BPM Case Management Global Summit - Building a BPM CoE

© 2014 IBM Corporation

Climbing Mountains –

Implementing a BPM Center

of Excellence

Scott Simmons

Lead BPM Solution Architect

IBM Software Group

[email protected]

2 2 © 2014 IBM Corporation

3 Key Points for Discussion

• BPM projects are often challenged due to ‒ Limited business/IT collaboration

‒ Ineffective requirements gathering and scope creep

‒ Limited BPM expertise and methodology

• CoEs do not just happen – they require work and resources

• Method adoption is key for CoE – Agile BPM is fundamental for success

“Individually, we are one drop. Together, we are an ocean.”

Ryunosuke Satoro


AGENDA

• Where Are You Going

• Building the Perfect Beast

• Beware of Falling Objects






BPM in a Vacuum Does Not Work ...

Didn’t you read the business requirements …. Don’t you

understand that this solution does not match… grrrrr … IT techies!!

You business folks – you just don’t know what you want … first one thing …

and then something else … grrrrr … users!!!


In My Work Establishing CoEs – I Get Asked …

• What is the difference between a CoE and

a CoC?

• We have a SOA CoE – can we just use that

as our BPM CoE?

• Will the CoE help with our Lean initiative?

• Business does not want to be involved –

can the CoE be strictly IT?

• CoEs might work in other organizations –

but how can it work here?

• Most of the time – I am the coach … the

teacher … the facilitator …

• BUT sometimes I am the “Terminator” ;-)


Let’s First Establish – BPM CoEs Drive BPM Success

80% of the organizations with a COE report some degree of success with BPM

Source: 2009 BPM State of the Market Report, Transformation & Innovation

http://www.bpm.com/2009-bpm-state-of-the-market-report.html


BPM Challenges e.g. Why BPM “Hits The Wall”

• Enterprise Competency and BPM Adoption ‒ Lack of coordination between organizational boundaries

‒ Duplication of resources across the organization

‒ Lack of critical mass of skills

• Business/IT Collaboration ‒ Lack of collaboration across Business and IT

‒ Difficulty with identifying process owners in the business

• Process Discovery and Project Coordination ‒ Poor communication of business intent and requirements

‒ Wrong project scope and/or scope creep

‒ Outcomes are not the expected or required ones

‒ Long delivery time

• BPM Methodology and Governance ‒ Waterfall-based development lifecycle

‒ Inconsistent BPM approaches across the organization

8


What is a Center of Excellence?

Definition: Whatever you call them, a Center of Excellence (CoE) should, at a most basic level consist of: A team of people that promote collaboration and using best practices around a specific focus area to drive business results. This team could be staffed with full- or part-time members.

http://agileelements.wordpress.com/2008/10/29/what-is-a-center-of-excellence/

Jon Strickler Walter White OR

Heisenberg?














Governance Prioritize initiatives & implement governance processes

Develop Skills Identify skill gaps & create development roadmaps

Process Optimization Analyze trends and alert process owners to situations that need attention

Promote Adoption Manage process standards to reduce project risk and accelerate delivery

Thought Leadership Set direction and vision for process management

Best Practices Capture, communicate and enforce best practices and methods

Center of

Excellence

But … What Does a BPM Center of Excellence Do?

THE ROLE OF THE CoE OFTEN DIFFERS BY ORGANIZATION


IT-led Business-led

Centralized

Federated

BPM CoEs Depend on Organization and Culture

Business and IT Collaboration and Alignment is Key


Key Responsibilities for a BPM CoE

• Enterprise Competency and BPM Adoption ‒ Provide coordination/consistency between organizational boundaries

‒ Central design clearinghouse e.g. leading practices, technical future, resources

‒ Manage BPM Adoption and Training

• Business/IT Collaboration ‒ Ensure communication/collaboration between groups

‒ Technical AND business leadership for BPM initiatives

• Process Discovery and Project Coordination ‒ Support BPM project prioritization and scope

‒ Manage expectations and outcomes

‒ Optimize Time-to-Market for new BPM applications

• BPM Methodology and Governance ‒ Provide Agile BPM as a consistent approach to BPM delivery

‒ Establish consistent BPM governance and reuse approach

‒ Manage/conduct Design Reviews

‒ Support for multiple styles of BPM e.g. CASE, STP, Content

‒ Support for key BPM capabilities e.g. Cloud, BAM, Social, Mobile






BPM CoE Goals Vary By Organization

Support Demand Generation via BPM adoption

Support for Business Transformation programs

Enable enterprise BPM governance

Support Demand Fulfillment – Projects

prioritization and completion (time/budget)

Provide a shared infrastructure for business

Support an approach which fosters re-use

Provide specialized skills/resources

Many options … up to you to decide …


Core BPM CoE Components

Charter/Mission

Organization and Executive Sponsorship

Relationships with organizations

Other CoEs, governance teams, etc.

