[Process Day 2011] A ELO Group – Apresentação no Process Day

“Leadership on BPM ideas, methods and results in Brazil”
A Framework for a BPM Center A Framework for a BPM Center ofof
ExcellenceExcellencece e cece e ce
Leonardo Leonardo ProcessDaysProcessDays –– July26th 2010July26th 2010
Leandro JesusLeandro Jesus
ManagingManaging PartnerPartner ELO Group ELO GroupManagingManaging PartnerPartner, ELO Group, ELO Group

AboutAbout the speakerthe speaker
Leandro Jesus, MSc.
• Managing Partner ELO Group consultingManaging Partner ELO Group consulting
• Auxiliary Professor Federal University of Rio
de Janeiro
• Vice‐President ‐ Association of Business
Process Management Professionals
(ABPMP) Chapter Brazil;
• Curriculum vitae:
h // li k di /i /l d jhttp://www.linkedin.com/in/leandrojesus
• E‐mail: leandro.jesus@elogroup.com.br
© ELO Group all rights reserved.
22

About ELO Group
 ELO Group is a Brazilian consulting enterprise focused in Business Process
Management and Governance, Risk and Compliance solutions. g , p
 Founded in COPPE’s Technological and Industrial Cluster, at Federal
University of Rio de Janeiro, one of the most advanced Research and
Development Centers in Latin America.
 Counts on a group of professionals with solid Academic Formation and
experiences through relevant Academic Institutions in Brazil USA and experiences through relevant Academic Institutions in Brazil , USA and
Europe
 International Cooperation with BPTrends, Queensland University ofInternational Cooperation with BPTrends, Queensland University of
Technology and Leonardo Consulting
 Organizer of the Brazilian International BPM Seminar
33

Our Clients Portfolio
Conselho da Justiça
Federal
44

Our Values
 Strong academic links, allowing ELO Group to bring to the market the state of the
art in management solutions and best practices;
 Focus on collaborative development of customized organizational solutions;
 Always strive for solutions that are innovative, long lasting and that leverage
organization performance;
 Constant know‐how transfer to our clients;
 Internal work logic focused on dynamic specialization among professionals with
high specialization in different knowledge areas;
 Ethics, agility and adaptability throughout the service provisioning cycle;
 Learning and continuous improvement
 Learning and continuous improvement.
55

Food for thought…
What people usually ask us about BPM CoEs:
• Where should a Center of Excellence be placed within the
organization? Whom it should report to?
• Which are the responsibilities that should be centralizedp
into a BPM CoE and which responsibilities can remain
decentralized?
• How do these responsibilities change over time?
• How to evaluate a a BPM CoE’s effectiveness?How to evaluate a a BPM CoE s effectiveness?
66

INTRODUCTION CHALLENGES FACINGINTRODUCTION: CHALLENGES FACING
MODERN ORGANIZATIONS
BPM GOVERNANCE AND THE NEED FOR A
CENTER OF EXCELLENCE
BPM CENTER OF EXCELLENCE MAIN
CHARACTERISTICS
BPM CoE FRAMEWORK – HISTORY AND
GENERAL VIEW
BEYOND BPM CoE – OTHER ROLES AND
RESPONSIBILITIESRESPONSIBILITIES

The old way to manage…
Organizations are facing the 21st century environment but still
adopt management practices that were built considering the
20th century.
Previous organizational focus:
S l• Scale
• Efficiency
i h d l• Hierarchy and control
© ELO Group all rights reserved
88

... and some implications
Source: Compliance Week, December, 2006
99

Rules are changing...
 Most demanding customersg
 Global competition
 Focus on individuals, knowledge and innovation Focus on individuals, knowledge and innovation
 Greater complexity and uncertainty (risk) in operations
 Need for more flexibility and agility
 Need for more flexibility and agility
 Intensive use of IT in business 1010

New Paradigm for the 21st Century
Old organization’s paradigm Emergent organization’s paradigm
STABILITY DYNAMISM
FLEXIBILITY
CENTRALIZATION COOPERATIONCENTRALIZATION COOPERATION
CONTROL AUTONOMY
COMMODITIES
AND PROPERTY
SERVICES
AND EXPERIENCES
AND PROPERTY AND EXPERIENCES
1111

New Paradigm for the 21st Century
Source: http://www.slideshare.net/reynolds/web-20-business-models-
presentation

Be prepared to changes…
1313

... And treat them appropriately
According to McMinsey’s survey, only a third of respondents
said their organizations have had success in making changes
with greater impact! (McKinsey, 2008);
Researches shows that 82% of organizations are developing
some form of change initiative, that 70% of these initiatives fail
and 68% of these organizations don’t evaluate the success of
these initiatives (Kottler, Harvard Business Review …);
Most of strategies haven’t failed because they were poorly
conceived, but because they were poorly implemented (Norton
& Kaplan).
1414

How do you transform
an organization ?...
BETTERBETTER
ATITUDES &
COMPETENCES
BETTER
INTERFACES,
ALIGNMENTS
ACCOUNTABILITIES
BETTER
SYSTEMS
“SIMPLER” &
INNOVATIVE
SERVICES
BETTER
SERVICES
CONTRACTS
& PARTNERS
BETTER
CONTROL &
VISIBILITY
BETTER
POLICIES,
BUSINESS
RULES &
STANDARDS
BETTER
EQUIPMENTS &
INFRA-STRUCTURE
STANDARDS INFRA STRUCTURE
1515

