BPM - From Project to Program 11 Habits of Highly Successful BPM Programs Chris Lanphier Solution Architect Business Process and Decision Management
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Have You Experienced this Issue?
Complexity Complexity
IT Budget
2
IT Budget
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Complexity exists internally within organizations……
Insurance Carrier
Auto LOB
Internal Employees Finance
Commercial LOB
Home LOB
3
Sales
Marketing
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….and externally within the broader business network Companies need end-to-end process management To orchestrate human tasks…
… to increase visibility… Partners & Re-insurers
Agents & Producers
Insurance Carrier Internal Employees
Consumers
Auto LOB
Commercial LOB
Consumers
Home LOB
Financial Institutions
Outsourced Service Providers
… to manage exceptions and cases…
DMV
3rd Party Services
… and for scalable transactions…
… everything you need to manage end-to-end business networks 4
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Agility Can Your Processes Handle Change, Uncertainty and Complexity? Transformation Today Means:
Simpler Business Led Change Full Process Visibility and Governance Optimized Processes and Decisions
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Process and Business Rules Are Everywhere Account Opening
Vendor Onboarding
Order Fulfillment
Campaign Management
Claims Processing
Customer Problem Handling
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Typical process problems
Customer Service
Account Administration
Finance and Ops
1 1.
Unstructured Tasks and Communication (ex Paper or email)
2 2.
Inefficient Working Environment Spans Systems
3 3.
Inconsistent Prioritization
4 4.
Incomplete or Inaccurate Data Flow Between Systems
5 5.
Lack of Control Over System and Business Events (Exceptions)
6 6.
Poor Visibility Into Process Performance
Executive 6 Management
1 3
Invoice Reconciliation Teams
2
4 5
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BPM brings order to the chaos
Finance and Ops
Executive Management
Account Administration
1. 1
Automate workflow & decision making
2. 2
Reduce errors and improve consistency
3. 3
Standardize resolution across geographies
4. 4
Leverage existing systems and data
5 5.
Monitor for business events and initiate actions
6. 6
Real-time visibility and process control
Risk Management Teams Customer Service
Customer Benefits:
8
•
Huge Reduction in Manual Work, Errors
•
Faster, More Consistent Issue Resolution
•
Easier to Manage the Business
•
Consistent Case Handling
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BPM Leverages a Service Oriented Architecture (SOA)
Finance & Ops
Invoice Reconciliation Teams Customer Service
BPM
Executive Management
Account Administration
– BPM can abstract the “business process” from underlying systems and services. – Over time, IT can consolidate those services into a common set of services within one SOA layer.
SOA
Systems
– Users of the process are not affected as services and systems are merged, replaced, or updated.
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BPM is About Value not Technology BPM Defined: An integrated approach to aligning the key activities of an organization into processes you can consistently measure to optimize value to your organization and its end customers.
Integrated
Processes
• Technology + methodology • Compresses cycle time for process lifecycle • Enabled by BPMS platform
• Align people & tasks to valuable outcomes • End-to-end vs. silo • Cross-functional
Measure
Optimize
• High visibility into performance of process & people • Metrics that are meaningful to the business • Quantify impact of process improvements
• Enhance process to maximize business value • Identify & remove bottlenecks • Eliminate non-value-add activities
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Process Improvement Requires A “Third Way” Process-improvement requirements are likely to be unique, which favors build rather than buy. And the timeframes and costs of both are often not compatible with process improvement, so a ‘third way’ is required. Flexibility “Third Way” BPM
Build + + -
Customized Unique High TCO IT bandwidth
Buy
+ + -
Reduced time Initial Cost Standard Feature set Reliance on vendor Response to Change
Low cost/time © 2012 IBM Corporation
Business Outcomes
Think Big, Start Small, Scale Fast
1
Succeed With An Initial Project
A BPM Project should deliver targeted results that directly support the strategic goals of the business. Thus, a successful BPM Project requires close collaboration between business operations and technologists.
2
Establish A Program
A successful BPM program ties all business process projects to core business initiatives.
3
Extend Success Across The Enterprise
A Transformational BPM Program enables you to manage your processes and support corporate initiatives such as improving product quality, reducing time-to-market, expanding to new markets, raising customer satisfaction, and increasing profit margins.
Project Scope 12
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Habit #1
Prove Business Value First
Don’t forget the focus should be on business value Be willing to make trade-offs for the first release
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Iterative Implementation Methodology
Week 1 Definition
Infrastructure Configuration
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Weeks 2-3 Mapping
Weeks 4 to 10 Development
Training/ Mentoring
Weeks Week 11 to 12 13 Go Test Live
Infrastructure Deployment
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Habit #2
Make BPM About Productivity AND Visibility
Metrics, KPI’s and SLA’s should be part of the DEFINE Phase Don’t scope OUT metrics Remember visibility is critical to IMPROVEMENT 15
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Habit #3 Never “One and Done”
Iterative Approach… Continuous Process Improvement Phases 2,3 or Versions 2,3 will always happen 16
Trade-offs (but don’t trade-off the metrics!)
