Contributed on September 17, 2013

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NASSCOM BPM Summit 2013 – MasterClass I – Derek Miers

Transcript

Making Leaders Successful
Every Day
© 2013 Forrester Research, Inc. Reproduction Prohibited 2
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BPM Master Class
Derek Miers, Principal Analyst
September 17th, 2013
@bpmfocus
© 2012 Forrester Research, Inc. Reproduction Prohibited
Whatever “it” is that you do …
If it’s good enough today, it’s probably not going to
be good enough tomorrow.
“Nothing fails like
success – because
we don’t learn from
it. We learn only
from failure.”
“One cannot teach
a man anything.
One can only
enable him to learn
from within himself.”
© 2013 Forrester Research, Inc. Reproduction Prohibited 5
Let’s start with some questions
› How many of you are from a BPO
or similar services co?
• End users? ISVs?
› Do you see BPM as a software
development paradigm?
• Or is it a way of driving ongoing
improvement in business outcomes?
› Who has seen a process?
• What did it look like?
› Do your clients want their
processes foolproof or fault
tolerant?
My objectives for this session
› Challenge your thinking
• Understanding comes from different
perspectives.
› See how the space is changing.
• How much longer for labor arbitrage?
• Where are the future opportunities?
› Develop long term, sustainable
value propositions.
• Reimagine the future (don’t reengineer).
• Drink your own champagne.
• The methods are the same as you will
apply to your customers.
© 2013 Forrester Research, Inc. Reproduction Prohibited 6
Source:Forrester Research,Inc.60638
ge
ge
h
>>
Dynamic casemanagement enables
knowledge worker processesand collaboration
Procedures
Traditional BPM and workflow
Practices
Straight-through
transactions
Production
workflow
Collaborative
workflow
Tryly unique
exceptions
Ad hoc
exception
handling
Processes exist on a spectrum
© 2013 Forrester Research, Inc. Reproduction Prohibited 7
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Why would they come back?
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36%
68%
60%
35%
Value innovation
Customer experience
improvement
Cost reduction
Waste elimination
Maturity level 2-3 (n = 136)
Value innovation
Customer experience
improvement
Cost reduction
Waste elimination
60%
59%
45%
32%
Maturity level 3-4 (n = 88)
Value innovation
Customer experience
improvement
Cost reduction
Waste elimination
58%
50%
46%
46%
Maturity level 4-5 (n = 24)
Mature firms take a balanced approach
“What are the two primary goals of your business improvement program?”
42%
39%
74%
43%
Value innovation
Customer experience
improvement
Cost reduction
Waste elimination
Maturity level 1-2 (n = 77)
Base: 325 business process professionals
Source: Q2 2011 Global Forrester/IQPC Business Process Maturity Online Survey
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How many projects/programs/initiatives do
you have?
or “Wellness Program”Band-Aid approach
People work hard to improve what they’ve got not what they necessarily need.
© 2013 Forrester Research, Inc. Reproduction Prohibited 11
Develop vision before the “To-Be” processes
Prioritize
Outline processes
Outcome metrics
Roles and skills
Operational
process
architecture
Executive
engagement
Business
services
(Capability set)
Business
services
(Capability set)
Business
services
(Capability set)
Business area
(Capability set)
Business
engagement
Baseline
(As-Is)
Process definitions
(To-Be)
A322
+
Process definitions
(To-Be)
A322
+A322
+A322
+
Let’s switch gears – how do you
do projects today?
Establish
customer
experience
vision
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Silo’d
Functional
Political challenges abound
Functions supported
by processes
Processes supported
by functions
From Traditional
Line Management
To Processes &
Services Management
Challenges revolve around building broad
engagement and creating alignment.
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The new rules require
transformation.
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Transformation – what’s your definition?
“Transformation means being
prepared to change everything
you do; but most importantly –
how you think.”
