Alignment of Strategy and Process Governance: How the Brazilian Development Bank Integrated Managerial Practices to Sustain Growth in the Brazilian Economy
Rafael Paim – Enjourney & Pedro Iootty - BNDES - November|2013
2
Rafael Paim Enjourney Founder Partner
Pedro Iootty BNDES
Consulting and Education
3
Presentation Design: the agenda
BNDES Process Management and Governance Implementation Roadmap
How BNDES Process Governance was aligned to Strategy
The Brazilian Market and BNDES Role in sustaining the growth of the Brazilian market
BNDES Process Management and Governance Framework
Contr
ole
e A
valiação R
econhecim
ento
Estratégias / Objetivos
Padrões e instrumentos
Papéis DA e NA governança
Divisão de tarefas de gestão de processos
Estrutura e critérios de escalonamento para decisão na governança
Premissas gerais de construção
The BNDES Operational Process Center of Competency Model applied and adapted to Brazilian and BNDES Culture
How the Change will move BNDES and the Brazilian Economy forward
4
Alignment of Strategy and Process Governance: Concepts and Cases
Rafael Paim – Enjourney - November|2013
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Process-Oriented Management
Efficient Operations Effective Management
Source: Adapted from JESTON (2008)
Main Benefits of Process-Oriented Management
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High
Time
Low
Impact on Business
Value
Day-to-day Process Management
(Value-Oriented) Process Design
Development Time Elapsed Time
Source: BROCKE, RECKER & MENDLING (2010)
Benefits and Value of Process Design
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Improvement at
Process Management
Increase stakeholders
satisfaction
Reduction of expenses and custs
Increase profit and or Results
Improve the prepare and
integration of the workforce
High performance at process
management and process
improvement
Constant Organizational
development
Improve the coordenation and
integration between activities
and resources
Most efficient and effective
comunication inside and outside
the organization
Alignment and high
performance at process
execution
Higher alignment between the
levels of leadership
Support the unfolding of
strategies in the processes of
the organization
Adjustment and consistêncy of
indicators, controls and
avaliation
Reduction of the
“reworking” and increase the
productivity
Enjourney (2010)
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Time to Break Even Time in Value
Time to Market Time in Market
MORE
FLEXIBLE
$
Time
VALUE
COST
RETURN
The Case for Change: Creating Greater Value
Adapted from Burlton (2013)
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Time to Break Even Time in Value
Time to Market Time in Market
$
Time
VALUE
COST
RETURN
The Case for Change: Creating Greater Value
Adapted from Burlton (2013)
10
Contextualising:
PROCESSES: not any, Not the functional
Process, specifically: Cross*
*Paim et al., 2009
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§ Kind of process that is necessarily accomplished by more than one organizational unit or department;
§ For example, the transversal process of
buying involves the stages of requiring, buying, paying, receiving, using and discarding;
§ Also named processes “from...until”,
“end-to-end”, “cross-process”.
Evento
Atividade
Evento
Atividade
Evento
Atividade
Evento
Main Idea: processes as tools of coordination; Coordination as the act or set of acts to deal or handle the interdependency of activities and resources, now and
forward.
Cross Process
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§ FOUR PROCESS, CROSSING FOUR UNITS
An Example: Independent Electric Power Operator (ONS)
Nor
mal
izat
ion
Pre-
oper
atio
n R
eal t
ime
Pos-
oper
atio
n
Centralized energy generation
Coordinated energy transportation
Transmission Lines Availability Management
Big Disturbs Management
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SUBTÍTULO
From formulating estrategy to evaluating
the business.
From demand to evaluating the
suppliers.
From planning the sales to
production demand.
From needing the business to the
quality of information
system.
From mineral exploration to
costumer’s evaluation.
From the delpoyment of the “5 years plan” to
evaluating the economic and
financial performance.
From planning the investments to evaluating its effectiveness.
From identifying opportunities to
evaluating process solutions and technology.
From understanding to balancing the interests of the involved parts.