Which areas provide
these transformations ?
BETTERBETTER
ATITUDES &
COMPETENCES
BETTER
INTERFACES,
ALIGNMENTS
ACCOUNTABILITIES
Human Human ResourcesResources &&
CommunicationCommunication
StrategyStrategy
BETTER
SYSTEMS
“SIMPLER” &
INNOVATIVE
SERVICES
InformationInformation
TechnologyTechnology
CustomerCustomer &&
ProductProduct
ManagementManagement
BETTER
SERVICES
gygy
ContractContract IT & IT & RiskRisk
CONTRACTS
& PARTNERS
BETTER
CONTROL &
VISIBILITY
ContractContract
IT & IT & RiskRisk
BETTER
POLICIES,
BUSINESS
RULES &
STANDARDS
BETTER
EQUIPMENTS &
INFRA-STRUCTURE
ComplianceCompliance &&
Standards Standards
AssetsAssets
1616

So... why do you need business
process management ?
If business process management:
Doesn’t develop systems (except for BPMSs)Doesn t develop systems (except for BPMSs)
Doesn’t manage competences
D ’ i Doesn’t review contracts
Doesn’t design new products
Doesn’t create dashboards
Doesn’t project layout
If h t HR IT Ri k
p j y
If we have mature HR, IT, Risk
Management, process do we really
need Business Process Management ??
1717

Think again...
What’s the big issue ?
BETTER
1) 1) ProvideProvide educationeducation oror
2) 2) IdentifyIdentify keykey competencescompetences
BETTER
ATITUDES &
COMPETENCES
BETTER
INTERFACES,
ALIGMENTS
ACCOUNTABILITIES
2) 2) IdentifyIdentify keykey competencescompetences
ThatThat enhaceenhace thethe impactimpact
OfOf business business resultsresults
BETTER
SYSTEMS
“SIMPLER” &
INNOVATIVE
SERVICES
1) 1) DevelopDevelop systemsystem
oror 2) 2) UnderstandUnderstand
BusinessBusiness
BETTER
SERVICES
requirementsrequirements
1) 1) CreateCreate dashboarddashboard
oror 2) Design 2) Design MetricsMetrics
CONTRACTS
& PARTNERS
BETTER
CONTROL &
VISIBILITY
) g) g
andand controlscontrols toto
effectiveeffective SupportSupport
decisiondecision makingmaking
1) 1) InstitutionalizeInstitutionalize andand
BETTER
POLICIES,
BUSINESS
RULES &
STANDARDS
BETTER
EQUIPMENTS &
INFRA-STRUCTURE
1) 1) InstitutionalizeInstitutionalize andand
Formalize businessFormalize business
GuidelinesGuidelines, , oror 2) Debate2) Debate
andand reachreach agreementagreement withwith
business business areasareas aboutabout rulesrules
1818

Organizations need better Transformation
Capability to convert good ideas into process
redesign and implementation
1) 1) ProvideProvide educationeducation oror
2) 2) IdentifyIdentify keykey competencescompetences2) 2) IdentifyIdentify keykey competencescompetences
ThatThat enhaceenhace thethe impactimpact
OfOf business business resultsresults
1) 1) DevelopDevelop systemsystem
oror 2) 2) UnderstandUnderstand
BusinessBusiness
requirementsrequirements
1) 1) CreateCreate dashboarddashboard
oror 2) Design 2) Design MetricsMetrics) g) g
andand controlscontrols toto
effectiveeffective SupportSupport
decisiondecision makingmaking
1) 1) InstitutionalizeInstitutionalize andand1) 1) InstitutionalizeInstitutionalize andand
Formalize businessFormalize business
GuidelinesGuidelines, , oror 2) Debate2) Debate
andand reachreach agreementagreement withwith
business business areasareas aboutabout rulesrules
1919

What about your BPM approach? Is
it Transformation Oriented?

A traditional BPM approach
Several BPM techniques used today were Several BPM techniques used today were
designed for the “old paradigm”
2121

Objective of traditional BPM approaches
Aumento da
fi bilid d
Reduce variability
and increase
bilit confiabilidade
organizacional
reability
Foco Comum
Avanço no
desempenho
organizacional
Improve
performanceMudança da
Expectativa do
Consumidor
performance
around the current
paradigm!
Desempenho
Esperado
Desempenho
Atual
p g
2222

What we currently see
Organizations are investing in many BPM
initiatives but many of them lack a clear focus
Many times results are not reached. When
they are, they are not clearly communicated
BPM initiatives with different purposes are
conducted in an isolated way inside an
g i tiorganization
S ti BPM di i li till l k Sometimes BPM as a discipline still lacks a
natural home and official identity
2323

The focus of BPM application should move pp
towards the transformation of the
organization through the implementation oforganization through the implementation of
significant improvements and sustainable
changeschanges
2424

Some challenges for an effective
transformation based on BPM
Understand processes as relevant assets to be
managed
Create a BPM identity and disseminate its benefits
Gain sponsorship on BPM initiatives
Create alignment among transformation efforts
 l hDemonstrate results with BPM initiatives!
2525

BPM Governance
BPM Governance relates to the definition and enforcement
of guidelines and rules that drive activities and decisions g
along the process lifecycle, as well as the consequent
definition of responsibilities and accountabilities for BPM
i j d l lactions on project and program management level
Effective BPM Governance has to reinforce the strategic
alignment among process management activities and
business priorities, clearly define and enforce the
accountabilities of each involved stakeholder and avoid
redundancies related to BPM initiativesredundancies related to BPM initiatives.
2727

