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Perficient PerspectivesInsight into BPMSeptember 22, 2011
About PerficientPerficient is a leading information technology consulting firm serving clients throughout North America.  We help clients implement business-driven technology solutions that integrate business processes, improve worker productivity, increase customer loyalty and create a more agile enterprise to better respond to new business opportunities.
PRFT ProfileFounded in 1997
Public, NASDAQ: PRFT
2010 Revenue of $215 million
20 major market locations throughout North America
Atlanta, Austin, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Minneapolis, New Orleans, Philadelphia, San Francisco, San Jose, St. Louis and Toronto
1,500+ colleagues
Dedicated solution practices
500+ enterpriseclients (2010) and 85% repeat business rate
Alliance partnerships with major technology vendors
Multiple vendor/industry technology and growth awardsPerficient brings deep solutions expertise and offers a complete set of flexible services to help clients implement business-driven IT solutionsOur Solutions Expertise & ServicesBusiness-Driven SolutionsEnterprise PortalsSOA and Business Process ManagementBusiness IntelligenceUser-Centered Custom ApplicationsCRM SolutionsEnterprise Performance ManagementCustomer Self-ServiceeCommerce & Product Information ManagementEnterprise Content ManagementIndustry-Specific SolutionsMobile TechnologySecurity Assessments4Perficient ServicesEnd-to-End Solution Delivery
IT Strategic Consulting
IT Architecture Planning
Business Process & Workflow Consulting
Usability and UI Consulting
Custom Application Development
Offshore Development
Package Selection, Implementation and Integration
Architecture & Application Migrations
EducationOur SpeakersKevin FeldhusPerficient Director for Business Process ManagementOver 12 years of BPM Experience including:Delivery
Sales
Marketing
Training
Mentoring (Clients and Colleagues)David ChapmanPerficient Director of Process Excellence16 years of experienceLead a group responsible for BPM delivery across industries
Provide Business Development
Six Sigma CertifiedChange Management5
Why Business Process Management (BPM)?BPM Combines People, Process, and Technology to ImproveOrganizational Performance & Customer ValueBusinesses need to respond quickly to constantly changing market conditions in order to survive and thriveGartner believes “that 10 of the Global 2000 companies will be toppled in the next 3 years by overlooked but easily detectable process defects”6
Wouldn’t It Be Nice If…Personnel could easily find process information in a format they want to useOnce that information was found, it was accurate and up to dateBusiness processes were owned by the BusinessBusiness units conducted business by following their processesThe business could be transformed in a controlled manner, minimizing the potential impact from Chaos Theory**Chaos Theory - the flapping wing of a butterfly represents a small change in the initial condition of a system, which causes a chain of events leading to a large-scale phenomena (Source Wikipedia)7
AgendaDefinition of BPM, Why We Use It, and Its BenefitsBPM Delivery ApproachTranslation of Documentation into a Business ModelBusiness Model Analysis Skills (not to include Six Sigma or Lean methodologies)Business Model Based DeliverablesDefining Business Model Metrics and MeasurementsOrganizational Change"There is no right way to do the wrong thing."-- Anonymous8
What isBusiness Process Management?9
BPM Definition PossibilitiesBusiness Process Management is an often used term with multiple definitions and purposes.To some it means automating a processTo others a way of increasing efficiencyYet to others, a strategic way to align business processes to company strategiesWhich purpose is correct?10
BPM Definition PossibilitiesBusiness Process Management is an often used term with multiple definitions and purposes.To some it means automating a processTo others a way of increasing efficiencyYet to others, a strategic way to align business processes to company strategiesWhich purpose is correct?All of them are!11
BPM DefinitionBPM is adisciplinedapproach that focuses on effectively and efficiently aligning all aspects of an organization, with the vision of constant process improvement, technological integration and increasing customer value.Business Models are comprised of:Activities (manual and automated)Information – inputs and outputs	Roles and TechnologiesBusiness Process - Collection of related activities that produce a specific outcome aligned to a particular business purpose.  A process is a story of what people do within their environment for an anticipated outcome.BPM is about transforming and improving the way an organization operates.BPM is a Continuous Improvement Endeavor12