Re-use of existing practices and models

BPM Governance Policy/Enforcement

Prioritization of projects

Taking business strategy into account

Includes understanding of technical risks

Communication

Additional Considerations

Evangelism

Methodology and Open Standards

Reuse of assets such as style guides

Measurement – metrics, timers, KPIs

Open Standards e.g. CMIS, BPMN, BPEL

Consultancy

Accelerate BPM projects and adoption

Consistency across BPM domains

Currency

Keeping up with latest trends, product

announcements, etc.

The Anatomy of a BPM CoE


Number of continuous improvement projects

ROA - % of asset (process) reuse

Baseline client satisfaction

% variance of budget and schedule

Number of processes captured

% of redundancy eliminated

% of manual work automated

Reduction of policy exceptions

Mission

Act as central point for BPM work across enterprise

Set and govern end-to-end method policies and

procedures

Support taskforces in cross divisional

collaboration/convergence initiatives

Champion innovation which support BPM strategies

Manage BPM communication

Establish rules of engagement across lines of

businesses and follow formalized engagement

process including how to manage exceptions

Conduct periodic and ad-hoc project audits & status

and monthly sponsor checkpoints

Follow formalized communication process

Conduct user group meetings

Track and manage approved initiatives in a pipeline

and prioritize projects based on stakeholder priorities

Conduct annual budget plan

Operating Principles

Success Measurements

Support users, best practices, issues; validate models

Recognize BPM opportunities to inject into cross

divisional collaboration/convergence efforts

Conduct education across the enterprise

Scope: enterprise-wide, cross-divisional collaboration

efforts

BPM Project roadmap and dashboard

BPM Governance Methodology

BPM Development Methodology

Reusable BPM assets

SME Contacts, Reference Examples

Best Practice Solutions, Perform Guides / Project

Workbooks

Custom Tools to Assist and Automate

Services, Scope, Deliverables

Critical First Step – Developing the BPM CoE Charter


CoE Staffing 1

7

2. Plan, Prioritize &

Evangelize

3. Build Leverage &

Reuse

4. Deliver Solutions

5. Build & Manage

Infrastructure

Solution and Transformation Teams

Solution B Solution C

Platform / Infrastructure Team

Solution A

Steering Committee

CoE Governance

Discipline Authorities

…

• Expand and Scale

• Manage and Tune

• Implement Infrastructure

• Monitor Usage

• Senior Sponsorship

• Set Direction

• Enterprise Process Roadmap

• Prioritize Opportunities

• Manage Talent Plan

• Standardize Designs

• Identify Reuse Potential

• Release Scoping and Definition

• Build and Test

• Deployment and Support

• Establish Funding Model

• Escalation Endpoint

• Standardize Methods

• Drive Consistent Metrics

• Evangelize Process & BPM

• Oversee Execution

• Ensure Solution Robustness

• Solution Risk Management

• Communication & Training

• Measurement & Optimization

1. Align Direction &

Funding


Riyadh Bank CoE Organization

From IBM IMPACT 2014 – April 2014


1 to 3 Weeks

Enabling An Agile BPM Methodology: Iterative Playbacks

8 to 10 Weeks 2 to 3

Weeks

1 to 2

Weeks

Test Go

Live Development

Infrastructure

Training/ Mentoring

Definition

How many playbacks … how frequently … what are criteria …. This will vary by organization and process --- but having a representative structure is the key –