Many focus for BPM initiatives and
lack of convergence
Source:
BPTrends, 2010

Need for BPM Governance
New
Organizational
Context
Organizations
BPM initiatives
evolution
BPM ProblemsProblems BPM ProblemsProblems
BPM Governance
Source: Barros, 2009
2929

Elements related to BPM Governance
1. Roles and
Responsibilities
2. Standards 4. Services3. Structure
GOVERNANCE
MODEL
6. Objectives
5. Control
Mechanisms
7. Evaluation and
Reward Mechanisms
Source: Barros, 2009
3030

INTRODUCTION CHALLENGES FACINGINTRODUCTION: CHALLENGES FACING
MODERN ORGANIZATIONS
BPM GOVERNANCE AND THE NEED FOR A
CENTER OF EXCELLENCE
BPM CENTER OF EXCELLENCE MAIN
CHARACTERISTICS
BPM CoE FRAMEWORK – HISTORY AND
GENERAL VIEW
BEYOND BPM CoE – OTHER ROLES AND
RESPONSIBILITIES
RESPONSIBILITIES

Need for a BPM Need for a BPM CoECoE
A BPM Center of Excellence is an important organizational p g
mechanism that has been widely adopted by enterprises
aiming at institutionalizing BPM initiatives and perpetuating its
benefits throughout the organization in a more centralized
approach.
3232

Need for a BPM CoE
Research with 91 national organizations found that many
(49%) do not have yet a formal as the “owner of the BPM
initiatives”, for example a Process Office
Source: ELO Group & iProcess , 2009
Similar research shows that only 20% among the largest
gl b l i d t h BPM G Thi global companies do not possess such BPM Group. This
shows the establishment of BPM Groups as a global trend.
Source: BPTrends, 2008

Some NomenclaturesSome Nomenclatures
Process Office
BPM Center of Excellence
Process Team
BPM GroupBPM Group
BPM Support Officepp
Etc.
3434

Location of a BPM CoE
Source: BPTrends, 2010
3535

Typical rolesTypical roles
1. Internal Consulting: 1. Internal Consulting:
• Performs (or provides support to) BPM services within the
organizationorganization
2. Knowledge Provider:
• Assures process knowledge dissemination and reinforces a
process‐oriented culture within the organization
3. Standards Guardian:
• Assures process management standards are being followed Assures process management standards are being followed
throughout the organization
3636

Detailing some typical rolesDetailing some typical roles
Guardian of the process management methodologies (standards,
rules, performance measures, etc…);, p , );
Management of BPM projects activities (modeling, analysis,
improvements implementation, evaluation of results);p p , );
Training on business process management best practices;
Consolidation of records &documentation evaluation and Consolidation of records &documentation, evaluation and
dissemination of best practice and lessons learned;
Support process owners to monitor and evaluate processes;Support process owners to monitor and evaluate processes;
Delivering on the dialogue process between process owners and
senior managementsenior management.
3737

Previous list of Previous list of BPM servicesBPM services
Source: Rosemann, 2008
3838

Results Results ‐‐ EvidenceEvidence
3939

Introduction
With the objective of bringing a structured and detailed
reference, ELO Group has developed a Framework for the
Operation of a BPM CoE.
This reference framework is based in a wide theoretical e
practical research. Best practices from several references and
case studies were combined, generating this rich instrument
in order to support organizations in implementing and
ti g BPM C Eoperating a BPM CoE.
41414141

BPM Services and Internal Processes
Management Process
Main Services
Complementary
ServicesServices
BPM technologies
Support processespp p
4242

Internal Processes
Management Processes: The set of processes related to the
management of a BPM Center of Excellence internal activities. It
includes the translation of strategic and operational demands into includes the translation of strategic and operational demands into
BPM services, the analysis, configuration and monitoring of BPM
services; the evaluation of results generated by BPM services and the
communication and dissemination of BPM culture throughout the
organization.
Support Processes: The set of processes that supports the operation
of the Center of Excellence It includes the creation and maintenance of the Center of Excellence. It includes the creation and maintenance
of methods for all activities within the process lifecycle, establishment
of BPM related roles and responsibilities, administration of the BPM
f l d f h hservices portfolio, administration of BPM human resources, charging
and funding.
4343

BPM Services
Main Services: These services are central to the implementation of the
BPM approach and are the usual responsibilities of a BPM Center of
Excellence This set includes services like process modeling process Excellence. This set includes services like process modeling, process
improvement and design, process change management, process
performance management and process management
education/training.
Complementary Services: Services that may not be the direct
responsibilities of a BPM Center of Excellence, but are still related to
the BPM discipline and its methods and tools This set of services the BPM discipline and its methods and tools. This set of services
includes for example process auditing, risk and internal control
management, process forensics, systems design, etc.
4444

BPM CoE’s Capabilities Evolution
3. Strategic
Alignment and
BPM culture
2. Creation of
convergence
among BPM
initiativesinitiatives
1. Difusion of
BPM concepts
and benefits
4545

BPM BPM CoE’sCoE’s CapabilitiesCapabilities EvolutionEvolution
 The definition of processes and services associated with each
stage was built from two surveys of BPM initiatives
undertaken by ELO Group with over 150 organizations,
and revised with Prof. Michael Rosemann;
 It is recommended the adoption of this Framework and
customization for each organization The specificity of eachcustomization for each organization. The specificity of each
organization as well as its history of initiatives is crucial to define
the optimal portfolio of processes and services to be offered by
the Office over timethe Office over time.
4646

