Contributed on March 9, 2010

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Business Process Management: Is – Is Not – Must Have – Must Not

Description

What BPM is and is not. What you must have to be successful with BPM and what you must not do.

Transcript

Is Is Not Must Have Must Not
Business Process Management
Roger Tregear, Leonardo Consulting
20 May 2009
2
AGENDA
What BPM is
What BPM is not
3 Must Haves
3 Must Nots
Take Aways
3
What is BPM?
Business Process Management is a structured,
coherent and consistent way of understanding,
documenting, modelling, analysing, simulating,
executing, measuring and continuously
changing end-to-end business processes and all
involved resources in light of their contribution
to business improvement.
Definition by the Australian BPM Community of Practice
(http://bpm-collaboration.com/)
4
What’s the Big (BPM) Idea?
Processes are inherently cross-functional.
So functional management (alone) does not
manage the delivery of value to customers.
We deliver value to our customers via our
business processes. Yet we (often)
manage our organisations via functions.
5
Process analysis &
description only.
Focus on As Is.
Improving individual
processes. Changing
from As Is to To Be.
Understand performance
metrics and drivers.
Focus on As Is.
Continuous improvement
across the value chain.
“Process Based
Management”.
Process Improvement
as a part of
Process Management
6
BPM is NOT …
a new technology
a project
something to outsource
a passing fad
a quick fix
7
3 MUST HAVES
1. Process Architecture
2. Continuous Measurement
3. Consistent Framework
8
PROCESS ARCHITECTURE
Create,
Acquire &
Grow
Business
Integrate
Product/Service
Definition
Manage Suppliers Produce Product
Support Products
& Services
Define Production
Plan
Provide Parts,
Supplies, GFE &
Tools to Assembly
Assemble &
Deliver Product
Verify Production
Processes
Manage Material
Rqmts
Select Source
Negoitate & Award
Purchase
Contracts
Manage Supplier
Quality
Manage Supplier
Performance
Manage Supply
Base
Manage Gov
Property
Manage Inventory
Define & Manage
Product/Service
Requirements
Plan & Control
Product Service
Design
Concurrently
Develop Product/
Service/Build-to/
Buy-to/Support
Elements
Verify & Validate
Product/Service
Create
Opportunities &
New Markets
Acquire New
Business
Maintain/Grow
Existing
Business
Provide Supply
Support
Provide Field
Services
Provide Retrofit &
Modification
Services
Provide
Instructional
Systems Data &
Training
Provide Technical
Data
Provide Integrated
Support Planning &
Management
Provide System
Support Analysis
Provide Support
Equipment
Provide Financial
Services
Provide Human
Resources
Provide
Communicatins
Services
Provide Export/
Import Compliance
Provide Safety,
Health & Env.
Services
Provide Legal
Services
Manage Facilities
& Equipment
Provide Integrated
Information
Systems &
Services
Provide Enagling Infrastructure
Manage Non-
Production
Procurement
Provide Flight
Operations
Services
Provide Security &
Fire Protection
Services
Manage Program
Planning &
Execution
Administer
Contracts
Minimize Program
Risk
Provide Integrated
Performance
Mang. (Cost &
Schedule)
Manage IWA
Performance
Manage Programs
Boeing GMS: C-17 Program Value Chain
Ensure Integration
of Strategic Bus. &
Functional
Planning
Ensure
Organizational
Effectiveness
Perform Integrated
Bus Financial
Mang.
Ensure Customer
Satisfaction
Perform Self-
Governance Integrate & Deploy
Processes &
Procedures Strengthen the
Team
Provide Ethics
Guidance
Lead the Enterprise
Communicate
Positions &
Directions
Ensure Quality &
Mission Assurance
Insure Continious
Improvement
Source: BPTrends
9
CONTINUOUS MEASUREMENT
Good Good
100
90
80
70
60
50
40
30
20
10
Quality (1X)
100
90
80
70
60
50
40
30
20
10
Efficiency (1X)
Process Performance Assessment
Assessment Assessment
PercentCompliantOrders
CompletedItemsperMan-hour
02 03 J F M A M J J A S O N D
ND ND 1 2 2 2 2 2
02 03 J F M A M J J A S O N D
ND ND 1 2 2 2 2 2
03 J F M A M J J A S O N D02
ND ND 2 2 2 2 1 1
1.5 2.0 2.0 2.0 1.5 1.5
02 03 J F M A M J J A S O N D
ND ND
Source: BPTrends
10
CONSISTENT
FRAMEWORK
11
3 MUST NOTS
1. Focus
2. Language
3. Destination
12
DON’T FOCUS ON BPM
It’s never about BPM
It is about: business,
quality, compliance,
innovation, systems
implementation, cost
management etc etc
“The main thing is to keep the main thing the main thing.” Stephen R Covey
Beware of Self-Licking
Ice Cream Cones
13
DON’T SPEAK WITH MULTIPLE TONGUES
Shared lexicon
Coordinated messages,
messengers & channels
14
DON’T FOCUS ON THE ROADMAP
Provide purpose and destinations, not a roadmap!
One corner,
one change
at a time
Changing Minds
15
BPM is …
the only value delivery system
process-based management
BPM is not …
IT, a project, outsourced, a fad
or a quick fix
Must have …
A process architecture, continuous
measurement and a consistent
framework
Must not …
focus on BPM, speak with multiple
tongues or focus on the roadmap.
16
17
Roger Tregear
Consulting Director
Leonardo Consulting
r.tregear@leonardo.com.au
18
© Copyright, Leonardo Consulting 2009
All rights reserved.
The contents of this document are subject to copyright. No part of it may be
reproduced in any way, by electronic means or otherwise without the written
permission of Leonardo Consulting.