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Janelle HillVP & Distinguished Analyst

Gartner, BPM Research

Delivering Enterprise Performance Breakthroughs With Social BPM

“Social” Shifts the BPM Focus From Efficiency to Effectiveness

Traditional “BPM”

(Doing by design)

Social BPM

(Design by Doing)

Structured process

Unstructured process

Efficiency

Effectiveness

2

Key Issues

1. Why is BPM more important today than ever?

2. How can Social BPM optimize business outcomes?

3. How should we advance our vision of BPM?

3

Conventional Business Operations Cannot Satisfy the Escalating Demands of Modern Business

Run-the-Business Operations

CRM OrderCapture

Manual Approval

Fulfillment Billing

Decisions• Inflexible policies• Hard-coded rules• Simplistic decisions

Process Management• Rigid processes• Labor-intensive manual control of flow

Situation Awareness• Missing facts• Limited visibility

into the business

Limitations of Conventional Operations

Increasing CompetitionGlobalization

Better Customer Service

More Regulation

Faster Pace of Business

Market Consolidation

Increasing Business Pressures

4

Structured, routine activities

Unstructured work activities

Untapped opportunities for differentiation

20%

Unstructured, Knowledge-Centric Work Is the Big Opportunity

80%

5

Adaptability• Design systems for change,

(not to last)• Design by doing• Social Collaboration

Visibility• Explicit, live process views• Pipeline visibility• Work item visibility• Resource visibility

Accountability/ Traceability

• Empowered work force• Clear line-of-sight for metrics

and outcomes• Goal driven processes• Process execution audit trail

Beyond Efficiency, BPM Raises the Bar for "Operational Excellence"

Definition AttributesExpectations

… that directly contribute to enterprise performance results …

by driving operational excellence and agility.

BPM treats processes as assets …

6

The Social Organization

The Nexus of Forces Will Create New Operating Models

7

Key Issues

1. Why is BPM more important today than ever?

2. How can Social BPM optimize business outcomes?

3. How should we advance our vision of BPM?

8

The “White Space” Problem Sub Optimizes Enterprise Performance

= "White space": no one is responsible, management blind spots, accountability gaps

Adapted from G. Rummler, White Space Revisited

Process ownership is constrained to functional authority. Process participants mostly work in isolation

Information sharing is constrained to approved communication channels

9

Q15. What are the top three challenges that your organization’s BPI initiatives need to, or will need to overcome in order to successfully deliver the top 3 strategic business outcomes you previously identified?n=557

Top Challenges to BPM Adoption, 2012 Survey

Multiple responses allowed 10

“Organizational Politics” is Essentially a People Issue

Cross-functional* BPM threatens:• My power base• My bonus• My job security• My expertise

* Cross-Boundary Process Management represents Level 3 BPM Maturity in Gartner’s ITScore for BPM Maturity model. 11

Social + BPM Combine to Enable People to Change Their Behavior

Efficiency

Engagement Empowerment Emergence

Accountability Visibility Adaptability

Traditional Process Management

Business Process Management

Social BPM

12

Break Down Organizational “White Spaces” with Social Collaboration

• Open access for all• Location-independent

• Virtual Proximity• 24/7 availability

• Multiple media support• Interactions, fully contextualized,

are automatically logged• Foster ‘cocktail party’ behavior

(adhoc relationships)• Social networks• Peer Rankings

Cloud-BasedProcess

Collaboration Spaces

“Before” “After”

• “Tiger teams” created• Physically Collocated• Time boxed• Project Based• Manual audit trail (if any)

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• Dynamic communities• End-to-end visibility for all

participants• People move easily in

and out of different contexts• Crowd sourced innovations,

adaptations• Advanced BPM-enabling

technologies (ie iBPMS with predictive analytics) increase confidence, driving collective accountability

• Real-time dynamic adjustments to optimize outcomes

Order to Cash

Collective Process

Stewardship

Break Through Process Performance Accountability with Social BPM

Single Process

Ownership

14

Key Issues

1. Why is BPM more important today than ever?

2. How can Social BPM optimize business outcomes?

3. How should we advance our vision of BPM?

15

Consider How Much "BPM" Is Right for Your Enterprise

The Gartner BPM Sweet Spot Framework

90% of Process-centric organizations

aspire to be here.

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Which Processes Need a Faster Rate of Change?

A pace-layered process strategy focuses on managing and governing process change.

Systems of Differentiation

Systems of Record

Systems of Innovation

"I know what I want, but it needs

to be different from my competitors."

"I don't know exactly what I want.

I need to experiment."

"I know what I want, and it doesn't have to be unique."

Pace Layering

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Where to Look for Opportunities? Every strategic process will

eventually become a socially designed and evolved process.

Processes experiencing disruptions or high rates of change.

Opportunities for process improvement that are just too hard to tackle without the crowd involved.

