Brett Champlin
President ABPMP International
Adjunct Faculty, University of Chicago
Manager, Business Performance Improvement
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BPM is a Management Practice
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Enabled by an evolving set of technologies
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Process-oriented thinking
Manage end-to-end business process
Strategy is carried out through process
Process assessment, analysis and design
Process performance over functional performance
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Process
Process
Process
Process
© 2009 Brett Champlin
discovery and definition
execution and orchestration
monitoring and control
performance decision support
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“BPM is the way best-practice organizations conduct
business”
While the APQC research participants agreed that
technology, by itself, does not constitute “Business
Process Management”, they concluded that much of the
promise of BPM initiatives will not be realized without
powerful, flexible and user-friendly IT solutions to
support them.
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Four of the five of APQC’s best practice partners cited
technology support being a key success factor for
managing, aligning and integrating business processes--thus impacting profitability and their ability to
compete in today’s competitive, global market.”
Source: APQC
© 2009 Brett Champlin
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Two Forrester Surveys
◦ 449 decision makers in North America and Europe
60% were already using BPM
an additional 19% plan to do so in next 12 months
◦ 160 US and UK enterprise architects
85% were actively planning or already had BPM
deployments under way
◦ BPM Centers of Excellence (COEs) are the catalyst for
BPM success
Source: Forrester
© 2009 Brett Champlin
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BPM enables business agility
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BPM is how you change your business
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BPM is about managing change
o Managing Process Change
o Managing how people accept change
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Managing organizations through
successful changes
Being aware of a need to manage
change throughout planning and
implementation of change programs
Understanding and influencing how
people affected by change experience
change
© 2009 Brett Champlin
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Accelerate the 4 stages of natural reaction:
◦ Denial
◦ Resistance
◦ Exploration
◦ Commitment
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Helping People Adapt to Change
◦ Everybody has to go through this
◦ They all go through it at their own pace
◦ Some of them have to go through these stages many times before
they are fully committed
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Communications & Activities
◦ Be honest about where you are
◦ Be honest about where you want to go
◦ Be honest about how you are going to get there
◦ Status reports, what’s new, how are we doing
◦ How this will affect “you”
◦ What can “you” do to prepare
◦ What “you” should do now
◦ How “you” can contribute to success
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Style
Characteristics
Imperative
Cultural
Agressives
• Holistic Coordination
• Seize Advantage
• We change the rules of the market
• We welcome rapid change
• People at all levels embrace new ideas
Stay Ahead
Cultural
Moderates
• Local Optimization
• Seek Parity
• We follow fast behind market leaders
• We can cope with a few moderate changes
• New ideas flow top-down through managers
Get Leverage
Cultural
Conservatives
• Central Control
• Reduce Pain
• We seek mature markets, then compete on
price
• We prefer status quo; discourage exceptions
• New ideas are limited to job descriptions
purview
Catch Up
Source: Gartner
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Process Maturity
Process Management Maturity
Disciplined
Procedures
Support/
Direct
(3)
Consistent
Process
Ignored
(1)
Optimized
Process
(5)
Managed
Process
(4)
Predictable
Process
Participate/
Control
(4)
Need
Management
Regulation
© 2009 Brett Champlin
Continuously
Improving
Process
Manage/
Plan
(5)
Need Quality
Management
Program
Recognize/
Organize
(2)
Cooperative
Process
Steward/
Lead
(6)
Need Enterprise
Integration
Integrated
Process
(6)
Defined
Process
(3)
Repeatable
Process
(2)
Initial State
(1)
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Mission, strategy,
goals, and objectives
Culture, core competencies,
and management systems
Constrains
Supports
Business Process
enables
Workflow
Design
enables
Information
Systems
• Performers
• Applications
• Steps &
• Information
decisions
• Sequence and
flow
• Handoffs
© 2009 Brett Champlin
enables
Motivation &
Measurement
• Employee
assessment
• “Reward and
punishment”
