Agile Organisations: Business and
                                  Process Transformation                       September 2010


                                Measuring, managing and
                                improving business agility

                                Business and process transformation
                                techniques for the 21st century


                                Improve agility, efficiency and customer
                                service, increase revenue and reduce costs

    Steve Towers                                                             David Mottershead
    BP Group                                                                 BP Group

Agile Organisations - September 2010
Measuring, managing and improving business agility

Agility – The Key To Success In The 21st Century
How to uncover significant opportunities for improving processes permanently
     - Factors constraining our agility
     - The emergence of a new landscape
     - The building blocks for change
     - Practical, results and analysis
     - Scores on the doors
     - Where to start
     - How to get more information


Agile Organisations - September 2010
The Scores on the Doors




Agile Organisations - September 2010
Who is Outside In and how does that change
company value?
                   2009 Brand Value   2008 Brand Value
                          $M                 $M             YoY Change
 1. Google             100,039             86,057              16%
 2. Microsoft           76,249             70,887               8%
 3. Coca Cola           67,625             58,208              16%
 4. IBM                 66,622             55,335              20%
 5. McDonalds           66,575             49,499              34%
 6. Apple               63,113             55,206              14%                    6/10
 7. China Mobile        61,283             57,225               7%
 8. GE                  59,793             71,379              -16%
 9. Vodafone            53,727             36,962              45%
 10. Marlboro           49,460             37,324              33%
 11. Walmart            41,083             34,547              19%
 12. ICBC               38,056             28,004              36%
 13. Nokia              35,163             43,975              -20%
 14. Toyota             29,907             35,134              -15%
 15. UPS                27,842             23,610              18%
 Data: Millward Brown Optimor 2008, 2009                                 Outside In
                           Source:                                         Mixed
                           www.successfuloutcomes.blogspot.com           Inside Out
                           http://bit.ly/uAyVW
Who is Outside In and how does that change
company value?
                   2010 Brand Value   2009 Brand Value
                          $M                 $M          YoY Change
 1. Google             114,260            100,039           14%
 2. IBM                 86,383             66,622           30%
 3. Apple               83,153             63,113           32%
 4. Microsoft           76,344             76,249            0%
 5. Coca Cola           67,983             67,625            1%
 6. McDonalds           66,005             66,575            -1%                   8/10
 7. Marlboro            57,047             49,460           15%
 8. China Mobile        52,616             61,283           -14%
 9. GE                  45,054             59,793           -25%
 10. Vodafone           44,404             53,727           -17%



 16. UPS                26,492             27,842           -5%
 26. Toyota             21,769             29,907          -27%
 43. Nokia              14,866             35,163          -58%
 Data: Millward Brown Optimor 2009, 2010                              Outside In
                                                                        Mixed
                                                                      Inside Out
On the Down
Inside-out
On the Up with Outside In
Companies
Apple sees things
differently
Moments of Truth – they’re everywhere
    Moments of
     Truth permeate
     our lives in
     every product
     and service




Agile Organisations - September 2010
A decade of Apple Innovation



       Power-                                  Cinema               Nike &                  iPod              iPad
        book                     iLife         Displays              iPod                  Classic


        00           01        02        03     04         05       06          07         08        09
                                                                                                               FREE
                   Original              MAC               iPod              MacBook Air             iPhone    iPhone?
                    iPod                 OSX              Shuffle                                     3GS




Agile Organisations - September 2010
Winning examples




Agile Organisations - September 2010
The Size of the Prize

                      Triple Crown +




                      Reduce cost
                      Increase revenue
                      Enhance service
Agile Organisations - September 2010
Measuring, managing and improving business agility

Agility – The Key To Success In The 21st Century
How to uncover significant opportunities for improving processes permanently
     - Factors constraining our agility
     - The emergence of a new landscape
     - The building blocks for change
     - Practical, results and analysis
     - Scores on the doors
     - Where to start
     - How to get more information


Agile Organisations - September 2010
Moving to this
model is natural
and logical


The
Process
Performance
Landscape
Everything we do
                                                 Customer
  must contribute!