Often you will iterate over a given playback a number of times


Project Identification and Design Approach

• A key focus of BPM CoEs should be in the BPM project selection/design

• Organizations need an established approach for project identification

and initial process design with key stakeholders

• Process Discovery provides a foundation to drive requirements and

increase the success of the BPM initiatives


Process Discovery

Process Discovery enables “business stakeholders” direct

involvement in BPM design – decreasing time-to-market through

better requirement and process definition and increasing the quality

and business acceptance of BPM solutions

Process Discovery provides linkage to Lean Six Sigma Initiatives


1. Understand the

Current Environment

2. Define the CoE

Mission and Vision

3. Define CoE Roles, Responsibilities and Mechanisms

9. Get Approval of

Sponsor and Stakeholders

5. Identify CoE

Mentoring and Educational Needs

4. Map Resources

and Mechanisms to CoE Roles

8. Create Transition

Plan

7. Define Education

and Mentoring Plans

6. Identify CoE Processes

Inputs

BPM Roadmap

Current Organization

Assessment

Current IT Environment

Current Organization

Description

Organization Design

Job Roles, Responsibilities,

and Competencies

Outputs

CoE Mission , Vision & Scope

CoE Operating Principles

CoE Transition Plan

CoE Job Roles,

Responsibilities

Governance Operating Model

Governance Processes and

Delegation hierarchy

Governance dispute resolution

mechanism

CoE Organizational Design

CoE Education Plan

CoE Mentoring Plan

Demand management process

Decision criteria

CoE Metrics and

Measurements

Establishing a BPM Center of Excellence


Leading Practices for BPM Project Management

• Design Reviews should be ongoing and provide

consensus and steps for optimization

• Executive Sponsorship is critical to success

• Involve business stakeholders from the onset –

collaboration/alignment is mandatory for success

• Process discovery is critical – without a clear

direction, success cannot be achieved

• Define and document project scope to ensure

alignment and expectation management

• Practice “Agile BPM” e.g. “Blueprinting”, Process

Discovery, “Playbacks”, Discovery Workshops


CoE Monitoring is Often Overlooked 2

4

Resource Efficiency

Reduce the gap between

Business and IT

Customer Satisfaction

IT ability to respond to business

quicker / more accurately

IT to add value to solution

Quality of Delivery

Accuracy of Delivery

Decision making confidence

Strengthen relationship between

IT and Business

Operational Efficiency

Alignment of Business Processes

Reduction in time to market

Increased business value

Business confidence in solution

/technology

Accuracy of process and data

Consistency of process and data

Project development on track

Strengthen relationship between

IT and Business

Reduction in hardware / software

costs

Increase in % of user education

(Business, Developers,

Administrators)

Reduction in “bug fixes”

Reduction in overall support calls

Reduction in time to close calls

# of project completed in less

time / with less resources

Reduction in development costs

and cycle times

Increased # of business assets

Increased # of artifacts reused

CoEs are like BPM – you cannot manage it if you cannot measure it

What are the measurements of success to maintain Management support?

Key to define tangible/measurable metrics for CoE ROI and define in Charter

Intangible Tangible






Un

iqu

e v

alu

e r

ea

lize

d

1 2 Identify a Project

Extend Initial Project

into a Program 3 Transform by

Integrating Capabilities

Across the Enterprise

Process Transformation

Continuous Process Improvement Across the

Enterprise

Simulate Process Models to Optimize

Process Flow

Value realized

• Develop automated capabilities for

processes and decisions

• Leverage proven methodologies to

implement process and/or decision

automation

• Scale on initial project success

• Extend automation with greater integration

across the enterprise

• Further optimize decisions with situational

context from business events

• Provide detailed visibility into running

processes with configurable dashboards

• Identify opportunities to improve

processes

• Identify opportunities to improve

decision making

• Develop a roadmap for BPM

transformation

• Develop a roadmap for BRMS

transformation

• Identify skills, tools, and, standards

gaps within the organization

• Automate simple processes

Discover & Document a Current Business

Process

Document Policies and Automate Decision Logic

Monitor Process KPIs to Optimize

Effectiveness

Track Process Steps in Real Time

Establish a Center of Excellence Build a Skills

Development Program

Consolidate Governance Activities

Automate Manual Activity Flows

Moving from BPM Project to BPM Adoption


Typical Barriers to BPM CoE Success 2

7 People

Competing priorities, silos of activity

Lack of demonstrated ROI

Business demand exceeds IT supply

Pockets of expertise

IT becomes a bottleneck

Lack of time, budget, resources

Data, Technology & Infrastructure

Perceived to be difficult to use, hard to learn

Response times do not meet expectations

Inconsistent meta data, data definitions, security

Silos of data, poor integration

Structured data vs unstructured data

Many different tools, expensive to support/license

Process

Best practices not shared, accessible

Poor/inconsistent methodologies/standards

Lack of adequate skills

Projects not aligned with goals & strategy

Compliance issues, governance, risk

Culture

Lack of senior management commitment

Communication gap between IT and LOB

Process ownership conflicts

Funding Model

Resistance to change

Lack of accountability & ownership for KPIs


Summary

• Enterprise BPM requires an top-down

organizational strategy

• Key Guiding Principles for a CoE ‒ C-Level Commitment is critical

‒ Foster/mandate business/IT alignment

‒ Focus on requirements gathering and an

Agile BPM Methodology

‒ Understand CoEs do not just happen

‒ Involve your key vendors – BPM, SOA,

Database, Application etc

• Steps for action ‒ Assess current state

‒ Determine “where you want to be”

‒ Define a plan for the CoE

‒ Execute the plan prudently

‒ Measure, evaluate and evolve

• Work as a Team to achieve Success


Questions?


References

• Evaluating BPM applications: BPM design reviews and Rubik's Cubes http://www.ibm.com/developerworks/bpm/bpmjournal/1302_col_simmons/1302_col_simmons.html

• Synchronicity: An agile approach to business process management http://www.ibm.com/developerworks/websphere/bpmjournal/1202_col_simmons/1202_simmons.html

• Successful BPM takes a true team-oriented approach http://www.ibm.com/developerworks/websphere/techjournal/1108_col_simmons/1108_col_simmons.html

• SOA governance and the prevention of service-oriented anarchy http://www.ibm.com/developerworks/websphere/techjournal/0609_col_simmons/0609_col_simmons.html

• Scaling BPM Adoption: From Project to Program with IBM Business Process Manager http://www.redbooks.ibm.com/abstracts/sg247973.html

• Creating a BPM Center of Excellence http://www.redbooks.ibm.com/abstracts/redp4898.html?Open

BPM Case Management Global Summit - Building a BPM CoE

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