Business Process Excellence: Building Out Business Process Capabilities

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Building-out Business Process Capabilities Within

Organizations:

Business Process Centers of Excellence as Accelerators

At Centric, we deliver unmatched client experiences that center on

collaboration. Working together, we implement lasting solutions that work.

Solutions that matter.

AGENDA

• Introduction to Process Excellence• Business Process Capability Maturity Model• Leveraging COE’s as Accelerators• Centric Overview

1/27/2016www.centricconsulting.com 2

Business Process Engineering: involves the redesign of core business

processes to achieve dramatic improvements in cost, productivity, cycle-

times and quality.

WHY BPE?

Driving Performance & Customer

Satisfaction: Achievement of superior

business performance through

ongoing process management and

resulting process optimization.

• Service & Quality: Meeting and

exceeding customer expectations

around quality, customer service

and responsiveness. Producing

with minimal defects.

• Cost Effectiveness: Managing

total costs to enhance customer

and shareholder value as well as

drive competitive advantage in the

marketplace

• Reliability: Maintaining

predictable, repeatable and

consistent operational

performance.

• Scalability: Providing the

operational foundation to

effectively scale and support top

line growth without large increases

in headcount and cost

• Flexibility & Responsiveness: Providing the operational

foundation to effectively scale and

support top line growth without

large increases in headcount and

cost

Typical

Performance

Impacts

What Does BPE Enable?

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Client

BUSINESS PROCESS CAPABILITY MATURITY MODEL

Stage 1: Process Aware

Stage 2: Coordinated

Process

Stage 3: Cross-Functional

Process Mgmt

Stage 4: Goal-Driven Processes

Stage 5: Optimized Processes

Process AwareCoordinated

ProcessesCross-Functional

Process Mgmt Goal-Driven

ProcessesOptimized Processes

Process DefinitionProcesses are manual, undefined; metrics are

poorly understood

Processes dependent on individuals and have

limited documentation; performance is tracked

intuitively and qualitatively

Processes are understood and documented;measurement is a

systematic part of the management processes

Performance Management is embedded; processes

are continually improved and automation is applied

in key areas

Process Excellence is an intentional part of the culture; systems and

structures are in place to monitor and adjust processes real time

Organization &Governance

Functional hierarchy/silos

Isolated Champions

CoE in place, process improvement mentality

Process Owners

Strategic alignment ofprocesses to goals

Process excellence mentality

(continuous improvement)

BPI Competencies Isolated Awareness of skills and gaps

Tiered model for “skilling-up”

Process skills reflected in job profiles

Everyone has core skills

Methodologies Nonexistent Leveraging multiple in ad-hoc manner

Standardized methodsOrganizational “tool-box”

in placeEnterprise input

Technology & Architecture

Application silos Paper-based modelsEnterprise process

nomenclature, IT linkedwith Process CoE

Comprehensive BPM/business rule mgmt

strategy in place

Dynamic BPM enablement with simulation and

optimization

Performance Management (Metrics)

Task-orientated KPIs Initiate process KPIsProcess KPIs in place across organization

Process KPIs linked with strategic goals (real-time)

Scenarios available for analysis

41/27/2016 www.centricconsulting.com

Though there is a critical mass of companies at more advanced maturity

levels, the vast majority of your peers are in early stages of process

maturity

WHERE ARE YOUR PEERS RELATIVE TO THE PROCESS MATURITY CURVE?


10%

13%

15%

26%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

No PEX Program

Small Scale Process Pilot

Have FTE's But No Formal Program

One or More BU's

Enterprise Wide Program

Scope of Process Efforts

Majority of

organizations

are at CMM

level 0 -2

SOURCE: SPECIAL REPORT: ALIGNING STRATEGY WITH OPEX TO DRIVE SUSTAINABLE,

ENTERPRISE-WIDE TRANSFORMATION; PEX PROCESS EXCELLENCE NETWORK 2015/16

Most companies employ a relatively small team of BPI/PEX practitioners

that tend to report across a multitude of departments within organizations

SIZE AND REPORTING RELATIONSHIP OF PROCESS TEAMS


6%

5%

8%

24%

58%

0% 10% 20% 30% 40% 50% 60% 70%

200+

100 - 200

50 - 100

10-50

0-10

2%

2%

4%

8%

13%

16%

17%

25%

0% 5% 10% 15% 20% 25% 30%

Human Resources

Engineering

IT

COE

Quality

Business Units

Operations

Process Improvement Group

BPI Team Size(FTE’s)

Departmental Responsibility

Many organizations

do deploy PEX

practitioners through

Centralized Teams

SOURCE: SPECIAL REPORT: ALIGNING STRATEGY WITH OPEX TO DRIVE SUSTAINABLE,

ENTERPRISE-WIDE TRANSFORMATION; PEX PROCESS EXCELLENCE NETWORK 2015/16

3 column grid

7

The CoE collaborates with and enables Business Units to become self-

sufficient over time by building BPI capabilities within their businesses

transitioning to a Federated model augmented by a centralized CoE.