  SUCCESSFUL CUSTOMER OUTCOMES                   SCO

                                            CO              CO
  CUSTOMER OUTCOMES


                                       Oc          Oc            Oc
  OUTCOMES



  OUTPUTS


  ACTIVITIES

Agile Organisations - September 2010
1. Who is your
                                                 Customer
   customer?


                                                 SCO
  2. What is their SCO?
                                            CO              CO


                                       Oc          Oc            Oc
  3. What are the key
   Activities that contribute
   to the SCO?




Agile Organisations - September 2010
AND HERE
                                                 Customer
   IS THE KICKER


    Can You think of things                      SCO
       that happen that do
                                            CO              CO
      NOT contribute to the
                   SCO?
                                       Oc          Oc            Oc
   That is part of the Opportunity..

               It’s Potentially

      DUMB STUFF = complexity,

             cost & inefficiency
Agile Organisations - September 2010
“And the Size of the prize?
               It is between 40-70% cost reduction
               across your critical and core
               processes”

               John Corr,
               Alix Partners (London)

Agile Organisations - September 2010
To link process with performance we need to rethink what we
mean by performance.
Moving from
Inside-Out
Left to Right
Pyramidal
Rigid
Functional
Specialist
To…..
Thru
Process
centric
towards
Outside-In
and a
Customer
centred view
of business
Agile Organisations - September 2010
The trick is always to look at your
                                  business or brand from the outside in.

                                                 Richard Branson




Agile Organisations - September 2010
Part 2: Agile Organisations: Business and Process Transformation Event - Measuring, managing and improving business agility
Questions in an Outside-In world

        What Business Are you in?

        Roundtable....
          Bums on seats
          Lifestyle management
          Improving lives
          Joy
          Moving people
          Gratification
          Expression
          Always-On

Agile Organisations - September 2010
What about a current example?
              Start where you are and take people with you...




Agile Organisations - September 2010
CEO Office




                                                                 70 Business
                                                                    Units




                                                   7 Divisions                    245
                                                                               Departments



                                                    3940                       39 Countries
                                                   Functions



                                                                                              8.2 Million
                                       900 Teams                  56,000                      Customers
                                                                  People

Agile Organisations - September 2010
Phase 2
                   1                                                                                              CEO Office




              7 Divisions                                         Personal          OPS         Institutional   Corporate Centre   Euro   Asia Pacific   BUs




          70 Business Units                                       Customer
                                                                 Operations




         245 Departments                                        Personal Loans




             900 Teams                 Call Centre   Customer
                                                     Advocacy
                                                                  Customer
                                                                 Operations
                                                                                 Data/Image
                                                                                   Centre     Communications




          3940 Functions

            56,000 Staff




Agile Organisations - September 2010
Marketing




                                           Sales




Agile Organisations - September 2010
                                                    Phase 2



                                         Service




                                         Support




                                        Accounts




                                        Retention




                                        Renewal
Marketing




                                                                                                            Sales
                                         Call Centre




Agile Organisations - September 2010
                                                          Call Centre
                                                                                                                     Phase 3



                                                                           Call Centre      Call Centre




                                                            Customer
                                                            Advocacy         Customer
                                                                             Advocacy
                                                                                              Customer
                                                                                              Advocacy
                                                                                                           Service
                                          Customer
                                          Advocacy
                                                            Customer
                                                           Operations       Customer          Customer
                                                                           Operations        Operations




                                                          Image-Data
                                                           department      Image-Data       Image-Data
                                                                           department        department




                                                       Communications
                                                                        Communications   Communications




                                          Customer                                                        Support
                                         Operations




                                        Image-Data
                                         department
                                                                                                          Accounts



                                       Communicatio
                                                 ns

                                                                                                    Retention




                                                                                                          Renewal
Marketing




                                           Sales




Agile Organisations - September 2010
                                                    Phase 4



                                         Service




                                         Support




                                        Accounts




                                        Retention




                                        Renewal
Phase 5 – Six months later




                                                                                  Renewal
                                                                      Retention
                       Sales




                                                           Accounts
    Marketing




                                                 Support
                                       Service




Agile Organisations - September 2010
Phase 5+
                   1                                                                                              CEO Office