© 2013 Forrester Research, Inc. Reproduction Prohibited 15
Brand Definition,
Service and Product
Design, Customer
Segments
CMO Business Process,
Lean, Six Sigma
Continuous
Improvement,
Performance
Improvement
COOCustomer
Experience
Journeys
Touchpoints
CCO
ERP, Workflow,
Business Rules,
Events, SOA, BI,
MDM
CIO
Target
Operating
Model
Strategic
intent
Operating
model
Realizations
and Uses
Integrate across organizational silos
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Markets
Brand
Teasing apart strategic intent
HOW ARE WE GOING TO WIN?
Customer
segments
Risk
management
Strategic
intent
Goals &
objectives
© 2013 Forrester Research, Inc. Reproduction Prohibited 17
Strategic
intent
Articulate the operating modelThe zen operating model
Governance
Service
Proposition
Capabilities
Processes
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Capabilities
Outside-inInside-out
Lens Efficiency
Risk Reduction Experiences
Value / Outcomes
Integrating outside-in with inside-out
Applications/
Technologies
Processes
Resources/
Partners
Service
Proposition
Customer
Objectives
Persona
Touchpoints
Contexts
Journeys
© 2013 Forrester Research, Inc. Reproduction Prohibited 19
Example – Commonwealth Bank Australia
Customer goal: buy a
house
New capabilities to help
customer’s achieve goal:
› Mobile: phone camera
and GPS combined with
Internet.
› Content: Integrate 3rd
party content to identify
house, give the list price,
estimate your loans,
provide detailed suburb
profiles, median price,
etc.
› Integration: Plugs into
back end systems to
start loan process;
efficiency built in up
front.
© 2013 Forrester Research, Inc. Reproduction Prohibited 20
Outside-inInside-out
Work backward from customer goals
Customer support; loan
origination; mobile
app; web integration;
credit check, …
Back end integration;
customer onboarding;
loan origination;
partners
CSRs, estate agents,
support …
Integratedmobileapp,
websiteandCSR
Take photo of house;
connect to agents;
integrated credit
check, loan origination
Findtherighthouse
withinbudget
PeterandMary–timepoor,
househunters
Looking for right
neighborhood and
houses but little
time
Web, mobile,
call center
Customer
Care
Revenue
Mgmt
LoanMgmt
© 2013 Forrester Research, Inc. Reproduction Prohibited 21
Outside-inInside-out
Co-create and apply at any level
Excel toolkit,
PowerPoint
Capture current
state, options
analysis
Financial analyst;
Lean Six Sigma lead
ShowMeTheMoney
Understandcashflow
implicationsofBPM
Businessunitmanager
withP&Lresponsibility
Early stage
business case
development
Briefing, check-ins,
delivery in 10 days
Meetings, reviews
Metricsdevt
Business
modeling
Executive
IVs
© 2013 Forrester Research, Inc. Reproduction Prohibited 22
TOMScope
Lens
Outside-inInside-out
Efficiency
Risk Reduction Experiences
Value/Outcomes
Governance
Design
Change Projects
Target operating models provide the glue
Customer
Objectives
Contexts
Touchpoints
Journeys
Personas
Applications/
Technologies
Processes
Resources/
Partners
Capabilities
Service
Proposition
Strategic Intent
Markets Brand
Customer
segments
Risk Mgmt
Goals/
objectives
© 2013 Forrester Research, Inc. Reproduction Prohibited 23
Operating model informs organization design
› Example Result – Medco 2.0
BIAC – Business Innovation and Agility Center
CoE – Center of Excellence
TRC – Therapeutic Resource Center
TRC / Clinical OpsTRC
Pharmacy Front End &
Back end Ops
Order Processing
Client Management OpsClient Advocacy
Fin. Plng and Analysis Ops
Revenue Cycle Mgmt Ops
Finance
Patient & Physician
Advocacy
Patient & Physician
Advocacy
BPM Solution
CoE’s
Business Process
Owners’ CoEs
Lines of Business CoEs
Accredo
BIAC
Liberty
BIAC
Market
Groups
BIAC
Retiree
Solutions
BIAC
New
Markets
BIAC
Business Technology Group – Shared Service CoEs
Claims Processing Content Management
Infrastructure Services Info. Planning/Master Data Mgt.
