BPM TRANSFORMATION PROGRAM
BPM can help you build a business that is adaptable, and adaptability in and of itself is becoming a value proposition. Adaptability by humans to changing conditions, although enabled by using the correct technology, is a cultural issue. Adaptability itself is a company’s biggest competitive advantage. Only if you move the existing culture do you succeed at scaling BPM from a few projects to a comprehensive BPM program.
Transforming your enterprise requires time and patience, investment in people and technology, and commit- ment from executive leadership, middle management, and the workforce. An enterprise running a successful BPM program institutionalizes and makes the techniques employed to discover, implement, deploy, and manage individual BPM projects repeatable.
BPM is often being implemented to address growth and change, and producing big results. Some of the core
benefits seen are:
- Reliability: Processes are repeatable, automated, and streamlined.
- Alignment: IT activities are closely tied with the goals and needs of the organization.
- Improved efficiency: Repeatable processes result in a smoother-running business.
- Predictability: More projects and tasks will be completed on time and on budget.
BPM is the process of implementing and improving processes, often with the use of technology. Before you start your BPM journey it is important to decide on your BPM strategy.
The strategy should cover
- Involve the right stakeholders and get them to drive the BPM initiative
Business buy-in is critical from Executive level down to the end user. Involving the business in strategy development
will keep them engaged.
- What gets measured, gets done
Define Key Performance Indicators (KPIs) that will be applied to processes within the BPM strategy implementation.
Focusing on quantitative KPIs such as cycle time and compliance will yield qualitative results.
- Manual vs. Automated
There are multiple levels of BPM investment alternatives. Each alternative has different requirements in terms of skill,
time, and investment. Select the one that meets your strategic goals.
Understand the Costs and Benefits of BPM:
- Organizations with BPM meet targets more often; have increased compliance, and better communication.
- Keep IT involved in BPM to maintain control over the technology aspects of strategy and implementation.
- 75% of organizations that have delved into BPM say it can be successfully done on a budget.
Assess Readiness and Appropriateness of BPM:
- BPM isn’t right for everyone. Organizations often jump head-first into BPM without considering the background work required. Don’t fall
- into this trap. Assess people, process, and technology to ensure right fit of BPM.
- Focus on iteratively selecting organizational levels for BPM over time to ensure significant and timely Return-of-Invest- ment (ROI).
Define Your BPM Strategy:
- Align your BPM strategy with business goals and objectives for short -and long-term business value, but be flexible
enough to accommodate change.
- Don’t take the business out of BPM: engage key business stakeholders or risk delivering just another IT strategy.
- Develop a roadmap to implement the BPM strategic initiatives over time and plan for the benefits.
In preparation for the process discovery phase, you should create an inventory of business process candidates from which you select your first BPM projects. Select projects with a high likeliness of success. Selection criteria for your first BPM projects should include an initial assessment of:
- The business impact
- The scope and complexity of the process
- The need for BPM on behalf of the process owner and SME’s
Workshop participants identify and document the business drivers and begin to form a perspective that places this pro- cess on the enterprise value chain and traces to corporate objectives.
Assessing a business process begins by mapping it on the enterprise value chain and aligning to corporate initiatives.
Process assessment validates key performance indicators (KPIs) and
service level agreements (SLAs) and how they might roll up to the enterprise to support corporate objectives.
Participants collaborate to define the business process, proposed approach, and next steps for a successful project. Discovery work includes proposing a solution approach and solution design to deliver business value. The output of this workshop should also include next steps to plan and implement a successful BPM project.
There might be simple changes that can be made to the As-Is process to realize some improvement. These changes can
be proposed, played back to the workshop participants for validation, and documented.
Establishing business process governance should be a foundational part of an organization’s business process manage- ment (BPM) planning beginning with the first BPM project. Putting in place the building blocks for a business process governance model helps an organization establish a vision for the overall BPM effort. Governance also avoids difficulties when the organization seeks to scale from the original BPM projects to a more transformational BPM program.
The following activities introduce the concepts that comprise the suggested business process governance model, in-
- Establishing strong executive sponsorship
Executive sponsorship should be obtained before the first BPM project is even started and be clear and publicized.
- Establishing BPM guiding principles as a foundation for a BPM operating model
Guiding principles are statements for the BPM transformation that guide the execution of the projects, irrespective of
which processes are currently being designed, developed, or deployed.
- Establishing a BPM Center of Excellence
The BPM CoE forms part of the operating model (see later in this section)
- Establishing and filling the BPM key roles in the BPM operating model
The first step is to set up a BPM operating model that supports business process governance throughout the BPM
journey. Next step is to establish the key roles in the operating model.
- Establishing the business process governance framework
Business process governance contributes to corporate governance. Corporate governance is a framework for determining corporate direction and performance, how the corporation uses its resources, and what accountability exists for the stewardship of those resources.
Center of Exellence
The mission and goals of the BPM CoE are to ensure the success of the organization’s BPM approach and initiatives by providing business solutions that support the organization’s strategy and goals. The goals of the BPM CoE are:
- To provide a single entity for using standardized methods, tools, assets, skills, and resources for the organization
- To foster clear communication and coordination between business and IT along the BPM journey
- To ensure alignment with business architecture, process ownership, and the overall enterprise