Enterprise Transformation & the Evolution of BPM Paul Harmon - - PowerPoint PPT Presentation
Enterprise Transformation & the Evolution of BPM Paul Harmon Executive Editor Business Process Trends Business Process Management (BPM) A comprehensive, strategic approach to organizing company change At the high-level, a
Business Rule Management Systems SEI's CMM for IT
1980s 1990's 2000s
Management Business Process Redesign Information Technology Workflow Software Modeling Tools and Methodologies (CASE, UML, MDA) Quality Control Total Quality Management Porter's Value Chains Business Process Reengineering Rummler-Brache Performance Improvement Performance Improvement Activity Based Costing Six Sigma Lean BPM EAI Packaged Software (ERP, CRM) Balanced Scorecard SCOR VCOR BPO
Sales Department Executive Management Strategy Committee
Vertically Integrated
Measures, Managers, and Resources
Employees & IT Applications and Infrastructure
Horizonally Integrated Processes
From Suppliers to Customers
Value Chain Business Process Business Process Business Process Process Process Process Sub-Process Sub-Process Sub-Process Sub-Sub-Process Activity Activity Sub-Sub-Process Architecture SCOR Framework Process Redesign Projects Business Rule Projects Six Sigma Projects IT Automation Projects SAP Process Models
Strategy Level Business Process Level
Specific Process
Value Chain Plans & Goals Implementation Level Process Automated by IT Systems Process Performed by Employees
Physical Plant and Hardware Used.
Strategy and Goals Specific Activity
Strategy Level Business Process Level
Business Process
Implementation Level Physical Plant and Hardware Used.
BP Architecture BP Analysis & Redesign Organization Performance Mangement and Measurement Issues Involved in Executing Actual Business Processes and Activities
Human Resource Architecture IT Architecture
Data Architecture Application Architecture Network Architecture Application Designs and Code Database Designs and Data Management Systems Technology Architecture Hardware Architecture Job Design Activity Measurement Plan Activity Management Plan Job Aids, Training Programs, Knowledge Management System Activity/ Performance Monitoring System Plans, Budgets, Hiring, Resource Allocation, Feedback, Consequences Human-IT Interface Model Screens and Reports Logical Level Physical Level
Lean Six Sigma
IT
BP Management
Ongoing Business Strategic Process
Business Model Managem ent Plan Perform ance Measures
Business Process Architecture
CEO
Value Chain SubProcess Activities Process SubProcess SubSubProcess Activities Organizational Alignment
See that m odels, m easures and m anagem ent plans are aligned with those above and below
Process Hierarchy Management Hierarchy Line Managers Middle Managers Supervisors Bus Process Bus Process Process
Strategy and Goals Specific Activity
Strategy Level Business Process Level
Business Process
Implementation Level Physical Plant and Hardware Used.
BP Architecture
BP Analysis & Redesign Organization Performance Mangement and Measurement Issues Involved in Executing Actual Business Processes and Activities
Human Resource Architecture IT Architecture
Data Architecture Application Architecture Network Architecture Application Designs and Code Database Designs and Data Management Systems Technology Architecture Hardware Architecture Job Design Activity Measurement Plan Activity Management Plan Job Aids, Training Programs, Knowledge Management System Activity/ Performance Monitoring System Plans, Budgets, Hiring, Resource Allocation, Feedback, Consequences Human-IT Interface Model Screens and Reports Logical Level Physical Level
Lean SIx Sigma
IT
BP Management
Supply Chain
Plan Plan Plan Plan
Resources Organization Design Chain Business Development
Enabling Processes
R3.1 Receive, Validate & Approve R3.2 Assign Account Team R3.4 Obtain Customer Needs R3.5 Establish Customer Profile Amend Research Assist Source Make Deliver Return
Supply Chain Process
Design Sell
Customers
Level 3 Subprocesses in Relate to Named Account
Level 1 Processes Level 4 Activities Specific to Particular process and company
R3.3 Define Engagement Model Tables for Each Process and Subprocess Information on specific metrics and best practices to implement this subprocess
Customer Chain
Revise Analyze Develop Level 2 Processes: Made to Stock, Made to Order, Engineered to Order Level 2 Processes: Relate to Intermediary, Relate to Grouped Account, Relate to Named Account Level 2 Processes: Expansion, Extension, and Creation Level 2 Processes: New Technology, New Product, Product Revision R3.6 Publish Business Rules R3.7 Release to Sell Relate
Level 0. Organization Divided into 4 Major Domains Level 2 Variations Level 3 Subprocesses Metrics and Best Practices for Subprocesses
Integrate Market Contact
The process is ad hoc. Few activities are explicitly defined and success depends on individual effort and heroics. Basic project management processes are established to track cost, schedule, and
discipline is in place to repeat earlier successes The process for both management and engineering is documented, standardized and integrated by an organization methodology Detailed measures of the process and product quality are collected. Both the process and products are quantitatively understood and controlled. Continuous process improvement is enabled by quantitative feedback for the process and from piloting innovative new ideals and technologies.
