11:00-11:30

Architecting BPM

Through a Center of

Excellence at Wells

Fargo Bank

Paul Tazbaz, Enterprise

Architect, Wells Fargo,

California, USA

Building & Managing a Successful BPM

CoE

Architecting BPM Through a Center of Excellence at Wells Fargo Bank

Process Days ConferenceJuly 28th, 2010

Paul Tazbaz, Enterprise Architecture

Agenda

� Background & Value Proposition

� Organizational Structure� Roadmap & Current Activity� Best Practices & Lessons Learned� Questions

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Wells Fargo – The Company

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� Diversified financial services company with 1.3 Trillion in assets� Banking, insurance, investments, mortgage and consumer finance

� Decentralized organization with over 80+ lines of business serving customers in all 50 states

Enterprise Architecture

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Head of TOG

Enterprise Hosting

Mainframe/Midrange

Enterprise Strategy

Risk/Security &Network/Desktop

Customer Service & Operations

Enterprise Architecture

Technology Operations Group (TOG) managed by Avid Modjtabai

TOG touches more customers than any other group in Wells Fargo…

� We touch them every time they transact business online, at the ATM, by telephone, or in a store—more than 8 billion times a year

� We impact them through availability and security

� We touch them indirectly through our business partners who deliver value-added products and services

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Background of BPM Program at Wells Fargo

� EA sponsors current state analysis of BPM at WFC

� Goal: Knowledge Sharing, Collaboration, Awareness

� Focus Areas: People, Process, Technology

� Initial Participation: Multiple LOB

� Initial findings published in whitepaper

� 10+ LOB focused on BPM in siloed efforts

� 20+ technology products in use

� Results presented to senior management� Based on diversity findings, surveyed interest among LOB

in forming working group to support cross collaboration� Drive cost reduction and improve efficiencies in

managing processes� Establish best practices, standards, technology re-use, target

architecture and roadmap� Architect BPM for Sustainability

� COE kickoff

1Q07 2Q07 3Q07 4Q07 1Q08 2Q10

� Current Accomplishments� Membership: 45 LOB, 300+ members� 28 business line presentations

� Showcasing cost saves upwards of $30m\yr � 30+ business lines have adopted BPM

standards and products promoted by EA� $1M+ in savings from re-use

� 75+ hands-on consultations for business lines� Centralized BPM training program established

� 400+ team members completed a class� $450K+ in savings versus external providers

� 5 new BPM programs entrenched in business units � Formation of sister group focused on BRM

Partnership with Business & IT Practitioners

BPM Center of Excellence

Other Business Lines

Enterprise Processes

ITRetail Banking

Lending

WholesaleWealth Management

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Organic Growth Strategy vs.

Ivory Tower Mandate

Consensus Driven Roadmap

2010 & Beyond

Current State Baseline•Analyze current state of BPM including skill sets, methodologies\

analysis techniques, process portfolios and core technology• Identify re-use opportunities from current state analysis• Identify best practices\standards at WFC and make them repeatable

Tactical Triage on Projects•Provide guidance on BPM to project teams•Leverage current state and best practice insights to

guide re-use of skill sets, analysis techniques, technologies and subject matter expertise

Target State & Enterprise Roadmap• Identify gaps between current state capability and target state needs•Develop target state inclusive of people, process, and technology standards•Develop roadmap and program plan for achieving target state capabilities

Reconcile tactical guidance (if different from target state)

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Marketing BPM Value Contribution through Knowledge Sharing, Consulting & Governance

� Case studies of the People, Process & Technology needed to make BPM projects a success� 28 Business line presentations completed from 2008-2010

� 40-80 Business\IT stakeholders in attendance per session� Best Practice - Common templates used to drive common understanding

and target recommendations

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How are groups organized to address BPM? Whatare their skillsets?

What are the various approaches and artifacts used to implement BPM?

What are the core BPM technologies involved?

People Process Technology

Architecting BPM as a Sustainable Capability

Business Process Dependencies –SOA Example

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Process to Service Matrix

� Operating Models and Service Re-use

Credit Risk Management

Monitoring, Control and Customer Insight

Case Studies, Case Studies, Case Studies!

� Value Chain Contribution to Wells Fargo

Product Management

Sales Verification Origination Servicing Collection & Closures

Retailer Dealer Setup Process

• Business Problem: Needed to simplify process for dealers to do doing financing through Wells Fargo. 100 dealer applications received each week,142 steps required to set up.

• Solution: Lean event streamlined the process. Solution team developed workflow automation. • Business Results: Process for dealer set up went from three weeks to one day.

Monitoring the Disposition of Non-Real Estate Loan Applications

• Business Problem: Driven by ECOA/Regulation B, needed to ensure 200,000+ non-real estate applications were dispositioned in a consistent and timely manner

• Solution: Lean event and workflow automation solution to simplify process. • Business Results: Projection was 10 FTE, only 2-3 needed. Cost saving of 350-400k annually.

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Credit Risk Management

Monitoring, Control and Customer Insight

� Value Chain Contribution to Wells Fargo

Sales Verification Origination Servicing Collection & Closures

Check Order Process

• Business Problem: 2,000 check orders missing the 5 day SLA, along with missing data.

• Solution: Process monitoring solution implemented to provide real time visibility into check orders

• Business Benefits: 99.75% improvement in SLA.

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Case Studies (cont’d)

Name, Title & Address Change Process• Business Problem: Customer accounts did not receive

updates for over one year. • BPM Solution: Process monitoring solution• Business Benefits: Process monitoring identified the

issue/resolution, resulting in cost avoidance of 4000-5000 service requests going unfulfilled annually.

Product Management

Sales

Additional COE Best Practices

� BPM product demonstrations from each LOB� Commercial and Open Source

� Market analysis from research firms such as Gartner, Forrester� People, Process, and Technology Case Studies from Industry

� Common communication and social networking via BPM portal� Shared Documentation, Calendar of Events, Surveys� Real-time Alerts, Group Discussion, Links, � Membership Roster, Product Catalog and Expert Listing

� Frequent communication at all levels of the enterprise. Build adoption from both the bottom up and top down

� Avoid theoretical discussion and focus on providing guidance that is directly actionable in a business unit.

� Lead by example. Business lines are much more willing to adopt new disciplines if they have a true partner that can lead the way

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Top Action Items for Starting a COE

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1. Partner with business lines looked upon as thought leaders within the company� Accelerates momentum and awareness

2. Act as the facilitator and not the owner. Build the forum and framework for communication that ultimately enables the community to drive towards adoption� Facilitate the knowledge transfer that empowers the business to do

the “heavy lifting”

3. Identify internal success stories that can be shared. They are much more impactful than generic case studies, especially if the internal business line is looked upon as a thought leader in the company

4. Look for change events to accelerate adoption of business process management disciplines and technologies� Merger with Wachovia, Legacy system migration, other

Questions & Contact Info

� For more information, contact:� Paul Tazbaz� Enterprise Architecture� 415-652-4159� paul.tazbaz@wellsfargo.com

© 2009 Wells Fargo Bank, N.A. All rights reserved.

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