Business Process Management (BPM)/Business Intelligence (BI)

1. Business Process Management (BPM)/Business Intelligence (BI) Cayzen Technologies Information Processing Management Association (IPMA) May, 2008

2. Agenda • GMAP Planning • What Gets Measured Gets Done • Representing Business Health • Planning and Allocation • Pulling It Together • GMAP Execution • Communicate Vision, Mission and the Strategic Plan • Implement Planning with Process • Bring Technology to the Solution • Pulling It Together • GMAP Assessment • Measure to Objectives • Adjust the Process • Pulling It Together • Business Intelligence (BI)

3. GMAP Planning”What Gets Measured Gets Done” – Tom Peters • "Every state agency, program and employee must be accountable for producing measurable results that matter to citizens. Holding government responsible for results is just common sense.” – Governor Christine Gregoire • Good GMAP measures are high frequency measures that enable effective day-to-day management. • You cannot implement Six Sigma unless you measure. • A GMAP Forum is an opportunity to discuss the effectiveness of agency performance against executive priorities and adjust policy if necessary. • Focus is on execution efficiency and results not simply reporting. • “A good GMAP analysis provides an evidence-based explanation of what factors influence reported results.” – GMAP Guidelines • A good GMAP action plan will “identify specific tasks to accomplish before the next GMAP session, who will be accountable for them, and when they will be done”. – GMAP Guidelines

4. GMAP PlanningRepresenting Business Health • How do you represent how well you’re doing? • What do people really want to know? What’s the short answer to how well your agency, division or business unit is doing? • How believable are you? – Just in case someone asks, ‘What are the details?’. • The easy part… • Represent how well you’re doing as the health of your agency, division or business unit. • Health is a single number. A percent. • Health is green, yellow or red depending on thresholds you set. • The hard part… • Define what health means in terms of objectives measured as a percent. • Develop the algorithm to roll health pieces up into the whole. • Find a way to measure what “can’t” be measured. Health

5. GMAP PlanningPlanning and Allocation • Agency • Vision and Mission • In the context of State of Washington priorities • Strategic Plan • “Deploying strategy is three times more difficult than developing strategy” – Malcolm Baldrige Foundation • What are the Key Performance Indicators (KPIs)? • Budget to Priorities • Division • Vision and Mission • In the context of Agency priorities • Strategic Plan • Budget to Priorities • Business Unit • Do the same thing.

6. GMAP PlanningPulling It Together. Like This… • With Word, Excel, Visio, E-mail, the Intranet and… • A lot of process?

7. GMAP Planning… Or Like This… • A MetaStormProVision Strategy Model • Organization, Goal, Plan and Other Models Available

8. GMAP ExecutionCommunicate the Strategic Plan • Make Sure Everyone Has an Understanding of the Complete Process, the Big Picture. • Vision, mission, strategy and values are simply statements of process at the highest level of the organization. • Encourage ownership of the whole process and require ownership of a particular measure. Everyone must have ‘skin in the game’ – including management. • Everyone across the organization knows what they are responsible for measuring and where that measure fits in the context of the organization. • Make Sure Everyone Understands What is Being Measured and Why. • A measure is a link in a chain. • At Toyota any employee who finds a defect on the assembly line can stop the whole assembly line. • We measure to improve not to find guilt. – “Reward candor in identifying and diagnosing performance barriers”, GMAP Principles

9. GMAP ExecutionImplement Planning with Process • Identify the Business Processes in the Vision, Mission and Other High Level Statements. • Management processes align operational and supporting processes with the business and monitor results. • Operational processes are what the business does. • Supporting processes enable management and operational processes by letting those processes focus on their core responsibilities. • Find the Processes in the Next Level Down in the Organization’s Process Hierarchy. • A business process has a beginning and an end and delivers something of value to the organization or customer. • A function is something that is done in the course of a business process. • An audit of financial statements is a function. Together with a report of findings and other deliverables of value to the customer the audit becomes a business process. • Is the Organization Doing Something Outside Its Mission? • Why? Health

10. GMAP ExecutionBring Technology to the Solution • Use Technology to Improve Service Delivery – Gregoire Management Framework • To Communicate. • Show performance as close to real time as practical. – Dashboards • Show performance across business units. – Dashboards • To Measure – “It’s not enough just to set priorities” – Governor Christine Gregoire • Establish performance thresholds and notify the organization when performance goals aren’t being met. • Automate measures when possible but always measure. Decisions made with data are more credible. • Record measures over time. Measures provide the foundation for historical and trending analysis. • To Adjust. • Storing the Measures Provides the Basis for Business Process Accountability.

11. GMAP ExecutionPulling It Together. Like This… • With Word, Excel, Visio, E-mail, the Intranet - maybe some databases and… • A lot of process?

12. GMAP Execution… Or Like This… • A MetaStormProVision Workflow Model • Use Case, Operation and Other Models Available

13. GMAP AssessmentMeasure to Objectives • The Notion of Health is the Starting Point of Measure • Create the Measures Behind Health to Accurately Represent That Notion Agency Agency Governor’s Priorities Accountability Accountability Financials Days Margin Financials Days Margin Accountability Sales Margin Employee Turnover Product Velocity Order Days Margin

14. GMAP AssessmentAdjust the Process • Monitor Continuously • Real time performance feedback enables real time performance correction. • Assess Often • Compare results to other, similar processes inside and outside the organization. • Adjust When Necessary • Make changes based on data.

15. GMAP AssessmentPulling It Together. Like This… • With PowerPoint, Excel, E-mail, the Intranet and… • A lot of process?

16. GMAP Assessment… Or Like This… • Business Intelligence (BI) – Metrics GMAP requires • MetaStormProVision as a Metadata Repository

17. Business Intelligence (BI) • System of Record (SoR) • One version of the ‘truth’. A single representation of something. • A single system responsible for the accuracy of customer, account, or other data about process ‘things’. • Facts • Statements of truth at a moment in time. • Transactions. • Typically Spells ‘D-a-t-a W-a-r-e-h-o-u-s-e’ • A facility for keeping track of what facts were true when and what those facts were true about. • A decision making tool for the organization. • The foundation for accurate accounting of service quality, efficiency and effectiveness.

18. Resources & References Contact Cayzen Technologies http://www.cayzen.com/ Phone: 360-539-5295 Links An Assessment Tool from the Baldrige National Quality Program http://www.quality.nist.gov/PDF_files/ProgressAL.pdf MetaStorm BPM and MetaStormProVision http://www.metastorm.com/ State of Washington GMAP: Government Management, Accountability and Performance http://www.accountability.wa.gov/default.asp

19. Questions