Download ppt - P2G Proposition

a different proposition in business process management

rob rensmanprocess2go limited

instant process transformation

©May 2007

Network Meeting 31 May 2007 - 2

What is BPM

• Management discipline in its own right– Hammer and Champy: Re-

engineering the Corporation (1993) – became synonymous with de-layering and downsizing

– From ERP to e-business (late nineties) – off-the-shelf business processes

– BPM and Six Sigma, uncomfortable partners (2001)

• Attempt to definition: an approach that aims at delivering continued improvement in an organisation’s performance by evaluating and aligning processes against a desired business model.

• BPM both enables and drives change


Some truisms• More than 80% of all business processes are manual or require human

intervention – so why do we still believe that systems will drive BPM?• When people think process they think administration, compliance and

complexity - so why do we still talk about processes?• Process and function are in constant conflict with each other – If a

function fails, a process will not work, if a process fails, a company starts losing customers or money. Most functions can be replaced, most processes are part of the non-tangible assets of an organisation and typically have a longer shelf-life

• A process is just the way we do our jobs, not a managerial straight-jacket – if only that was understood!!!

• Process-based organisations are better tuned to changes in their environment and have a better chance to compete outside their traditional markets


So what IS a process-based organisation

• Executive understands which processes are the company’s key differentiator in the market and protects its IPR; only the company’s brand is worth more to them

• The economic value of each process is understood and constantly evaluated

• When one process changes, the process owners agree the allowable impact on other processes

• Low value processes are off-shored or outsourced• Often, IT systems are aligned to business processes

(and not the other way around)


Examples of process-based organisations (and why they perform better!)

• Dell – e-business– Mass online customisation of computer equipment and peripherals

revolutionised the business and computer market• Marlborough Stirling – Mortgage Processing (STP)

– Eliminating the number of human interventions in verifying and approving mortgage applications and loan origination, as opposed to wrapping human interventions around automated processes

• Morning Star - US Tomato Processing Plant without functional hierarchy– All business processes are the result of voluntary agreements between

self-regulating teams who contract services (read: processes) to each other to maximise operational efficiency. The CEO is the ‘process architect’ and protects the vision of the company.


So why don’t all companies aspire to be process-driven?

• Process-driven organisations require a paradigm shift at the executive level of the organisation in times when competitive pressures allow little time for a rethink of company models

• There is a misconception that all processes need to be defined in detail before companies can start seeing the value of BPM - you do not need an enterprise-wide process model to start delivering real benefits

• There is a reluctance to change existing organisational structures as they reflect traditional functional hierarchies and the established power base at the executive level.

• Typically, existing financial, budgeting and reward systems do not recognise the costs nor value the contribution of any process to the bottom-line of the organisation

• Legacy systems (including ERP!!!) often complicate swift process alignment across the organisation


What does Process2go aim for:

We combine the power of human-centric process design with structured change management techniques to:– Challenge organisations to manage processes as

assets and liabilities, not just as necessary ‘work flows’– Transform the way teams interact, deliver and are

motivated.

In doing so, we support organisations in maximising the true economic value of processes and improve their operational performance.


What makes P2Gs proposition different

• P2G seeks immediate alignment with financial function and puts a financially motivated business case at the heart of its success

• P2G works closely with HR/People Managers to ensure job roles, responsibilities and rewards can be adjusted to support the change

• Its methodology is light, adaptable and can be easily scaled in response to the business challenge. The tools and techniques are carefully matched to the maturity of the organisation


A High Level Approach(each step has its own decision making

tools, templates and stage-gates)


Our BPM toolkit includes:

• BPM Business Case Development Kit - a series of templates that help identify a BPM value proposition, promotes quantification of benefits and savings and helps to get buy-in from business management, line managers and finance managers alike

• Rapid ‘as is’ process analysis using the OneMinuteProcess© tool - a process definition template that explains in clear steps and plain language how to execute a process from the perspective of the customer or operator, not the system!

• Process Mobilisation Force – how to create a BPM ‘cell’ in your organisation and what should their role be in moving towards a process-based organisation

• Capability Transfer &Transition before winding down the assignment – the methodology is portable and can be easily adapted to fit the customer’s programme or process environment. This makes it easy to train change and process-champions and leave behind the capability to mature the approach and accelerate the positive results of BPM.


A Taster…


Typical opportunities we aspire to get involved in

• Business start-ups that require a head-start with Best-in-class processes

• Rapidly changing organisations that need to prioritise and align process or service improvement initiatives

• Mergers & Acquisitions: challenges of colliding business models and processes

• Requirement for BPM method and tool-selection

• Our clients value our approach: see testimonials on website: www.process2go.com


Myth Busters• ERP and CRM accelerate the creation of process-based organisations – on

the contrary: they only do so in introducing functions – processes are left to the departments to sort out after the consultants have left + garbage in = garbage out

• Six Sigma is the only method in town to deliver BPM thoroughly – statistical process analysis (the fundamental premise of Six Sigma) is only a small part of the approach – all the other elements have been long tried and tested in Change Management and BPM

• BPMS will revolutionise business processes and make organisations infinitely more agile – there are no quick fixes to BPM – these systems will only work when part of a BPM initiative

• BPM is not Workflow• BPM is not e-business (although e-businesses are certainly the best examples

of process-based organisations)• BPM is certainly not EAI (when staffware was taken over by Tibco, it largely

lost its credibility as a true BPM player)


Acknowledgements

• Alex Popov, Senior Process Manager T-Mobile for his frequent contributions and challenges

• Robert S Kaplan, David P. Norton for redefining corporate performance in ‘Alignment’, Using the Balanced Scorecard to Create Corporate Synergies, Harvard 2006

• Peter G.W. Keen for writing one of the more interesting contributions to BPM in ‘The Process Edge’, Creating Value Where it Counts, Harvard 1997

• Keith Harrison-Broninski, for his insight in ‘Human Interactions’, The Heart and Soul of Business Process Management, Tampa FL 2005

• Roger T. Burlton for his standard work on BPM ‘Business Process Management’, Profiting from Process, Indianapolis 2001