

MS09MS09 Process Maturity Process Maturity ManagementManagement

MS05MS05 Process Change Process Change ManagementManagementMS05MS05 Process Change Process Change ManagementManagement

MS10MS10 Process Process Benchmarking &InnovationBenchmarking &Innovation

CS04 CS04 ProcessProcess AutomationAutomation

CS05 CS05 BusinessBusiness Rules Rules ManagementManagement

CS10CS10 Process Cost Process Cost ManagementManagement

CS09CS09 Management ofManagement ofimprovement projectsimprovement projects

SP01 SP01 AdministrationAdministrationofof ModelsModels

R itR it

SP01 SP01 AdministrationAdministrationofof ModelsModels

R itR it


RR


RR




P tf liP tf li


P tf liP tf li

SP05 SP05 AdministrationAdministrationofof BPM BudgetBPM Budget

SP05 SP05 AdministrationAdministrationofof BPM BudgetBPM Budget

SUPPORTING PROCESSESSUPPORTING PROCESSES

RepositoryRepositoryRepositoryRepository ResourcesResourcesResourcesResourcesResponsibilitiesResponsibilitiesResponsibilitiesResponsibilities PortfolioPortfolioPortfolioPortfolio gggg

55


Code Name Type DescriptionMP01 Strategy

Translation into Processes

Mgmt. Process

Organizational strategy analysis. Definition of how business process could be improved to support achievement of strategic objectives. Identification of new BPM services needed.

MP02 BPM Demands Identification and Analysis

Mgmt. Process

Identification, analysis and priorization of day-by-day operational demands for BPM services.

MP03 BPM Services Mgmt. Planning of the evolution of BPM Services Porfolio, matching new Evolution Planning

gProcess

g gorganizational needs (demand) and BPM CoE’s readiness to provide new services (capability).

MP06 BPM Results Evaluation

Mgmt. Process

Evaluation of tangible and intangible results related to BPM services. Determination of ROI.

MP07 BPM Culture Dissemination

Mgmt. Process

Dissemination of actions in course, results obtained and successcases. It can include presentations to areas, BPM events,intranet informations and management reports.

MS09 Process Main Process maturity evaluation, based on existing maturity models.Maturity Management

Service

MS10 Process Benchmarking and Innovation

Main Service

Benchmarking and dissemination of internal and external best practices related to process execution.

and InnovationCS05 Business Rules

ManagementComplem. Service

Definition and/or updating of business rules of an existing process, detailing their characteristics and specific conditions.

CS10 Process Cost Management

Complem. Service

Analysis and optimization of cost structure of an existing process, mainly using ABC techniques. Identification of cost


g p , y g qreduction opportunities.

SP05 Administration of BPM Budget

Support Process

Budgeting and charging for the cost structure of the BPM Center of Excellence. Pricing of BPM services.

Reference Framework for a BPM CoEv1.0

MP03 BPM Services D l t MP04 BPM Services MP05 BPM Services

MP06 BPM Results Evaluation

MP01 Strategy Translation into

Processes

MANAGEMENT PROCESSES

Development Plannig

MP04 BPM Services Programming

MP05 BPM Services Monitoring

MP07 BPM Culture Dissemination

MP02 BPM Demands Identification and Analysis

COMPLEMENTARY SERVICES

MS01 Process ArchitectureMaintenance

MS06 Process Performance Measurement

MAIN SERVICESCS01 Lean & Six Sigma Oriented Improvement CS06 Process Auditing

MS02 Process Modeling(As-is)

MS07 Process Management Training and Education

MS03 Process Improvement (T b ) MS08 Process Compliance

CS02 Reference Models Implementation


CS07 Risk and Internal Control Management

CS08 CompetenciesManagement(To-be) p

MS04 Process Documentation

MS09 Process Maturity Management

P Ch P

y p


Management

CS09 Management ofimprovement projects

SUPPORTING PROCESSES

MS05 Process Change Management

MS10 Process Benchmarking &Innovation

CS05 Business Rules Management

CS10 Process Cost Management

© ELO Group all rights reserved. 5757

SP01Administration of Models Repository

SP04 Administration of

BPM Human Resources

SP02Administration of

BPM Roles and Responsibilities


BPM Services Portfolio


BPM Budget

Some questions to be answered

1. How to determine responsibilities and accountabilities for BPM actions?

2. Where should the BPM Center of Excellence be located?

3. How to determine tasks, profiles and competences for BPM 3. How to determine tasks, profiles and competences for BPM CoE’s internal team?