Reasons to Use BPMBe Prepared for ChangeMarket ConditionsTechnologiesCustomersDesign Business Processes to Increase Customer ValueDesign Business Processes that Include Strategic and Tactical ComponentsDevelop a Common Business LanguageAlign Business Processes with Strategic PrioritiesImprove Business PerformanceIncrease RevenueReduce CostsImprove Stock PriceIf you can't describe what you are doing as a process, you don't know what you are doing.“ - W. Edwards Deming 13
Further Reasons to Use BPMDesign Business Processes from an end-to-end perspective (not silos)Improve Market Flexibility and AgilityEnsure Regulatory ComplianceIntegrate IT Applications and SystemsOutsource or Redistribute WorkCapture Institutional KnowledgeHow Can You Improve What You Don’t Understand?14
Some Benefits of BPM(there are many more …)Increased Growth/ RevenueIncreased Innovation and AgilityDefined Key Success Metrics Aligned People, Process, and TechnologyAligned Business Strategy with Business ProcessesIT Enabled Business Process ChangeChanged Organizational Culture15
Cost of Not Doing BPMInherent Business RiskRegulatory Compliance
Public Perception
SurvivabilityPoor Management Visibility of Process BottlenecksSlow Process Change in a Dynamic Marketplace is an opportunity for disasterGaps between Business Process & IT16
BPM Delivery Approach17
Perficient’s BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change18Organizational change occurs throughout the entire BPM approach – it is not a one time activity at the end of a project
BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change19
1. Define Business ProblemBPM Opportunity QuestionsWe are losing our Customer Base
We have a “Cowboy” or “Firefighter” mentality here
Miscommunication/ no communication with Business (IT is held accountable for business process success/ IT project implementation)
Can’t get requirements correct, missing or confusing requirements

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Insights into business process management bpm

  • 1. Perficient PerspectivesInsight into BPMSeptember 22, 2011
  • 2. About PerficientPerficient is a leading information technology consulting firm serving clients throughout North America. We help clients implement business-driven technology solutions that integrate business processes, improve worker productivity, increase customer loyalty and create a more agile enterprise to better respond to new business opportunities.
  • 5. 2010 Revenue of $215 million
  • 6. 20 major market locations throughout North America
  • 7. Atlanta, Austin, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Minneapolis, New Orleans, Philadelphia, San Francisco, San Jose, St. Louis and Toronto
  • 10. 500+ enterpriseclients (2010) and 85% repeat business rate
  • 11. Alliance partnerships with major technology vendors
  • 12. Multiple vendor/industry technology and growth awardsPerficient brings deep solutions expertise and offers a complete set of flexible services to help clients implement business-driven IT solutionsOur Solutions Expertise & ServicesBusiness-Driven SolutionsEnterprise PortalsSOA and Business Process ManagementBusiness IntelligenceUser-Centered Custom ApplicationsCRM SolutionsEnterprise Performance ManagementCustomer Self-ServiceeCommerce & Product Information ManagementEnterprise Content ManagementIndustry-Specific SolutionsMobile TechnologySecurity Assessments4Perficient ServicesEnd-to-End Solution Delivery
  • 15. Business Process & Workflow Consulting
  • 16. Usability and UI Consulting
  • 21. EducationOur SpeakersKevin FeldhusPerficient Director for Business Process ManagementOver 12 years of BPM Experience including:Delivery
  • 22. Sales
  • 25. Mentoring (Clients and Colleagues)David ChapmanPerficient Director of Process Excellence16 years of experienceLead a group responsible for BPM delivery across industries
  • 28. Why Business Process Management (BPM)?BPM Combines People, Process, and Technology to ImproveOrganizational Performance & Customer ValueBusinesses need to respond quickly to constantly changing market conditions in order to survive and thriveGartner believes “that 10 of the Global 2000 companies will be toppled in the next 3 years by overlooked but easily detectable process defects”6
