BPM and Sustainability Identifying the pathway to the future state, governance methods, and tracking methods.

BPM and Sustainability

Identifying the pathway to the future state, governance methods, and tracking methods

What is Sustainability?

“The ability to maintain into perpetuity” (en.wikipedia.org/wiki/Sustainable)

In the business world, it is most often discussed as sustainability of a society or an organization

The sustained success of an organization is demonstrated by its ability to satisfy needs and expectations of its customers and other interested parties over the long term and in a balanced way.

From ISO 9004:2009

Try to identify fundamental principles of the so called “Visionary Companies” who survived for at least 50 years through various product life cycles, technological evolutions and revolutions, various management theories and generations of active leaders.

“Built to Last”, Jim Collins and Jerry I. Porras

We will discuss three types/levels of sustainability in this session:A. Organizational sustainabilityB. BPM COE sustainabilityC. Process sustainability

BA 553: Business Process Management 2

A. Organizational Sustainability

Some organizations have managed to vastly extend the company lifecycle:


1812 Citicorp

1837 Procter & Gamble

1847 Philip Morris

1850 American Express

1886 Johnson & Johnson

1891 Merck

1892 General Electric

1901 Nordstrom

1902 3M

1903 Ford

1911 IBM

1915 Boeing

1923 Walt Disney

1927 Marriott

1928 Motorola

1938 Hewlett-Packard

1945 Sony

1945 Wal-Mart


B. BPM COE Sustainability

Developing a sustainable approach to BPM is crucial to the sustainability of the organization as a whole

Activities to achieve BPM COE sustainability:

1. Identify the future state for BPM and the major steps in the pathway to get there

2. Establish governance groups and mechanisms responsible for approving BPM activities (session 9)

3. Create tracking tools and metrics for tracking BPM COE activities and BPM progress

4. Develop a culture of continuous learning within the BPM COE to ensure skills and knowledge are constantly updated (session 5)


1. Identify BPM COE Future State and Steps

In order to be self-sustaining, the BPM COE must identify its desired future state and the pathway to get there

The future state has many aspects, including:

Process assessments Process capabilities Governance Tools and templates Current state mapping Integration/information sharing Roles and responsibilities Metrics Management of change Continual improvement



Example BPM COE Journey

Currentstate

First roundof “as is”

maps done

Completemissing

“as is” maps

Document“as is” intonetwork

Completeprocess

specification

Processtemplatescreated

Developimprove-

ment tools

Developfacilitator’sinstructions

Integratetools acrossenterprise

Opportunitiesreviewed ontheir merit

Examineprioritizastion

methods

Developprioritizationmethodology

Establishgovernance

body

Futurestate

Few skilledprocess

personnel

Review BAsfor potentialapprenticing

Hire internalprocess

personnel

Train allin tools and

methods

Current state mapping

Tools and templates

Governance

Capabilities

Assessments

No assess-ment tools

in place

Developprocess

assessments

Conductprocess

assessments

Identifyareas for

improvement

Year 0 Year 1 Year 2



Example BPM COE Journey (Cont‘d.)

Reactive torequests for

process work

Identify/act onimprovementopportunities

Establish rolesfor process

masters

Continuallyaudit processes

and improve

Process “bigpicture” notunderstood

Developprocessnetwork

Establishprocess-basedmgt. of change

Change impact known andunderstood

Few processbaseline

metrics exist

Establishpreliminary

health metrics

Establishdetail metrics,non-scorecard

Include pro-cess metricsin scorecard

Futurestate

R&R notdefined for

process work

IdentifyLynx-definedR&R, review

Determineapproach to

process R&R

EstablishR&R, trainand deploy

Lack ofintegration ontools/methods

Form BPMCommunityof Practice

Integrate withother enterprise

groups

Integrationcontinued bygovernance

body

Year 0 Year 1 Year 2

Currentstate

Roles and

responsibilities

Metrics

Integration/

Sharing info.

