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© 2006
The Business Process Maturity Model (BPMM)
The Business Process Maturity Model (BPMM)
Dr. John Alden – Managing Partner
Dr. Bill Curtis – Chief Scientist
Dr. John Alden – Managing Partner
Dr. Bill Curtis – Chief Scientist
An Overview for OMG Members
2© Capability Measurement, 10-2006
AgendaAgenda
•Kick off, introductions and purpose-John Alden•Overview of BPMM-Bill Curtis•Fit with OMG standards-John Alden
•Discussion-all*
* Questions and comments forward to:
johnwalden@capabilitymeasurement.com
Or IM’s:
Yahoo: johnwalden1019
AIM: aldensails
3© Capability Measurement, 10-2006
OMG standards relationships: OMG standards relationships:
Organizational Capability:
BPMM
•People CMM (SEI)
•Other standards for measurement: •ITIL, COBIT, and CMMI(SEI)
Business targeted standards:•BMM
•OSM
•BPMN
•SBVR
Software targeted standards:•SPEM
•BPDM
•MDA/MOF/UML
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The Ecology of Failed SystemsThe Ecology of Failed Systems
Inconsistentmaterials
Workoverloads
Lack ofmeasures& definedprocesses
Cascadingrework
Siloedfunctionalprocesses
Inconsistentprocedures foridentical tasks
Unmanagedcommitments
Unintegratedbest practices
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History of Maturity ModelsHistory of Maturity Models
AcquisitionCMM
PeopleCMM
SystemEng. CMM
CMMI
CMM forSoftware
Humphrey’sProcessMaturity
Framework
Crosby’sQualityMaturity
Grid
Shewart,DemingSPC &PDCA
BusinessProcess
MMDeveloped by two authorsof the CMM for Software
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Maturity Model TypologyMaturity Model Typology
OrganizationalCapability
Processmaturity
Desc
ripti
ve
state
sPre
scri
pti
ve
pra
ctic
es
Locus of Transformation
Level ofImplementation
Detail
ITIL Org.Growth
Crosby QualityMaturity Grid
CMMIContinuous
COBIT MaturityRatings
ITIL MaturityRatings
CMMIStaged
PeopleCMM
BusinessProcess MM
SOA MMs
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The Five Maturity LevelsThe Five Maturity Levels
Level 1Initial
InconsistentInconsistentmanagementmanagement
Repeatablepractices
Level 2Managed
Work unitWork unitmanagementmanagement
Standardized
best practices
Level 3Standardized
Business lineBusiness linemanagementmanagement
Quantitativelymanaged
practices
Level 4Predictable
CapabilityCapabilitymanagementmanagement
Level 5Optimizing
ChangeChangemanagementmanagement
Continuously
improvingpractices
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How the BPMM WorksHow the BPMM Works
Level 5Optimized
Implement continual proactive improvements to achieve business targets
Capable processesPerpetual innovationChange management
Level 4Predictable
Manage process and results quantitatively and exploit benefits of standardization
Predictable resultsReuse/knowledge mgt.Reduced variation
Level 3Standardized
Develop standard processes, measures, and training for product & service offerings
Productivity growthEffective automationEconomies of scale
Level 2Managed
Build disciplined work unit management to stabilize work and control commitments
Reduced rework Repeatable practicesSatisfied schedules
Level 1Initial
Motivate people to overcome problems and just “get the job done”
Mistakes, bottlenecksAd hoc methodsHero worship
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Structure of the BPMMStructure of the BPMM
Level 5
Level 4
Level 3
Level 2—
Managed
Level 1
MaturityLevels
Organizational Business Goverance
Organizational Process Leadership
Work Unit Requirements Mgt.
Work Unit Planning and Commitment
Work Unit Monitoring & Control
Work Unit Performance
Sourcing Management
Work Unit Change Management
Process and Product Assurance
Level 2Process Areas
SG1: Requirements are identified and evaluated
SG2: Requirements baseline is maintained
InG: Process is institutionalized
Work UnitRequirements
Mgt. GoalsSP1: Identify requirements
SP 2: Clarify requirements
SP 3: Evaluate requirements for implementation
SP 4: Negotiate requirements
SP 5; Maintain agreed to requirements
SP 6: Conduct regular requirements review
In 1: Describe the process
In 2: Plan the process
In 3: Provide knowledge and skills
In 4: Control the process
In 5: Objectively assure adherence
Work UnitRequirementsMgt. Practices
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Institutionalizing PracticesInstitutionalizing Practices
“The practices for [process_area]are institutionalized.”
