buid proces skills up and down your organisation

© 2010 Forrester Research, Inc. Reproduction Prohibited1 © 2009 Forrester Research, Inc. Reproduction Prohibited

Build Process Skills Up And Down Your Organization To Scale TransformationConnie Moore, Vice President, Research Director

Forrester Research

October 14, 2010

© 2010 Forrester Research, Inc. Reproduction Prohibited2

. . . but need new skills to be successful.

Business Process pros are at the center of business transformation . . .


Business process professionals stand at

the crossroads between business and IT . . .


Imagine . . . producing a musical with new actors

Source: Flickr (http://www.flickr.com/photos/cyndipix/4366759809/)


Different views of business processes

Focus on automation,

not the process

• Groping toward new roles for process analysis and architecture

• Process group has deep knowledge in Lean and Six Sigma


Meet the business process team . . .

Change agent Guru

Prodigy Wannabe Operator

© 2010 Forrester Research, Inc. Reproduction Prohibited7 © 2009 Forrester Research, Inc. Reproduction Prohibited

Most business process improvement is driven by business execs

March 5, 2010 Business Process Pros Hold The Key To 21st Century Business Transformation, Forrester Report


Business process pros need better ways to learn and develop skills

Base: 83 IT professionals involved in BPM or process improvement projectsSource: May 2010 Global Process Management/Improvement Online Survey

“Where do you turn to for learning/developing business process management skills?” (Check all that apply)


What do “change agents” need?

Strong business case

A peer-to-peer network

BPM center of excellence

Clear understanding of

Lean, Six Sigma, and

BPM


“Change agents” must evangelize, monetize and communicate, communicate, communicate!

“The change agent is in a never-ending questfor sponsorship.” -Kenny Klepper, COO Medco

“The change agent musttake cost out of thebusiness to fundtransformation.”-Kenny Klepper, COO Medco

“I definitely spend a lot of timetalking to the business aboutwhat [it needs]. What isworking? What isn’t working?” -Sr. manager, large bank


Management area

Maturity level 1Ad hoc

Level 2Inconsistent

Level 3Defined

Level 4Managed

Maturity level 5Optimized (BT)

Strategy

•Objectives•Scope•Value

Ad hoc planning, weak-link business, and IT objectives

•Integrated business and IT plans•BPM plans focused on value chain innovation and transformation

•Customer value synchronized with corporate performance

Process gov.

•Life-cycle budget•Decision-making•Portfolio•Waste

No evaluation process, arbitrary decisions, no link from investments to resource commitments

•Enterprise portfolio, biz metrics•Local and global decisions coordinated•BPM investments cross-linked to performance

•Proactive waste elimination

Org. structure

•Gov. bodies•Demand•Service mgmt.

No steering committee, projects funded on request, no formal biz relationship

•Appropriate levels of investment, sponsorship, and involvement

•Demand incorporates C-level decision-making

•BPM through shared services

Performance

•Measurements•Communications

IT tracks operational metrics, not business measures; communication on request

•Board-level and investor monitoring of tech business results

•Transparency provided to employees, management, investors, and partners

Culture

•Cultivated skills•Environment•Orientation

Technical skills limited to specific tasks, few cultural norms, reactive orientation

•Businesswide education and careers•Strong brand and reputation•Entrepreneurial orientation•Emphasis on customer outcomes and behavior

Immature

Aspiring

Mature

The journey to transformation follows several stages

Value

inno

vatio

n

Was

teel

imin

atio

n

January 20, 2010 A Lean Business Technology Maturity Matrix For BPM Governance, Forrester Report


Value to shareholders

Level of Stakeholders

ProcessExecution

Knowledge

Efficiency

IT agility

Compliance &consistency

Processmonitoring

Business insight

BPM adoption maturity ProcessOptimization

Transformation

Workers, supervisors and managers CIO CFO CXO CEO

lower higher

higher

lower

Customers and partners

SOA

Another way to look at BPM maturity


Change agents must move the org from function to services & processes

Vertical / Functional

Functional / Process Overlays

Process / Functional Overlays

Service / Process Organisation

From Traditional Line Management

To Processes & Services Management


Medco has fully embraced this new business model

BP COE — technologists working with

next-generation, configurable solutions

Business innovation and agility

centers — combination of IT/BT,

looking at marketplace demand, for

growth and differentiation

Business operations — operational

excellence for the company

Operational owners — internal focus

across the business process


Including . . . new job titles

Business innovation and agility

leaders

Process champions (operational

owners)

CoE leaders (responsible for

construction of business process

capabilities)

Deeper in the organization:

- Modelers (focus is on user experience,

in operational and business groups,

some in IT)

- Business architects (in business and

IT)

- Designers (technologist)


One “change agent’s” perspective on people skills

“We leaned very heavilyon our vendor for professional services; now we’re standing on our own two feet.”