Level of

Support

FacilitatedCOE Led BU Led

Progression over time to BU’s

becoming self-sustaining

CoE Collaboration and Engagement Model

CoE and Business Unit Complete

Business Diagnostic and Determine

Highest Impact Projects

CoE and Business Unit Jointly

Complete High Impact Delivery Projects

Business Unit Begins to Own and Lead

Continuous Improvement Efforts

BPI CoE

Business

Units* Each business unit

leveraging BPI

needs to plan to

allocate, hire, or

augment externally

these roles for on-

going BPI Projects

dependent upon the

project scope and

their resource

bandwidth

* Our clients typically leverage

external BPI SMEs (subject matter

experts) to build internal

capabilities/train resources

www.centricconsulting.comConfidential and Proprietary

BPI COE ENABLEMENT & GOVERNANCE MODEL

Supplemental Material


• Business Process COE Benefits• Functions of a Process COE• Implementation Considerations• Illustrative Organization Model• Client Samples

3 column grid

Our recommended BPI Program approach is to leverage a centralized

Enterprise BPI Enablement Team/Center of Excellence (CoE).

Process Team/BU

3

Process Team/BU

2

Process Team/ BU

1

BPI CoE

BPI Program/Project Governance

Provide Cross-Organization Governance & Coordination

• Drive governance, standards and policy

• Provide leadership and expertise pertaining to business process improvement and operational excellence

• Be the central utility in the identification, prioritization and coordination of cross-organization BPI efforts

• Maintain overall implementation roadmap / change plan

• Facilitate BPI Advisory Team / Steering Team involvement

Enable a Process Driven Culture to Accelerate Value Delivery

• Provide education to the business on BPI

• Assist operating groups in identifying & prioritizing opportunities

• Facilitate process improvement across functional areas/business units to increase savings (minimize sub-optimizations)

• Provide expert process and technology skills and resources to help deliver initiatives

• Develop, maintain and make available best practice methodologies, templates and tools

• Facilitate knowledge transfer of best practices, opportunities and lessons learned across company

• Provide flex resource capacity for operating groups

Build Sustaining Capability throughout Organization

• Assist operating groups in the development of internal operational improvement and BPI technology capabilities (infrastructure, training, leadership development, performance mgmt., etc.) to manage process on an on-going basis

BPI CENTER OF EXCELLENCE ENABLEMENT MODEL

www.centricconsulting.comConfidential and Proprietary 9

FUNCTION OF THE BPE COE - POTENTIAL OPERATING MODEL

The BPE COE acts as an internal consultancy that provides services to multiple

BPE projects, programs and initiatives. It also establishes BPE guidelines,

standards and tools, and provides services that enable the enterprise to adopt and

evolve its BPE competency over time.

Engagement Mgt

& DeliveryPlanning, preparing and

delivering engagements

at the highest quality

level

COE

Strategic

Intent

Mobilization

& Prep

Delivery

Quality

Assurance

Pipeline Mgt /

Prioritization

Opportunity

Identification

Awareness/

Relationship

Mgt

Financial

Mgt

Training/

Resource

Development

Demand &

Resource

Planning

Toolset /

Methodology

Development

Alliances

Governance

Opportunity

IdentificationGenerating demand for BPE COE

services and management of

opportunity pipeline.

COE Practice MgtDeveloping and managing

the COE practice required

to support day-to-day

operations

COE Functions to be Considered

www.centricconsulting.comConfidential and Proprietary 10

ESTABLISHING A BPE COE

• Reporting Structure of the BPE COE: Initially BPE

COE’s typically report to either the IT or the Business and

evolve to a hybrid model over time.

• COE Charter, Services and Operating Vision: Determine the scope of the COE and how it will operate

within business units and across HUB

• COE Resource Model: Define roles, skill-sets, and

capacity required. Close on approach to source, develop,

and manage BPE practitioners across Kemper and the

BU’s

• Common Methodology and Tools: Collaboratively

determine relevant BPE methodologies and tools for use

within HUB. Decide on governance model to ensure

consistency

• Implementation Approach and Plan: Evaluate

potential implementation and phasing options and decide

on approach, staging and high-level timing of standing up

the COE.

• Don’t Overburden or

Complicate Process Work: Making process work too

bureaucratic and overly complicated

can derail a BPE program.

• Modeling - avoid requiring as-is

models in detail (task-level) and

for every process

• Project Work Plans - create

project templates to accelerate

project startup, and ensure

consistency; however, avoid

requiring burdensome amounts

of detail and upkeep

• Align with and Avoid

Redundancy with Other

Governance Efforts: Avoid

overlaps with other established

groups and governing bodies as this

could lead to diminished

accountability and conflicts of

interest.