              7 Divisions                                         Personal          OPS         Institutional   Corporate Centre   EURO   Asia Pacific   BUs




          70 Business Units                                       Customer
                                                                 Operations




         245 Departments                                        Personal Loans




             900 Teams                 Call Centre   Customer
                                                     Advocacy
                                                                  Customer
                                                                 Operations
                                                                                 Data/Image
                                                                                   Centre     Communications




          3940 Functions

            56,000 Staff




Agile Organisations - September 2010
Optimize, Align, Innovate Any Process

           Any process can             Fix the Cause,
            receive the benefits of
                                       Remove the Effect


                                        
            OI thinking and practice
                                                                             MOT
                                       MOT           MOT         MOT   MOT
           Understand the Causes            MOT   MOT     MOT


            of Work




                                                   
           Seek to
            (a) Remove, and if not
            (b) improve the Causes
            of Work
Agile Organisations - September 2010
Sometimes the situation is only a problem
    because it is looked at in a certain way.

        Looked at in another way, the right course
        of action may be so obvious that the
        problem no longer exists.




Agile Organisations - September 2010
Some elements that change …

                                        Inside Out     Outside In
            Processes                    Complex        Simple
            People                      Controlled    Empowered
            Structure                   Hierarchy/       Team
                                        Functional
            Systems                    Prescriptive    Adaptive
            Measurement                  Activities     Results
            Customer                   End of chain    Inclusive
                                       Segmented      Individual
            Organisation                   Rigid         Agile

Agile Organisations - September 2010
Business Agility – What is it?
             The capability of an                                Measures

              organisation to
                                                    Drivers                      Readiness

              proactively adapt to
              changes in the
              business landscape        Innovation
                                       and creativity            Agility                Self sustaining




                                                                                Benchmarking
                                                 Collaboration                     against
                                                                                 competitors

                                                                 Changing the
                                                                   mindset

Agile Organisations - September 2010
The Outside-In promise
         Outside-In promises to
         increase agility and eliminate
         wasted time, money and
         energy in every organisation.
         In achieving Outside-In we
         make a Copernican shift and
         the Customer becomes the
         focus at the centre of
         everything we do.

Agile Organisations - September 2010
Stages in the approach




Understand   Create
                          PROCESS       PROCESS       PROCESS
& Develop               DIAGNOSTICS   DIAGNOSTICS   DIAGNOSTICS    Perform     Develop
Successful   Process                                                 Risk       Action   Manage
             Activity    Identify                    Identify                            Delivery
 Customer      List     Moments of      Identify     Business     Assessment     Plan
Outcomes                   Truth      Breakpoints     Rules
www.bpcommunity.org
            COMMUNITY
                            • Global – 40,000
                            • LinkedIn – 4,500+

                                       www.bp2010.com
                                       • Certification
                                         (7 Levels)
                   TRAINING            • Open & In house
                                         Learning
                                       • Online Support
oibpm.com
                                        www.bpgroup.org
                                          • Support Groups
                          BUSINESS
                          PROCESS
                                          • Mentoring &
                        PROFESSIONAL        Coaching
                                          • Sundowners

                             • Articles, News
            INFORMATION
                  &
                             • Discussion
              RESEARCH       • Conferences &
                               Seminars
              www.successfuloutcomes.blogspot.com
Part 2: Agile Organisations: Business and Process Transformation Event - Measuring, managing and improving business agility
CPP Level           Objective                                                                                      Attainment                           Designation

            7                                                                                             Leadership          Master                       CPP Champion

            6                                                                                  Strategy                       Master                           CPP Master
            5                                                                  Integrate                                      Master                              CPP 5
            4                                                     Perform                                                  Professional                           CPP 4
            3                                        Innovate                                                              Professional                           CPP 3
            2                             Align                                                                            Professional                           CPP 2
            1              Optimise                                                                                        Practitioner                           CPP 1
    CEMM Engineer                                                                                                           Engineer                            CEMM (E)

       Community                                                                                                            Business Process Professional
        Everyone                           
     Business Analyst                                                                                                   pathway
    Process Managers                                                                                                   Leading to the Certified Process Professional (CPP)
      Technologists                                                                                                    Open and in-house formats on a global basis
    Senior Managers                                                                                                   Delivered through the BP Group Associate network.
         Leaders                                                                                                     For the latest programme visit www.bp2010.com