Organizations with an immature mastery of their processes. Organizations with an mature mastery of their processes.
A Framework Provides all of the basic structure and documentation to move an organization from 2.5 to 4.5 Combining a Framework with Six Sigma is a good way to deal with 5. Extending a Framework to support Packaged Applications, BPMS, or BAM will provide even stronger packages.
Integrating Business Integrating Business Process Management (BPM) Process Management (BPM) with Lean/Six Sigma with Lean/Six Sigma Deployment Deployment by by
Change is challenging, but necessary!
ago
reduced from 6 years to 36 months
years ago, now it is covering 15% of the transactions
300% in Q1 2005 Changes impact day to day life as well as our business, We must adapt to these changes to stay competitive!
On the template : 1 – list the names of the 5 main customers you had 5 years ago 2 – list the top 5 products & services contributing to your sales or revenue numbers 5 years ago 3 – list the 5 main regions / countries you supplied 5 years ago 4 – Do the same for the current situation ( 2004/5 ) 5 – Calculate the % of change
Today
5 years ago
Today
5 years ago
Today
5 years ago % change = ( nb items in ≠ order ) / 15 = Main Customers Main Products Main Regions
Program Deployment Emphasis
Enterprise Transformation
Redefine The Industry Extended Value Chains
Business Process Reengineering
Optimize Value Chains Primary Value Chains
Breadth of Change Change Objectives
Value Optimization
Strategic
Process Redesign “Value Expansion”
Leverage Best Practices Core Business Processes
Process Improvement “Value Capture”
Improve Process Efficiency Function Specific Projects
Tactical
CEO
Executive Leadership Middle Management Level Functional Group Level
Suppliers Customers
Lean Sigma Enterprise Supply Chain Excellence
Supplier Management Infrastructure
Supplier Rationalization Enabling System Solutions Supplier Certification System Wide Bottom-line impact Self managed teams Preparing the Culture
Data Driven Decision Making SCOR Deployment
Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4
Product Development & Innovation Excellence
Program Infrastructure
Skills Development
Focus Factory Projects
reduction Projects Value Stream Redesign Site Certification Results Acceleration
Directed Effort:
Foundational Changes
Small Parts Consumption Based Replenishment Division Certification Self Sufficiency – MBB Business Process Kaizen Pull System Adoption
S/C Business Process Simplification Kaizen as a way of life Model Facilities Streamlined Business Ops Pull System Penetration 60%+
Cultural Change
Product Development Rationalization Cross Functional Teams Integrated Product Development Teams (IPDT) Skills Development:
Product Development Steering Team Product Development Infrastructure Standard Measurements Definitions & Methods Knowledge Capture Streamline Design Process:
Lean Six Sigma Organization Enabling Systems Integration Business Process Improvements SCORcard Measurement Supplier Joint Cost Red. Integrated Supply Chain Supply Chain Definition Supplier Quality & Delivery Improvements Logistics Optimization Set Based Concurrent Engineering
Driving the Evolution to a World Class Enterprise!
DCOR/CCOR Deployment
World Class Results
Value Chain Alignment
Phase 1: Pilot Program Phase 2: Program Value Expansion Phase 3: Value Chain Optimization Phase 4: Enterprise Transformation
Vision 200X World Class Customer Service Level & Enterprise Performancee
200X 200X
Processes Customers/ Markets
planning system - many legacy applications
system implementation
Time 3 Time 3
World Class Process Performance Learning Organization
Systems Culture
performance Performance Management
Time 1 Time 1
through harvesting strategies
Enterprise Transformation
using Business Process Management
concepts
projects
Gathering & Reporting
Process Focus
Project Teams
system interface
Focus
systems
standard scorcard
competitive requirements
service levels
Scorecard Metrics
integration
areas Improved Customer Loyalty
focused
Making Supplier / customer interaction through e- portals
performance data available
planning system
metrics drive process improvement priorities
through Project Teams Internal Lean Six Sigma Expertise Reward systems aligned with company
Individual
Relations Performance standards & expectations established
RACI clearly defined
People
Development supports company strategy
Time 2 Time 2
Appropriate metrics to drive desired behavior
Lean concepts generally applied across all processes
Improvement is a way of life Market Leader/Preferred Solutions Provider
Installations of the same system
Phase 4 Phase 3 Phase 2
Pilot Program “Value Capture” Program Value Expansion Value Chain Optimization Enterprise Transformation
Phase 1
Program Design & Preparation Leadership Development Opportunity Identification Execution Skills Development
Content Focus
Program look like?
