BPM Center of Excellence

Copyright © 2009 BPMbasics. All rights reserved.

BPM 105: BPM Centers of ExcellenceSANDY KEMSLEY



Agenda

Economic drivers for BPMWhy create a BPM CoE?What is the value of a CoE?How do you build a CoE?Case study example


BPM Economic DriversEconomic conditions mandate operational efficiency and cost reduction

Related compliance and risk management scrutiny driving standards and policies enforcement

Satisfying customers on-demand, with agility to respond to competitive threats and constant change

Visibility, transparency, governance & controls more important than ever

“Gartner estimates the BPMS market. . .is one of the

fastest-growing segments in software, and it is forecast to remain so during the next five years. Many organizations are now focused on making BPM

a program, not just a project.”

-- Gartner: "Hype Cycle for Application Development, 2008",

July, 2008


More Urgency Now Than Ever

“ "Particularly in light of today’s volatile economy, organizations are looking to trim the fat off their operations. In a receding market, process agility is an objective that organizations strive for. In order to leverage business opportunities with a short window of execution, an organization must be able to adapt its processes quickly and efficiently.“

BPM and Beyond: The Human Factor of Process Management, October 2008

Source: Aligning IT to Business Processes: How BPM is Complementing ERP and Custom Applications, Aberdeen Group, May 2007


Why Create A BPM CoE?

Benefits and drivers for a Center of Excellence


Expected Benefits of a CoE

Knowledge transferSynergies between BPM projectsShared code and components for increased reusabilityResults:– Faster deployments– Lower costs– Standardized, repeatable

BPM projects


Measuring the Impact

Forrester survey, October 2007:– “What impact have BPM efforts had on

your enterprise to date?”– “Did the BPM project deliver on your

organization’s expectations or goals?”– “Has a team been created to provide BPM

guidance?”

– Source: “The EA View: BPM Has Become Mainstream”, Forrester Research Inc., February 19, 2009


CoE Correlates with Business Improvement

Forrester survey results:– Of the companies experiencing clear,

measurable improvement due to BPM, 49% have a CoE

– Of the companies that have had no success with BPM, 4% have a CoE


Forrester’s Summary

“Clearly, while a BPM COE may not be a panacea for BPM success, having one in operation significantly increases the odds of BPM success.”


CoE Correlates with BPM Success

Forrester survey results:– Of the companies stating that BPM

exceeded their goals significantly, 67% have a CoE

– Of the companies stating that BPM failed to meet their goals, 14% have a CoE


What Is The Value of a BPM CoE?

Functions that the Center of Excellence provides


Skills

BPM knowledge and skillsthat are too rare to maintain in each project– BPM methodology– Process engineering– BPM tool usage

Mentoring and project-specific adviceTraining and skills transfer to project


Governance

Creating common BPM principles and methodologiesEnsuring that principles and methodologies are used


Repository

BPM training materials– Process specialists on projects– Process participants

Best practices and techniquesCommon code/componentsShared (sub)processes


Community

Shared ideas and problem-solvingBetter view of end-to-end processes across enterprisePotential to combine common processesPromoting shift from departmental to enterprise scale projects


How Do You Build a BPM CoE?

Center of Excellence roles and models


Basics of Creating a CoE

Executive sponsorship and involvementEstablish a BPM methodology independent of technology– Terms and definitions– Standards– Best practices– SOA alignment

Co-locate the expertise and define roles and responsibilities– Business and technical– Practical and visionary


Roles

Chief Process Officer or process czarSteering committeeProject managerEnterprise architectBusiness process analyst/process architectBPM developerProcess modelerUser Acceptance Testing (UAT) and Quality Assurance (QA)BPM software administrator


Skills

Process architecture expertisePlatform managementEducation and trainingBest practices developmentTechnical patterns developmentVendor product expertise BPM industry and standards expertiseImplementation methodologyProcess registry and repository


Case Study

The “Accidental” BPM CoE


Investment Management Company

Business Challenges:Streamline Credit Fulfillment and Credit Servicing processesSupport continuous improvementRisk managementProvide firm foundation for business growthImprove compliance

BPM Solution:Increased control over human-centric, mission-critical processesIncoming documents trigger loan origination process, using OCR to auto-index and routeConversion of 650,000+ documents from legacy systemImproved risk management and compliance practices

$49B assets under management, 1 million investors


No “Formal” Institution of a CoE, But…

After initial deployment, key players continued to monitor success, optimize and look for expansion opportunitiesLead: owner responsible for BPM strategic directionFrom the business:– Business process designers– Release project manager– QA lead

From IT:– Solution architect– System administrator– Lead developer


Informal CoE Drove New BPM Initiatives

Prioritize feature requestsEnd user training/communicationRelease management frameworkProcess application best practicesSocial networking to facilitate adoptionKnowledge baseKnowledge transfer sessions


Business Value Created by CoE

Bridge communication gap between conflicting business and IT groupsImproved efficiency in BPM development and release


Models for a CoE

Small “accidental” CoELarge internal buildVirtual CoE with external portions on vendor or independent site


Summary and Key Takeaways

Benefits and drivers for a BPM CoECoE functionsCoE roles and skillsCase study: grassroots CoE


Thank You

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