WHY & HOW BPM LESSONS LEARNED + TIPS & TRICKS

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INTERFACING TECHNOLOGIES CORPORATION

BPM Software, Training

& Consulting

Pioneer in the field Over 2 decades of proven tools, methodologies & success stories

International offices & partner network EY, PwC, RSM, KPMG…

Recognized as a Leader by Gartner Enterprise Business Process Analysis, Operational Intelligence & Business Operating Systems

Global client base Clients spread across five continents and all industries

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ENTERPRISE PROCESS CENTER®

• Agile Development • Simplified System

Integration • Automated Human

Task Assignment, Alerts & Escalations

• Escalation & Business Rules Enforcement

• Process Visibility, Monitoring & Reporting

Automation & Monitoring

• Strategic Objectives & Operational Alignment

• KPI Targeting & Monitoring

Performance

• Automated Approval Cycles & Audit History

• Automated Change Communication & Sign-off

• Risk & Control Assessment & Audit

Governance, Risk Assessment &

Control • Value-Stream, Cross-Functional, System Touch-Point Analysis

• Critical, Risk & Selected Path Lean Analysis Reporting

•Interdependency Impact Analysis (input/output, system, etc.).

Analysis & Improvement

• Comprehensive Accountability Assignment (RASCI-VS)

• Process & SOP Alignment Change Synchronization

• Centralized Reusable Repository, Change Management & Auto-Sequencing

Modeling & Management

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BPM IS NOT…

WORKFLOW Automation of manual tasks

• Re-engineering the Enterprise

• Six Sigma

• Mapping • Simulation

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PERCEIVED BENEFITS:

Process activities faster Reduce staff and office overhead numbers

Reduce the number of errors and exceptions

Reduce duplications Reduce IT costs Remove bottlenecks

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WHAT IS BPM? Business Process Management Is A Means To Study, Identify, Change, And Monitor Business Processes.

Business Process Management is a generic term, that

encompasses the techniques, structured methods, and means

to streamline operations and increase efficiency.

BPM techniques and methods enable you to identify and

modify existing processes to align them with a desired (improved) future state.

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WHAT IS BPM: A LIFESTYLE CHANGE, NOT A DIET!

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IMPORTANCE?

“The operating model of the future combines digital

technologies and process-improvement capabilities in an integrated sequenced way to drastically improve customer

journeys and internal processes”

“Organizations involved in digital business transformation must understand not only how they operate today but also how their target operating model will affect the delivery of stakeholder value“

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BPM IS: MATURITY

Level 5 Optimized

Processes are Continuously

Improved

Level 4 Managed Processes are Measured & Controlled

Level 3 Defined Processes

Documented & Standardized

Level 2 Repeatable Small Scale Processes

Understood & Repeatable

?

R&D SUPPORT SALES

Processes are Ad-hoc & Chaotic

Level 1 Initial

Current Approach

Future Approach

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TIPS: KISS - S IMPLE MATURIT Y CHECKL IST PR IORIT IZE , PR IORIT IZE , PR IORIT IZE !

Process Maturity Process 1 Process 2 Process 3

Effective

Repeatable

Documented (SOP)

Mapped

Modeled

Validated to date

Communicated

Analyzed

Controlled

Software / Solution

Monitored

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TIPS: L IBRARIES TO GET YOU STARTED

1.0 Develop Vision and Strategy

2.0 Develop and Manage Products

and Services

3.0 Market and Sell Products and

Services

4.0 Deliver Products And

Services

5.0 Manage Customer Service

6.0 Develop and Manage

Human Capital

7.0 Manage Information Technology

8.0 Manage Financial

Resources

9.0 Acquire, Construct,

and Manage Property

10.0 Manage Environmental Health and Safety (EHS)

11.0 Manage External

Relationships

12.0 Manage Knowledge,

Improvement, and Change

OPERAT ING PROCESSES

MANAGEMENT AND SUPPORT PROCESSES

Reference Frameworks

• APQC – Process Classification Framework • ITIL V3 – IT Services Management • SCOR – Supply Chain Operations • eTOM – Telecom Process

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3.0 MARKET AND SELL PRODUCTS AND SERVICES PROCESS METRIC

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BPM IS: TRANSPARENCY THINGS AREN’T ALWAYS WHAT THEY SEEM

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BPM IS: TRANSPARENCY

Single piece missing & all

can Fail!

Can’t fix what you don’t know End-to-end value

streams

Procedure 360 degree blueprint

T I P S :

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10 STEP DISCOVERY WORKSHOP TIPS

6. Identify each activity

7. Capture the systems, performer(s) and reference files

8. Determine whether to group activities into sub-processes (10-12).

9. Capture detailed procedures

10. Validate the processes!!!

1. Identify the process “as you know it” that will be modeled.

2. Pinpoint the corresponding process (or processes) in the Best Practice Framework (BPF).

3. Prioritize and select which ones to model.

4. Define the SIPOC to set the scope.

5. Map the primary path first.

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TASK NAMING TIPS 1. Short & concise 2. Apply to a role or need, not to a specific person. 3. Avoid generic activities (“attend meetings”) 4. Begin with a good action verb.

evaluate schedule write record determine operate monitor prepare update collect approve conduct develop inspect train publish report review authorize decide

5. When the action verb implies a judgement or a decision (evaluate, monitor, inspect), add a phrase to indicate the primary outcome. • “Monitor call handling to identify training needs” • “Analyze data to locate source of delay”

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BPM IS: STANDARDIZATION • Benefits

• Tips o Reuse o Compare variations & localize (language) o Use BPMN

Quality of goods & services

Confidence Reduced risk & Economies

of scale

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Why BPMN 2.0?