       Certification                                                                                                                         Notes:
    InClass Assessment                                                                                                                One Day
           Testing                                                                                                                        Online – within 6 months of class
        Case Studies                                                                                                                      Two required – may be historic
      Client Interview                                                                                                                    By agreement
        Peer Review                                                                                                                        By agreement
         Experience                                                                                                                     Proven qualification, time in post

          Ongoing                                                                                                                            Notes:
   Certification Renewal                                                                                                              Webinars, Approved Conferences, Projects
         Experience                                                                                                                     Proven qualification, time in post
Agile Organisations Group, Mayfair House, 14-18 Heddon Street, Mayfair, London W1B 4DA UK |
 © MMX BP Group The BP
                       - September 2010                                                       The BP Group,10685-B Hazelhurst Dr. 8602, Houston, TX 77043 US
David Mottershead               Implementation?
david.mottershead@bpgroup.org   Four ways we help
Steve Towers                    •Education – the CPP
steve.towers@bpgroup.org        programme & specialist
                                learning
                                •Resources – The
                                toolkits, the CEMMethod,
                                the webinars
                                •Network – Global
                                sharing and learning
                                •Mentoring – access to
                                expert resource
Agile Organisations: Business and
                                  Process Transformation                       September 2010


                                Measuring, managing and
                                improving business agility

                                Business and process transformation
                                techniques for the 21st century


                                Improve agility, efficiency and customer
                                service, increase revenue and reduce costs

    Steve Towers                                                             David Mottershead
    BP Group                                                                 BP Group

Agile Organisations - September 2010

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Part 2: Agile Organisations: Business and Process Transformation Event - Measuring, managing and improving business agility