  • 29. Wouldn’t It Be Nice If…Personnel could easily find process information in a format they want to useOnce that information was found, it was accurate and up to dateBusiness processes were owned by the BusinessBusiness units conducted business by following their processesThe business could be transformed in a controlled manner, minimizing the potential impact from Chaos Theory**Chaos Theory - the flapping wing of a butterfly represents a small change in the initial condition of a system, which causes a chain of events leading to a large-scale phenomena (Source Wikipedia)7
  • 30. AgendaDefinition of BPM, Why We Use It, and Its BenefitsBPM Delivery ApproachTranslation of Documentation into a Business ModelBusiness Model Analysis Skills (not to include Six Sigma or Lean methodologies)Business Model Based DeliverablesDefining Business Model Metrics and MeasurementsOrganizational Change"There is no right way to do the wrong thing."-- Anonymous8
  • 31. What isBusiness Process Management?9
  • 32. BPM Definition PossibilitiesBusiness Process Management is an often used term with multiple definitions and purposes.To some it means automating a processTo others a way of increasing efficiencyYet to others, a strategic way to align business processes to company strategiesWhich purpose is correct?10
  • 33. BPM Definition PossibilitiesBusiness Process Management is an often used term with multiple definitions and purposes.To some it means automating a processTo others a way of increasing efficiencyYet to others, a strategic way to align business processes to company strategiesWhich purpose is correct?All of them are!11
  • 34. BPM DefinitionBPM is adisciplinedapproach that focuses on effectively and efficiently aligning all aspects of an organization, with the vision of constant process improvement, technological integration and increasing customer value.Business Models are comprised of:Activities (manual and automated)Information – inputs and outputs Roles and TechnologiesBusiness Process - Collection of related activities that produce a specific outcome aligned to a particular business purpose. A process is a story of what people do within their environment for an anticipated outcome.BPM is about transforming and improving the way an organization operates.BPM is a Continuous Improvement Endeavor12
  • 35. Reasons to Use BPMBe Prepared for ChangeMarket ConditionsTechnologiesCustomersDesign Business Processes to Increase Customer ValueDesign Business Processes that Include Strategic and Tactical ComponentsDevelop a Common Business LanguageAlign Business Processes with Strategic PrioritiesImprove Business PerformanceIncrease RevenueReduce CostsImprove Stock PriceIf you can't describe what you are doing as a process, you don't know what you are doing.“ - W. Edwards Deming 13
  • 36. Further Reasons to Use BPMDesign Business Processes from an end-to-end perspective (not silos)Improve Market Flexibility and AgilityEnsure Regulatory ComplianceIntegrate IT Applications and SystemsOutsource or Redistribute WorkCapture Institutional KnowledgeHow Can You Improve What You Don’t Understand?14
  • 37. Some Benefits of BPM(there are many more …)Increased Growth/ RevenueIncreased Innovation and AgilityDefined Key Success Metrics Aligned People, Process, and TechnologyAligned Business Strategy with Business ProcessesIT Enabled Business Process ChangeChanged Organizational Culture15
  • 38. Cost of Not Doing BPMInherent Business RiskRegulatory Compliance
  • 40. SurvivabilityPoor Management Visibility of Process BottlenecksSlow Process Change in a Dynamic Marketplace is an opportunity for disasterGaps between Business Process & IT16
  • 42. Perficient’s BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change18Organizational change occurs throughout the entire BPM approach – it is not a one time activity at the end of a project
  • 43. BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change19
  • 44. 1. Define Business ProblemBPM Opportunity QuestionsWe are losing our Customer Base
  • 45. We have a “Cowboy” or “Firefighter” mentality here
  • 46. Miscommunication/ no communication with Business (IT is held accountable for business process success/ IT project implementation)
  • 47. Can’t get requirements correct, missing or confusing requirements
  • 48. Lack of Subject Matter Expert (SME) participation, business won’t work with us or do not appear to take ownership of their processes
  • 49. Planning on outsourcing some of our business functions
  • 50. Aging work force, we are losing critical knowledge that is not well documented
