Matakuliah
Tahun
: M0734-Business Process Reenginering
: 2010
INTRODUCTION
Pertemuan 1
What is BPM ?
What is Business Process Management ?
More than just technology
Improving or reengineering your processes and dealing
with managerial and organizational issues
Not just hype – it is an integral part of management
Modeling + implementation + execution + monitoring
“The achievement of an organization’s objectives through the improvement,
management and control of essential business processes”
(Jeston and Nellis, 2006)
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Improving Processes before Automating Them
The first rule of any technology is that automation applied to an efficient operation will magnify the
efficiency..
The second is that automation applied to an inefficient operation will magnify the inefficiency.
(Bill Gates, Microsoft Corporation)
Black Box Syndrome
•
Executives see their processes as a ‘black box’. They don’t know the details, but somehow
the processes produce outcome.
Looking at the Edges Syndrome
•
The processes and associated people are treated like sacred objects : executives cannot
or do not want to discuss the efficiency and effectiveness or ask the tough questions.
“If business process inefficiencies could be easily solved by automating them, why are
consultants often called in after an organization has purchased an expensive
automated workflow solution that has failed to ‘solve’ the problem?”
“Why do automated solutions fail to deliver their expected business benefits?”
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Main Drivers and Triggers
behind BPM Initiatives
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Who Should be Involved in BPM ?
Integral Management
Business Process Improvement Management
•
•
•
•
BPM Project Manager
BPM Program Manager
Center of BP Excellence Manager
Chief Process Officer
External BPM Experts
•
•
•
•
•
•
Set-up project, program and Center of BP Excellence
Monitor progress of project, program or Center of BP Excellence
Monitor performance and identifying areas of improvements
Conflict resolution and project/program revival
Support for management, act as consultant or right-hand advisor
Evaluating (and auditing) projects and programs
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BPM Critical Success Factors
Leadership
BPM Experienced Project Manager
Alignment with Organization Strategy
Process Foundation
Technology Foundation
Structured Approach to BPM Implementation
People Change Management
People and Empowerment
Project Initiation, Execution and Completion
Continuous Improvement
Benefit Realization
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BPM Critical Implementation Aspects
Regatta of Sogeti, The Netherlands, Metaphor
Speed
Efficiency
Balance
Cohesion
Process
Management
“Speed (effectiveness) and efficiency through balance and cohesion”
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The BPM Implementation Framework –
an Overview
Using the BPM Implementation Framework
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BPM Project Success Pillars
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BPM Implementation Framework
BPM Implementation Framework
• Organization Foundation
• Process Foundation
• Technology Foundation
• BPM Foundation
• Elaboration
• Improvement
• People and Technology Development
• Deployment
• Monitor and Benefit Realization
• Continuous Improvement
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Process Centric Organization
Process Centric Organization
Non Process Centric Organization
Understand that processes add significant value
to organization
Does not fully appreciate the contribution of
processes to realization of organization strategy
BPM is incorporated into management practices
Management of processes is not the primary
focus
Embraces BPM strategy
Support various BPM initiatives
Management focuses on processes
Understand that processes must be important
because of the problems they cause
Understand their processes and the impact of
processes upon each other
Well-defined value chain, list of processes
Organization structure is designed around
processes
Organization structure is based upon functional
department
Able to deal with tensions arise between process
and functional lines of responsibility
Frustrated over inter-departmental responsibilities
Has a Chief Process Officer and/or process
owners who are responsible for processes
Functionality-based, no cross-departmental
responsibilities
Rewards and measures are linked to process
outcomes
Rewards and measures are linked to functional
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department outcomes
BPM Project Initiation Approaches
Strategy-driven Approach
Operational-initiative Approach
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BPM Project Implementation Scenarios :
Under the
Radar
Pilot
Project
•This occurs in the
least BPM-mature
organization, and is
where there is a
partially informed
business manager
who is not yet
committed and is
not paying much
(or any) attention
to BPM within the
organization. This
scenario could be a
project under the
guise of process
improvement, and
BPM may not be
mentioned at all.
•This is where there
is a fully informed
business manager
who has yet to be
totally convinced
of the benefits of
BPM and is willing
to try it out on a
small scale to start
with before making
a full commitment.
In the
Driver’s
Seat
•This is the next
level of
organization BPM
maturity, and is
where there is a
fully informed
business manager
who is totally
committed to the
implementation of
BPM within the
organization or
business unit he or
she is responsible
for.
Business
As Usual
•This will be
selected by the
most BPM-mature
organization. The
organization and
business managers
will be totally
committed to a
process-centric
organization, and
BPM projects are
simply business-asusual activities or
projects.