Capabilities for a BPM CoE (1/3)
4747

MANAGEMENT PROCESSESMANAGEMENT PROCESSES
MP07MP07 BPM CultureBPM CultureMP07MP07 BPM CultureBPM Culture
DisseminationDisseminationDisseminationDissemination
COMPLEMENTARY SERVICESCOMPLEMENTARY SERVICES
MAIN SERVICESMAIN SERVICES
MS01MS01 Process ArchitectureProcess Architecture
MaintenanceMaintenance
MS02MS02 Process ModelingProcess Modeling
(As(As--is)is)
CS01CS01 Lean & Six SigmaLean & Six Sigma
Oriented ImprovementOriented Improvement
(As(As is)is)
MS03MS03 ProcessProcess ImprovementImprovement
(To(To--be)be)
MS04MS04 ProcessProcessMS04MS04 ProcessProcess
DocumentationDocumentation
MS05MS05 Process ChangeProcess Change
SP01SP01
AdministrationAdministration ofof
M d l R iM d l R i
SP01SP01
AdministrationAdministration ofof
M d l R iM d l R i
SP02SP02 AdministrationAdministration
ofof BPM RolesBPM Roles andand
R ibilitiR ibiliti
R ibilitiR ibiliti
SUPPORTING PROCESSESSUPPORTING PROCESSES
Models RepositoryModels RepositoryModels RepositoryModels Repository ResponsibilitiesResponsibilitiesResponsibilitiesResponsibilities
48

Stage 1 Processes and Services
Code Name Type Description
MS01 Process
Architecture
Maintenance
Main
Service
Definition and/or updating of the organization's value chain and
business process architecture that illustrate its mission, vision
and main attributions. Dissemination of process-based vision
th o gho t the o gani ationthroughout the organization
MS02 Process
Modeling (AS
IS)
Main
Service
Modeling and/or updating of the way work is performed. Models
usually include activities and events, responsibilities, related
systems and documents and are displayed in notations like
BPMN EPC IDEF It can also include identification ofBPMN, EPC, IDEF. It can also include identification of
improvement opportunities.
MS03 Process
Improvement
(TO BE)
Main
Service
Redesign of existing processes based on the analysis of
improvement opportunities and prioritization of identified
solutions. It can also refer to the design of a new process.
MS04 Process
Documentation
Main
Service
Creation and/or updating of procedures and manuals that detail
processes models and can serve as a basis for work execution.
MS05 Process Change
Management
Main
Service
Definition of an action plan to incorporate improvements in
existing processes Tracking of action plan's status intermediateManagement Service existing processes. Tracking of action plan s status, intermediate
results and difficulties.
CS01 Lean & Six
Sigma Oriented
Improvement
Complem.
Service
Improvement initiative focused on process efficiency and
productivity increases, mainly based on Lean & Six Sigma
techniques.
SP01 Models
Repository
Administration
Support
Process
Creation and/or maintenance of BPM methodologies e modeling
notation. Administration of models repository (backups, acess
control etc.)
SP02 Administration Support Definition and/or updating of information related to each of the
SP02 Administration
of BPM Roles
and
Responsibilities
Support
Process
Definition and/or updating of information related to each of the
BPM roles and responsibilities (process owners, analysts,
specialists, sponsors etc.), according to the organization's
process management model.

5050

MP04MP04 BPMBPM ServicesServices
ProgrammingProgramming
MP05MP05 BPM ServicesBPM Services
MonitoringMonitoring
(As(As--is)is)
(As(As--is)is)
CS01CS01 LeanLean && SixSix SigmaSigma
OrientedOriented ImprovementImprovement
MS06MS06 Process PerformanceProcess Performance
MeasurementMeasurement
MS07MS07 Process ManagementProcess Management
Training and EducationTraining and Education
CS02CS02 ReferenceReference ModelsModels
ImplementationImplementation
CS06CS06 Process AuditingProcess Auditing
CS07CS07 RiskRisk andand InternalInternal
ControlControl ManagementManagement(As(As is)is)(As(As is)is)
(To(To--be)be)
(To(To--be)be)
MS04MS04 ProcessProcessMS04MS04 ProcessProcess
MS08MS08 Process ComplianceProcess Compliance
CS03CS03 SystemsSystems
SpecificationSpecification
CS08CS08 CompetenciesCompetencies
CS09CS09 Management ofManagement ofMS04MS04 ProcessProcess
MS04MS04 ProcessProcess
CS04CS04 ProcessProcess AutomationAutomation
CS09CS09 Management ofManagement of
improvement projectsimprovement projects
ofof ModelsModels RepositoryRepository
ofof ModelsModels RepositoryRepository
R ibilitiR ibiliti
R ibilitiR ibiliti
ofof BPMBPM HumanHuman
RR
RR
ofof BPMBPM ServicesServices
P tf liP tf li
P tf liP tf li
p yp yp yp y
ResponsibilitiesResponsibilitiesResponsibilitiesResponsibilities ResourcesResourcesResourcesResourcesPortfolioPortfolioPortfolioPortfolio
51

