BPM: Managing Change

1. BPM: Managing Change Brett Champlin President ABPMP International Adjunct Faculty, University of Chicago Manager, Business Performance Improvement

2. What is BPM? • BPM is a Management Practice • Process-oriented thinking • Manage end-to-end business process • Strategy is carried out through process • Process assessment, analysis and design • Process performance over functional performance • Enabled by an evolving set of technologies • Process discovery and definition • Process execution and orchestration • Process monitoring and control • Process performance decision support

3. APQC BPM Benchmarking Study • “BPM is the way best-practice organizations conduct business” • While the APQC research participants agreed that technology, by itself, does not constitute “Business Process Management”, they concluded that much of the promise of BPM initiatives will not be realized without powerful, flexible and user-friendly IT solutions to support them. • Four of the five of APQC’s best practice partners cited technology support being a key success factor for managing, aligning and integrating business processes---thus impacting profitability and their ability to compete in today’s competitive, global market.” Source: APQC

4. BPM Has Become Mainstream • Two Forrester Surveys • 449 decision makers in North America and Europe60% were already using BPMan additional 19% plan to do so in next 12 months • 160 US and UK enterprise architects85% were actively planning or already had BPM deployments under way • BPM Centers of Excellence (COEs) are the catalyst for BPM success Source: Forrester

5. BPM and Managing Change • BPM enables business agility • BPM is how you change your business • BPM is about managing change • Managing Process Change • Managing how people accept change

6. CHANGE MANAGEMENT • Managing organizations through successful changes • Being aware of a need to manage change throughout planning and implementation of change programs • Understanding and influencing how people affected by change experience change

7. CHANGE MANAGEMENT • Accelerate the 4 stages of natural reaction: • Denial • Resistance • Exploration • Commitment • Helping People Adapt to Change • Everybody has to go through this • They all go through it at their own pace • Some of them have to go through these stages many times before they are fully committed

8. CHANGE MANAGEMENT • Communications & Activities • Be honest about where you are • Be honest about where you want to go • Be honest about how you are going to get there • Status reports, what’s new, how are we doing • How this will affect “you” • What can “you” do to prepare • What “you” should do now • How “you” can contribute to success

9. Personality Profile Source: Gartner

10. Integrated Process (6) Optimized Process (5) Managed Process (4) Defined Process (3) Repeatable Process (2) Initial State (1) Process Management “Maturity” Process Maturity Process Management Maturity Cooperative Process Steward/Lead (6) Need Enterprise Integration Continuously Improving Process Manage/Plan (5) Need Quality Management Program Predictable Process Participate/Control (4) Need Management Regulation Disciplined Procedures Support/Direct (3) Consistent Process Recognize/Organize (2) Ignored (1)

11. Business Process Dynamics Mission, strategy, goals, and objectives Culture, core competencies,and management systems Constrains Supports Business Process enables enables enables enables enables enables Human Resources Facilities(or other) Motivation & Measurement Policies and Rules Workflow Design Information Systems • Constraints • Business rules that the process enforces • External & internal • Skills • Matching jobs to tasks • Selection and placement • Workplace design • Equipment • Furniture… • Performers • Steps & decisions • Sequence and flow • Handoffs • Applications • Information • Employee assessment • “Reward and punishment” • Process performance indicators Source: Alec Sharp, Clariteq

12. TRANSFORMATION CONTINUUM Process Re-Design • Process Improvement is incremental • Process Re-Design is end-to-end re-thinking of what we are doing • Process Reengineering is a “begin with end in mind” approach • Process Innovation involves changing the model, not just improving its efficiency Process Improvement Process Reengineering Time Cost Degree of Innovation

13. Managing Process Transformation Process Reengineering BusinessModel Process Re-Design End-to-EndProcess Scope of Change Process Improvement Activity/Sub Process Short Long Time Source: Jeston & Nelis

14. Impact and Approach Redesign of Industry Value Chain Redesign of Business Redesign of Processes Impact on Organization Improvement of Sub Processes IncrementalImprovements Point of Approach Within Organization Source: Jeston & Nelis

15. Who is affected? Marketplace, General Public Senior Leadership, Business Partners Middle Management, Customers Support Staff, Area Mgt Scope of Change Management Efforts Workers, Supervisors IncrementalImprovements Improvement of Sub Processes Redesign of Processes Redesign of Business Redesign of Industry Value Chain Scope of Change

16. Relationships • Internal • Value Chain • Support • Control • External • Customer • Regulatory • Business Partner

17. Many Process Change Efforts- at the same time Engage Customers Transact Business Fulfill Expectations Provide Services Reduce Costs Reduce Time-to-Market Improve Quality Gain Market Share Broaden Product Line Years since last major improvement effort 2 4 1 3 Benchmark Grade 0 ++ + 3 Yr Efficiency Metrics 3 Yr Effectiveness Metrics Process Cost ($ bln) 2.1 1.4 4.3 0.7 Adapted from Bob Curtice Performance Improvement Associates"

18. Map to Decision Support Tools OPPORTUNITIES Constraints Leverage Internal Factors External Factors WEAKNESSES STRENGTHS External Factors Internal Factors Obstacles Vulnerabilities THREATS Engage Customer Fulfill Expectations Provide Service Transact Business

19. Map Interdependencies

20. PROCESS PERIOD PURPOSE PRODUCT PEOPLE PLACE Business Process “Meta Model”

21. PROCESS PERIOD PURPOSE PRODUCT PLACE PEOPLE 1st Order Change • Tasks & Nature of Work

22. PROCESS PERIOD PURPOSE PRODUCT PLACE PEOPLE 2nd Order Change • Tasks & Nature of Work • Attitudes, Values & Skills

23. PROCESS PERIOD PURPOSE PRODUCT PLACE PEOPLE 3rd Order Change • Tasks & Nature of Work • Attitudes, Values & Skills • Motivation & Relationships

24. PROCESS PERIOD PURPOSE PRODUCT PLACE PEOPLE 4th Order Change • Tasks & Nature of Work • Attitudes, Values & Skills • Motivation & Relationships • Structure & Culture

25. PROCESS PERIOD PURPOSE PRODUCT PLACE PEOPLE 5th Order Change • Tasks & Nature of Work • Attitudes, Values & Skills • Motivation & Relationships • Structure & Culture • Relationships with External Partners & Community

26. Managing Process Transformation Business Process Management Strategic Change Management Enterprise Process Alignment/ Process Portfolio Management Process Reengineering Process Re-Design Degree of Change Process Improvement Tactical Low Hanging Fruit/ Quick Hits Short Long Time

27. Roadmap for Change

28. You Don’t Have to Change. Survival Isn’t Mandatory. -- Deming

29. BPM: Managing Change Brett ChamplinBrett@theChamplins.com