Sigma?
leadership support?
culture change?
responsibilities?
improvement opportunities?
scope our issues into specific projects and project charters?
Green Belts? Black Belts?
associated with certification?
Context Focus
infrastructure to support program growth?
accountability?
Lean Six Sigma?
cross-functional projects?
prioritize projects of greater business impact?
made to the core business processes?
be required for specific process areas?
transactional / engineering?
product lines drive our business?
primary value chains?
& customers?
information is needed to drive value chain optimization?
value chain projects?
methodologies should we use to target and prioritize value chain improvement
chain project?
interaction is needed for value chain optimization?
Competitive Focus
leverage process improvement efforts across the enterprise?
customers to share our business improvement goals?
developed to manage enterprise transformation?
channel strategies?
linkage of business strategy to business process improvement and resource development?
resources across the enterprise?
wide improvement projects?
Highlight what is relevant, Add what is missing, etc.
Processes Customers/ Markets
planning system - many legacy applications
system implementation
Time 3 Time 3
World Class Process Performance Learning Organization
Systems Culture
performance Performance Management
Time 1 Time 1
through harvesting strategies
Enterprise Transformation
using Business Process Management
concepts
projects
Gathering & Reporting
Process Focus
Project Teams
system interface
Focus
systems
standard scorcard
competitive requirements
service levels
Scorecard Metrics
integration
growth areas Improved Customer Loyalty
focused
Making Supplier / customer interaction through e-portals
performance data available
planning system
metrics drive process improvement priorities
through Project Teams Internal Lean Six Sigma Expertise Reward systems aligned with company
Individual
Relations Performance standards & expectations established
RACI clearly defined
People
Development supports company strategy
Time 2 Time 2
Appropriate metrics to drive desired behavior
Lean concepts generally applied across all processes
Improvement is a way of life Market Leader/Preferred Solutions Provider
Vision 200X World Class Customer Service Level & Enterprise Performancee200X 200X
Installations of the same system
Lean Sigma Enterprise Supply Chain Excellence
Supplier Management Infrastructure
Supplier Rationalization Enabling System Solutions Supplier Certification System Wide Bottom-line impact Self managed teams Preparing the Culture
Data Driven Decision Making SCOR Deployment
Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4
Product Development & Innovation Excellence
Program Infrastructure
Skills Development
Focus Factory Projects
reduction Projects Value Stream Redesign Site Certification Results Acceleration
Directed Effort:
Foundational Changes
Small Parts Consumption Based Replenishment Division Certification Self Sufficiency – MBB Business Process Kaizen Pull System Adoption
S/C Business Process Simplification Kaizen as a way of life Model Facilities Streamlined Business Ops Pull System Penetration 60%+ Cultural Change Product Development Rationalization Cross Functional Teams Integrated Product Development Teams (IPDT) Skills Development:
Product Development Steering Team Product Development Infrastructure Standard Measurements Definitions & Methods Knowledge Capture Streamline Design Process:
Lean Six Sigma Organization Enabling Systems Integration Business Process Improvements SCORcard Measurement Supplier Joint Cost Red. Integrated Supply Chain Supply Chain Definition Supplier Quality & Delivery Improvements Logistics Optimization Set Based Concurrent Engineering DCOR/CCOR Deployment
World Class Results
Value Chain Alignment
Phase 1: Pilot Program Phase 2: Program Value Expansion Phase 3: Value Chain Optimization Phase 4: Enterprise Transformation
Consulting Services
Business Assessment, Organization Design, IT Deployment, Product Development, Advanced Planning, Logistics, Lean Six Sigma Project Management, Advanced Tools Application, Best Practices Expertise
Execution Skills Development
Lean / Six Sigma Training, Methodology & Tools Application, Project Execution, Project Tracking, Review, Results Validation, Certification
Opportunity Identification
Strategic Req’ts, Performance Baseline, Value Steam Assessment, BPM Deployment, Project Definition, Portfolio Prioritization
