Business Management Presentations Process Management



Slides for a keynote talk given at BPM 2014 in Eindhoven, Holland on Sept 10, 2014.


Keith D Swenson
Sept 2014
BPM 2014 Questions for a Learning Organization
http:// / kswenson / bpm2014 The working world is changing.
From making things … … to knowing things. Knowledge workers
… high degree of expertise,
… involves the creation, distribution,
or application of knowledge.
– Thomas Davenport Knowledge worker productivity
is the biggest of the
21st century management challenges.
In the developed countries
it is their first
– Peter F Drucker By a number of estimates,
•intellectual property,
•brand value,
•process know-how, and
•other manifestations of brain power generated more than 70% of all US market value created over the past three decades. – “The Productivity Imperative”, McKinsey and Company
~ 1995
~ 2015 85% of the new jobs created in the past decade required complex knowledge skills:
•analyzing information,
•problem solving,
•rendering judgment and
•thinking creatively. – “The Productivity Imperative”, McKinsey and Company First … some definitions
http:// / kswenson / bpm2014
6:00 Definition of BPM
Business Process Management (BPM) is a discipline involving any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise goals, spanning systems, employees, customers and partners within and beyond the enterprise boundaries. “The System”
Desire to optimize the entire system Let’s talk about
… lying
Primary Doctor Confer
The diagram is pure fiction! why do we use examples that are false on every level false?
partially enlightenment bias
partially focus on routine processes
partially thinking people are like robots Example of Knowledge Work Example of Knowledge Work Kanban What do Management Gurus say?
http:// / kswenson / bpm2014
21:00 Roger Martin
Dean of the Rotman School of Management, University of Toronto
Eliminate sources of variation. Find the one true way, and get everyone to master it. If possible, automate those practices to increase repeatability. Mastery requires control of the situation.
Mastery without originality becomes rote. The master who never tries to think in novel ways … will produce the same kind of resolution even if the context demands something different. Mastery without originality becomes a cul-de-sac. Michael E. Porter
Harvard Business School
Get a business analyst to find your best business process and then institute it across the company. Thorough planning helps you avoid needless changes.
Companies have to be very schizophrenic. On one hand, they have to maintain continuity of strategy. But they also have to be good at continuously improving. Change brings Opportunities. Lynda Gratton
London Business School
Try to anticipate and plan for success. Based on the history of potential members, teams should be crafted with a well known and predictable ability to work together.
If a majority of the people on a team already know each other, the team can become stale and predictable.
It’s often through the unexpected insights of new colleagues that innovation is sparked. Marcus Buckingham
Author of “First, Break all the Rules: What the World’s Greatest Managers Do Differently”
A manager should find the best expert on the subject, and devise the most comprehensive and detailed plan. Design once, execute many times. Train people and measure them against these consistent goals.
The true genius of a great manager is his or her ability to individualize.
A great manager is one who understands how to trip each person’s trigger.
Your strongest life is built through a continuous practice of designing moment by moment. Jim Collins
Author of
“Built to Last”,
“Good to Great”
Make a clear plan, consider carefully all of the situations that your workers will face, come up with the best responses, and teach your employees to use those best responses every time.
I don’t know where we should take this company, but I do know that if I start with the right people, ask them the right questions, and engage them in vigorous debate, we will find a way to make this company great. Uniformity Assumption
For a single process to work across an
organization, you have to assume that
all the players of a role are identical.
What if they are not? Goal: eliminate variability and find the one best shoe size. Single Maximum Assumption
If you are going to monotonically
improve a business process, you have
to assume that there is a single
process that is optimal.
What if there no single model is optimal?
What if optimal is a variety of models? Enlightenment Bias:
-Behind every complicated phenomenon is a simple formula driving it Support for Innovation
http:// / kswenson / bpm2014
29:00 Innovation
refers to the introduction of novel ideas or methods. Medical Emergency
This patient has a combination of symptoms that requires us to do something that has never been tried before! I’m sorry
Dr. House,
I can’t allow
you to do that.
It would make
the process
invalid. A knowledge worker is
“… someone who knows more about his or her job than anyone else in the organization.” – Peter F Drucker Design Time
Run Time
Routine Work
Less Expert
x100 or x1000
Knowledge Work
What does it mean to “assure the correctness” of the knowledge work process? Enforcement:
Guardrails (on a road) prevent deviation, but also prevent anything not predicted.
Guidance: Guidelines (on a road) show people where to go, but do not prevent deviations if they are necessary.
Enforcement vs. Guidance Technology for Unpredictability
Copyright 2013 Fujitsu America, Inc. All rights reserved.
http:// / kswenson / bpm2014
40:00 Change Horizon vs. Process Duration
process variant a
variant b
variant c
time  Change Horizon vs. Process Duration
process variant a
variant b
variant c
time 
process instances: Change Horizon vs. Process Duration
process variant a
variant b
variant c
time 
process instances: Change Horizon vs. Process Duration
process variant a
variant b
variant c
time 
process instances: Examples of Predictability Types
