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The Practice of Business Process Management

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Key issues in the achievment of process-based management.

Transcript

The Practice of Business
Process Management
Roger Tregear, Leonardo Consulting
20 May 2009
2
BPM –The Number One Priority
Gartner (2009)
3
Boeing Global Mobility Systems
Source: BPTrends
4
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
5
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
6
Process Improvement
particular process problems
isolated projects
discontinuous improvement
Process Management
not a project but a management philosophy
process-based management
a culture of continuous improvement
Process Management ≠≠≠≠ Process Improvement
7
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.
8
Source: BPTrends
BPM Maturity
9
Organisations exist to deliver value to customers
and other stakeholders. That’s strategy.
They do this via coordinated activities across
functions of the organisation. That’s a process.
It makes sense to optimise processes for customers
and other stakeholders. That’s process
improvement.
An aggregated view of process performance
optimises overall performance. That’s process
management.
Process management puts focus on the processes
that realise the strategy. That’s execution.
From Strategy to Execution
10
Organisational Excellence Operational Excellence
• Avoid opportunity losses
• Improve risk management
• Protect intellectual capital
• Support contingency planning
• Improve strategy execution
• Improve IT outcomes
• Improve measurement
• Reduce costs, remove waste
• Improve customer service
• Increase agility
• Document processes
• Reduce complexity
• Support staff
• Enhance process consistency
Compelling Reasons for BPM
See Practical Process column at
www.bptrends.com for more details
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Process is what delivers value to customers
Process = performance
Process understanding is vital
Process improvement is strategic
Process management is achievable
Process mastery creates differentiation
Process mastery facilitates success
it’s always about process
12
CI team
ProjectManager(s)
ProcessOwner
Continuous
Improvement
Analysis Project
Centrelink-
towards BPM
Mastery
But we don’t
manufacture products.
Process thinking can’t
work for us!
13
The Power of Two
Put 1 grain of rice on the 1st
square, 2 on the 2nd, 4 on the 3rd
square, 8 on the 4th – each time
doubling the number of grains
on the next square.
How many grains on the board
when all squares are covered?
18,446,744,073,709,551,615 (18.4 Quintillion)
How many grains on the first half of the board? 4.3 million
0.00000000002331034671%
14
Process Tragics
Process
Pragmatists
TheBPMChasm
BPM Chasm
the twilight zone
BPM idea is fading for all but the zealots
disillusionment
BPM development is stalled
Crossing The Chasm
target niche markets of
“pragmatists in pain”
package a complete solution
that addresses day-to-day
management problems
Acknowledgement:
“Crossing the Chasm”, Geoffrey Moore, 2002
15
Source: http://www.enterleisure.co.uk/f1s
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Process-based management is
real, not just aspirational
Customer value is only delivered
by business processes
PM ≠ PI
BPM is strategic
Find your compelling reasons
Not just about manufacturing
The Power of Two
Cross the Chasm
17
18
Roger Tregear
Consulting Director
Leonardo Consulting
r.tregear@leonardo.com.au
19
© 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.