Process Area
SpecificPractices
(Implementation)
Monitoring& Control
ProcessAssurance
Process Planning
Skills & Training
Process Description
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Level 1 – Initial OrganizationsLevel 1 – Initial Organizations
IndividualisticIndividualistic People rely on personal methodsfor accomplishing work
InconsistentInconsistent Little preparation for managing a work unit
InefficientInefficient Few measures for analyzingeffectiveness of practices
StagnantStagnant No foundation or commitmentfor improvement
UndisciplinedUndisciplined Few repeatable processes, oftensacrificed under pressure
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Initial OrganizationsInitial Organizations
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Level 2 – Managed OrganizationsLevel 2 – Managed Organizations
RepeatableRepeatable Work units use local procedures that have proven effective
CommittedCommitted Executives commit organization to improving operations
ManagedManaged Commitments are balanced with resources
ProactiveProactive Managers take responsibility forwork unit operations & performance
ResponsibleResponsible Work units are capable of meetingtheir commitments
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Staff
Work unitmembers
Executives
Ma
na
ge
rs
Level 2 Process Areas
Work UnitRequirementsManagement
Work UnitPlanning andCommitment
Work UnitMonitoringand Control
Work UnitPerformance
SourcingManagement
Process andProduct Assurance
Work UnitChange
Management
Org
an
iza
tio
na
l Pro
ce
ss L
ead
ers
hip
Org
an
iza
tio
na
l Bu
sin
ess
Go
vern
an
ce
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Level 3 – Standardized OrganizationsLevel 3 – Standardized Organizations
AdaptableAdaptable Standard processes tailored forbest use in different circumstances
OrganizationalOrganizational Integrate end-to-end businessprocesses across siloed functions
IntegratedIntegrated Establish standard processesfrom best practices in work units
LeveragedLeveraged Common measures and processespromote organizational learning
ProfessionalProfessional Organizational culture emerges from common practices
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StandardProcess
This is a process description derived from the local method of
doing itLevel 3
Levels 2 to 3 TransitionLevels 2 to 3 Transition
TailoredProcess
This is a process description derived from the local method of
doing it
WorkUnit 1
WorkUnit 2
WorkUnit 3
WorkUnit 4
WorkUnit 5
Enterprise-wide end-to-end, integrated business process
WorkUnit 5
Procedures
WorkUnit 5
Procedures
WorkUnit 5
Procedures
WorkUnit 4
• Do this
• Do that
Procedures
WorkUnit 2
1. Do this first2. Do this next3. Do this last
Procedures
WorkUnit 2
1. Do this first2. Do this next3. Do this last
Procedures
Confederatedwork units
WorkUnit 1
Procedures
WorkUnit 2a
1. Do this first2. Do this next3. Do this last
Procedures
WorkUnit 3
Procedures
WorkUnit 4a
• Do this
• Do that
Procedures
WorkUnit 5a
Procedures
Level 2
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Managers
Work unit membersStaff
Level 3 Process Areas
Product andService
Preparation
Product andService
Deployment
Product andService
Operation
Product andServiceSupport
Product andService
Management
OrganizationalProcess
Management
OrganizationalCompetencyManagement
OrganizationalResource
Management
ConfigurationManagement
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Domain Specific Process Areas
Product andService
Preparation
Product andService
Operation
Product andServiceSupport
Product andService
Deployment
Product andService
Management
MarketEvaluation
MarketCommunication
SalesSupport
ProductSpecification
MarketingManagement
Collection &Dispersement
FinancialReporting
FinancialModeling &Projection
FinancialGovernance
FinanceManagement
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Level 4 – Predictable OrganizationsLevel 4 – Predictable Organizations
QuantitativeQuantitative Process variation, performance, and capability understood quantitatively
Multi-functionalMulti-functional Functional processes reengineeredas roles in business processes
PredictablePredictable Outcomes predictable from sub-process capability & performance
StableStable Variation reduced through reuse,mentoring, & statistical mgt.
EmpoweredEmpowered Process data empowers staff tomanage their own work
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Managers
Work unitmembers
Staff
Level 4 Process AreasLevel 4 Process Areas
Organizational Common Asset
Management
OrganizationalCapability
Management
Quantitative Process
Management
Quantitative Business
Management
Business Process
Integration
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ProactiveProactive Improvements planned to achievebusiness strategies & objectives
SystematicSystematic Improvements evaluated and deployed using orderly methods
PreventativePreventative Defects and problem causes systematically eliminated
AlignedAligned Performance aligned across the organization
ContinualContinual Individuals and workgroups continuously improve capability
Level 5 – Optimizing OrganizationsLevel 5 – Optimizing Organizations
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Work unitmembers
Staff
Executives
Level 5 Process AreasLevel 5 Process Areas
Organizational Improvement
Planning
Defect and Problem
Prevention
Continuous Capability
Improvement
OrganizationalPerformance
Alignment
OrganizationalImprovementDeployment
OrganizationalProcess and
Product Innovation
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Health Care Services
Objectives: Reduce billing errors
Provide framework for 6 and business process reengineering
BPMM PilotsBPMM Pilots
International Bank
Objectives: Achieve cost reductions
External recognition for efficiency and low risk
Semiconductor Equipment
Objectives: Integrate improvement activities
Extend process maturity benefits to every business process
Gaming
Objectives: Integrate development,
installation, & support processes
Improve efficiency of operations
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Transforming the CultureTransforming the Culture
Dis
cipl
ine
Level 5Opportunistic
Improvements,Empowered culture
Level 5Opportunistic
Improvements,Empowered culture
Level 5Proactive
Improvements,Agile culture
Level 5Proactive
Improvements,Agile culture
Organization
Work unit
Individual
Level 4End-to-end process
managed statistically,Precision culture
Level 4End-to-end process
managed statistically,Precision culture
Level 3Organization develops standard processes,Engineering culture
Level 3Organization develops standard processes,Engineering culture
Level 2Project mgrs. establishdiscipline & stability,Commitment culture
Level 2Project mgrs. establishdiscipline & stability,Commitment culture
Level 1Ad Hoc processes,
inconsistent results,Hero-driven culture
Level 1Ad Hoc processes,
inconsistent results,Hero-driven culture
Trust
25© Capability Measurement, 10-2006
SummarySummary
1. The immaturity of business processes strictly limits the value and success of IT systems
2. The process maturity framework is a proven roadmap for improving process capability and unlocking the full value of IT systems
3. The Business Process Maturity Model enables greater fidelity between the actual performance of business processes and their model-based representations
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AgendaAgenda
•Kick off, introductions and purpose-John Alden•Overview of BPMM-Bill Curtis•Fit with OMG standards-John Alden
•Discussion-all*
* Questions and comments forward to:
johnwalden@capabilitymeasurement.com
Or IM’s:
Yahoo: johnwalden1019
AIM: aldensails