Business IntelligenceArchitecture
Web Services
Imaging Services
Pega Framework
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Forrester Capability Portfolio Assessment
Representative numbers only
Sub-dimensions represent
mix of value drivers and
strategic imperatives
Capabilities or Services
grouped by primary value
chain elements Scoring supported by
formal definitions for
each sub-dimension
Dimensions adaptable to
meet program needs
© 2013 Forrester Research, Inc. Reproduction Prohibited 25
Forrester Capability Portfolio Assessment
1.1
1.2
2.1
2.2
2.3
2.4
2.5
2.6
3.1
3.2
3.3
3.4
3.5
4.1
4.2
4.3
5.1
5.2
5.3
5.5
3.0
5.3
7.5
0 2.5 5
MATURITY+PERFORMANCE
BUSINESS IMPACT
CAPABILITY PORTFOLIO ANALYSIS MATRIX
Bubble Size = Complexity
Bubble chart provides
both decision support
tool and long term
tracking of improvements
© 2013 Forrester Research, Inc. Reproduction Prohibited 26
Target Operating Model update process
1
• What purpose does the business (unit) perform. What’s your brand all about.
2
• Assess the current state of your business. Establish a base line.
• How bad is it? What volume/resources, # cases, etc.?
3
• How have your internal capabilities changed? What was the impact?
• What external factors will affect your business going forward.
4
• What’s your vision going forward?
• What service propositions will differentiate you in the eyes of the customer?
5
• What capabilities and enablers do you need to achieve the target?
• Think about it across people, process, technology, data, measurement, etc.
6
• Assess the current results, maturity and level of performance
(effectiveness/efficiency) of each key enabler/capability today.
7
• Establish a roadmap to address the gaps.
• Build the engagement plan and manage the change program.
© 2013 Forrester Research, Inc. Reproduction Prohibited 27
Integrating forces of change
Operating model
Internal ExternalStrategic
directives
Customer
expectations
New
regulations
Competitor
actions
Manager
Team ATeam BTeam C
Balanced and consistent view
App
portfolio
New
program
charter
Prioritized
BPM
initiative
Customer
experience
Service
design
Org
structure
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Give shape to your transformation program
Flesh out top level strategy.
Engage around customers.
Optimize performance.
Consistent process architecture.
Understanding costs and drivers.
Optimizing investment decisions.
Input to organizational design.
Design and coordinate change.
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“One cannot teach a man anything. One can only
enable him to learn from within himself”
›Apply this framework at any level:
• Business to consumer
• Business-to-business
• Shared services
• Business unit
• Department
• Individual
›Use the overall approach to scale a change program
• Engage them properly and it becomes theirs.
• Big tent, multiple competing teams
• Multiple unrelated concepts, or dependent projects, or just one issue.
›But you need to let people see the world differently
• Means stepping out of the normal frame of reference.
• Start with your own unit.
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Example service concepts
CONCEPTS SHOULD BE IDENTIFIED AND DEVELOPED BY TEAM
›The “Project Facilitation” Service
›The “Speed To Market” Service
›The “Show Me The Money” Service
›The “Fast Forward Operating Model” Service
›The “Waste Eliminator” Service
›The “Build A Customer-centric Vision” Service
›The “Value Innovation” Service
© 2013 Forrester Research, Inc. Reproduction Prohibited 31
Aligning corporate change initiatives
Vision
(Strategy)
Governance
& Plans
Structure
Incentives
Perform’ce
Culture
(Behavior)
Change
Governance Structure Incentives Culture
Vision Structure Incentives Culture
Vision Governance Incentives Culture
Vision Governance Structure Culture
Vision Governance Structure Incentives
Confusion
False
Starts
Chaos
Gradual
Change
Better
Sameness
Thank you
Derek Miers
+44 20 7323 7670
dmiers@forrester.com
@bpmfocus