  • 1. Agile Organisations: Business and Process Transformation September 2010 Measuring, managing and improving business agility Business and process transformation techniques for the 21st century Improve agility, efficiency and customer service, increase revenue and reduce costs Steve Towers David Mottershead BP Group BP Group Agile Organisations - September 2010
  • 2. Measuring, managing and improving business agility Agility – The Key To Success In The 21st Century How to uncover significant opportunities for improving processes permanently - Factors constraining our agility - The emergence of a new landscape - The building blocks for change - Practical, results and analysis - Scores on the doors - Where to start - How to get more information Agile Organisations - September 2010
  • 3. The Scores on the Doors Agile Organisations - September 2010
  • 4. Who is Outside In and how does that change company value? 2009 Brand Value 2008 Brand Value $M $M YoY Change 1. Google 100,039 86,057 16% 2. Microsoft 76,249 70,887 8% 3. Coca Cola 67,625 58,208 16% 4. IBM 66,622 55,335 20% 5. McDonalds 66,575 49,499 34% 6. Apple 63,113 55,206 14% 6/10 7. China Mobile 61,283 57,225 7% 8. GE 59,793 71,379 -16% 9. Vodafone 53,727 36,962 45% 10. Marlboro 49,460 37,324 33% 11. Walmart 41,083 34,547 19% 12. ICBC 38,056 28,004 36% 13. Nokia 35,163 43,975 -20% 14. Toyota 29,907 35,134 -15% 15. UPS 27,842 23,610 18% Data: Millward Brown Optimor 2008, 2009 Outside In Source: Mixed www.successfuloutcomes.blogspot.com Inside Out http://bit.ly/uAyVW
  • 5. Who is Outside In and how does that change company value? 2010 Brand Value 2009 Brand Value $M $M YoY Change 1. Google 114,260 100,039 14% 2. IBM 86,383 66,622 30% 3. Apple 83,153 63,113 32% 4. Microsoft 76,344 76,249 0% 5. Coca Cola 67,983 67,625 1% 6. McDonalds 66,005 66,575 -1% 8/10 7. Marlboro 57,047 49,460 15% 8. China Mobile 52,616 61,283 -14% 9. GE 45,054 59,793 -25% 10. Vodafone 44,404 53,727 -17% 16. UPS 26,492 27,842 -5% 26. Toyota 21,769 29,907 -27% 43. Nokia 14,866 35,163 -58% Data: Millward Brown Optimor 2009, 2010 Outside In Mixed Inside Out
  • 7. On the Up with Outside In Companies
  • 9. Moments of Truth – they’re everywhere  Moments of Truth permeate our lives in every product and service Agile Organisations - September 2010
  • 10. A decade of Apple Innovation Power- Cinema Nike & iPod iPad book iLife Displays iPod Classic 00 01 02 03 04 05 06 07 08 09 FREE Original MAC iPod MacBook Air iPhone iPhone? iPod OSX Shuffle 3GS Agile Organisations - September 2010
  • 12. The Size of the Prize  Triple Crown +  Reduce cost  Increase revenue  Enhance service Agile Organisations - September 2010
  • 13. Measuring, managing and improving business agility Agility – The Key To Success In The 21st Century How to uncover significant opportunities for improving processes permanently - Factors constraining our agility - The emergence of a new landscape - The building blocks for change - Practical, results and analysis - Scores on the doors - Where to start - How to get more information Agile Organisations - September 2010
  • 14. Moving to this model is natural and logical The Process Performance Landscape
  • 15. Everything we do Customer must contribute! SUCCESSFUL CUSTOMER OUTCOMES SCO CO CO CUSTOMER OUTCOMES Oc Oc Oc OUTCOMES OUTPUTS ACTIVITIES Agile Organisations - September 2010
  • 16. 1. Who is your Customer customer? SCO 2. What is their SCO? CO CO Oc Oc Oc 3. What are the key Activities that contribute to the SCO? Agile Organisations - September 2010
  • 17. AND HERE Customer IS THE KICKER Can You think of things SCO that happen that do CO CO NOT contribute to the SCO? Oc Oc Oc That is part of the Opportunity.. It’s Potentially DUMB STUFF = complexity, cost & inefficiency Agile Organisations - September 2010
  • 18. “And the Size of the prize? It is between 40-70% cost reduction across your critical and core processes” John Corr, Alix Partners (London) Agile Organisations - September 2010
  • 19. To link process with performance we need to rethink what we mean by performance.
  • 20. Moving from Inside-Out Left to Right Pyramidal Rigid Functional Specialist To…..
  • 22. Agile Organisations - September 2010
  • 23. The trick is always to look at your business or brand from the outside in. Richard Branson Agile Organisations - September 2010
  • 25. Questions in an Outside-In world What Business Are you in? Roundtable.... Bums on seats Lifestyle management Improving lives Joy Moving people Gratification Expression Always-On Agile Organisations - September 2010
  • 26. What about a current example?  Start where you are and take people with you... Agile Organisations - September 2010
  • 27. CEO Office 70 Business Units 7 Divisions 245 Departments 3940 39 Countries Functions 8.2 Million 900 Teams 56,000 Customers People Agile Organisations - September 2010
  • 28. Phase 2 1 CEO Office 7 Divisions Personal OPS Institutional Corporate Centre Euro Asia Pacific BUs 70 Business Units Customer Operations 245 Departments Personal Loans 900 Teams Call Centre Customer Advocacy Customer Operations Data/Image Centre Communications 3940 Functions 56,000 Staff Agile Organisations - September 2010