4 How to assure alignment between Process Office and4. How to assure alignment between Process Office andProject Office?


RACI Chart


Some typical profiles

CoE

CoE

CoE

Global and Centralized Local and Centralized

CoECoE

CoEProessLeader

Process Leader

ProcesLeader

© ELO Group all rights reserved.Global and Decentralized Multiple CoE’s

Example of a BPM Internal Structure

Process OfficeProcess Office

Support and Maintenance BPM Projects

BPM Consultant

Process Architect

Quality Assurance

Project Manager

Process Analyst

Instructor DB Administrator

Business Improvement

Advisor

© ELO Group all rights reserved.Source: based on Jeston & Nelis, 2008 6161

Roles and responsibilitiesRoles and responsibilities

Support and Maintenance – Dedicated Resources:

Sh ld b i l d i i l j h ff• Should not be involved on organizational projects. They can offer consulting, coaching, training and quality assurance services to Project Teams. They also monitor and document lessons learned, BPM projects y , p jperformance and process governance.

Projects –Pool of Shared Resources:

• Pool of resources that can be used into BPM projects Chief Process • Pool of resources that can be used into BPM projects. Chief Process Officer should allocate those resources appropriately


Roles and responsibilities Roles and responsibilities –– Support and MaintenanceSupport and Maintenance

1. BPM Consultant

• Specialist that discuss with business areas opportunities for improvements.

2. Process Architect:

• Assures process architecture is updated and being followed.p p g

3. Coach/Quality Assurance:

• Provides coaching to BPM project teams. Do not perfom the work, only provides Provides coaching to BPM project teams. Do not perfom the work, only provides guidelines. Also responsible for projects quality control.

4. Instructor:

• Provides BPM training to the whole organization.

5. DB Administrator:

• Revise process models, assuring modeling notation and patterns are being folowed. Administer process repository.


Roles and responsibilities Roles and responsibilities –– ProjectsProjects

1. Project Managers

• Responsible for all routine management of BPM projects

2. Business Improvement Advisors:

• Identify opportunities for improvementsy pp p

• Discuss and facilitate implementation of new ideas, decreasing resistance to change

• Develop business cases and business impact analysisp p y

3. Process Analysts:

• Model and document the process (As Is & To Be)Model and document the process (As Is & To Be)

• Define metrics and calculate process costs.

• Evaluate the skills of people involved in processEvaluate the skills of people involved in process

• Evaluate the process performance


Process Prioritization based on Strategic Drivers

Analysis of Competitive Drivers


Linkage with Project Office – types of projects

Impa

ct

A ti Pl

izat

iona

l Formalizedorganizational

projects

Action Plans(small andinformal projects)

Orn

gan

Regulari t

Action Plans(small and

improvements(informal projects)


Time to implement6666


Project Management Process

Initiation Planning Execution Control Closure

ar

v.

Initiation Planning Execution Control Closure

Reg

ula

impr

ov

Act

ion

Plan

sec

tsPr

oje

© ELO Group all rights reserved.67 6767







RESPONSIBILITIES

But… Setting up a BPM CoEis just the first stepp

All managers need to participateAll managers need to participatein processes management

somehow. This is not somethingrestricted to the Processrestricted to the Process

Office’s role.


