open text tag_bpm 04-12 v3

BUSINESS PROCESS MANAGEMENT

How BPM feels at times!

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BUSINESS PROCESS MANAGEMENTRev 1.0.14062011

Creating killer business cases for process improvement initiatives

Copyright © Open Text Corporation. All rights reserved.

April 12, 2012Gary D. Mendelson, Business Process Solutions Executive

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Agenda

� Level Setting…

� How are being a vendor and an employee similar when it comes to evaluating business process problems?

� The “art of building a business case”

� Two real world examples

� Interactive experience… Let’s start building a business case

� A message from our sponsor


Every dep’t has multiple processes

Sales• Quotes / Pricing• Underwriting• Contract Approval• New Client Onboard• Compensation• Meeting Planning• RFP Admin

Finance• Invoice Admin• Procurement• Project/ Budget Approval• Expense Management• Charge backs• Budget Planning

Compliance• Know Your Customer• Patriot Act• Sarbanes Oxley• HIPAA• Basel II• GLBA• FISMA

Marketing• Advertising• Events Management• Packaging & Pricing• Communications• Creative Development

Information Technology• IT Request

Management• Portfolio Management• App / System Support• Incident & Bug Fix• Change Control• Certifications

Customer Service• Case Management• Client Feedback• Inquiry Management• Escalation

Management• SLA Management• Support Services

Renewals

Product Dev and Research• Requirements

Gathering• Product Specifications• Change Request Man• Research• Lifecycle Management

Operations• Inventory Management• Order Fulfillment• Client Management• Events Management• Facilities Management• Award Distribution

Legal• Contract Management• Investigation• New File / Case

Management• Regulatory Filing• Legal Doc

Management

Human Resources• Recruitment• New Hire On-boarding• Compensation Plan &

Admin• Benefits Administration• Performance Management• Training & Career Dev• Employee Status Change• Transfer / Relocation• Leave Management

Manufacturing• Resource Procurement• Order Management• Change Request• Trading Partner

Management• Defect / Recall Man• Equipment / System

Repair• Quality Assurance


Symetra Financial reported

internal processing time

reductions of four days and was

able to handle a 67 percent

increase in applications without

increasing staff.


Business (Process) Challenges

Business Challenges

Existing process requires a high

percentage manual

intervention

Current process is constantly changing

Current process significantly reduces the

opportunity to scale the business Process/System

modifications are difficult and

costly

“Reactive” management of

issues due to lack of visibility


BPM Solution Objectives

Solution Objectives

Provide Process Automation and Management of human/system centric process

Provide Detailed Status, Audit

Trails andDashboards for

Operational Monitoring

Provide a platform that enables

Integration with multiple

technology solutions

Deliver a Highly Flexible process

management environment for ongoing process

improvement

Allow to govern, support, change, and manage the

solution Self-Sufficiently


Nike recovered millions of dollars in credit claims and reduced resolution time from 2 weeks to 2 minutes


Improved customer service while consolidating commercial policy issuing from 40 centers down to 3 locations



What are your professional / BPM goals?

Being a vendor and an end user are related

� Your personal goal is to be a “trusted advisor” of your manager, customer (internal or external)

� Perhaps grow your career

� Obtain Six Sigma, ITIL, CBPMP credentials

� How do you get there?



Who is your competition?

� Colleagues?� Managers?� Future hires?� Other departments?� Other companies in a competitive field?



Who is your competition?

� The answer is your company's limited capital expense budget and so you compete with other projects for a limited pool of funding.

� Once YOU understand this, understanding the need to build a rock solid business process case helps you a) beat the competition and b) become a trusted advisor.



Bonus question

� What is the Internal Hurdle Rate (IHR / IRR) ?



The Internal Hurdle Rate

� The Internal Hurdle rate is the number of months it will take an investment to pay itself back to the corporation and the “bar” your company sets as the maximum number of months

� Example:� Movie Rental = $4 each� Monthly Rental Cost = $16� You already pay for CATV & HBO� A DVR costs $160� You break even in 10 months� Is that acceptable?

� That is your internal hurdle rate



The “Art” of Building a business case

� Example #1Business process re-engineering effort all across their SDLC

� Example #2Customer's internal justification which was fueled by my business case.



The “art” of a business case� Dig into every step (who, what, where, when, why)

� Draw out every process

� Who does this, how often, how long (time), who approves, time to approve, process of approval (paper, email), exceptions, the re-work factor, double data entry

� Audit % passed, failed, staff to get ready, times / yr, who audits, consequences of a failed audit

� History of failed builds, back outs, what are the consequences / impact?

� Do you have a software release schedule?� How often? Ever miss the schedule? Why? How often?

Consequences? Pay OT or Comp time?

� Reporting = gold mine

� Spreadsheet compares BAU vs. projected process efficiencies



Why do you need to do this?



Letterman’s Top 5 symptoms for building a business case

5. Your project goes from on fire to “back burner”4. Another project took the funding from yours3. We really like your idea but we have no funds2. We didn’t put any money in the budget for this year


Real World Examples

� Example #1: Credit card processor

� Example #2: Banking


CLICK TO EDIT MASTER OPTION 1Let’s Build a Business Case

open text tag_bpm 04-12 v3

Business

master option

business process problems

process improvementinitiatives

business case example

master subtitle styleperhaps

master trusted advisor

external click

killer business cases