“It takes people time to get up to speed”

“The number of peopleWho know about thistechnology isscarce and expensive.”

CIO, financial services company


COEs often start small

A financial service company's COE started with:– four developers– one business analyst– one enterprise architect.


Business CaseDevelopment

BPM CoE

BPM CoE

BPM CoE

BPM CoE

CoEs evolve over time as maturity grows

Process Methods & Tools

Process Analysis/Modeling

BPM ProjectManagement

BusinessArchitecture

BPM Suites Training

CIO orIT Exec

Governance Council

BPM CoE

BPM CoE

C LevelExec

Line Of Business


Potential CoE service portfolio

Facilitate process governance– Portfolio management and

prioritization of BPM roadmap– BPM maturity assessment– Budget allocation– Track benefits delivery; Reuse

Business architecture– Overall process architecture– Global v local guidelines– M&A support

Manage organizational change– Organizational role definition

and workforce planning– Rationalize other CoEs (Lean,

Six Sigma, BSC, etc)– Institutionalize process

improvement methods

Manage BPM projects– Develop project business cases– Education & training support to

the BPM project

Model & analyze processes– Rationalize metrics, dashboard

and scorecard creation– Simulate potential changes– Business rules development

Advise on IT integration– Develop library of integration

components– Master data management

Assess technology, methods, tools, standards – Train & develop specialists– Knowledge management


COEs need a blend of technical and business skills

“[You] can do thiswithout code — that’strue — but it doesn’tmean a business personcan do it.”

“These suites stillrequire you to have [a]software engineeringskill set.”

“[You] can’t create a businessprocess without a softwareengineering background —[you] need to know howfunctions work; [you] need toknow how loops work.”


But, BPM competency centers are not ubiquitous

“Do you have a BPM competency center?”

Base: 83 IT professionals involved in BPM or process improvement projects

Source: May 2010 Global Process Management/Improvement Online Survey

“What types of individuals staff your BPM competency center?” (Check all that apply)

Yes37%

No57%

Don’t know6%

Base: 31 IT professionals involved in BPM or process improvement projects who have a BPM

competency center


SaaS is one way to ramp up quickly with limited IT/process skills

• Goal: efficient and profitable

• SaaS BPM allowed an incremental approach.

– Promotion by promotion

– Paced by business users

– 12 weeks for development

• Minimal involvement from IT


What do “process gurus” need?

Sometimes, it’s BPM 101

they need (Lean experts)

Business process role

separated from

enterprise architects

Certification

Great process analysts


One guru’s perspective

“The biggest challengeis how to develop reallygood processarchitects. . . ”

“When a company is in theearlier stages and doesn’thave the expertise, [it] willneed at least some transitionalassistance with processarchitecture.”

“[I] don’t think there is atraining or certificationprogram where you cansend a processarchitect.”

Manager, BPM COE


What do “prodigies” need?

Pairing with a vendor

expert for knowledge

transfer

Certification training

Pairing with a business

analyst or SME for

learning


“Gurus” and “prodigies” have different expertise

“The business architect is highly influential and a master facilitator.

They ‘own’ keeping the views of their respective architectures up to date.”

Director of BPM, global manufacturer

“The process analyst facilitates and manages process improvement efforts.

“They receive guidance from the business architect.

“They usually analyze one process and have limited ability to see beyond the effort in front of them.”


Lean, Six Sigma are most important to BPM pros

Base: 83 IT professionals involved in BPM or process improvement projects

Source: May 2010 Global Process Management/Improvement Online Survey

“How important are these methodologies/certifications to your organization’s BPM skills development?”


