Robert Osborne Business Breakthroughs Inc. Business Breakthroughs Business Breakthroughs • Overview of the Enterprise Business Model and the Governance Layer • Performance and Change Management as the Link Between Governance and Operations • KPIs – the Strategic Gap Measure for BPM • Performance Management – from Discovery to Assignment • Change Management – from Assignment to Resolution • Quick Hits vs the BPM Portfolio – How to Choose the Path • Success Factors for Management Adoption Business Breakthroughs Identify the Changes ◦ Confirm Strategic Goals ◦ Establish Change Office ◦ Build Enterprise Business Process Architecture ◦ Choose KPIs – Cash, Employees, Customers, Suppliers ◦ Identify BPM & Change Projects Implement Changes through Projects ◦ Operate the Change Management Office Facilitate Communication Facilitate Change Projects Support BPM Project Teams Enable the teams to be successful ◦ Communicate Vision, Strategy and KPIs Maintain Progress ◦ Promote communication across the people at every level ◦ Monitor KPIs and close performance gaps ◦ Build teams and capabilities for change Identify Goals, Gaps And Projects Prioritize, Guide and Execute Change Monitor, Measure & Celebrate Business Breakthroughs Complete Strategic Analysis and Build Meta-Architecture Input • Identity to • Vision Models • Strategic Objectives • Existing documentation • Subject matter expert input • Value Reference Model (VRM) Manage Change Build Enterprise Business and Process Models Models Build KPI Model Validate Architecture (Process, Function, KPI) KPIModel Model KPI Change Project Portfolio Strategic Workshops & Prioritization Strategic Initiatives, Gaps, and Quick Win Opportunities Business Breakthroughs Business Breakthroughs Company Governance Plan Company Business Strategy Define Standards of Operation Ensure Compliance Manage Company Performance Key Performance Indicators Manage Ongoing Company Operations Execute Company Operational Changes Manage Client Relationships Manage Business Partner Relationships Company Operations Brand Mgmt Market Mgmt Product Mgmt Lead Generation Sales Product & Service Delivery Post-Sale Services Strategy to Brand Brand to Market Segments Market Segment to Offering Offering to Opportunity Opportunity to Order Order to Cash Cash to Satisfied Customer Product Research Product Development Product Creation Segments to Innovative Practices Offering Concept to Design Design to Product / Service Company Infrastructure Services Provide & Manage Operational Finances Provide & Manage HR Manage Product and Service Relationship Provide & Manage Infrastructure Manage Supply Chain Provide & Manage Technology Services Provide & Manage Transformation Services Business Breakthroughs Plan Company Business Strategy Company Governance Define Standards of Operation Ensure Compliance Manage Company Performance Key Performance Indicators Manage Ongoing Company Operations Execute Company Operational Changes Manage Client Relationships Manage Business Partner Relationships Company Operations • KPIs are the “missing link” between strategies and operations Brand • Using Mgmt Market Product Lead Sales Product & Post-Sale Services Brand to Market Offering to Opportunity Order to Cash Cash to KPIs to identify and prioritize performance gaps makes sure Mgmt Generation Service Delivery Mgmt you’re fixing the most important things first Strategy to • The Brand more immediate thetofeedback from operations to management Satisfied Market Opportunity to Order Segment Customer via KPI Segments reports andOffering dashboards, the more agile the organization becomes Product Product Product • Research KPIs come in fourDevelopment classes: • Creation Manage Product and Service Relationship Segments to Offering Financial (Cash) Innovative Concept to • Design to Product / Practices Design Service Service Delivery (Customers) • Supply Chain (Suppliers) • People (Employees) Provide & Company Manage Infrastructure • Fewer is better! Operational Services Finances Provide & Manage HR Provide & Manage Infrastructure Manage Supply Chain Provide & Manage Technology Services Provide & Manage Transformation Services Manage Performance GM Process Owner KPI Operations Analyze Performance Gap Prioritize Performance Gap Assign Performance Gap Ownership Change Management Office GM Enterprise Process Architect Change Program Manager Quality Performance Manager Change Office Team Operational performance is reported via KPIs If there is a performance issue, the GM or Process Owner is informed The Performance Gap is confirmed and rapid analysis performed The Change Office team is available to help with the analysis and provide recommendations Based on priority, action is taken; The higher the urgency, the more