MP04 BPM Services
Programming
Mgmt.
Process
Prioritization and programming of all BPM services being offered
according to availability of personnel in Center of Excellence.
Definition of responsibilities and targets of each initiativeDefinition of responsibilities and targets of each initiative.
MP05 BPM Services
Monitoring
Mgmt.
Process
Monitoring of all BPM services that are being performed and
related controls (time, scope, quality, resources etc.)
MS06 P M i D fi iti f t t f b iMS06 Process
Performance
Measurement
Main
Service
Definition of a structure of business process measures.
Measurement, monitoring and reporting of process performance.
Establishment and tracking of actions to improve performance.
MS07 Process Main Employees' training and education on BPM concepts methodsMS07 Process
Management
Education and
Training
Main
Service
Employees training and education on BPM concepts, methods
and tools.
MS08 Process Main Periodic process checking. Verification of the adherence of the
Compliance Service
p g
process models to reality.
CS02 Reference
Models
Implementation
Complem.
Service
Planning, adoption and maintenance of reference models like
ISO9001, SCOR, ITIL, VRM etc., focused on performance
impromevents and/or achieving certifications.Implementation impromevents and/or achieving certifications.
CS03 Systems
Specification
Complem.
Service
Definition of requirements to support software development that
can optimize process execution
CS04 Process Complem Implementation of systems that could automate work
CS04 Process
Automation
Complem.
Service
Implementation of systems that could automate work.
5252

CS03 Systems
Specification
Complem.
Service
Definition of requirements to support software development that
can optimize process execution
CS04 Process
Automation
Complem.
Service
Implementation of systems that could automate work.
CS06 Process Auditing Complem.
Service
Definition and execution of internal auditing tests to evaluate
adherence of business processes.
CS07 Risk and
Internal Control
Management
Complem.
Service
Analysis of operational risks in processes and defintion of internal
controls to mitigate risks.
CS08 C i C l D fi i i d l i f i d i fCS08 Competencies
Management
Complem.
Service
Definition and evaluation of required competencies for process
execution. Establishment of training plans, HR selection and
relocation.
CS09 Management of Complem. Management of major organizational projects that involve
improvement
projects
Service process improvement efforts (linkage between a PMO and a
BPM Center of Excellence)
SP03 Administration
of BPM Service
P tf li
Support
Process
Updating of informations related to BPM services like:
responsibilities, methods and tools involved, periodicity of
ti tPortfolio execution etc.
SP04 Administration
of BPM Human
Resources
Support
Process
Definition and updating of profiles, roles, competencies and
division of labor of the BPM Center of Excellence team.
5353

5454

DevelopmentDevelopment
PlannigPlannig
DevelopmentDevelopment
PlannigPlannig
MP06MP06 BPMBPM ResultsResults
EvaluationEvaluation
MP06MP06 BPMBPM ResultsResults
EvaluationEvaluation
MP01MP01 StrategyStrategy
TranslationTranslation intointo
ProcessesProcesses
MP01MP01 StrategyStrategy
TranslationTranslation intointo
ProcessesProcesses
MP02MP02 BPM DemandsBPM Demands
IdentificationIdentification
MP02MP02 BPM DemandsBPM Demands
and Analysisand Analysis
and Analysisand Analysis
(As(As--is)is)
(As(As--is)is)
CS01CS01 LeanLean && SixSix SigmaSigma
OrientedOriented ImprovementImprovement
CS02CS02 ReferenceReference ModelsModels
ImplementationImplementation
CS06CS06 ProcessProcess AuditingAuditing
CS07CS07 RiskRisk andand InternalInternal
ControlControl ManagementManagement(As(As is)is)(As(As is)is) Training and EducationTraining and EducationTraining and EducationTraining and Education
(To(To--be)be)
(To(To--be)be)
MS08MS08 Process ComplianceProcess ComplianceMS08MS08 Process ComplianceProcess Compliance
MS04MS04 ProcessProcessMS04MS04 ProcessProcess MS09MS09 Process MaturityProcess Maturity
CS03CS03 SystemsSystems
SpecificationSpecification
CS08CS08 CompetenciesCompetencies
CS09CS09 Management ofManagement ofMS04MS04 ProcessProcess
MS09MS09 Process MaturityProcess Maturity
Benchmarking &InnovationBenchmarking &Innovation
CS04CS04 ProcessProcess AutomationAutomation
CS05CS05 BusinessBusiness RulesRules
CS10CS10 Process CostProcess Cost
CS09CS09 Management ofManagement of
improvement projectsimprovement projects
ofof ModelsModels
R itR it
ofof ModelsModels
R itR it
RR
RR
R ibilitiR ibiliti
R ibilitiR ibiliti
P tf liP tf li
P tf liP tf li
ofof BPM BudgetBPM Budget
ofof BPM BudgetBPM Budget
RepositoryRepositoryRepositoryRepository ResourcesResourcesResourcesResourcesResponsibilitiesResponsibilitiesResponsibilitiesResponsibilities PortfolioPortfolioPortfolioPortfolio
gggg
55