  • 51. We spend too much time looking for information
  • 53. If the response to any question regarding BPM is “That is a Good Question”20
  • 54. Process Immaturity SymptomsCustomer Complaints are RisingProfits Going Down, Losses Going UpCosts are IncreasingQuality is DecliningCustomers are LeavingSeem to be Behind the CompetitionLack of InnovationSurvival Mentality Instead of Prospering* Source: ABPMP – Introduction to BPM211. Define Business Problem
  • 55. Opportunity QualificationDetermine the “Business Problem” – what needs to change and why?Identify a strong Project SponsorDetermine if this is Core Business Process or a Support Business ProcessDetermine if Stand-alone BPM Project or part of a Technology ProjectClassify OpportunityIT initiative and business will not buy in
  • 56. Business initiative and IT won’t buy in
  • 58. Strategic or tactical modelingDefine Project Purpose & ObjectivesProject Purpose is the reason something is done
  • 59. Project Objectives are the intended outcomes of the efforts of the project221. Define Business Problem
  • 60. BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change23
  • 61. 2. Determine Scope & ComplexityScopeCreate a Draft Activity Model with the Project Sponsor or Subject Matter Experts (SMEs). Identify the Process Owner if possible at this point.Activity Model is a Hierarchical decomposition of Activities Aligned to a Business PurposeMind Map is a diagram that represents processes and tasks or other items linked to a central key idea24
  • 62. 2. Determine Scope & ComplexityComplexityDetermine Type of Business ProcessStructured – Routine
  • 63. Unstructured – Knowledge WorkerAssess Business BPM MaturitySubject Matter Expert (SME) Expertise
  • 65. Organizational Readiness for BPMDetermine the Business Goal for the ProjectImprovement of $xxx or xx%
  • 66. Reduction of $xxx or xx%25
  • 67. 2. Determine Scope & ComplexityAssess BPM MaturityLevel 1 – Process AwareNo Formal BPM Program
  • 69. Document and Analyze Business ProcessesLevel 2 – Coordinated ProcessOptimize Individual Processes
  • 70. Automation of Routine ActivitiesLevel 3 – Cross-Boundary Process ManagementBPM Program in Place and delivering Value to the Business
  • 71. Process Owners and Governance Structure EstablishedLevel 4 – Goal-Driven ProcessesMeasure, Monitor and Adjust Operational Processes in Real Time
  • 72. Process Hierarchy in Place and Aligned to Company GoalsLevel 5 – Optimized ProcessesProcesses Attain Desirable Outcomes
  • 73. Public Reputation for Process ExcellenceSource – Gartner.comLower Maturity LevelMore difficult to get started
  • 74. Not part of the organizations culture
  • 75. BPM is a projectHigher LevelBPM is an ongoing process
  • 76. Assess cost of moving to a higher BPM level26
  • 77. Determine Project Deliverables - Consider the Project PurposeDetermine the Applicable Analysis MethodsSimulation – analyze bottlenecks and inefficiencies for improvement opportunities
  • 78. Market Influencers – local, national and global markets (assess the offerings of your competitors)
  • 79. Technology Influencers – social media, cloud technology
  • 80. Corporate and Department Vision, Strategies and alignment to the Business Process
  • 84. Determine Project DeliverablesDepth of Business Model (how detailed do we model?)Types of DeliverablesBusiness Models
  • 93. ReportsDeliverable Format (Paper vs. Electronic)282. Determine Scope & Complexity
  • 94. Determine Project AssumptionsDetermine Project Management AssumptionsEstimate of the PM Time (% of Project)
  • 95. Estimate of the QA Time (% of Project)Determine Client Source Document Types & AvailabilityDefine Business Model AssumptionsDefine SME AssumptionsDefine Project Facility Assumptions* Assumptions may impact the scope, timeline, deliverables and ultimately the cost of the project. Documenting the assumptions provides the baseline to estimate the project cost and manage scope of the project292. Determine Scope & Complexity
  • 96. Estimate Project Duration & CostDetermine the # of Documents to Translate into the Activity ModelEstimate # of Consensus State Workshops and SMEs (internal and external)Activity
  • 98. Roles & TechnologiesEstimate Consensus State Analysis MethodologiesEstimate Desired StateEstimate Deliverable Prep & DeliveryEstimate the Return on Investment (ROI)Estimate the Size of the BPM Team302. Determine Scope & Complexity
  • 99. Estimated %, Actual Projects will be Individually Estimated312. Determine Scope & ComplexityWhere Should I Spend my BPM Project Time?