Example of a BPM Governance Structure

ProcessVision, Strategy, Budget, Resources

Roadmaps, Project PlansProcess

Committee

g ,

Roadmaps, Project Plans

j

Collaborative ProcessModels, KPIs

Guidelines, Standards, ProcessOffice ProcessOwner

, ,Best Practices, Training

Technical Artifacts

ProcessSpecification

ProcessImplementation

Project Manager

© ELO Group all rights reserved.7171 Source: based on Korhonen, 2007

Example of a BPM Governance Structure

ProcessOffice

Process Council

Chief ProcessOfficer

ProcessOwner1

ProcessOwner2

ProcessOwner3

ProcessManager 1

ProcessManager 2

PRocessManagerNManager 1 Manager 2 Manager N

Maintenanceand Support

BPM Projects

© ELO Group all rights reserved.Source: based on Jeston & Nelis, 2008 7272

Management by Process evolution over time


Source: COPPE/UFRJ, 20077373

Governance Evolution over time

We acknowledge that Governance Structure evolutes over time as BPM becomes more mature into the organization time , as BPM becomes more mature into the organization.

BPM services varies from organization to organization, and therefore the BPM Center of Excellence may not always di tl t i i directly execute main services.

Instead, the CoE may support a decentralized execution of services by process owners and other areas. Still, this category of services remains central for the implementation of a process‐oriented management approach


approach

7474

Decentralization Path

Centralized Model

Decentralized Model

’ i hi k b h d i dIt’s important to think about the desired governance structure over time (“Blue Sky Vision”). It will certainly

changes the Center of Excellence’s scope andchanges the Center of Excellence s scope and attributions


7575

Governance Evolution over time ‐ example


Final Points - Some Statistics

Publication of 10 papers about the frameworksApplication of the framework at 15 organizationsApplication of the framework at 15 organizationsCourses for more than 150 people about the f kframework


Learning Points

Emphasizing and splitting BPM CoE’s main services at:1 Process Improvement Projects1. Process Improvement Projects2. Day‐by‐day process management

Reinforcing the idea of BPM Planning Processes linked to Corporate Strategy

Representing the “Managing Process” process with a lifecycle approach, showing “how to” implement BPM gCoE’s services more effectively


Current Research – Ideason Improving the on Improving the

Framework


BUSINESS STRATEGY

PROJECT BASEDWELL DEFINED SCOPESSTRONG INVOLVEMENT OF BPM OFFICEINVOLVES MULTIPLE AREAS

PROCESS IMPROVEMENT PROJECT

INVOLVES MULTIPLE AREAS SIGNFICANT COSTSTRANSFORMATION INTENSIVE

Performance

PROCESS IMPROVEMENT PROJECT

Tempo

BreakthroughImprovement

PROCESS REDESIGNED IMPLEMENTED WITHINNEWS SYSTEMS, COMPETENCES, CONTRACTS, ETC


BUSINESS STRATEGY

ON GOING BASEDOPEN SCOPELIGHTLY DEPENDENT OF BPM OFFICEINVOLVES FEW AREAS

PROJECT BASEDWELL DEFINED SCOPESSTRONG INVOLVEMENT OF BPM OFFICEINVOLVES MULTIPLE AREAS

DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECT

INVOLVES FEW AREAS INCREMENTAL COSTCONTINOUS IMPROVEMENT ORIENTED

INVOLVES MULTIPLE AREAS SIGNFICANT COSTSTRANSFORMATION INTENSIVE

PerformancePerformance


ContínuousImprovment TempoTempo p


PROCESS VISIBILITY &CONTINUOUS IMPROVEMENT



BUSINESS STRATEGYANNUAL BASED PROCESS PLANNING ALIGNED WITH BUSINESS STRATEGYPROJECT PORTFOLIO COMPOSITION AND PRIORITIZATIONHIGH SINERGY WITH OTHER SUPPORT INITIATIVES COMMUNICATION OF BPM ACTIVITIES AND RESULTS ACHIEVED

BPM STRATEGY









What’s missing?


