The Process Of Bpm
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1) Business process management (BPM) is a strategy, philosophy, approach, and technique enabled by technology to continuously improve processes through reducing cycle times, increasing agility and visibility, and improving performance and consistency. 2) BPM can provide a competitive advantage by managing processes brilliantly through average people, rather than trying to achieve average results through brilliant people managing broken processes. 3) When adopting BPM, organizations should determine baseline performance and objectives, identify key processes for improvement, define metrics to measure current performance, and model as-is processes to analyze and prioritize opportunities.
The Process Of Bpm
- 1. THE PROCESS OF BPM George Van Antwerp April 6, 2007
- 2. BUSINESS PROCESS MANAGEMENT IS… TECHNOLOGY ENABLED CONTINUOUS IMPROVEMENT A strategy A management philosophy An approach A technique Enabled by technology FOR Reducing cycle time Building agility Increasing process visibility Improving performance Increasing consistency
- 3. AS TOYOTA POINTED OUT, PROCESS CAN BE A COMPETITIVE ADVANTAGE “ We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.” Sources: “Decoding the DNA of the Toyota Production System,” Steven Spear and Kent Bowen, Harvard Business Review , September-October 1999
- 4. DETERMINE YOUR BASELINE AND OBJECTIVES 0 1 2 3 4 5 Acknowledge Business Inefficiencies Directly link process model and rules to execution Process Automation and Control Compare alternatives driven by various optimization techniques in real time Craft process automation and control across the enterprise, customers and trading partners Interprocess Automation and Control Create a business performance framework that links business valuation (near real time) to process execution Enterprise Valuation Control Innovate new businesses, products and services through agile business architecture Agile Business Structure Model and analyze business processes Process-Aware Generally, where companies are today Source: Gartner BPM Maturity Model Measure and monitor business activities
- 5. CREATING A BPM SOLUTION Continuous Improvement Strategy Adapted from Gartner graphic on BPM Organizational Change Management Measure Model Analyze Prioritize Control Automate BPM Improve Pilot
- 6. PRIORITIZE WHERE TO START Revenue Cost Customer Satisfaction Cycle Time Compliance Large numbers of process steps, integration points, exceptions, transaction, participants and/or organizations A short window for development & deployment Frequent process change and/or high number of exceptions Need for process level metrics and ability to audit process transactions Distressed Shipments Employee On boarding Automated Returns Benefits Administration SOX Compliance Billing Disputes Incentive Compensation Management PO Mgt / Approval Manager Self Service Invoice Reconciliation Source: modified based on Lombardi Software slide Product Development and Mgmt ITSM Channel Mgmt Procurement Proposal Mgmt Process Complexity Process Impact L H
- 7. DEFINE YOUR MEASURES AND CAPTURE YOUR CURRENT STATE Identify key drivers (revenue, cost, market share) What drives those metrics Look at correlation between metrics Based on the Balanced Scorecard TM framework. Financial Customer Internal / Business Process Learning & Growth Mail Profit Customer Satisfaction Mail Rxs Days-in- House Plan Design Alignment 1 st Call Resolution Voluntary Turnover Benefit Education Employee Satisfaction
- 8. MODEL YOUR PROCESS - SIPOC Suppliers Inputs Process Customers Requirements MD Patient Client / Payor Call center agent RPh Pharmacy tech Robotics Pharma Order entry clerk Step 1: Get Rx and payment Outputs Step 2: Enter order into system Step 3: Check eligibility and patient info Step 4: Resolve exceptions See Below Prescription Drug monograph Savings opportunity Client bill Patient Client / Payor MD USPS Pharma 2 days-in-house 1 st call resolution 99.999% accuracy Lowest cost drug Step 5: Ship Rx to patient Valid prescription Patient information Payment Drugs Mailing supplies
- 9. ANALYZE AND IMPROVE TWO DIME FRAMEWORK FOR REDUCING MUDA Transport Waiting Overproduction Defect Inventory Motion Extra Processing Source: Image from Lombardi Software Source: TWO DIME framework from The Power of Process by Kiran Garimella
- 10. AUTOMATE AND PILOT Reduces Time to Develop New Process-Based Applications with Simple Drag-and-Drop Design Enables Organization to Rapidly Apply Changes to Rules and Process Flow Extensible and Based on a Service Oriented Architecture for Rapid Integration into Existing Systems Simple to Use for Non-Developers and Standards Based Source: Appian
- 11. BUSINESS ACTIVITY MONITORING FOR CONTROL
- 12. WHAT IS DIFFERENT Yesterday Today Focus on Current State No Yes Solutions Paper Technical Governance Functional End-to-end Process Project Duration 6-24 months 90-120 days IT and Business Collaboration Optional Critical Results BPR = Layoffs BPM = Asset Optimization Implementation Methodology Waterfall / SDLC Agile / RAD Technology EAI / Workflow BPM
- 13. CONCLUSIONS Business Process Management is part strategy and part technology You have to focus on end-to-end processes Agility is key – iterate Change your framework Use BPM versus Visio Process abstraction Link Six Sigma / Lean and BPM Everything is a process
- 14. Q&A
Editor's Notes
- #2: Thanks Howard. You should all now be looking at the slide titled The Process of BPM. Slide number X. Next slide.