  • 29. Marketing Sales Agile Organisations - September 2010 Phase 2 Service Support Accounts Retention Renewal
  • 30. Marketing Sales Call Centre Agile Organisations - September 2010 Call Centre Phase 3 Call Centre Call Centre Customer Advocacy Customer Advocacy Customer Advocacy Service Customer Advocacy Customer Operations Customer Customer Operations Operations Image-Data department Image-Data Image-Data department department Communications Communications Communications Customer Support Operations Image-Data department Accounts Communicatio ns Retention Renewal
  • 31. Marketing Sales Agile Organisations - September 2010 Phase 4 Service Support Accounts Retention Renewal
  • 32. Phase 5 – Six months later Renewal Retention Sales Accounts Marketing Support Service Agile Organisations - September 2010
  • 33. Phase 5+ 1 CEO Office 7 Divisions Personal OPS Institutional Corporate Centre EURO Asia Pacific BUs 70 Business Units Customer Operations 245 Departments Personal Loans 900 Teams Call Centre Customer Advocacy Customer Operations Data/Image Centre Communications 3940 Functions 56,000 Staff Agile Organisations - September 2010
  • 34. Optimize, Align, Innovate Any Process  Any process can Fix the Cause, receive the benefits of Remove the Effect  OI thinking and practice MOT MOT MOT MOT MOT  Understand the Causes MOT MOT MOT of Work   Seek to (a) Remove, and if not (b) improve the Causes of Work Agile Organisations - September 2010
  • 35. Sometimes the situation is only a problem because it is looked at in a certain way. Looked at in another way, the right course of action may be so obvious that the problem no longer exists. Agile Organisations - September 2010
  • 36. Some elements that change … Inside Out Outside In Processes Complex Simple People Controlled Empowered Structure Hierarchy/ Team Functional Systems Prescriptive Adaptive Measurement Activities Results Customer End of chain Inclusive Segmented Individual Organisation Rigid Agile Agile Organisations - September 2010
  • 37. Business Agility – What is it?  The capability of an Measures organisation to Drivers Readiness proactively adapt to changes in the business landscape Innovation and creativity Agility Self sustaining Benchmarking Collaboration against competitors Changing the mindset Agile Organisations - September 2010
  • 38. The Outside-In promise Outside-In promises to increase agility and eliminate wasted time, money and energy in every organisation. In achieving Outside-In we make a Copernican shift and the Customer becomes the focus at the centre of everything we do. Agile Organisations - September 2010
  • 39. Stages in the approach Understand Create PROCESS PROCESS PROCESS & Develop DIAGNOSTICS DIAGNOSTICS DIAGNOSTICS Perform Develop Successful Process Risk Action Manage Activity Identify Identify Delivery Customer List Moments of Identify Business Assessment Plan Outcomes Truth Breakpoints Rules
  • 40. www.bpcommunity.org COMMUNITY • Global – 40,000 • LinkedIn – 4,500+ www.bp2010.com • Certification (7 Levels) TRAINING • Open & In house Learning • Online Support oibpm.com www.bpgroup.org • Support Groups BUSINESS PROCESS • Mentoring & PROFESSIONAL Coaching • Sundowners • Articles, News INFORMATION & • Discussion RESEARCH • Conferences & Seminars www.successfuloutcomes.blogspot.com
  • 42. CPP Level Objective Attainment Designation 7 Leadership Master CPP Champion 6 Strategy Master CPP Master 5 Integrate Master CPP 5 4 Perform Professional CPP 4 3 Innovate Professional CPP 3 2 Align Professional CPP 2 1 Optimise Practitioner CPP 1 CEMM Engineer Engineer CEMM (E) Community Business Process Professional Everyone   Business Analyst     pathway Process Managers      Leading to the Certified Process Professional (CPP) Technologists      Open and in-house formats on a global basis Senior Managers       Delivered through the BP Group Associate network. Leaders        For the latest programme visit www.bp2010.com Certification Notes: InClass Assessment        One Day Testing    Online – within 6 months of class Case Studies    Two required – may be historic Client Interview    By agreement Peer Review   By agreement Experience      Proven qualification, time in post Ongoing Notes: Certification Renewal        Webinars, Approved Conferences, Projects Experience      Proven qualification, time in post Agile Organisations Group, Mayfair House, 14-18 Heddon Street, Mayfair, London W1B 4DA UK | © MMX BP Group The BP - September 2010 The BP Group,10685-B Hazelhurst Dr. 8602, Houston, TX 77043 US
  • 43. David Mottershead Implementation? david.mottershead@bpgroup.org Four ways we help Steve Towers •Education – the CPP steve.towers@bpgroup.org programme & specialist learning •Resources – The toolkits, the CEMMethod, the webinars •Network – Global sharing and learning •Mentoring – access to expert resource
  • 44. Agile Organisations: Business and Process Transformation September 2010 Measuring, managing and improving business agility Business and process transformation techniques for the 21st century Improve agility, efficiency and customer service, increase revenue and reduce costs Steve Towers David Mottershead BP Group BP Group Agile Organisations - September 2010