MP01 Strategy
Translation into
Processes
Mgmt.
Process
Organizational strategy analysis. Definition of how business
process could be improved to support achievement of strategic
objectives. Identification of new BPM services needed.
MP02 BPM Demands
Identification
and Analysis
Mgmt.
Process
Identification, analysis and priorization of day-by-day operational
demands for BPM services.
MP03 BPM Services Mgmt. Planning of the evolution of BPM Services Porfolio, matching new
Evolution
Planning
g
Process
g g
organizational needs (demand) and BPM CoE’s readiness to
provide new services (capability).
MP06 BPM Results
Evaluation
Mgmt.
Process
Evaluation of tangible and intangible results related to BPM
services. Determination of ROI.
MP07 BPM Culture
Dissemination
Mgmt.
Process
Dissemination of actions in course, results obtained and success
cases. It can include presentations to areas, BPM events,
intranet informations and management reports.
MS09 Process Main Process maturity evaluation, based on existing maturity models.
Maturity
Management
Service
MS10 Process
Benchmarking
and Innovation
Main
Service
Benchmarking and dissemination of internal and external best
practices related to process execution.
and Innovation
CS05 Business Rules
Management
Complem.
Service
Definition and/or updating of business rules of an existing
process, detailing their characteristics and specific conditions.
CS10 Process Cost
Management
Complem.
Service
Analysis and optimization of cost structure of an existing
process, mainly using ABC techniques. Identification of cost
g p , y g q
reduction opportunities.
SP05 Administration
of BPM Budget
Support
Process
Budgeting and charging for the cost structure of the BPM Center
of Excellence. Pricing of BPM services.

Reference Framework for a BPM CoE
v1.0
MP03 BPM Services
D l t
MP04 BPM Services MP05 BPM Services
MP06 BPM Results
Evaluation
MP01 Strategy
Translation into
Processes
MANAGEMENT PROCESSES
Development
Plannig
MP04 BPM Services
Programming
MP05 BPM Services
Monitoring
MP07 BPM Culture
Dissemination
MP02 BPM Demands
Identification
and Analysis
COMPLEMENTARY SERVICES
MS01 Process Architecture
Maintenance
MS06 Process Performance
Measurement
MAIN SERVICES
CS01 Lean & Six Sigma
Oriented Improvement
CS06 Process Auditing
MS02 Process Modeling
(As-is)
MS07 Process Management
Training and Education
MS03 Process Improvement
(T b )
MS08 Process Compliance
CS02 Reference Models
Implementation
CS03 Systems Specification
CS07 Risk and Internal
Control Management
CS08 Competencies
Management(To-be)
p
MS04 Process
Documentation
MS09 Process Maturity
Management
P Ch P
y p
CS04 Process Automation
Management
CS09 Management of
improvement projects
SUPPORTING PROCESSES
MS05 Process Change
Management
MS10 Process
Benchmarking &Innovation
CS05 Business Rules
Management
CS10 Process Cost
Management
© ELO Group all rights reserved. 5757
SP01
Administration of
Models Repository
SP04
Administration of
BPM Human
Resources
SP02
Administration of
BPM Roles and
Responsibilities
SP03
Administration of
BPM Services
Portfolio
SP05
Administration of
BPM Budget

Some questions to be answered
1. How to determine responsibilities and accountabilities for
BPM actions?
2. Where should the BPM Center of Excellence be located?
3. How to determine tasks, profiles and competences for BPM 3. How to determine tasks, profiles and competences for BPM
CoE’s internal team?
4 How to assure alignment between Process Office and4. How to assure alignment between Process Office and
Project Office?
5858

RACI Chart
5959

Some typical profiles
CoE
CoE
CoE
Global and Centralized Local and Centralized
CoE
CoE
CoEProess
Leader
Process
Leader
Proces
Leader
Global and Decentralized Multiple CoE’s

Example of a BPM Internal Structure
Process OfficeProcess Office
Support and
Maintenance
BPM Projects
BPM
Consultant
Process
Architect
Quality
Assurance
Project
Manager
Process
Analyst
Instructor
DB
Administrator
Business
Improvement
Advisor
Source: based on Jeston & Nelis, 20086161

Roles and responsibilitiesRoles and responsibilities
Support and Maintenance – Dedicated Resources:
Sh ld b i l d i i l j h ff• Should not be involved on organizational projects. They can offer
consulting, coaching, training and quality assurance services to Project
Teams. They also monitor and document lessons learned, BPM projects y , p j
performance and process governance.
Projects –Pool of Shared Resources:
• Pool of resources that can be used into BPM projects Chief Process • Pool of resources that can be used into BPM projects. Chief Process
Officer should allocate those resources appropriately
6262

Roles and responsibilities Roles and responsibilities –– Support and MaintenanceSupport and Maintenance
1. BPM Consultant
• Specialist that discuss with business areas opportunities for improvements.
2. Process Architect:
• Assures process architecture is updated and being followed.p p g
3. Coach/Quality Assurance:
• Provides coaching to BPM project teams. Do not perfom the work, only provides Provides coaching to BPM project teams. Do not perfom the work, only provides
guidelines. Also responsible for projects quality control.
4. Instructor:
• Provides BPM training to the whole organization.
5. DB Administrator:
• Revise process models, assuring modeling notation and patterns are being folowed.
Administer process repository.
6363

Roles and responsibilities Roles and responsibilities –– ProjectsProjects
1. Project Managers
• Responsible for all routine management of BPM projects
2. Business Improvement Advisors:
• Identify opportunities for improvementsy pp p
• Discuss and facilitate implementation of new ideas, decreasing resistance to change
• Develop business cases and business impact analysisp p y
3. Process Analysts:
• Model and document the process (As Is & To Be)Model and document the process (As Is & To Be)
• Define metrics and calculate process costs.
• Evaluate the skills of people involved in processEvaluate the skills of people involved in process
• Evaluate the process performance
6464

Process Prioritization based on Strategic Drivers
Analysis of Competitive Drivers
6565

