Build Process Skills Up And Down Your
Organization To Scale Transformation
Connie Moore, Vice President, Research Director
Forrester Research
October 14, 2010
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2010 Forrester Research, Inc. Reproduction Prohibited
Business Process pros are at the center of business
transformation . . .
. . . but need new skills to be successful.
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Business process
professionals stand at
the crossroads between
business and IT . . .
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Imagine . . . producing a musical with new actors
Source: Flickr (http://www.flickr.com/photos/cyndipix/4366759809/)
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Different views of business processes
 Focus on automation,
not the process
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• Groping toward new roles for
process analysis and
architecture
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• Process group has
deep knowledge in
Lean and Six Sigma
Meet the business process team . . .
Change agent
Prodigy
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Guru
Wannabe
Operator
Most business process improvement is driven by
business execs
March 5, 2010 Business Process Pros Hold The Key To 21st Century Business Transformation, Forrester Report
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2010 Forrester Research, Inc. Reproduction Prohibited
Business process pros need better ways to learn and
develop skills
“Where do you turn to for learning/developing business process management
skills?” (Check all that apply)
Base: 83 IT professionals involved in BPM or process improvement projects
Source: May 2010 Global Process Management/Improvement Online Survey
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What do “change agents” need?
 Strong business case
 A peer-to-peer network
 BPM center of excellence
 Clear understanding of
Lean, Six Sigma, and
BPM
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“Change agents” must evangelize, monetize and
communicate, communicate, communicate!
“The change agent is
in a never-ending quest
for sponsorship.”
-Kenny Klepper, COO Medco
“The change agent must
take cost out of the
business to fund
transformation.”
-Kenny Klepper, COO Medco
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“I definitely spend a lot of time
talking to the business about
what [it needs]. What is
working? What isn’t working?”
-Sr. manager, large bank
The journey to transformation follows several stages
Management
area
Strategy
• Objectives
• Scope
• Value
Process gov.
•
•
•
•
Life-cycle budget
Decision-making
Portfolio
Waste
Org. structure
• Gov. bodies
• Demand
• Service mgmt.
Performance
• Measurements
• Communications
Culture
• Cultivated skills
• Environment
• Orientation
Maturity level 1
Level 2
Level 3
Level 4
Maturity level 5
Ad hoc
Inconsistent
Defined
Managed
Optimized (BT)
• Integrated business and IT plans
• BPM plans focused on value chain
innovation and transformation
• Customer value synchronized with
corporate performance
Ad hoc planning, weaklink business, and IT
objectives
Mature
No evaluation process,
arbitrary decisions, no
link from investments to
resource commitments
No steering committee,
projects funded on
request, no formal biz
relationship
Aspiring
• Enterprise portfolio, biz metrics
• Local and global decisions coordinated
• BPM investments cross-linked to
performance
• Proactive waste elimination
• Appropriate levels of investment,
sponsorship, and involvement
• Demand incorporates C-level decisionmaking
• BPM through shared services
IT tracks operational
metrics, not business
measures;
communication on
request
• Board-level and investor monitoring of
tech business results
• Transparency provided to employees,
management, investors, and partners
Technical skills limited to
specific tasks, few
cultural norms, reactiveImmature
orientation
• Businesswide education and careers
• Strong brand and reputation
• Entrepreneurial orientation
• Emphasis on customer outcomes and
behavior
January 20, 2010 A Lean Business Technology Maturity Matrix For BPM Governance, Forrester Report
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Another way to look at BPM maturity
lower
higher
higher
BPM adoption maturity
Process
Optimization
Transformation
Business insight
Value to
shareholders
Process
monitoring
Compliance &
consistency
Process
Execution
IT agility
SOA
Efficiency
Knowledge
lower
Workers, supervisors and managers CIO
Customers and partners
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Level of Stakeholders
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CFO
CXO
CEO
Change agents must move the org from function to
services & processes
Vertical /
Functional
Functional /
Process Overlays
From Traditional
Line Management
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Process / Functional Service / Process
Overlays
Organisation
To Processes &
Services Management
Medco has fully embraced this new business model
 BP COE — technologists working with
next-generation, configurable solutions
 Business innovation and agility
centers — combination of IT/BT,
looking at marketplace demand, for
growth and differentiation
 Business operations — operational
excellence for the company
 Operational owners — internal focus
across the business process
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Including . . . new job titles
 Business innovation and agility
leaders
 Process champions (operational
owners)
 CoE leaders (responsible for
construction of business process
capabilities)
 Deeper in the organization:
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-
Modelers (focus is on user experience,
in operational and business groups,
some in IT)
-
Business architects (in business and
IT)
-
Designers (technologist)
One “change agent’s” perspective on people skills
“We leaned very heavily
on our vendor for
professional services;
now we’re standing on
our own two feet.”