Value Chain
From identifying to evaluating the effects on the
persons and on the environment.
From planning the human resources to evaluating the
performance of the workforce.
From identifying to evaluating the risks to the health and
security.
From structuring the management
model to evaluating the conformity and performance of
processes.
An Example: Samarco Mining Co.
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Contextualising:
PROCESS MANAGEMENT
Perform- well: tasks to think, act and learn about processes*
*adapted from Paim et al. 2009
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PO
PO
FPM Functional Process Management
FCCP Functional for cross-processes
POM Process Oriented Management
Responsable for the life cicle of process design (Development)
Office responsable for coordenating in the daily routine, has autonomy to
allocate the resources
Huge dificulty to coordenate the resources and activities of processes
Process Management Models
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Think about and Design the Processes
Manage processes in the daily routine
Promote Learning
1
2
3
Paim, 2007, Paim et al, 2009
Tasks of Process Management: What should the involved, including the leaderships, should be competent at
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§ Establish business strategy
§ Establish approach to change management
§ Ensure sponsorship
§ Prioritize processes
§ Choose tools (BPMS, i.e.)
§ Choose techniques for process management
Be competent at process design: Search for Improvements
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Be competent to Manage the daily routine
§ Implement new processes and changes
§ Promote the performance of processes
§ Follow the performance of processes
§ Control process execution
§ Perform changes and short-term adjusts
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§ accumulate information over time
about the performance of processes
§ Benchmark with internal and external
process
§ record performance issues and evaluate
the trajectory of process performance
§ record documentation related to processes such as policies,
procedures and other documents that prescribe how the work should be
done
Be competent to Promote Learning
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Why process governance is
needed?
Process Governance
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Process Governance is important…
to protect the stakeholders interest in process prosperity
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What are the key Process Governance concepts?
How to understand and make
practice viable?
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Defining Process Governance …
Set of definitions and guidelines to design, establish, evaluate and improve process management.
Process Governance
Guidelines
Process Management
Cross Process
Adapted from Paim et al, 2007,2009
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Process Governance x Process Management: clarifying doubts...
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Process Governance
Process Governance : The Fit with other concepts
Business Strategy
Process Management
Cross Processes
§ acts in order to fulfil the void between strategy conception and execution; and
§ enables the fit or alignment among stakeholders in order to increase process management positive results and avoid the negative ones.
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Process Governance Framework
Source: Enjourney, 2010
Co
ntro
l and
Eva
luat
ion
Rew
ard and Recognition Strategy/ Objectives
Patterns and Instruments
Roles of and in governance
Responsibilities allocation
Decision, sponsorship and escalation
structure
General design premises
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An example...
Eletrobras
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GOAL
To contribute to generating sustainable results for Eletrobras enterprises, fostering integration among process initiatives and alignment with business objectives.
IMPACTING FACTORS
Factors that drive or
hinder Process Governance in
attaining its stated goal and are thus
essential to constructing such
governance.
PROCESS MATURITY
TRAINING
POLICIES AND GUIDELINES
VALUE CHAIN
ORGANIZATION STRATEGY
MANAGING CHANGE
TECHNOLOGY
SECTOR WHERE FIRM OPERATES
POWER STRUCTURE
GOALS OF GOVERNANC
E
§ Economically profitable § Environmentally compa2ble § Socially just.