Change Horizon
Work Duration
Very High
Factory Work
Many years
Minutes to days
Very high
Food Preparation
Many years
Server Integration
Order fulfillment
Weeks to months
Minutes to hours
Social Work
Weeks to years
Weeks to years
Very low
Medical treatment
Days to weeks
Weeks to years
Very low
Hours to weeks
Weeks to years Application Dev
Email, Texting, Twitter, Telephone
Variable, Unique
Predictable, Repeatable
& Unstructured
Databases &
Data Application Dev
PDS Integration
Human PM
Production CM
Adaptive CM
Social Biz
Email, Texting, Twitter, Telephone
Variable, Unique
Predictable, Repeatable
& Unstructured
Databases &
Data State of the Art in Case Management
Developed originally for AIIM
case management series.
Send request to:
To receive a PDF
Examples from the ACM Awards
http:// / kswenson / bpm2014
44:00 Four years running. Four books
Real-life use cases.
Experience with ACM.
Workflow Management Coalition
Thriving on
for knowledge
workers Norwegian Food Safety Authority submitted by Computas AS
The Norwegian Food Safety Authority’s (NFSA) overall objective is to ensure safe food and animal welfare. NFSA’s area of responsibility comprises plant health, food and fodder production and handling, water supply plants, cosmetics, animal health and welfare for production animals and pets. Since 2009, about 1000 of NFSA’s knowledge workers (veterinarians, biologists, engineers, other professionals) use MATS actively as a decision support system for the main bulk of their professional work; to plan, conduct and register audits. The public (farmers, restaurants, food production plants, food shops, fish exporters, plants importers, butcheries, pet owners) use MATS to register, apply, and view their own case information, resulting in 150 000 communications per year. Each establishment or person, NFSA client, is viewed as a case, having a corresponding work folder in MATS. Each case is followed by NFSA over a possible time span of many years, subjected to both planned and event driven control activities (inspection, audit, sampling and document control). MATS provides focus on task support rather than workflow support. Task Composition Example of UI Category: Legal and Courts
National Courts Administration of Norway nominated by Computas AS
Olav Berg Aasen – Deputy Director General
Astrid Irene Eggen – Senior Advisor
Endre Helgesen Skjetne – Senior Advisor
•Case handling and court management for all 1st and 2nd instance courts
•High-quality uniform case handling in accordance with procedural law
•Improve service-level for parties / actors / public
•Improve efficiency and effectiveness of the Norwegian courts
•Improve integration with other judicial actors
LOVISA Case Study Antifragility
http:// / kswenson / bpm2014
46:00 We know what fragility is.
But what is
the opposite?
Fragile ?
Robust Fragile
Antifragile Muscles
The Body is Antifragile Forests are Adaptive IT System Perfection
Craving Stress (Exercise) Antifragile systems crave stress,
and if you withhold stress,
they wither or become dangerously unstable From an efficiency perspective, running without getting anywhere is a waste! The character Lintilla had a “Crisis Inducer” which was a watch- like device that would create an artificial crisis of selectable severity in order to keep the wits of the wearer sharp. Organizational Exerciser
Maybe our BPM systems should be occasionally throwing ‘curve balls’ at the users:
unexpected, and incorrect tasks to keep the worker intellectually healthy? Enforcing a single best practice on the organization, can make it … fragile A way forward
http:// / kswenson / bpm2014
50:00 Starling Murmuration
(Video) Simple Rules to Emergent Behavior
1.Avoid hitting each other,
2.Stay near the flock,
3.Match velocity of neighbors. Deriving Rules is Difficult or Impossible
1.Avoid hitting each other,
2.Stay near the flock,
3.Match velocity of neighbors.
? Roles, and Etiquette
Purchasing Agent
Product Development Business Etiquette Modeling
For each role in an organization, determine:
each of the services that role might perform
what must be provided
what will be produced
what conditions will decide whether the task is accepted or not
what contexts all this is valid in
Use simulation across many roles in the organization to see if the process is ‘optimal’
tweak the etiquette rules as necessary
Record history and track KPIs like normal
Respond if necessary by tweaking the etiquette rules Cross Company Emergent Processes
Manufacturing Company
Consulting Firm “The future is uncertain – but this uncertainty is at the very heart of human
– Ilya Prigogine “Nature loves small error, humans don’t — hence when you rely on human judgment you are at the mercy of a mental bias that disfavors antifragility.”
– Nassim Nicholas Taleb, Antifragile “Stability is a Time Bomb”
– Nassim Nicholas Taleb, Antifragile
In an unpredictable world, the best investments are those that minimize the importance of predictions.
– Sargut & McGrath “The only sustainable competitive advantage is an organization’s ability to learn faster than the competition.”
– Peter M. Senge,
The Fifth Discipline: The Art & Practice of The Learning Organization ”A military force has
no constant formation,
water has no constant
the ability to gain victory by changing and adapting according to the opponent is called genius”
– Sun Tzu, The Art of War Summary
Knowledge workers are important, and increasing
Current process models are very limited with respect to knowledge work
Which assumptions are valid?
Spectrum of different types of process support
Examples from the ACM awards
Organizations need exercise, not protection
Should we treat business as an emergent epiphenomenon?
 Business Etiquette Modeling Workflow Management Coalition
•Information Q & A
Adaptive Case
Management is
for Knowledge Workers
with Unpredictable Process
to Adapt & Innovate
with Teams of Experts
to Accomplish Goals.
http:// / kswenson / bpm2014

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