Linkage with Project Office – types
of projects
Impact
A ti Pl
izational
Formalized
organizational
projects
Action Plans
(small and
informal
projects)
Orngan
Regular
i t
Action Plans
(small and
improvements
(
informal
projects)
Time to implement
6666

of projects
Project Management Process
Initiation Planning Execution Control Closure
ar
v.
Initiation Planning Execution Control Closure
Regula
improv
Action
Plans
ectsProje
© ELO Group all rights reserved.67 6767

But… Setting up a BPM CoE
is just the first stepp
All managers need to participateAll managers need to participate
in processes management
somehow. This is not something
restricted to the Processrestricted to the Process
Office’s role.
7070

Example of a BPM Governance Structure
Process
Vision, Strategy,
Budget, Resources
Roadmaps,
Project Plans
Process
Committee
g ,
Roadmaps,
Project Plans
j
Collaborative Process
Models, KPIs
Guidelines, Standards,
Process
Office
ProcessOwner
, ,
Best Practices, Training
Technical Artifacts
Process
Specification
Process
Implementation
Project Manager
7171 Source: based on Korhonen, 2007

Example of a BPM Governance Structure
Process
Office
Process Council
Chief Process
Officer
Process
Owner1
Process
Owner2
Process
Owner3
Process
Manager 1
Process
Manager 2
PRocess
ManagerNManager 1 Manager 2 Manager N
Maintenance
and Support
BPM Projects
Source: based on Jeston & Nelis, 20087272

Management by Process evolution over time
Source: COPPE/UFRJ, 2007
7373

Governance Evolution over time
We acknowledge that Governance Structure evolutes over
time as BPM becomes more mature into the organization time , as BPM becomes more mature into the organization.
BPM services varies from organization to organization, and
therefore the BPM Center of Excellence may not always
di tl t i i directly execute main services.
Instead, the CoE may support a decentralized execution of
services by process owners and other areas. Still, this
category of services remains central for the
implementation of a process‐oriented management
approach
approach
7474

Decentralization Path
Centralized
Model
Decentralized
Model
’ i hi k b h d i dIt’s important to think about the desired governance
structure over time (“Blue Sky Vision”). It will certainly
changes the Center of Excellence’s scope andchanges the Center of Excellence s scope and
attributions
7575
7575

Governance Evolution over time ‐ example
7676

Final Points - Some Statistics
Publication of 10 papers about the frameworks
Application of the framework at 15 organizationsApplication of the framework at 15 organizations
Courses for more than 150 people about the
f kframework
7777

Learning Points
Emphasizing and splitting BPM CoE’s main services at:
1 Process Improvement Projects1. Process Improvement Projects
2. Day‐by‐day process management
Reinforcing the idea of BPM Planning Processes linked
to Corporate Strategy
Representing the “Managing Process” process with a
lifecycle approach, showing “how to” implement BPM g
CoE’s services more effectively
7878

Current Research – Ideas
on Improving theon Improving the
Framework

BUSINESS STRATEGY
PROJECT BASED
WELL DEFINED SCOPES
STRONG INVOLVEMENT OF BPM OFFICE
INVOLVES MULTIPLE AREAS
PROCESS IMPROVEMENT PROJECT
INVOLVES MULTIPLE AREAS
 SIGNFICANT COSTS
TRANSFORMATION INTENSIVE
Performance
PROCESS IMPROVEMENT PROJECT
Tempo
Breakthrough
Improvement
PROCESS REDESIGNED IMPLEMENTED WITHIN
NEWS SYSTEMS, COMPETENCES, CONTRACTS, ETC

BUSINESS STRATEGY
ON GOING BASED
OPEN SCOPE
LIGHTLY DEPENDENT OF BPM OFFICE
INVOLVES FEW AREAS
PROJECT BASED
WELL DEFINED SCOPES
STRONG INVOLVEMENT OF BPM OFFICE
INVOLVES MULTIPLE AREAS
DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECT
INVOLVES FEW AREAS
 INCREMENTAL COST
CONTINOUS IMPROVEMENT ORIENTED
INVOLVES MULTIPLE AREAS
 SIGNFICANT COSTS
TRANSFORMATION INTENSIVE
PerformancePerformance
Contínuous
Improvment TempoTempo
p
Breakthrough
Improvement
PROCESS VISIBILITY &
CONTINUOUS IMPROVEMENT

BUSINESS STRATEGYANNUAL BASED PROCESS PLANNING ALIGNED WITH BUSINESS STRATEGY
PROJECT PORTFOLIO COMPOSITION AND PRIORITIZATION
HIGH SINERGY WITH OTHER SUPPORT INITIATIVES
 COMMUNICATION OF BPM ACTIVITIES AND RESULTS ACHIEVED
BPM STRATEGY
Contínuous
p
Breakthrough
Improvement

What’s missing?