“The number of people
Who know about this
technology is
scarce and expensive.”
CIO, financial services company
“It takes people time to
get up to speed”
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COEs often start small
 A financial service company's COE started with:
– four developers
– one business analyst
– one enterprise architect.
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CoEs evolve over time as maturity grows
CIO or
Governance
Council
IT
Exec
C Level
Exec
Line Of
Business
BPM
BPM
BPM
CoE
BPM
CoE
BPM
CoE
CoE
CoE
BPM
CoE
Process
Methods & Tools
Business Case
Development
Business
Architecture
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BPM Project
Management
BPM Suites
Process
Analysis/Modeling
Training
Potential CoE service portfolio
 Facilitate process governance
– Portfolio management and
prioritization of BPM roadmap
– BPM maturity assessment
– Budget allocation
– Track benefits delivery; Reuse
 Business architecture
– Overall process architecture
– Global v local guidelines
– M&A support
 Manage organizational
change
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– Organizational role definition
and workforce planning
– Rationalize other CoEs (Lean,
Six Sigma, BSC, etc)
– Institutionalize process
improvement methods
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 Manage BPM projects
– Develop project business cases
– Education & training support to
the BPM project
 Model & analyze processes
– Rationalize metrics, dashboard
and scorecard creation
– Simulate potential changes
– Business rules development
 Advise on IT integration
– Develop library of integration
components
– Master data management
 Assess technology, methods,
tools, standards
– Train & develop specialists
– Knowledge management
COEs need a blend of technical and business skills
“[You] can do this
without code — that’s
true — but it doesn’t
mean a business person
can do it.”
“[You] can’t create a business
process without a software
engineering background —
[you] need to know how
functions work; [you] need to
know how loops work.”
“These suites still
require you to have [a]
software engineering
skill set.”
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CIO, large financial services
company
But, BPM competency centers are not ubiquitous
“Do you have a BPM competency
center?”
Don’t know
6%
“What types of individuals staff your BPM competency
center?” (Check all that apply)
Yes
37%
No
57%
Base: 83 IT professionals involved in
BPM or process improvement projects
Base: 31 IT professionals involved in BPM or
process improvement projects who have a BPM
competency center
Source: May 2010 Global Process Management/Improvement Online Survey
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SaaS is one way to ramp up quickly with limited
IT/process skills
• Goal: efficient and profitable
• SaaS BPM allowed an
incremental approach.
– Promotion by promotion
– Paced by business users
– 12 weeks for development
• Minimal involvement from IT
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What do “process gurus” need?
 Sometimes, it’s BPM
101 they need (Lean
experts)
 Business process role
separated from
enterprise architects
 Certification
 Great process analysts
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One guru’s perspective
“The biggest challenge
is how to develop really
good process
architects. . . ”
“[I] don’t think there is a
training or certification
program where you can
send a process
architect.”
Manager, BPM COE
“When a company is in the
earlier stages and doesn’t
have the expertise, [it] will
need at least some transitional
assistance with process
architecture.”
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What do “prodigies” need?
 Pairing with a vendor
expert for knowledge
transfer
 Certification training
 Pairing with a business
analyst or SME for
learning
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“Gurus” and “prodigies” have different expertise
“The process analyst facilitates and
manages process improvement
efforts.
“The business architect is highly
influential and a master facilitator.
“They receive guidance from the
business architect.
They ‘own’ keeping the views of their
respective architectures up to date.”
“They usually analyze one process
and have limited ability to see
beyond the effort in front of them.”
Director of BPM, global manufacturer
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Lean, Six Sigma are most important to BPM pros
“How important are these methodologies/certifications to your organization’s
BPM skills development?”