• Benefits

Common Business / IT Language

Global Standard

Clear rules – No mis-

interpretation

Prepare for automation

(xml)

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BPMN 2.0 TIPS

• Tips o Simply for end-user o Utilize fully only when required o Multiple view – Hard enough to

maintain once

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BPM IS: KNOWLEDGE

BENEFITS Process = Structure & Pointed

Retain Knowledge Self-Training

Knowledge sharing

Cater to a new

generation

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KNOWLEDGE & ACCESS KNOWLEDGE HAS CHANGED

FA S T. P E RT I N E N T. PA P E R L E S S . M O B I L E . S O C I A L .

• Tips o Stop Printing /Mobile o Use Media o Centralize

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BPM IS OWNERSHIP

• Benefits

• Tips o Roles – NOT Title o Use RACI Responsibility Matrix

Prepare for Growth

Prepare for cut-backs

Simplify M&A

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WHAT IS RACI?

Responsible Position that completes the activity. (Responsibility can be shared) “The doer”

Accountable Position with yes/no authority.

(Only one “A”) “The buck stops here”

Consult Position involved prior to decision or action. (two-way communication) “In the loop”

Inform Position that needs to know of the decision or action. (one-way communication) “Keep in the picture”

RASCI -- Support Breakdown Responsible: R ensure that it is done as per the A. Unlike C who provide input, Support helps complete the task

RACI-VS Verifier / Signatory

V: Check whether the acceptance criteria is met.

S: Those who approve the verify decision

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RACI MATRIX

1. Complete expense form AR C 3. Submit expense form AR 4. Review expense form C AR 5. Approve expense form I AR 6. Send expense form to AP R A

Sales Rep Secretary Sales Manager

Accounts Payable Clerk

An action that is one of several sequential steps in the completion

of a business process

TASKS: A position assigned or assumed to accomplish an activity or sub-activity

Roles

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VERTICAL ASSESMENT TIPS (Role)

Lots of R’s Can the individual(s) stay on top of so much? Can the activity be broken down?

No empty spaces Individual(s) need to be involved in so many activities? Can C’s be reduced I’s, or left to the individual’s discretion

No R’s or A’s Should this role be eliminated? Have processes changed to a point where resources should be re-utilized?

Too many A’s Does proper “segregation of duties” exist? Should other groups be accountable to ensure checks and balances? Is this a “bottleneck“ - everyone waiting for decisions or direction?

Qualifications Does the type or degree of participation fit the qualifications of this role?

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HORIZONTAL ASSESMENT TIPS (Task)

No R’s Does the Job get done? No one sees their role to take the initiative.

Too many R’s Is this a sign of “over the wall” activities? “Just get it done!”

Too few R’s Does the process must slow down while the activity is performed? If yes - Share the responsibility

No A’s Why not? There must be an “A.”!

Too many A’s Causes confusion “I though you had it!” No clear definition of done - every “A” has a different view - “Too Many Cooks in the kitchen”

Every box filled in

They shouldn’t be. Too many people are involved—usually too many “C’s” and “I’s.”

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RACI BENEFITS

Clearer roles & better trained

people

Eliminate misunderstandings,

encourages teamwork

Better planning process - more participation of

team (C&I)

Reduced scrap and rework - need

specifications are clarified

Better communication

(C&I)

Increased capacity - eliminate overlaps and redundancies

Streamlined structure - collapse unneeded layers

“checkers”

Clear segregation of duties (SOD)

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BPM IS: CONTINUOUS

• Benefits

• Tips o Small incremental improvements o Process Review Schedules o 2 way communication o Formalized Improvement process o Line item on employee

performance review

Remain competitive

No company overhauling

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BPM IS: CHANGE

• Benefits

• Tips o Starts from the top o Small incremental improvements o Involve everyone: pull vs. push

(adoption) o Focus / Measured on Customer

and Results

Agility Improvement doesn’t come

without change

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Tips: DR. HAMMER’S 7 I’S

TOOLS PURPOSE

Information Eliminate Anxiety, Uncertainty

Involvement Eliminate Exclusion / ‘Victim’ feelings

Immediacy Intervene to counter sad/angry feelings

Incentives WIIFM – Understand the Rewards

Instruction Eliminate Fear of Failure through Skill training and knowledge

Inspiration Eliminate Fear through Leadership

Influence Create Momentum

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BPM IS: IMPACT ANALYSIS

• Benefits

Reduced change risk

Clearer requirements

Quicker response time

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REALITY IS IMPACT IS COMPLEX •Tips

o Connectivity is key (interdependencies) o Run-time reports/ diagrams o Change governance

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BPM IS: GOVERNANCE

• Benefits

• Tips

o Establish approval workflows o Instill change confirmation o Maintain version history & audit trails o Centralize reporting

Ensure change control

Simplify & Reduce compliance audit

time and costs

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BPM IS: RISK AWARENESS

• Tips o Asses Risk by Process o Communicate Controls o Align controls

• Benefits

Insight improves risk assessment

Quicker/Smarter disaster recovery

Reduce duplicate audits

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Guess What? You’re already

doing it! Your just not

doing it right!

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FORMALIZE & CAPITALIZE ON WHAT YOU ARE ALREADY DOING!

• Internal Audit • Risk Assessment • Business Improvement • Documentation • IT Solutions • Lean • Quality Management • Compliance (eg. ISO, SOX, Basel 3, IMF, HIPPA, Cobit,…) • Governance • Training Guides/Manuals • HR (Job Description / Skill Reqs) • Enterprise Architecture • Customer Journey • Change Management

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FOR BUSINESS OR A BEER LETS CONNECT:

Linkedin: https://www.linkedin.com/in/solution/

+1-514-737-7333 x 2040 Scott.armstrong@interfacing.com