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BPM Accelerates Better Business Outcomes
BPM build programs Model-driven tooling Integrated development Iterative deployment
Targeted outcome
$ $ $
$ Program initiation
Month 0
17
$
6
Plus: Faster cash returns 12
18
24
30
Month 36
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Habit #4 Don’t Skip Process Analysis
Requirements documents are not process analysis Don’t over-do the initial requirements (Define) phase Include Process Analysis skills on your team early 18
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Process Analysis Illuminates the End-to-End Process
What is the data needed at different points? What is the velocity that we need in this process? How fast must the turnaround time be? Where are the issues with meeting this requirement?
Process Analysis is designed to help you…
Understand the main problem areas in the current process Analyze specific business processes Formulate a roadmap for recommended improvements
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Habit #5
Take the Time to Deliver Value
A project longer than 90 days is not a failure Self-sufficiency can extend project time-lines Timelines can depend on the sophistication of the process 20
© 2012 IBM Corporation
Business Outcomes
Think Big, Start Small, Scale Fast
1
Succeed With An Initial Project
A BPM Project should deliver targeted results that directly support the strategic goals of the business. Thus, a successful BPM Project requires close collaboration between business operations and technologists.
2
Establish A Program
A successful BPM program ties all business process projects to core business initiatives.
3
Extend Success Across The Enterprise
A Transformational BPM Program enables you to manage your processes and support corporate initiatives such as improving product quality, reducing time-to-market, expanding to new markets, raising customer satisfaction, and increasing profit margins.
Project Scope 21
© 2012 IBM Corporation
Habit #6
Build a complete team
Java (or .Net) developers aren’t all you need Have the right mix of resources on the team
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Identify good pools of talent for BPM developers© 2012 IBM Corporation
IBM BPM Roles – Project Scale Process Improvement Expert BPM Expert IT/Technical Expert
BPM & DM Analyst
BPM & DM Designer
Integration Designer
Supporting Roles:
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Habit #7
Make self-sufficiency a priority
Don’t allocate partial human beings Make sure all of the right skills are represented Don’t mix self-sufficiency with tight deadlines 24
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Education is a Key to Self Sufficiency Missing or insufficient skills can lead to slow adoption, lost value … or complete failure Technical Architects
BPM Program Manager(s)
Level 3
Level 2
BPM Analysts
Recommendations: Role-oriented training vs. “one size fits all” Ongoing training & testing at multiple maturity levels
BPM Developers
Level 1
Mentoring to learn application of skills
BPM Administrator(s)
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© 2012 IBM Corporation
Business Outcomes
Think Big, Start Small, Scale Fast
1
Succeed With An Initial Project
A BPM Project should deliver targeted results that directly support the strategic goals of the business. Thus, a successful BPM Project requires close collaboration between business operations and technologists.
2
Establish A Program
A successful BPM program ties all business process projects to core business initiatives.
3
Extend Success Across The Enterprise
A Transformational BPM Program enables you to manage your processes and support corporate initiatives such as improving product quality, reducing time-to-market, expanding to new markets, raising customer satisfaction, and increasing profit margins.
Project Scope 26
© 2012 IBM Corporation
Habit #8
Fund to value … not first release
BPM is about Continuous Process Improvement BPM should be programmatic (programs spanning projects/LOBs) Funding model should contemplate Projects and the Program 27
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Tying BPM & DM to Corporate Strategy BPM Pipeline (Executive Review) • Increasing level of process definition at each stage • Steering Committee approval promotes projects from stage to stage
ABC Master Sched. Merger with X
Global Initiative
Initiatives “Optimized Global Cycle Plan “
Business Planning 28
Distressed Shipments
The 1 Year Movie Commonality Hub
Strategy “xx% Throughput Improvement by 20YY” “Decrease Cycle Time to xx months by 20YY”
Greenlight one: Financing
Receivables Global X – Order to Delivery
Process Decomposition (Blueworks Live) • Value Proposition • Organizational Stakeholders • Systems • KPI’s • Key Error States • Process Priority
Demonstratable BPM Process (IBM Business Process Manager) • Hi Level Business Case • Operations Buy-in • SLA’s • Process Roles • Team Members • Integration Points Identified • Development Cost Estimates
Executable BPM Process Application (IBM Business Process Manager) • Detailed Costs and Benefits • Process Metrics and Scoreboards • Legacy Integration • Fully Costed Deployment Plan
Deployed and Measured BPM Process (IBM Business Process Manager) • Tracked Business Performance • In-Process Application • Real Time Process Measurement • Process Simulation and Optimization • Ongoing Process Improvement
BPM Planning & Execution © 2012 IBM Corporation
Habit #9
Force collaboration Consider carefully for the first project Co-locate team members from business and IT Leverage the Playbacks
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Habit #10
Establish the owners Processes are business-owned BPM is the discipline/program BPMS is the enabling technology
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Habit #11
Market your work Create regular internal communication about progress Use videos, wikis, portals to “show off” new processes BPMS is the enabling technology
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Achieving a Transformational BPM/DM Program How to Succeed • Make Projects/Delivery Successful - Prove business value first - Make BPM about Productivity AND Visibility - Never “One and Done” - Don’t Skip Process Analysis - Take the Time to Deliver Value • Grow the BPM Team Competency - Build a complete team - Make self-sufficiency a priority • Leveraging BPM Across the Enterprise - Fund to Value…. not first release - Force collaboration - Establish the owners - Market your work
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