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BPM Project Implementation Scenarios
Selecting BPM Project Implementation Scenarios
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BPM Project Implementation Scenarios
Characteristics BPM Project Implementation Scenarios
Under the
Radar
Pilot Project
In the Driver’s
Seat
Business as
Usual
Type of BPM
Initiatives
Project
Project or a program
Program or an
organizational initiatives
Organizational initiative
Experience with BPM
None/limited
None/limited; perhaps
1 or 2 successful BPM
projects
A number of successful
BPM projects or programs
BPM embedded within
the organization
BPM maturity of the
organization
Initial
Initial, repeatable
Repeatable, defined,
managed
Managed, optimized
Triggers for BPM
initiatives
Operational
problems
Range of wide
operational problems;
strategic issues
Strategic issues, e.g.
mergers, compliance
From operational
problems to strategic
issues
People Impacted
Limited numbers
Medium numbers
Potentially, everyone in
the relevant business unit
Depending on size of
project, from small to
everyone
Organizational Level
Department,
projects
Business Unit
Organization or business
unit
Depends on size of
project
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BPM Implementation Framework
Organization Foundation
Process Foundation
Technology Foundation
BPM Foundation
Elaboration
Improvement
People and Technology Development
Deployment
Monitor and Benefit Realization
Continuous Improvement
BPM Implementation Framework
- a Detailed Look
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Organization Foundation Phase :
Why ?
How ?
Outputs
Risks
Organization Foundation Phase
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Why ?
Setting up proper foundation for the understanding of the organization strategy, vision, strategic goals,
business and drivers by the project team members
Organization Foundation will provide the following attributes :
•
•
•
Direction – an understanding over the overall organization direction so the
project’s trajectory can be aligned with it
Discovery – motivational driver in discovering better and more efficient way for
the processes in the future
Destiny – sense of belonging, emotional edge to the organization strategy
P
R
O
Information
C
E
S
S
Decision
Organization Foundation
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How ?
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Step 1 :
Internal and External Aspects of the Organization
Internal aspects of
the organization
External aspects of
the organization
Strengths
Weaknesses
Competition
Competencies
Constraints
Environmental
Impacts
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Step 2 :
Strategic Objectives
Key Questions to ask :
What ?
•
•
•
•
Vision : what does the organization strive to ‘be’?
Mission : what is the organization in business to ‘do’?
Goals : what does the organization plan to accomplish?
Objectives : what results does the organization plan to deliver?
How ?
• Strategic intent : how are we going to achieve the goals and objectives?
• Implementation strategy : what methods or approaches are used to reach the
Goals and performance targets?
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Step 3 :
Impacts on Processes
How the organization strategy impacts business processes?
Strategic Choice :
• Operational Excellence
• Customer Intimacy
• Product Leader
Operation Excellence
Customer Intimacy
Product Leader
Key Processes
Order fulfillment
Process Engineering
Acquisitions
Delivery
Marketing Communications
Product Development
Technical Services
Marketing Management
Organization and Skills
Centralized decision – making
Supply chain partnering
Shared trust between sales team and
staff
Increased partnering skills
High level of product innovation
product development
Intelligence at local level
Key Process Variable
Low costs
Low lead time
Flexibility
Staff empowerment
Flexibility
Product
Management Systems
Key client relationships
Cost improvements
Activity-based Costing
Real-time costs
Customer equity measures (e.g. lifetime
Customer Satisfaction,
Share management
Focus on growth in sales and
Specialized schedule targets
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Step 4 :
Strategic Measurements
Measure and monitor the progress of the strategy
execution
Provide, from middle management downwards, more
specific and personal objectives
Evaluate initiatives and projects by their contribution
to these strategic measures
Balanced Score Card
•
•
•
•
The financial perspective (objectives, measures, targets, initiatives)
The customer perspective (objectives, measures, targets, initiatives)
The business process perspective (objectives, measures, targets, initiatives)
The learning and growth perspective (objectives, measures, targets, initiatives) 24
Step 5 :
Complete the Plan
“10 percent increase of turnover”
“the organization follows an Operational Excellence Strategy”
(this will be taken into consideration while evaluating existing processes and
(re)designing new processes)
“the customer has a single point of contact for all his or her questions”
(all processes will be described as end-to-end processes)
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Step 6 :
Communicate
Obtain Sign-Off
Commitment from Key Stakeholders
Proper Change Management Approach to changes to the
organization foundation
Communicate Organization Strategy and how it impacts the
business processes
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Outputs
 Organization’s Vision and Mission
 Organization’s Goals, Strategic Intent
and Objectives
 Organization’s Implementation
Strategy
 Business Model Context, including
 Customers (type and volume of
customers)
 Services/products
 Suppliers/partners
 Key differentiators
 Resources
 Key differentiators of the organization
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Risks
Risks
Mitigation Strategy
Reinventing the Organization
Select the appropriate BPM project scenario for the organization to
depth on the strategy review; do not go any deeper than is required
Indefinitely waiting for
Organization Foundation
If the information is not forthcoming, make assumptions and get
supplied, escalate or re-scope the project
No commitment from senior
Start small-scale improvements and achieve quick wins, and obtain
the project sponsor for assistance
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