Goal of Process Governance vs. Impacting Factors
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Eletrobras Governance and Process-Oriented Management Framework
Com
mitt
ees
Ele
trobr
as E
nter
pris
es
Pro
cess
Offi
ce
Pro
cess
Offi
ce
METHODOLOGIES
Priori:za:on of process projects
Func
tiona
l Man
ager
PROCESS-‐ORIENTED MANAGEMENT
BUSINESS PROCESSES
PROCESS GOVERNANCE
Value Chain
INSTRUMENTS
STRUCTURAL RELATIONS
POLÍCIES AND GUIDELINES
EVALUATION AND CONTROL
MECHANISMS
ROLES AND REPONSIBILITI
ES
GOAL OF GOVERNANC
E
TOOLS
BY-PROCESS MANAGEMENT
GOALS PROCESS ARCHITECTUR
E
INDICATORS NORMATIVE INSTRUMENTS
Pro
cess
Lea
der
Day-‐to-‐day Management
Inducing Improvement
Stra
tegy
For
mul
atio
n
Process Improvement
Introduc:on Process Design
Learning
Learning
Learning
Source: Eletrobras team, Governance Group, GIP Training 2010-1
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Results in Practice
Applying Lean Philosophy on processes improvement
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How does it work? Principles of Lean are fully valid for knowledge intense environment as well
Principles of Lean
▪ Elimination of all unnecessary non-value added activities (waste, variability, and rigidity)
▪ Optimization of Operating Procedure, Management Systems and Mindsets & Behaviors
▪ Strong emphasis on continuous improvement mindset
▪ Simultaneous improvement of productivity, quality, risk, and satisfaction by attacking root causes
▪ Learn-by-doing approach (through
sequenced pilots) to performance improvement and capability-building
Before
After
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Embraer – Fort Lauderdale
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Embraer – Fort Lauderdale
Customer Services
Warehouse operations
Repair Management
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Embraer – Fort Lauderdale
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Agenda
Context – AGIR Project
Brazilian Development Bank
Corpora?ve Indicator – Process Management Maturity
Process Governance Corpora?ve Project
Results
BNDES Highlights
§ Founded on June 20th, 1952
§ 100% state-owned company under private law
§ Key instrument for implementation of Federal Government’s industrial
and infrastructure policies
§ Main provider of long-term financing in Brazil
§ Emphasis on financing investment projects
§ Support to micro, small and medium-sized companies
§ Support to Export and Internacionalization of Brazilian companies
Infrastructure
Heavy Industry – Consumer Goods
Technologic Development
Time Line
Imports Substitution
Energy
Agribusiness
Exports
Privatization Program
Urban and Social Development
Social Inclusion
Innovation
Sustainability
Small Business
50’s 60’s 70’s 80’s 90’s 00’s Today
Montevideo Office
BNDES Limited
Rio de Janeiro
Brasília
Recife
São Paulo
2.668 employees August, 2013
BNDES - Headquarters & Offices
Offices
Subsidiary
How we work
ENTERPRISE
Accredited
Financial Institution
ENTERPRISE
Information & Relationship
Direct Operations Companies financed directly by
BNDES
Indirect Operations Companies financed through
an accredited financial institution
Direct Operations
Power Plants Oil Rigs
Arenas Industries
FINEM – Examples:
Indirect Operations
Construction
Exports
Agriculture
Vehicles
Machinery and Equipment
Annual Disbursements
Converted to US dollar on the disbursement dates
Average growth of 22% in disbursements during the 2008 – 2012 period
35,1 40,0 47,1 52,3 64,9
92,2
137,4
168,4
139,7 155,9
78,7 82,3 96,3
71,6
49,8 34,0
24,1 19,8 13,8 11,7
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
R$ Billion US$ Billion
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Agenda
Context – AGIR Project
Brazilian Development Bank
Corpora?ve Indicator – Process Management Maturity
Process Governance Corpora?ve Project
Results
44
Historic Context – AGIR Project
“As Is “ mapping
Diagnosis
Requirement Iden?fica?on and Concept Models
Future Vision Concept Design
Mapping – understanding the context
Future Processes Design and Impact Analysis
2005 ?ll
2009 Stage 1
ERP Implementa?on (PAM)
Applica?on Development Program (PAD)
New Processes Implementa?on
Process Management and Governance
2010 ?ll
Now Stage 2
45
“As Is “ mapping
Diagnosis
Requirement Iden?fica?on and Concept Models
Future Vision Concept Design
Mapping – understanding the context
Future Processes Design and Impact Analysis
ERP Implementa?on (PAM)
Applica?on Development Program (PAD)
New Processes Implementa?on
Process Management and Governance
2005 ?ll
2009
2010 ?ll
Now
Stage 1
Stage 2
Historic Context – AGIR Project
46
// 46
Innova?on
Measurement Efficiency
accountability Value Genera?on
Simplicity
Process Excellence Principles
reliability
Integra?on IT Support
The Process oriented management seeks the process excellence through the following elements:
47
“As Is “ mapping
Diagnosis
Requirement Iden?fica?on and Concept Models
Future Vision Concept Design
Mapping – understanding the context
Future Processes Design and Impact Analysis
ERP Implementa?on (PAM)
Applica?on Development Program (PAD)
New Processes Implementa?on
Process Management and Governance
2005 ?ll
2009
2010 ?ll
Now
Stage 1
Stage 2
Historic Context – AGIR Project
48
Process Vision
PI03 -‐ Au
dit, Internal Con
trols a
nd Ope
ra?o
nal R
isk Man
agem
ent
PI05 -‐ Produ
cts D
evelop
men
t and
Man
agem
ent
PI04
-‐ Kno
wledge man
agem
ent, Stud
ies a
nd In
ternal Com
mun
ica?