  • 100. Prepare Project DocumentationPrepare PresentationPrepare ProposalPresent to Client322. Determine Scope & Complexity
  • 101. BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change33
  • 102. 3. Document Consensus State ModelValidate Initial Draft ModelIdentify Documents to Build out the Draft Consensus ModelVisio Diagrams
  • 105. Procedure ManualsBuild out Consensus Straw ModelValidate the Consensus Business Process and Capture Pain Points/ Opportunities with Subject Matter Experts (SMEs)Model the Consensus State Business Process to a detailed enough level to capture pain points (inefficiencies) / and create a solid baseline to support organizational changeWe need to challenge assumptions on how we do business in order to make significant improvements -- anonymous34
  • 106. BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change35
  • 107. 4. Analyze “Consensus State” to “Desired State” Perform Consensus State to Desired State AnalysisSimulation – analyze bottlenecks and inefficiencies for improvement opportunitiesMarket Influencers – local, national and global markets (assess the offerings of your competitors)Technology Influencers – what technologies can be leveraged to increase improve the targeted business processCorporate and Department Vision, Strategies and alignment to the Business ProcessRegulatory Influencers - what regulations could impact the to-be process designInefficiencies with the current processApply Lean/ Six Sigma methodologyBenchmark other companies and industries to define potential best practicesDetermine if any industry frameworks can be leveragedITIL (Information Technology Infrastructure Library)COBIT (Control Objectives for Information and Related Technology)APQC (American Productivity and Quality Center)36
  • 108. BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change37
  • 109. 5. Develop “Desired State” ModelCreate Desired State Scope Statement for the design and identify any constraints Develop Desired State business model with key Business SMEs, Customers and Stakeholders Define Metrics for the Desired State Process (how you define success)Redesign before you Automate38
  • 110. 5. Develop “Desired State” ModelFinalize and Deliver BPM ProjectFinalize Project DeliverablesQA Project DeliverablesPresent Project DeliverablesObtain Sign-Off on Project39
  • 111. BPM ApproachDefine Business ProblemDetermine Scope and ComplexityDocument “Consensus State” ModelAnalyze “Consensus State” to “Desired State”Develop “Desired State” ModelSupport and Communicate Organizational Change40
  • 112. 6. Organizational ChangeDefinition - Change management is a structured approach to shifting/transitioning individuals, teams, departments and organizations from a current state to a desired future state.* Source WikipediaChange management must involve people, not be imposed on people41
  • 113. 6. Organizational Change (cont.)Change Management ProcessCreate Tension – Articulate why change needs to happen and why it needs to happen within the planned timeframeIdentify Key Stakeholders, Identify Disposition & Harness Support – get on board the key decision-makers, resource holders and those impacted by the changeArticulate Goals – Define in specific and measurable terms the desired organizational outcomesNominate Roles – Assign responsibility to specific individuals for the various tasks and outcomesGrow Capability – Build organizational systems and people competencies necessary for affecting the changeEntrench Changes – Institutionalize the change and make it “the way we do things around here”Source: www.businessperform.com42
  • 114. Why Perficient?43The Trade-offs Between Internal & External Resources
  • 115. Why BPM?In order to provide a common understanding of a process, we must understand other perspectives.44
  • 116. Q & A
  • 117. Follow Perficient OnlinePerficient.com/SocialMediaDaily unique content about content management, user experience, portals and other enterprise information technology solutions across a variety of industries.Twitter.com/PerficientFacebook.com/Perficient
  • 118. “Simplicity is the ultimate sophistication.” Leonardo da Vinci “I put my heart and my soul into my work, and have lost my mind in the process.” Vincent van Gogh47

Editor's Notes

  • #7: Also a great supporting attribute of Customer Value is shareholder value, if Customers are happy, they will buy more products and services and if processes are efficient, this will result in increased profits and increase stock value and dividends.The customer values whatever the customer thinks is worth paying for, so if the customer won’t pay for something, it is waste that you can eliminate.