• Process
performance
indicators
enables
Policies
and Rules
enables
Human
Resources
• Constraints
•
• Business rules •
that the
process
•
enforces
• External &
internal
Skills
Matching
jobs to tasks
Selection
and
placement
enables
Facilities
(or other)
• Workplace
design
• Equipment
• Furniture…
Source: Alec Sharp, Clariteq
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Process
Re-Design
Process
Improvement
Process
Reengineering
Time
Cost
Degree of Innovation
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Process Improvement is incremental
Process Re-Design is end-to-end re-thinking of what we are doing
Process Reengineering is a “begin with end in mind” approach
Process Innovation involves changing the model, not just improving its
efficiency
© 2009 Brett Champlin
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Process
Reengineering
End-to-End
Process
Activity/
Sub Process
Scope of Change
Business
Model
Managing Process Transformation
Process
Re-Design
Process
Improvement
Short
Long
Time
Source: Jeston & Nelis
© 2009 Brett Champlin
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Redesign of Industry Value Chain
Impact on
Organization
Redesign of Business
Redesign of Processes
Improvement of
Sub Processes
Incremental
Improvements
Point of Approach
Within Organization
© 2009 Brett Champlin
Source: Jeston & Nelis
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Marketplace, General Public
Scope of Change
Management Efforts
Senior Leadership, Business Partners
Middle Management, Customers
Support Staff, Area Mgt
Workers, Supervisors
Incremental
Improvements
Improvement of Sub
Processes
Redesign of Processes
Redesign of Business
Redesign of Industry Value Chain
Scope of Change
© 2009 Brett Champlin
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Internal
◦ Value Chain
◦ Support
◦ Control
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External
◦ Customer
◦ Regulatory
◦ Business Partner
Value Chain Processes
Upstream, Downstream, Collaborative
Support Processes
People, Finance, Information, Facilities
Control Processes
Governance, Compliance, Change Management
Customer Relations
Customer/Public/Community
Regulatory Relations
Government/Industry/Regulators
Business Partners
Services Providers/Suppliers
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Engage
Customers
Transact
Business
Fulfill
Expectations
Provide
Services
4
1
3
++
0
Reduce Costs
Reduce Time-to-Market
Improve Quality
Gain Market Share
Broaden Product Line
Years since last major
improvement effort
2
Benchmark Grade
+
3 Yr Efficiency Metrics
3 Yr Effectiveness Metrics
Process Cost ($ bln)
2.1
1.4
4.3
0.7
Adapted from Bob Curtice
Performance Improvement Associates"
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Map to Decision Support Tools
OPPORTUNITIES
Factors
Factors
External
Factors
STRENGTHS
Factors
Provide
Service
Internal
Internal
Transact
Business
WEAKNESSES
Fulfill
Expectations
External
Engage
Customer
THREATS
© 2009 Brett Champlin
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Process
Process
Process
Process
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Business Process “Meta Model”
PERIOD
PROCESS
PURPOSE
PEOPLE
© 2009 Brett Champlin
PRODUCT
PLACE
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1st Order Change
PROCESS
PERIOD
PURPOSE
PLACE
PRODUCT
• Tasks & Nature of Work
© 2009 Brett Champlin
PEOPLE
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2nd Order Change
PROCESS
PERIOD
PURPOSE
PLACE
PRODUCT
• Tasks & Nature of Work
• Attitudes, Values & Skills
© 2009 Brett Champlin
PEOPLE
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3rd Order Change
PROCESS
PERIOD
PURPOSE
PLACE
PRODUCT
• Tasks & Nature of Work
• Attitudes, Values & Skills
• Motivation & Relationships
© 2009 Brett Champlin
PEOPLE
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4th Order Change
PROCESS
PERIOD
PURPOSE
PLACE
PRODUCT
• Tasks & Nature of Work
• Attitudes, Values & Skills
• Motivation & Relationships
© 2009 Brett Champlin
PEOPLE
• Structure & Culture
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5th Order Change
PROCESS
PERIOD
PURPOSE
PLACE
PRODUCT
• Tasks & Nature of Work
• Attitudes, Values & Skills
• Motivation & Relationships
© 2009 Brett Champlin
PEOPLE
• Structure & Culture
• Relationships with External
Partners & Community
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Managing Process Transformation
Strategic
Enterprise Process
Alignment/
Process Portfolio
Management
Change Management
Tactical
Degree of Change
Business Process Management
Process
Reengineering
Process
Re-Design
Process
Improvement
Low Hanging
Fruit/ Quick Hits
Short
Long
Time
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© 2009 Brett Champlin
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YOU DON’T HAVE TO CHANGE.
SURVIVAL ISN’T MANDATORY.
-- DEMING
© 2009 Brett Champlin
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Brett Champlin
Brett@theChamplins.com