on
PI02 -‐ Official acts m
anagem
ent, Stan
dard Con
tract D
rabs a
nd M
odel Processes
4. In
tegra?
on Pladorm
1. Rela?onship Pladorm
Analyze Consults and Opera?ons Contract Opera?ons Liberate Resources Concession Support
PAN03 – Statutory Funds Management PAN04 – Charging and Credit Recovery
PAN06 – Property and Titles Evalua?on -‐ Insurance Regularity Verifica?on
PAN08 – Informa?on Receiving and e Time Control PAN07 – Financial Support Follow Up
PAN02 – Funding Management
2. Business Pladorm Business
Business Suppport
PSC05 – Human Resources PSC04 – Juridical
PSC06 – Administra?on
PSC02 – Accountancy PSC01 – Costs and Budget
3. Shared Services Pladorm
PN01 – Financial Support Concession
PAN05 – Credit Risk Management
PI06
-‐ IT
PI01 – Plann
ing an
d man
agem
ent sup
port
PN05 – Stock Market Opera?ons
PR01 – Channel administra?on PR02 – External Ins?tu?onal Communica?on PR03 – Fomenta?on
PN07 – Public Private Partnership Structura?on
PSC03 – Financial
PAN01 – En?ty Database Management
Development
Large scale development
ERP
Reference (IT):
AGR purchase
Others purchase
49
“As Is “ mapping
Diagnosis
Requirement Iden?fica?on and Concept Models
Future Vision Concept Design
Mapping – understanding the context
Future Processes Design and Impact Analysis
ERP Implementa?on (PAM)
Applica?on Development Program (PAD)
New Processes Implementa?on
Process Management and Governance
2005 ?ll
2009
2010 ?ll
Now
Stage 1
Stage 2
Historic Context – AGIR Project
50
Aber Implanta?on Implanta?on Construc?on Analysis & Defini?on
Process Implanta?on Methodology
Define governance and elaborate detailed process implanta?on plan.
Analyze, review, detail and define all
the elements required to process
opera?on.
Construct the elements required to process opera?on.
Start process opera?on and define elements required to
the process management.
Support process management and
opera?on.
Group of integrated ac?ons needed to start execu?ng new processes. Involves ac?ons in process, people and technology dimensions.
Planning Before Implanta?on
Seek sponsorship and Define the strategy
to process implanta?on.
51
“As Is “ mapping
Diagnosis
Requirement Iden?fica?on and Concept Models
Future Vision Concept Design
Mapping – understanding the context
Future Processes Design and Impact Analysis
ERP Implementa?on (PAM)
Applica?on Development Program (PAD)
New Processes Implementa?on
Process Management and Governance
2005 ?ll
2009
2010 ?ll
Now
Stage 1
Stage 2
Historic Context – AGIR Project
52
Secondary Diagnosis and Concerns
§ Iden?fied needs:
§ Integra5on;
§ A8en5on to the processes vision;
§ Behavior change across the organiza5on;
§ increase engagement in some departments;
§ Decrease process theme unique associa5on to IT.