Continual improvement

Management of change



3. Establish Tracking Tools and Methods

The pathway to the future state has been determined

The governance bodies and mechanisms have been established

Sustainability is now a matter of tracking progress and making necessary modifications based upon tracking results

Tracking involves developing templates, tools, and methods for process work and measuring their effectiveness, along with the effectiveness of the process efforts overall

The next slide provides a listing of some of the models, templates, tools, and methods discussed previously in this course



Example BPM COE Models and Templates

Process Specification Model (BA 563)

Enterprise Process Framework: Value Chain and Process Network (session 5)

Enterprise Process Inventory Template (session 5)

Process Maturity Model (this session)

Enterprise Maturity Model (today’s class)

Five-Phase Approach (session 12)

Process Change Deployment Model

Project Status Communication Template



Example BPM COE Tools and Methods

Tools Process Modeling Tools (covered in BA 563) Process Improvement Tools (covered in BA 563) Process Measurement Tools (including SPC) Process Management Software (session 10) Process Information Library Training Materials for Process Roles

Methods/Processes (most covered in BA 563) Process Project Prioritization Method Process Improvement Approach Process Design/Reengineering Approach Lean Sigma Process Improvement Suggestion Process Improvement Team Selection Method Process Owner Designation Method Change Management Processes


Example: BPM Sustainability Elements


Value Realisation

Competency Development

Business Process & IT Systems

SupportSustainability Elements

Knowledge Management

Performance Management

Process Governance

This and next 2 slides: Chevron (2007), Process Sustainability, internal project presentation.


Example: BPM Sustainability (Cont’d.)

Value Realization Track business process KPIs (and resulting dollars) monthly

Convert KPIs to financial impact Communicate results Mandate Stewardship

Process Governance Align process model with business planning Establish Process Sponsor and Process Owner for the processes Integrate process governance with IT governance Conduct business processes audits

Business Process and IT Systems Support Define the holistic end-to-end support model Include SAP support, master data maintenance, etc. Integrate process support and governance to establish network of SMEs



Example: BPM Sustainability (Cont’d.) Competency Development

Build competency models for key process roles Conduct competency assessments and plan for their development Ongoing training (process training and IT applications training) Connect process competencies to career development system

Knowledge Management Identify process architecture, and implement a single process library and

Knowledge Management system Identify needs of end users of the process management systems Link process knowledge management system to company training program Implement a Knowledge Transfer process

Performance Management Include accountability for various roles in performance plans Identify accountability for KPIs by function and region Monthly performance dialogues Conduct process observations and evaluations



C. Process Sustainability

The BPM COE undertakes BPM projects to design new processes or improve existing processes

It is critical that the project team develop a process that can be sustained at a given level of performance long after the project is completed

One way of measuring process sustainability is through a value realization: measuring whether the intended value of the effort is achieved (through its impact on KPIs)

Value realization is usually measured as ROI (return on investment): the payback, over time, of the investment in designing, implementing, and managing a new process or an improved process

Sustainable processes are a foundation for building a high performance organization


Characteristics of a Sustainable Process

As mentioned previously in class, every process has its own lifecycle

Processes that have a longer lifecycle and are sustainable:

Reinforce or help achieve the organization’s strategy

Are focused on meeting the needs of its internal and external customers

Are documented as part of the organization’s process architecture

Have process performance metrics, and are regularly measured

Are streamlined (steps that add no value are eliminated where possible)

Are designed so process problems are quickly identified and addressed

Are conducted by fully-trained and qualified personnel

Are flexible and agile: Enable employees to use some judgment to meet customer needs Are redesigned as needed to align with company strategy Are modified (or eliminated) when technological advances are made


Some content from AMA (2007), How to Build a High Performance Organization, from www.amanet.org.


Success Criteria for Process Sustainability

Identifying Process Owners (session 10)

Ideally, Process Owners are identified early in a BPM project so they can be involved throughout the development of the process models

Near the end of the BPM project, the process models will be handed off to the Process Advisors for ongoing maintenance and continual improvement

Linking process efforts to the annual planning cycle (session 8)

Governance of processes (session 10)

Sourcing process modeling expertise

It’s important to keep the process model current after the project is complete

It is necessary for the organization to have access to someone who is skilled in the use of the process modeling tool – in some cases, this may be the Process Owner – if not,

Embedding process training into the company’s training programs

Reinforcing critical process behaviors (session 9)



BPM and Sustainability Identifying the pathway to the future state, governance methods, and tracking methods.

Documents

bpm coe sustainability

process sustainability

bpm coe future state

coe sustainability c

tracking bpm coe activities

bpm progress

organizational sustainability

typeslevels of sustainability