External facing processes (customers, suppliers, partners)

Success with social collaboration is fundamentally a business

leadership and management challenge, not a technology

deployment.

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Advance From Vertically Integrated Operations to Virtually Integrated Operations

Descriptive and Predictive Analytics

•CEP•BAM

•Others

Situation Awareness

Events

Decision ManagementPrescriptive Analytics

•CEP•Rules

•Optimization•Others

Internal

External ExternalActions

“Intelligent Business Operations” is an emergent BPM usage scenario.

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Intelligent Business Operations Leverage Diverse Kinds of Tools for Different Purposes

Run-the-Business Operations

CRM OrderCapture

Manual Approval

Fulfillment Billing

More Flexible

Processes

Added Real-Time Operational Intelligence

Flow Management•Case mgmt.•Workflow•Process orchestration•Service orchestration

Faster and Better

Decisions

Decision Management•Rule engines•Statistical analytic services•Optimization tools

Better Situation

Awareness

Event Management•Complex-event processing•BI BAM•Process intelligence BAM

BAM = business activity monitoring; BI = business intelligence 20

Indentify the Process Intelligence “Dials” That Enable You to Tune Execution• Establish leading indicators and

desired outcomes by role.

• Push decision authority closer to where work happens.

• Establish guidelines, not procedures, for how to attain desired outcomes

• Tune operations to shifts in business patterns

Pattern DetectionProactive AlertingDynamic scenario

invocation 21

Shift From Conventional BPM to Social BPM

Shift Primary FocusFrom… To…

Process Modeling Purpose Modeling

Process Execution

People Engagement

Up-Front Design Emergent Design

Linear Activities Community Collaboration Cycles

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For Breakthrough Enterprise Performance, Remember that Less is More

• Encourage Collaborative Behavior- Social BPM's greatest contribution will be

mass collaboration, not process improvement. Measure it! Reward it! Leverage it!

• Create a Shared Purpose- "Traditional" BPM creates barriers! Social

collaboration leverages natural relationships to create a shared purpose.

• Open Communications- Real-time communications, Cloud-based

collaboration spaces, crowd-sourcing, virtual collocation, social networks, mobile devices, correlating metrics to shared goals

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Recommended Gartner Research Social BPM: Design by Doing

Elise Olding, Carol Rozwell, Jim Sinur (G00200281) Master Six Core Principles to Tap the Massive Power of

Social Media, Anthony J. Bradley (G00225600) Employing Social Media for Business Impact: Key

Collective Behavior Patterns, Anthony J. Bradley (G00173838)

Operational Resilience: Adapting for Competitive Advantage Using a Pattern-Based StrategyElise Olding, Donna Fitzgerald, Carol Rozwell (G00206649)

The Trend Toward Intelligent Business OperationsW. Roy Schulte, Janelle Hill, Nigel Rayner (G00213721)

For more information, stop by Gartner Solution Central or email us at solutioncentral@gartner.com.

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Gartner's ITScore for BPM Maturity: Milestones on a Representative Journey

= Representative milestone= Example Maturity Journey

Organization & Culture

Dimensions

Process Competencies

Methodologies

Technology & Architecture

Metrics & Measures

Governance

Level 1Process-Aware

Level 2Coordinated

Process

Level 3Cross-BoundaryProcess Mgmt.

Level 4Goal-DrivenProcesses

Level 5OptimizedProcesses

Acknowledge operational challenges

Document top level business

processes

Monitor business results (process outcomes) and

adjust for effectiveness

Automation of routine activities

Champion role emerges

Process Owners

identified

Fully functioning BPCC

Measure, monitor

and adjust operational processes in real time

Public reputation for

process excellence

Process hierarchy now aligned to strategic goals

Optimization technologies in use to help balance resource constraints across processes

Generally, most are here

Create communications

deck

Perform quick win projects

Soft launch BPCC

Conduct opportunity

assessmentand define

PPIs

Process models synchronized with process execution

Process governance structure,

process and policies in place

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Characteristics of Different LayersCharacteristic Systems of

RecordSystems of Differentiation

Systems of Innovation

Business Processes

•Well-understood•Common•Repeatable structured processes

•Well-understood•Unique•Some unstructured processes

•Poorly understood•Unique•More unstructured processes•Dynamic or ad hoc

Data and Information

•Highly structured•Tightly managed•Usually internal•Audited

•Structured and unstructured•Internal and external•More dynamic•Auditable

•Less structured data•More external data•Dynamic•Auditable

Analytics •Reporting historical data

•Real-time reporting analytics

•Predictive analytics•Scenario-based

Business Process Agility

•Low •Moderate •High

Process Integrity •Built-in •Mix of built-in and user-defined

•User-defined

Source: "Balance Process Agility and Process Integrity Choices Along the Application Continuum" (G00213265)

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