§ Efficiency , Efficacy and e Effec5veness;
§ Performance Indicators;
§ Process Governance;
§ Process Owners.
§ Guidelines:
53
Strategic Alignment
To promote best prac?ces of corpora?ve
management and integra?on
Process Governance Process Management Maturity level
Strategic Objec?ve Corpora?ve Project Associated to the
Objec?ve Strategic Indicator
Aprendizado e
Competências
Processos
Internos
Sustentabilidade
Financeira
Desenvolvimento
Sustentável e
Competitivo
Perspectiva Objetivos Corporativos
Expandir investimentos em infraestrutura
Induzir o fortalecimento da competitividade das empresas
brasileiras
Contribuir para a inclusão social e produtiva
Fortalecer a estrutura patrimonial
Diversificar e integrar produtos financeiros
Aperfeiçoar a gestão de riscos e retorno
Promover o desenvolvimento profissional e pessoal dos
empregados
Propiciar um ambiente organizacional que estimule a
inovação
Fomentar a inovação, a sustentabilidade socioambiental e o desenvolvimento regional
Fortalecer a imagem e a presença do BNDES perante seus principais interlocutores e
a sociedade em geral
Promover melhores práticas de gestão e integração corporativa
Valorizar a gestão de pessoal com pactuação de resultado e avaliação de desempenho
BNDES 2012 BSC
54
Process Management Maturity – Referen?al
Visited in Oct 8 2013: hTp://www.solitaireconsul:ng.com/Blog/?p=330
55
The Process Management Path
Process Improvement Cycles supported by integra:on mechanisms.
Management Mee?ngs Rou?ne supported by system tools.
Performance Indicators defined, classified and periodically measured.
Governance and Management Structure (process-‐oriented) defined, prepared and responsible for decisions.
Process Owners defined, trained and with established rights and du:es.
Macro processes and Processes mapped, related to func:onal structures and with defined objec:ves
Process Governance Corpora?ve Project
Enable the execu?on of each step on each BNDES process.
Process Management Maturity Level Indicator
Measure the evolu?on of each BNDES process on each step.
56
Process Improvement Cycles supported by integra:on mechanisms.
Management Mee?ngs Rou?ne supported by system tools.
Performance Indicators defined, classified and periodically measured.
Governance and Management Structure (process-‐oriented) defined, prepared and responsible for decisions.
Process Owners defined, trained and with established rights and du:es.
Macro processes and Processes mapped, related to func:onal structures and with defined objec:ves
The Process Management Path
57
Process Owners Responsabili?es
Monitor and Report Performance
Iden?fy and deal with Demands
Co-‐ordinate Improvement Efforts 1
2
3
58
Process Improvement Cycles supported by integra:on mechanisms.
Management Mee?ngs Rou?ne supported by system tools.
Performance Indicators defined, classified and periodically measured.
Governance and Management Structure (process-‐oriented) defined, prepared and responsible for decisions.
Process Owners defined, trained and with established rights and du:es.
Macro processes and Processes mapped, related to func:onal structures and with defined objec:ves
The Process Management Path
59
Level 4 Macro process
Level 2 Sub process
Level 3 Process
§ Process Managers § Process Leaders § Process Experts (on demand) § Impacted Process Managers (on demand)
§ Macro process manager § Process manager § Impacted Process managers (on demand)
Bimonthly
Weekly (informal mee5ng)
Monthly Process Mee?ng
(Department mee:ngs)
Macro process Mee?ng
(Area mee:ngs, others commiTee)
Level Mee?ng Par?cipants Recommended Periodicity
Formal Mee?ng (Synergy)
Level 1 Ac?vi?es and
Tasks
§ Process Leaders § Process Experts § Impacted Process Leaders (on demand)
§ Others stakeholders (on demand)
N/A
Sub process Mee?ng
(Local func:onal mee:ngs)
Superintendent (Macro process manager)
Manager or Coordinator (Process leader)
Department Chief (Process manager)
Technician (Process expert)
Responsible (Role in the Process Management)
N/A
(Process opera:on) § N/A Im
proving Ini?a?
