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 success@towersassociates.com

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?