BUSINESS STRATEGYANNUAL BASED PROCESS PLANNING ALIGNED WITH BUSINESS STRATEGY
PROJECT PORTFOLIO COMPOSITION AND PRIORITIZATION
HIGH SINERGY WITH OTHER SUPPORT INITIATIVES
 COMMUNICATION OF BPM ACTIVITIES AND RESULTS ACHIEVED
BPM STRATEGY
DAY TO DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECT
BPM Maturity
&
DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECT&
Governance
Contínuous
BUSINESS
TRANSFORMATION
ACCOUNTABILITIES
 BUSINESSp ov e t
Breakthrough
Improvement
 BUSINESS
TRANSFORMATION
CAPABILITY
EVOLUTION

BUSINESS STRATEGY
Strategic
Planning
BPM Project
Portfolio
BPM
Consolidadted
Results
BUSINESS STRATEGY
BPM STRATEGY
P01 Strategy
Translation into
Processos
P02 Run Process
Satisfaction
Survey
P03 BPM Project
Portfolio
Generation
P04 BPM Project
Planning &
Budgetig
P05 BPM Project
Portfolio
Management
P06 BPM Results
& Culture
Dissemination
BPM STRATEGY
BPM Maturity
&
BPM Demands BPM Project Plan
BPM
Process
Results
Process
Operational
Goals
M01 BPM
Maturity and
Governance
Maturity and
Governance
Contínuous
p
Breakthrough
Improvement

BUSINESS STRATEGY
Strategic
Planning
BPM Project
Portfolio
BPM
Consolidadted
Results
BUSINESS STRATEGY
BPM STRATEGY
P01 Strategy
Translation into
Processos
P02 Run Process
Satisfaction
Survey
P03 BPM Project
Portfolio
Generation
P04 BPM Project
Planning &
Budgetig
P05 BPM Project
Portfolio
Management
P06 BPM Results
& Culture
Dissemination
BPM STRATEGY
BPM Maturity
&
BPM
Process
Results
Process
Operational
Goals
M01 BPM
Maturity and
BPM Project Plan
BPM
Process
Results
EXECUTE BPM PROJECTS
M01 BPM
Maturity and
Governance
Maturity and
Governance
E01 Process Vision
E02 Process
Performance
EXECUTE BPM PROJECTSMaturity and
Governance
Contínuous
E02 Process
Understanding (AS IS)
E03 Gains & Improvement
Analysis
Tempo
p
Breakthrough
Improvement
E04 Process Redesing &
Preparare Implantation
E05 Implement Redesigned
Process & Roll Out
Breakthrough
Improvement
Controls
(RISK MAN.)
New Competences
(HR MAN.)
New Systemns
(IT MAN.)
Policies & Standards
(COMPLIANCE MAN)
Organizational
Structure Redesign

BUSINESS STRATEGY
Strategic
Planning
BPM Project
Portfolio
BPM
Consolidadted
Results
BUSINESS STRATEGY
BPM STRATEGY
P01 Strategy
Translation into
Processos
P02 Run Process
Satisfaction
Survey
P03 BPM Project
Portfolio
Generation
P04 BPM Project
Planning &
Budgetig
P05 BPM Project
Portfolio
Management
P06 BPM Results
& Culture
Dissemination
BPM STRATEGY
BPM
Process
Results
Process
Operational
Goals
M01 BPM
Maturity and
BPM Project Plan
BPM
Process
Results
EXECUTE BPM PROJECTS
M01 BPM
Maturity and
BPM Demands
Process
Operational
Goals
DAY-TO-DAY PROCESS MANAGEMENT
M01 BPM
Maturity and
DAY-TO-DAY PROCESS MANAGEMENT PROCESS IMPROVEMENT PROJECTMaturity and
Governance
E01 Process Vision
E02 Process
Performance
EXECUTE BPM PROJECTSMaturity and
Governance
D02 Process Learning
Performance
DAY TO DAY PROCESS MANAGEMENT Maturity and
Governance
Contínuous
E02 Process
Analysis
Tempo
Continuous
Improvment
g
Tempo
p
Breakthrough
Improvement
Process & Roll Out
Breakthrough
ImprovementD03 Implement Continuos
Improvement and
D01 Performance, Risks &
Compliance Monitoring
Controls
(RISK MAN.)
New Competences
(HR MAN.)
New Systemns
(IT MAN.)
(COMPLIANCE MAN)
Organizational
Structure Redesign
Continous
Improvement
Risk & Non conformities
(AUDITING)
Performance Value
& Ocurrences
Process
Visibility

Strategic
Planning
BPM Project
Portfolio
BPM
Consolidadted
Results
BUSINESS STRATEGY
P01 Strategy
Translation into
Processos
P02 Run Process
Satisfaction
Survey
P03 BPM Project
Portfolio
Generation
P04 BPM Project
Planning &
Budgetig
P05 BPM Project
Portfolio
Management
P06 BPM Results
& Culture
Dissemination
Results
BPM STRATEGY
Processos Survey Generation Budgetig Management Dissemination
BPM
Process
Results
Process
Operational
Goals
M01 BPM
E01 Process Vision PerformancePerformance
DAY-TO-DAY PROCESS MANAGEMENT EXECUTE BPM PROJECTS
M01 BPM
Maturity and
Governance
Continuous
Improvment
E02 Process
Analysis
D02 Process Learning
TempoTempo
Improvment
Process & Roll Out
D03 Implement Continuos
Improvement and
D01 Performance, Risks &
Compliance Monitoring
p
Breakthrough
Improvement
Controls
(RISK MAN.)
Continous
Improvement
Risk & Non conformities
(AUDITING)
Performance Value
& Ocurrences
New Competences
(HR MAN.)
New Systemns
(IT MAN.)
(COMPLIANCE MAN)
Process
Visibility
Organizational
Structure Redesign

Practical Application and
Case StudiesCase Studies

“Leadership on BPM ideas, methods and results in Brazil”
ThanksThanksThanksThanks
leandro.jesus@elogroup.com.brleandro.jesus@elogroup.com.br
www.elogroup.com.brwww.elogroup.com.br

[Process Day 2011] A ELO Group – Apresentação no Process Day

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[Process Day 2011] A ELO Group – Apresentação no Process Day