ves, In
ova?
on, Ind
icator re
ports a
nd dead-‐locks
Decision
s, Resou
rces, Spo
nsorship, G
uide
lines and
Coo
rdina?
on
Level 5 Pladorm
§ Directory § Macro process managers § Impacted process managers (on demand)
Quarterly
Planning Commimee or
ROD (Board Mee:ng with Sups.)
Directors and Superintendents
Process Governance and Management Dynamics
60
The Process Management Path
Process Improvement Cycles supported by integra:on mechanisms.
Management Mee?ngs Rou?ne supported by system tools.
Performance Indicators defined, classified and periodically measured.
Governance and Management Structure (process-‐oriented) defined, prepared and responsible for decisions.
Process Owners defined, trained and with established rights and du:es.
Macro processes and Processes mapped, related to func:onal structures and with defined objec:ves
61
Process Oriented Management Elements
Level 4 Macro process
manager (Superintendent)
To sponsor To charge To decide Between Areas To Par?cipate (on demand)
To Approve (if applicable)
To Approve (if applicable)
Level 3 Process manager (Department chief)
To assure To follow To decide or scale Between Departments To Lead To Priori?ze and
Plan To Define
Level 2 Process leader (Manager or Coordinator)
To monitor and coordinate To measure To iden?fy and
organize Between Local Managers
To Prepare and Par?cipate To Coordinate
To Iden?fy and Coordinate the
Update
Level 1 Process Expert (Technician)
To operate To know To iden?fy Informal Par?cipate (on demand) To Execute To Update
Governance Execu?on
Indicators and Performance
Ques?ons or Problems
Ar?cula?on (Networking)
Mee?ngs and Interac?ons
Ac?ons and Improving Cycles
Roles and Documenta?on
Coordinate Improvement Efforts Iden?fy and Treat Ques?ons Monitor and Report Performance
62
Agenda
Context – AGIR Project
Brazilian Development Bank
Corpora?ve Indicator – Process Management Maturity
Process Governance Corpora?ve Project
Results
63
Processes Units envolved
IT ATI
Costs and Budget AP
Accountancy AF
Financial AF
Juridical AJ
Human Resources ARH
Administration AA
Auditing AT
Internal Controls AGR
Operational Risk AGR
Planning AP
Management Support AP and GP
Financial Support Concession -‐ Stage 1 AO´s and AP
Entity Database AC and AP
Follow up AO´s
Credit Risk AC
Product Development AP
Financial Support Concession -‐ Stage 2 AO´s
Charging and Credit Recovery AC, AF e AJ
External Institutional Communication GP
Internal Communication GP
Evaluate Property and Warranties AC
Stock Market Operations AMC and ACE
Financial Support Concession -‐ Stage 3 AO´s
Funding AF e AINT
Statutory Funds Management AF, AC and AMAFinancial Obligation Management AF
Processes, Polítics and Standards AGIR and AJ
Another processes ?
2013 2014 2015 2016
Corpora?ve Project Chronogram
Process defined
Manager defined and
trained Governance
defined Indicator
defined and measured
Mee?ng rou?ne
established Improvement cycle realized
Group
1
Group
2
Group
3
64
Process Governance and Project Governance
Time
Effort Project Governance Process Governance
The processes being implemented can use the project governance as the future process governance.