Key decisions and common pitfalls to avoid:

Decisions Common Pitfalls

Source: Elise Olding. “Best Practices and Pitfalls for Business Process Competency Center Success” Gartner, March 22, 2010


EPMPO / BU ROLE IN BPE GOVERNANCE

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BU’s will conduct discrete projects, participate in enterprise project portfolio

decisions and contribute resources to cross-BU business process work

BU COO’s are members of the EPMO Steering Committee which assesses and approves projects across the enterprise

BU COO’s and their respective BPE Leads will participate in defining the Charter and Strategy of the Enterprise BPE COE

BU COO’s Contribute their respective BU BPE resource participation on cross – enterprise BPE projects

BU COO’s can solicit assistance from Enterprise COE resources on select BPE engagements within their BU

BU COO’s work with their respective BPE Teams to ensure adherence to Enterprise BPE guidelines and project controls / phase-gates

BU COO’s hire and develop BU level BPE resources and capacity based on projected needs

www.centricconsulting.com


Centric Overview

Centric Overview

WHO WE ARE

You’ve found your most reliable partner.

We’re a business consulting and technology solutions company that’s been around for 15 years and we’re

building a company that will be here for 100 more.

Our culture is built on our passion for our work and driven by our values.

• We work to understand your

needs and act as a true partner.

• We selectively hire people who

have a track record of delivering

exceptional results.

• We value hard work and temper

that work with humility, respect

and collaboration.

• We are committed to making a

positive difference in the

communities we serve.

• We are unconventional, loyal,

smart and fun. We strive to

manage a work-life balance

that makes us better

professionals and better people.

To learn more about our core values,

visit

www.centricconsulting.com/about-

us/core-values.

1999 year founded

650+employees

30+practice areas

12 locations

2 national practices

1 bold vision that spans 100 years

$104* million2015 revenue

• Business Consulting Service Offerings

• Technology Solutions Service Offerings

• Industry Emphasis Areas

• Boston

• Charlotte

• Chicago

• Cincinnati - Dayton

• Cleveland

• Columbus

• Indianapolis

• Louisville

• Miami

• Seattle

• St. Louis

• Tampa

• Energy & Utilities

• Oracle

1/27/2016 www.centricconsulting.com 14

* Projected

http://www.centricconsulting.com/about-us/core-values

WHY WE’RE HERE

Centric was founded because we wanted to be different in the way we

approached relationships with our clients, people, families and community.

• Our highest priority is building lifelong

relationships with clients based on trust,

respect and collaboration.

• We invest in our talented team and

support their well being by keeping them

challenged and inspired.

• Our localized company structure allows

us to play very active roles in the lives

of our families.

• We devote time, both personally and

professionally, to making a positive

difference through community service.

This relationship-centric focus keeps us passionate, committed and

motivated in all facets of our lives. That’s why our team is here to stay.


We bring an ideal blend of business and technology skills.

We take a collaborative approach to problem solving.

We offer local delivery with firm-wide support.

HOW WE WORK

Centric is dedicated to providing you with an unmatched experience.

We are guided by our commitment to do what’s right for you.

• Our range of talent brings

in-depth knowledge of your

business and market.

• We treat every project as unique

and customize solutions to fit

your needs, industry and

desired results.

• We use our multi-faceted

knowledge to approach

challenges strategically.

• We have a 100 percent

referenceable client base.

• National service offerings

harness the size and scale of

Centric while bringing deep

experience to local markets.

• Our multi-site delivery skills are

coupled with onshore and

offshore development

capabilities.

• We offer solutions based on

your needs including role-

based consulting, complete

project delivery or work-stream

delivery within large projects.

• Our employees are here to

stay – Centric has industry-

leading retention rates.

• We build consensus from the top

down and bottom up.

• We know when to talk and when

to listen.

• We flexibly integrate our team

with yours for seamless delivery.

• We are serious about budgets

and timelines and drive toward

these goals with appropriate

sensitivity.


OUR BALANCED APPROACH

Our culture, people and delivery come together in what makes Centric truly

different – our balanced approach to achieving lasting solutions.

This is what we mean by “in balance”

and it’s what we work toward every day.

Short-term results Long-term perspective

Technical knowledge

&

&

&

&

&

Strategic thinking

Creativity

Enterprise impact

Business sense

Practicality

Local delivery

Tactical execution


WHAT WE DO

We are passionate about the intersection of business and technology.

It’s a blend of skills that results in a solid execution every time. And it

brings you a partner with a wide range of capabilities.


Energy

and

Utilities

Financial

Services

GovernmentHealthcare

InsuranceLogistics

/Supply

Chain

Manufacturing/

Products

Retail

Transform and Grow

Your Business

Enable and Sustain Change

Enhance Customer

Experiences

Improve Operational

Performance

BUSINESS CONSULTING TECHNOLOGY SOLUTIONS INDUSTRY EMPHASIS

IT Expertise

Full

Lifecycle

Capabilities

Tools

and

Technologies

Digital


Work Experience

Mark Buchynski

Partner / Director

Chicago Business Consulting Practice Leader

Mark is an energetic, results-driven executive with more than 20 years of professional experience working hands-on with Fortune 500 corporations, growth organizations and startups to address their critical business priorities.

He has more than 15 years of experience in management consulting, using his operational experience and process-oriented background to take a discerning look at clients’ existing processes and recognize risks and opportunities associated with current performance. Mark has been successful in leading change initiatives by focusing on critical drivers of initiative adoption.

[email protected]

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