Leadership Development
Goals, Change Mgmt, Roles & Responsibilities, Infrastructure, Selection Processes, Program Mgmt
Program Design & Preparation
Program Design & Preparation Leadership Development Opportunity Identification Execution Skills Development Consulting Services
Pro-Ex Program Workshop
(1 day)
Deployment Planning Workshop
(2 days)
Infrastructure Deployment Workshop
(5 days)
Program Readiness Assessment
(5 days)
Leading Strategic Change
(2 days)
Executive Leadership Training
(1 day)
Champion Training
(3 days)
Management Training
(4 days)
Project Portfolio Workshop
(2 day)
Value Stream Assessment
(3-5 days)
Diagnostic Assessment
(5-15 days)
Business Process Management (BPM) SCOR, DCOR, CCOR Certification
(17 days; 12-16 weeks)
Executive Green Belt Certification
(5 days; 5 weeks)
Awareness Training
(1 hour)
Soft Skills Training
(1 day)
Essential Skills Training
(2 days)
Yellow Belt Certification
(4 days)
Kaizen Workout
(5 days)
Green Belt Certification
(5 days; 5 weeks)
Black Belt Certification (25 days; 5 months) Master Black Belt Certification
(30 days; 6 months)
Project Definition
(1 day)
Six Sigma Lean
Six Sigma Curriculums
Lean Curriculums
Hybrid Training e-Training Train-Apply-Review Applied Training & Certification Experiential Development
Analysis & Design Tools & Techniques Business Assessments (S&OP, IT, etc.) Best Practices (SAP, RFID) VCOR Linking BPM Value Chains Supplier Development Program Analytical Software (Minitab, JMP, I-Graphics) I-Solutions Behavioral Simulation Hertzler SCOR Wizard I-Solutions
Value-Chain Operations Reference (VCOR) Model Value-Chain Operations Reference (VCOR) Model
VCOR Implementation
(Baseline, Benchmark, Analyze, Identify & Validate)
CCOR Project Portfolio
Lean Design DFSS
Design-for-Six Sigma (DFSS)
Risk, Uncertainty, and Variation
Lean Six Sigma
Lean/Six Sigma
Product Development “process”
Transactional Lean Sigma
Transactional Lean Sigma
and Yield to optimize information flow in the Product Development “process”
Methodology & Resource Requirements Prioritization & Implementation Planning
CCOR Portfolio Implementation Plan
Hertzler
I
u t i
s
Deployment Tools Business Systems Project Tools
Deployment Tools Business Systems Project Tools Measurement System
GainSeeker Data Mart Process Owners Advanced Statistical Tools
New/Enhanced Capabilities Business Performance Performance Manager Program Manager Process Manager Business Objectives
Enterprise Transformation Requires Access to the “Right” Data by the “Right” Tools at the “Right” Time
Enterprise Transformation is not easy… Many challenges are faced translating strategy into results: How Do You?
throughout the organization.
thousands of strategic and operational projects needed to implement the strategy.
to completion.
capabilities into the organization.
new/redesigned business processes.
make changes mid-course as situation changes.
Define/ Adjust Strategy Implement Strategic Projects Execute Business Processes
Business Objectives New/Enhanced Capabilities Business Performance
Enterprise Strategy Execution Cycle
i-nexus is the leading web-based enterprise software solution for helping global companies translate strategy into results….
Shareholder Value Cash (Profit) From Operations Capital Employed Fixed Assets Working Capital Accounts Receivable Accounts Payable Inventory Advance Payments WACC
Quote to Cash Prepare Quote Receive Order Plan Order Procure Make Pack & Ship Collect Cash
Prepare Invoice Transmit Invoice Approve Invoice Pay Invoice
Define Process Model Flow-down Objectives Select KPIs vs. Targets (Scorecards) Prioritise Causes
Project Charter
Reduce Invoice Defects
Who What When How Why
Scope and Select Projects Implement Project & Update Process Model
Debtor Days Control Chart
Enterprise Transformation Requires Integration of Objective Flow-down, Process Definition, Dashboard Development and Project Selection…
M
People Process Customer Financial
Index
Belts, Sponsors, and Process Owners
By implementing a Deployment Dashboard…
Rates
Index
Index
Capability Improvement Indices
Satisfaction Indices
Benefits (Profit & Capital Employed Impacts)
Revenue
Measure relative improvement in process capability not absolute process capability Measure the key return on Investment drivers Measure customer satisfaction to validate process capability improvement Measure the underlying
Measure net benefits that impact the P&L and balance sheet only
How do we measure the overall success of enterprise transformation?
E I M