65
Agenda
Context – AGIR Project
Brazilian Development Bank
Corpora?ve Indicator – Process Management Maturity
Process Governance Corpora?ve Project
Results
66
Units (Macro processes) Number of Macro processes
ATI (IT) 1
AP (Budget, Planning, Database, Product, Financial Support Concession) 5
AF (Accountancy, Financial) 2
AJ (Juridical) 1
ARH (Human Resources) 1
AA (Administration) 1
AT (Auditing) 1
AGR (Internal Controls, Operational Risks) 2
GP (Management Support) 1
AC (Entidades Database, Credit RisK) 3
AI (Financial Support Concession and Follow up) 2
AIB (Financial Support Concession and Follow up) 2AIE (Financial Support Concession and Follow up) 2
AS (Financial Support Concession and Follow up) 2
AMA (Financial Support Concession and Follow up) 2
AEP (to be chosen) 1
APE (to be chosen) 1
AINT (to be chosen) 1
AOI (to be chosen) 1
AEX (to be chosen) 1
AGRIS (to be chosen) 1
AGIR (to be chosen) 1
AMC (to be chosen) 1
ACE (to be chosen) 1
2013 2014
Corpora?ve Indicator Chronogram (2013-‐2014 Cycle)
Process defined
Manager defined and
trained Governance
defined Indicator
defined and measured
Mee?ng rou?ne
established Improvement cycle realized
67
Calcula?ng the Indicator Results
Stage Item Evidence %
Process Improvement Cycles
Improvements implemented with proven results Improvement cycle results report filled (referring to process indicators that proves the improvement) 10
Improving cycle started Improvement cycle planning report filled 10
Management Mee?ngs Rou?ne
3 process management mee?ngs – organized by the process owner Mee?ng reports filled 10
First process management mee?ng – organized by Process Office Mee?ng report filled 10
Performance Indicators
Process Performance Indicator – first automated measurement System screen containing indicator automated measure 5
Process Performance Indicator – first measurement, even not automated Indicator results presented in process management mee?ng 5
Process Performance Indicator defined Indicator record filled 10
Governance and Management Structure Decision-‐making structure defined (Governance)
Process management summary report filled or official document containing the formaliza?on of process
governance structure 20
Process Owner Process Owner Trained Presence list of process management training 10
Process Owner Defined Process management summary report filled 10
Process Process defini?on (only for areas not yet directly involved in AGIR Project) Document containing the process map (in high level). 0
68
Agenda
Context – AGIR Project
Brazilian Development Bank
Corpora?ve Indicator – Process Management Maturity
Process Governance Corpora?ve Project
Results
69
Results ?ll now....
70
Governance Project – Updated Results
§ Higher sense of ownership;
§ 90 Process owners defined and trained;
§ 90 Process with governance structures defined;
§ 80 Process indicators defined;
§ 65 Process indicators being measured and monitored;
§ Process management concepts disseminated.
71
Governance Project – Updated Results
§ Time taken for core process reduced 15%;
§ New process of client approach defined;
§ Streamlined the chain of command;
§ Reduc5on of expenses and costs of Charging Process.
72
Final Message
The journey is long...
Insist, Persist and Don’t give up.
73
A summary to remember
§ Cross-processes offer the greatest opportunities;
§ Management is concept and practice, science and empirical discovery;
§ Process management
§ Is the model functional, functional for cross-processes or (rarely) pure process?
§ The “process management tasks” are: thinking-designing, acting (in a day-to-day basis) and learning. Be competent at them.
§ Process governance
§ Managing or organizing, and steering, process management to align and maximize results for the BUSINESS (and not just models, flows, disputes)
§ Cases and benchmarking can generate learning and create results
74
§ PAIM, R., CAULLIRAUX, H., CARDOSO, V. & CLEMENTE, R. “Process Management: think, act e learn.” Bookman., 2009. (in Portuguese)
§ Antonucci, Y. Business Process Management Curriculum, in (Brocke & Rosemann et al, Business Process Management Handbook. V. II. 2009.
§ PAIM, R. PINHO, B., FAGUNDES,M. & FLEXA, R., “Process Governance - definitions, framework” www.bptrends.com Accessed in 09/08/2012
§ PAIM, R. PINHO, B., FAGUNDES,M. & FLEXA, R., “Process Governance – elements and implementation”. www.bptrends.com Accessed in 09/08/2012
§ BURLTON, Roger T. Business Process Management: profiting from process, Sams, Indiana, 2001.