Base: 83 IT professionals involved in BPM or process improvement projects
Source: May 2010 Global Process Management/Improvement Online Survey
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BPM, Lean and Six Sigma: Better Together
BPM provides
 BPM provides the framework ..to manage
change in process and workflow models
BPM
 BPM provides the environment to support the
speed of change
 BPM tools and technology can expedite the
adoption of a process centric view ...
 Some view Lean and Six Sigma and BPM as
competing disciplines
 Lean and Six Sigma can provide insight and the
Lean
measures to support potential improvements
and Six
Sigma  Lean Six Sigma target inefficiency with a broad
range of tools and toolkits
 All 3 are complimentary and can be
leveraged to achieve greater results
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• Framework
• Environment
•Tools to
accelerate
Lean and Six
Sigma provide
Methodology
Insight
Metrics
Source: Gabrielle Field, ABPMP, Raymond James Financial
What do “wannabes” need?
 Realistic expectations
 Pairing with a process
expert for at least two to
three months
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One change agent’s view on process analysts
“Process experts are a
rare type of talent.”
“We thought the
traditional business
analyst would be the right
source, but we were
horribly disappointed.”
BPM director, large
automotive manufacturer
“When people don’t get it, they
don’t ever get it. Either people
have the makeup to be in a
colocated, intensive
environment or they don’t.”
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Retool the business analyst
 Today’s tools are inadequate.
– Most still rely on Word, Excel, and Visio.
 Requirements management tools are:
– Too complex and not user friendly.
– Too costly to purchase and administer.
– Too text centric, without support for rich, graphical artifacts.
– Too siloed — lacking integration with other tools.
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Process skills are migrating out of IT
Business Human
domains resources
expert
Finance &
accounting
expert
High
Procurement
expert
Sales
expert
Operations
expert
P
r
o
c
e
s
s
VP of business process improvement
Business architect
Process architect and analyst
Manager of IT business systems
Evolving business analyst
Business
process
COE
Manager of
IT business
systems
Evolving BA
Process and
information
architects
Traditional BA
IT
Application
development
Enterprise
architecture
m
a
t
u
r
i
t
y
Low
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The next 90 days
• Immature:
• Investigate how big your process initiatives are
• Look at SaaS BPM to jump-start skills
• Aspiring:
• Conduct a process skills assessment; involve HR.
• Assess how you develop new skills (mentoring, pairing, training).
• See how effective cross-training is in the COE.
• Consider in-house training on BPM, Lean, and Six Sigma.
• Look at ABPMP certification.
• Mature:
• Add BPM to your training
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Longer term
•Immature
•Consider a BPM COE if there are enough projects to warrant.
•Aspiring
•Consider creating your own in-house certification program.
•Work with HR to develop career paths, training programs, and
new job titles.
•Focus on IT and business training/development.
•Focus on senior-level jobs in addition to architect/analyst jobs.
•Mature
•Make sure BPM is properly positioned and understood within
the company.
Entire contents
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Thank you
Connie Moore
+1 540.882.4040
cmoore@forrester.com
@cmooreforrester
http://blogs.forrester.com/connie_moore
www.forrester.com
© 2009 Forrester Research, Inc. Reproduction Prohibited
Recommended reading for change agents
 Warren Bennis, On Becoming a Leader
 James C. Collins, Good to Great
 Rick Delbridge, et al., The Exceptional Manager: Making the
Difference
 George Eckes, The Six Sigma Revolution
 Tom Hayes, Jump Point: How Network Culture is Revolutionizing
Business
 John C. Jeston, Beyond Business Process Improvement, On To
Business Transformation: A Manager’s Guide
 Edgar H. Schein, Organizational Culture and Leadership
 James P. Womack and Daniel T. Jones, Lean Thinking: Banish
Waste and Create Wealth in Your Corporation
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Business and process architects/analysts should read
these
 Yvonne Lederer Antonucci, et al., Business Process Management
Common Body Of Knowledge
 John Bicheno, The New Lean Toolbox
 Barry Boehm and Richard Turner, Balancing Agility and Discipline:
A Guide for the Perplexed
 David M. Dikel, David Kane, and James R. Wilson, Software
Architecture: Organizational Principles and Patterns
 John Jeston and Johan Nelis, Business Process
Management: Practical Guidelines to Successful Implementations
 Eberhardt Rechtin, Systems Architecting: Creating & Building
Complex Systems
 Andrew
Spanyi,
Business
Process Management (BPM) is a Team
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