immediate the action Ownership of the Performance Gap is assigned to individuals or projects The performance managers monitor the KPIs to determine if and when the corrective action is successful The Performance Gap Owner reviews the issue and determines, with help from Operations, if this is a “Quick Fix” that can be handled by Ops. If so: ◦ Ops team is assembled, and a short project is conducted ◦ Solution is implemented and activated ◦ KPI is checked by the team and assessed If the Ops team determines it is outside their scope of competency or ownership, a Performance Gap Project is defined, and added to the Change Portfolio Portfolio is evaluated regularly or upon request by the Steering committee and Change Office Using KPIs and Strategic Targets, the committee prioritizes, funds and assigns resources to projects Active projects require teams, and the teams execute projects, implement the solutions and monitor KPI impacts Manage Change Steering Committee Identify Potential Solutions Prioritize Proposed Solution Portfolio Change Office Team Prioritize Project Portfolio GM Execute Project Change Project Team Project Champion Team Leader Ops Team Members Ops Fixit Teams Project Business Leader Project Team Business Experts Execute Quick Fix Activate Solution Across Group • Driven to resolving a specific problem or achieving a specific goal. • The solution can be identified quickly • Implementation authority exists on the team or can be confirmed within one or two business days • All the people required are immediately available • A short burst of activity & effort (can range in hours to few days) • Emphasis on action over extensive analysis • Initiative to resolve a more complex issue • Cross-department issue, where all the people required are not immediately available • May require IT/MIS participation • The required level of activity & effort is uncertain • More detailed analysis is needed to understand and completely identify the problem • Impacts multiple departments or multiple companies • Requires sponsorship or executive approval 10 Business Breakthroughs Informed Action Over-Reaction Action Understanding Action Awareness Understanding Knowledge Awareness Knowledge Analysis Paralysis • • This circle shows the risk of moving from Awareness to Action without Understanding the consequences and impact of those Actions • This circle represents the correct cycle of progression • When undertaking a new initiative, teams must worked round sequentially, beginning with Awareness • Ensures that the action is within the correct context Equally there is a risk of failing to act quickly enough through too much analysis. Start Here Business Breakthroughs Document Situation Move on to Next Issue Celebrate Success Identify Gaps & Problems Design Solution Improvement Lifecycle Make this the Standard Measure KPI Results Confirm Feasibility Make Changes Monitor and Verify Change 12 12 Manage Performance Process Owner KPI Operations Manage Change GM Analyze Performance Gap Prioritize Performance Gap Assign Performance Gap Ownership Steering Committee Identify Potential Solutions Prioritize Proposed Solution Change Program Manager Quality Performance Manager Prioritize Portfolio GM Execute BPM Project BPM Project Team Change Management Office GM Enterprise Process Architect Portfolio Change Office Team BPM Proj Champion Team Leader Change Office Team Ops Team Members Ops Fixit Teams BPM Project Business Leader BPM Project Team Business Experts Execute Quick Fix Continuous Process Improvement Activate Solution Across Group Business Breakthroughs Change Office Manager Steering Committee Portfolio Financial Controller IT (MIS) Enterprise Process Architect Quality Performance Manager Change Program Manager Change Project Sponsor Team Leader Project Team Business Experts IT Lead Change Project Team Structure KPIs Drive Project Priorities for the Teams & Measure Success Business Breakthroughs Vision KPI Strategies must contribute to Vision KPI Operational KPIs must contribute to Strategies Setup a KPI Dashboard team that is 100% committed to building the executive dashboards Implement the KPI model in one value chain at a time Start small, get some successes, prove that the entire cycle works Strategic KPIs Value Chain KPIs Activity / Workflow Performance Metrics Task Performance Metrics KPI Model Business Breakthroughs Use KPIs to maintain alignment throughout the organization The more current the KPI measure, the more agile the organization can be A formal and fulltime Change/BPM office is needed; Change/BPM is not a part-time job Dedicate team to build KPI Dashboards Define a clear process for how to react to KPI variations Robert Osborne Business Breakthroughs Inc. Business Breakthroughs