BPM, Lean and Six Sigma: Better Together

BPM

BPM provides the framework ..to manage change in process and workflow models

BPM provides the environment to support the speed of change

BPM tools and technology can expedite the adoption of a process centric view ...

BPM provides

• Framework

• Environment

•Tools to accelerate

Leanand Six Sigma

Some view Lean and Six Sigma and BPM as competing disciplines

Lean and Six Sigma can provide insight and the measures to support potential improvements

Lean Six Sigma target inefficiency with a broad range of tools and toolkits

All 3 are complimentary and can be leveraged to achieve greater results

Lean and Six Sigma provide

Methodology

Insight

Metrics

Source: Gabrielle Field, ABPMP, Raymond James Financial


What do “wannabes” need?

Realistic expectations

Pairing with a process

expert for at least two to

three months


One change agent’s view on process analysts

“Process experts are arare type of talent.”

“When people don’t get it, theydon’t ever get it. Either peoplehave the makeup to be in acolocated, intensiveenvironment or they don’t.”

“We thought thetraditional businessanalyst would be the rightsource, but we werehorribly disappointed.”

BPM director, large automotive

manufacturer


Retool the business analyst

Today’s tools are inadequate.

– Most still rely on Word, Excel, and Visio.

Requirements management tools are:

– Too complex and not user friendly.

– Too costly to purchase and administer.

– Too text centric, without support for rich, graphical artifacts.

– Too siloed — lacking integration with other tools.


Process skills are migrating out of IT

Applicationdevelopment

Enterprisearchitecture

VP of business process improvementBusiness architect

Process architect and analystManager of IT business systems

Evolving business analyst

Process and

information

architects

Businessprocess

COE

IT

Manager of

IT business

systems

Evolving BA

Process maturity

High

Low

Traditional BA

Humanresources

expert

Finance &accounting

expert

Procurementexpert

Salesexpert

Operationsexpert

Businessdomains


• Immature:• Investigate how big your process initiatives are•Look at SaaS BPM to jump-start skills

•Aspiring:•Conduct a process skills assessment; involve HR.•Assess how you develop new skills (mentoring, pairing, training).•See how effective cross-training is in the COE.•Consider in-house training on BPM, Lean, and Six Sigma.•Look at ABPMP certification.

•Mature:•Add BPM to your training

The next 90 daysThe next 90 days

33Entire contents © 2010 Forrester Research, Inc. All rights reserved.


•Immature•Consider a BPM COE if there are enough projects to warrant.

•Aspiring•Consider creating your own in-house certification program.•Work with HR to develop career paths, training programs, andnew job titles.

•Focus on IT and business training/development.•Focus on senior-level jobs in addition to architect/analyst jobs.

•Mature•Make sure BPM is properly positioned and understood withinthe company.

Longer termLonger term

34Entire contents © 2010 Forrester Research, Inc. All rights reserved.

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Connie Moore+1 540.882.4040

[email protected]

@cmooreforrester

http://blogs.forrester.com/connie_moore

www.forrester.com


Recommended reading for change agents

Warren Bennis, On Becoming a Leader

James C. Collins, Good to Great

Rick Delbridge, et al., The Exceptional Manager: Making the Difference

George Eckes, The Six Sigma Revolution

Tom Hayes, Jump Point: How Network Culture is Revolutionizing

Business

John C. Jeston, Beyond Business Process Improvement, On To

Business Transformation: A Manager’s Guide

Edgar H. Schein, Organizational Culture and Leadership

James P. Womack and Daniel T. Jones, Lean Thinking: Banish Waste

and Create Wealth in Your Corporation


Business and process architects/analysts should read these

Yvonne Lederer Antonucci, et al., Business Process Management Common

Body Of Knowledge

John Bicheno, The New Lean Toolbox

Barry Boehm and Richard Turner, Balancing Agility and Discipline: A Guide

for the Perplexed

David M. Dikel, David Kane, and James R. Wilson, Software Architecture:

Organizational Principles and Patterns

John Jeston and Johan Nelis, Business Process Management: Practical

Guidelines to Successful Implementations

Eberhardt Rechtin, Systems Architecting: Creating & Building Complex

Systems

Andrew Spanyi, Business Process Management (BPM) is a Team Sport:

Play it to Win!

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