  • #14: 8 in 10 senior executives expect the level of business complexity to increase over the next five years, fueled by volatile market conditions, multifaceted customer and partner relationships, rapidly changing business processes, and more advanced technologies. – source – “The Top 10 Business, Process, And Technology Trends Impacting Business Process Pros In 2011 – Forrester Research Inc.Process and data governance efforts are aligning. Typically they have been siloed efforts, with limited if any collaboration. With business taking an increased role in processes and process automation, these silos will soon begin to evaporate.
  • #15: As organizations become more complex, the rules under which they operate become more complex too. As some point, leaders need to recognize the situation and redesign old processes or create new process to return to a state of being more efficient, agile, flexible, etc. very similar to the “big bang theory”.BPM also established a common language for process transformation, focusing on 2 key areas:Replace requirements gathering with process modeling – most stakeholders and developers rarely read requirements documents, yet the thickness of a Business Requirements Document (BRD) is a key metric of success. Replace the traditional method of gathering requirements with business processes to capture and scope key business functionality to be analyzed for automation or software support.
  • #16: All of these are a result of focusing on improving business value outcomes, not solutions. Again, the key focus is improving Customer Value.
  • #21: Five common weaknesses are:Very few processes were formally identified and mapped.The majority of operational knowledge was tacit, held in people’s heads.There was no common process governance model, which led to large variations in the way processes were managed and ultimately in the types of services and deliverables customers received.Lack of common processes perpetuated uncommon performance measures, making it difficult to track, compare, and monitor process performance across Operations.Lack of visibility into the day-to-day workload made it extremely difficult to provide resource leveling.
  • #23: Core processes are the key activities an organization performs in order to make money and satisfy customer needs. These processes are what typically separates the organization from their competitors. Support (enabling) processes, such as IT, HR, etc. support the primary business activities, in other words, support processes are not what the Customer comes to the organization for.
  • #26: Examples of business goals are:Improve productivity by 25% and/or reduce headcount by 25% and or reduce overtime by 10%Enhance transparency of process tasks, workflows, and measures across all levels of management and staff.Move the organizational culture into one focuses on process improvement as a key value creator by training and involving all staff members in the work.
  • #27: Regardless of BPM maturity, the BPM methodology will work.BPMM – ABPMP maturity model – 5 levelsLevel 1 – Initial - InconsistentLevel 2 – Managed – work unit managementLevel 3 – Standardized – process managementLevel 4 – Predictable – capability management Level 5 – Innovating – change management
  • #30: What are some assumptions?
  • #45: We all have our perspectives when we look at a processCritical advantage of BPM is to look at a process, you can see other’s perspectiveWe capture all perspectivesFor example, in the pictureOld woman2 trees that form an arch2 mouse-like characters