The Process-centric Organisation
Description
Putting process at the centre of business management.
Transcript
paving the way towards performance excellence
The Process-Centric Organisation
Roger Tregear
Leonardo Consulting
March 2013
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Bank: $30 million annual savings
Agency: 22% labor cost reduction
Retail: 82% cycle time reduction
ERP: rework rate 400% to 15%
Aid: 75% reduction in delivery cost
Regulator: +500% inspection rate
HR: On-boarding 3 days to 1 hour
Process-based management works
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The Process-Driven Organization
© Roger Tregear, Leonardo Consulting 2012
Functional
Organization
Process
Organization
Process-Centric
Perspective
Value is created
and delivered
by collaboration
across the
organisation
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Unit
A
Unit
B
Unit
C
Unit
D
Unit
E
Management
Deliver Service
new
need Research & Create
New Service
service delivered
information
requests
Customer
/ User
service
available
Promote
New Service
new service design
new service design
materials
Suppliers
Design & Deliver
New Service
Accumulating & Delivering Value
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
The M in BPM stands for Management.
BPM is a management philosophy.
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
90%
10%
Mindset
Toolset
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The Process-Driven Organization
© Roger Tregear, Leonardo Consulting 2012
Key management challenges are
directly addressed by BPM
Do we really know how work actually gets done?
Is the IP embedded in our processes secure?
Are we continuously improving our performance?
Do we have control where it really matters?
Are we meeting all of our compliance obligations?
Are we making the most of our resources?
Are we able to respond to opportunities?
Are our customers happy enough?
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
7 enablers
of a
process-centric
organisation
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
1. Process Architecture
2. Process Measurement
3. Process Governance
4. Process Improvement
5. Process-Aware Culture
6. BPM Capability
7. Office of BPM
concrete
& physical
abstract
& subtle
supportive
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Architect the
enterprise
keystone artefact
value pathway
prioritisation control
project coordination
visualisation portal
1. Process Architecture
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
2. Process Measurement
Measure process performance
If you aren’t measuring
process performance, you
aren’t doing process
management, and you
can’t know if you are doing
process improvement
Measures and
measurement methods
ProMeasure is the Leonardo
methodology for process measures management
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
3. Process Governance
Control process performance
process owners are accountable for responding
to process performance anomalies
Value Chain 1
Process 1.1 Process 1.3Process 1.2
Lead the Organisation
Manage risk &
compliance
Determine
market strategy
Manage
capital
Develop
Vision
Support the Organisation
Deliver HR
services
Maintain
physical facilities
Deliver IT
services
Manage
finances
Value Chain 2
Process 2.1 Process 2.3Process 2.2
m
EPA
Measures
MMs
Reports
Response
Process 1.2
Process 1.2
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
As
Is
To
Be?
4. Process Improvement
Improve processes
“improve” = create new value
consistent, understood
& supported
continuously improved
As Is / To Be / As Is
small changes AND big
changes
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
4. Process Improvement
problems AND opportunities
part of every role
document the proof of success
effective methodologies
• BPTrends Redesign
• Positive Deviance
• Process Mining
• 4Dimensions analysis
• Automation
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Process Improvement: BPTrends Redesign
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Process Improvement: Positive Deviance
+ve-ve
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Process Improvement: Process Mining
Source: van der Aalst, Wil M.P., et al. (2012) Process mining manifesto.
In BPM 2011 Workshops Proceedings, Springer-Verlag, Campus des
Cézeaux, Clermont-Ferrand, pp. 169-194.
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Process Improvement: 4Dimensions
New
Process
Utilization
potential practices
Derivation
better practices
Enhancement
current practices
Innovation
new practices
analytical
creative
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
Process Improvement: Automation
innovative technology
breakthrough redesign
model execution (BPMS)
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
5. Process-Aware Culture
Nurture process culture
measurement-friendly
community-focused
quality-motivated
change-welcoming
challenge-addicted
action-oriented
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
6. BPM Capability
Develop BPM skills
consistent, reusable approaches
wide-ranging curriculum
must have inhouse capability
everybody is a process analyst
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
7. Office of BPM
Establish the Office of BPM
key role: develop capability
catalyst for change
maintain &
mentor
MP01 Translate
StrategyInto
Processes
MP02 Gather and
Analyze BPM
Demands
MP03 Define BPM
Projects Portfolio
MP04 Plan
prioritized
BPM Projects
MP05 Manage BPM
Projects & Portfolio
MP06 Disseminate
BPM Results and
Culture
BPM Projects BPM Results
SUPPORT PROCESS MANAGEMENT SUPPORT PROCESS IMPROVEMENT
MANAGE BPM STRATEGY
BPM Demands
Strategic
Demands
SP01 Administer
BPM methods and
tools
SP02 Administer
BPM Roles and
Responsibilities
SP03 Administer
BPM Services
Portfolio
SP04 Administer
BPM Human
Resources
SP05 Administer
BPM Budget
Operational
Demands
MS01 Define Process Vision
and Scope
MS02 Understand
Processes (As Is)
MS03 Analyze Processes
MS04 Redesign &
Standardize Processes
(To Be)
M05 Implement & Roll Out
Process
MS08 Educate and Train on
Process Management
MS09 Maintain Process
Architecture & RepositoryCS07 Support Compliance
& Certification
CS06 Identify and Provide
Competencies
MS06 Support Performance
Measurement
CS10 Measure Process
Maturity
MS07 Support Continuous
Improvement
CS08 Support Risk &
Control Management
CS05 Specify, Develop & Test
IT Systems
CS04 Automate process
control & execution (via BPMS)
CS02 Perform Innovation &
value creation analysis
CS03 Perform risk analysis
CS01 Perform quantitative
analysis
CS09 Support Cost
Management
SUPPORT THE OFFICE OF BPM
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The Process-Centric Organisation
© Roger Tregear, Leonardo Consulting 2012
1. Architect the enterprise
2. Measure process performance
3. Control process performance
4. Improve processes
5. Nurture process culture
6. Develop BPM skills
7. Support via an Office of BPM
7 Steps to Performance Excellence
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The Process-Driven Organization
© Roger Tregear, Leonardo Consulting 2012
Every organisation wants to make
the right things happen, at the right
time, to create the right result, for
the right people.
A process-centric operation focuses on the
value exchanged with customers and other
stakeholders, optimising that exchange,
and continuously seeking to improve and
manage it in a consistent, repeatable way.
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Roger Tregear
Consulting Director
Leonardo Consulting
+61 419 220 280
r.tregear@leonardo.com.au
www.leonardo.com.au
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