§ HARMON, P. Business Process Change: A Manager’s Guide to Improving, Redesigning, and Automating Processes, Morgan Kaufmann, San Francisco, 2003.
§ JESTON, J. & NELIS, J. Business Process Management, practical guidelines to successful implementations., Butterworth-Heinemann-Elsevier, Oxford, 2006.
References
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Ques:ons
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www.enjourney.com.br
Rafael Paim [email protected]
São Paulo Alameda Santos, 905 - Conjuntos 71 e 72 Ed. Santos Dumont Cerqueira César, São Paulo / SP SP +55 11 3285-5634
Thank you!
Rio de Janeiro Av. Nilo Peçanha, 50/2701 Ed. De Paoli Centro – Rio de Janeiro, RJ RJ +55 21 2215-9629
Unidade Rio Grande do Sul Rua Engenheiro Afonso Cavalcanti, 54 Bela Vista, Porto Alegre - RS Tel/Phone.: +55 51 3024.5536
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Buffer:
to be used if we have time
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An example...
Petrobras
80
The structuring of a logistics integrated system , focused in day to day management
81
Monitoring
Command and control
Coordina:on
Situa:on Room
Interfaces presence
Support
Layout proposal
82
Layout proposal
83
Layout proposal
84
Positions acting over different and integrated cross processes
Value Chain
Cross Processes
Sub processes
Activities Flows
Decision Groups (Committee) Sponsors
Process Office, Cross Processes Managers, Process Office Manager,
Process (Design,) Project Manager
Cross Process Analysts Implementation Groups
Executors, Doers
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Cross Process Manager
Take part i
n
process des
ign
Iden:fy Op
portuni:es
for Improve
ments
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Case – Toyota Parts Centre (Portugal)
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Distribu:on of parts for 13 countries
117 points of daily delivery
59.000 products stocked (Total of 1,3 Millon Euro)
Case – Toyota Parts Centre (Portugal)
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Kaizen: 1.293 m2 of new free space
2005 2011 (after kaizen) Service Index 94,0 95,8 Wrong Delivery (parts / million) 207 49 Broken parts (delivery) 218 65 Lines delivered / hour 41,8 59,7
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Daily meetings to analyze KPIs
90
Better use of the internal spaces of the boxes
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Case – Espírito Santo Bank
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Case – Espírito Santo Bank
Largest Portuguese bank, considering market capitalization (2b Euro at 31/7/2012);
5th largest investment bank in the world (81,3b Euro at 3/2012)
2,2 millions clients only in Portugal
9.800 employees
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Case – Espírito Santo Bank Strong Internacional Presence
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Implementing Lean
Improving the team management processes: • Alignment with best management practices; • Standardization of management processes; • Introduction of metrics management; • Creating a management mindset.
How to increase the IT Team
productivity?
“Make the managers better managers” “One project do not get 3 months delayed in only one day”
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Resource pools
App A
App B
App C
App D
App E
App F
App A
App B
App C
App D
App E
App F
Pool 1
Pool 2
Pool 3 Functional Analysts
SPOC Single Point of Contact
Technical Analyst
Functional Analyst
Analyst dedicated to support and maintenance
Creation of resource pools with more transversal competences. Buffer for unplanned tasks. Planning is done for the pools and not for individual resources.
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Whiteboard
Tasks (help, park, done) Other Tasks Main Tasks,, by
day and resource
Pools e resources
Days of the Week
KPIs
Issues
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KPI Before Now Burn-up (% of main tasks completed) 50 - 60% 85 - 90%
Main Tasks (% of main task on total planned tasks)
85% 85%
Non-planned tasks (% of total tasks) 30 - 40% 5 - 10% Difference between buffer and non-planned work
-10 a +10% < 5%
Execution efficience (# hours executed x planned to completed tasks)
80 - 120% ~95%
Capacity (% hours planned x executed) ~100% ~100%
KPIs evolution
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Prizes
One of the largest and deepest implementa:ons of Lean IT in Western Europe