BUSINESS STRATEGYANNUAL BASED PROCESS PLANNING ALIGNED WITH BUSINESS STRATEGYPROJECT PORTFOLIO COMPOSITION AND PRIORITIZATIONHIGH SINERGY WITH OTHER SUPPORT INITIATIVES COMMUNICATION OF BPM ACTIVITIES AND RESULTS ACHIEVED

BPM STRATEGY

DAY TO DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECTBPM Maturity

&


DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECT& Governance

ContínuousImprovment TempoTempo

BUSINESS TRANSFORMATION ACCOUNTABILITIES BUSINESS p ov e t


BUSINESS TRANSFORMATION CAPABILITY EVOLUTION




BUSINESS STRATEGY

StrategicPlanning

BPM ProjectPortfolio

BPMConsolidadted

Results

BUSINESS STRATEGY

BPM STRATEGY

P01 StrategyTranslation into

Processos

P02 Run ProcessSatisfaction

Survey

P03 BPM Project Portfolio

Generation

P04 BPM ProjectPlanning &Budgetig


Management

P06 BPM Results& Culture

Dissemination

BPM STRATEGY

DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECTBPM Maturity

&

BPM Demands BPM Project Plan BPMProcessResults

ProcessOperationalGoals

M01 BPM Maturity and



Maturity andGovernance






BUSINESS STRATEGY

StrategicPlanning


BPMConsolidadted

Results

BUSINESS STRATEGY

BPM STRATEGY


Processos


Survey


Generation



Management


Dissemination

BPM STRATEGY

DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECTBPM Maturity

&




BPM Project Plan BPMProcessResults

EXECUTE BPM PROJECTSM01 BPM

Maturity and




E01 Process Vision

E02 Process

Performance

EXECUTE BPM PROJECTSMaturity andGovernance


E02 ProcessUnderstanding (AS IS)

E03 Gains & ImprovementAnalysis

Tempop


E04 Process Redesing & Preparare Implantation

E05 Implement RedesignedProcess & Roll Out


Controls(RISK MAN.)

New Competences(HR MAN.)

New Systemns(IT MAN.)

Policies & Standards(COMPLIANCE MAN)

OrganizationalStructure Redesign


BUSINESS STRATEGY

StrategicPlanning


BPMConsolidadted

Results

BUSINESS STRATEGY

BPM STRATEGY


Processos


Survey


Generation



Management


Dissemination

BPM STRATEGY





BPM Project Plan BPMProcessResults

EXECUTE BPM PROJECTSM01 BPM

Maturity and

BPM DemandsProcessOperationalGoals

DAY-TO-DAY PROCESS MANAGEMENTM01 BPM

Maturity and


DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECTMaturity andGovernance

E01 Process Vision

E02 Process

Performance

EXECUTE BPM PROJECTSMaturity andGovernance

D02 Process Learning

Performance

DAY TO DAY PROCESS MANAGEMENT Maturity andGovernance




TempoContinuousImprovment

g

Tempop


E04 Process Redesing & Preparare Implantation


BreakthroughImprovementD03 Implement Continuos

Improvement andD01 Performance, Risks & Compliance Monitoring

Controls(RISK MAN.)





ContinousImprovement

Risk & Non conformities(AUDITING)

Performance Value& Ocurrences

ProcessVisibility


StrategicPlanning


BPMConsolidadted

Results

BUSINESS STRATEGY


Processos


Survey


Generation



Management


Dissemination

Results

BPM STRATEGY

Processos Survey Generation Budgetig Management Dissemination



M01 BPM

E01 Process Vision PerformancePerformance

DAY-TO-DAY PROCESS MANAGEMENT EXECUTE BPM PROJECTSM01 BPM


ContinuousImprovment



D02 Process Learning

TempoTempo ImprovmentE04 Process Redesing & Preparare Implantation


D03 Implement ContinuosImprovement and

D01 Performance, Risks & Compliance Monitoring

p


Controls(RISK MAN.)

ContinousImprovement

Risk & Non conformities(AUDITING)

Performance Value& Ocurrences




ProcessVisibility



Practical Application andCase StudiesCase Studies


“Leadership on BPM ideas, methods and results in Brazil”

ThanksThanksThanksThanks

[email protected]@elogroup.com.brwww.elogroup.com.brwww.elogroup.com.br