Automation Centers of Excellence: Addressing the Challenges of...

Automation Centers of Excellence: Addressing the Challenges of Leading RPA Change

October 4, 2016

© 2016 Alsbridge Proprietary & Confidential 2

Introductions

Craig Nelson, Managing Director. Mr. Nelson has over three decades of experience as a senior executive, consultant and sourcing advisor. Before joining Alsbridge he managed IBM’s global sourcing spend and was COO of MetaSolv Software. Mr. Nelson is a process design expert having earned his Six Sigma Black Belt designation from Motorola University and is leader of Alsbridge’s RPA change management offering. He has over the last five years focused his expertise on robotic process automation change management. Craig’s unique blend of process reengineering, automation and operational redesign, combined with his leadership experience make him a rare and sought after resource for organizations considering RPA implementation and governance. He has been instrumental in orchestrating complex change management and business turn-arounds in organizations from $250M to $30B in nearly every industry sector and size. Additionally Mr. Nelson has held directorships with Mercer Consulting, Towers-Watson, and Ernst & Young.

Jeff Frazer, Managing Director. Jeff’s background spans more than 20 years of enabling clients to solve diverse business issues and create transformative Business Process Outsourcing (BPO) solutions. Prior to joining Alsbridge, Jeff was Managing Director and Country Head for Xerox Services Canada with responsibility for BPO solution development and business growth. Jeff was an executive for Hewlett Packard in The Americas and for IBM in North America, where he led commercial strategy and solution development for multi-tower BPO & IT Outsourcing (ITO) client engagements. Jeff has been highly successful in the development of complex commercial outsourcing strategies involving the analysis of business objectives, financial baselines, competitive landscape, benchmarking, executive decision making processes, and financial models across a broad cross section of outsourcing solutions including IT, F&A, SCM, HR, and C


Session Abstract

§  Robotic Process Automation (RPA) is redefining the sourcing marketplace and driving transformational change for both enterprise clients and service providers. Amidst this fundamental change, however, many underlying sourcing strategy considerations remain constant. For example, the basic question of, “What do we outsource and what do we keep in-house?” is critically relevant to effective deployment of RPA solutions. Failure to properly delineate what functions are best-suited to third-party oversight and which ones require direct control leads to a wide range of risks, including scheduling issues, inefficiency and loss of business value.

§  This SIG Roundtable will examine how an RPA Center of Excellence can help buy-side enterprises develop an effective sourcing strategy around automation. Specific topics to be explored include:

•  Characteristics of an RPA CoE, including organizational structure and roles and responsibilities −  Key sourcing questions related to RPA −  Risks of ineffective RPA sourcing −  Steps sourcing executives can take to develop and implement a CoE

§  This interactive discussion will be led by Craig Nelson, an Alsbridge Managing Director.


Agenda

§ The Business of Automation § Components of an RPA CoE § Changes in Technology Innovation Sponsorship § Change Management and Operational Alignment § Metrics and Measurement § Summary CoE Functions and Capabilities


The Business of Automation


Are Business Leaders Embracing RPA


Why are Business Leaders Embracing RPA


§ Components of an RPA CoE


CoE Top Level View

RPA Assessment Baseline and

Strategy

Organization and Staffing

Technical and Performance

Standards

IT Alignment and Change

Management

Methodologies for New

Automations

Monitoring, Support and Maintenance

Functional Accountability

of the CoE

Maximize Business Impact

Deliver Value

Enable Process Changes

Objectives Key Functions of the RPA CoE


Operating Model Components

Governance How we make, sponsor and enforce the right decisions

Interactions How we interact to deliver consistent RPA services 3

Roles & Organization Who is accountable for doing the work

5

6

1 Functions & Capabilities

The building blocks that define how we deliver the scope (a function is a group of capabilities)

2 Processes How we execute the work

Metrics How we measure effectiveness

4

How The Work Will Be Done And/Or Supported By The RPA CoE

RPA CoE Operating

Model

Functions, Capabilities, Process

and Interactions How we control and

execute the work

Governance

How we make, sponsor and enforce the right

decisions for RPA

Metrics

How we measure process automation

effectiveness

Roles and Organization

Who supports and executes on the work


§ Changes in Technology Innovation Sponsorship


Key Interactions Map

Organization Area

Legend:

This chart depicts the areas of functional support required by the RPA COE and other RPA-significant organizational entities

Learning Support

Opportunity Identification and prioritization

Process Documentation

Program Management / Continuous Improvement

RPA Project Level Measures

IT

Infrastructure Support

IT Vendor Governance

Central Security Services

Business Units

Opportunity Identification and

Prioritization

Process Documentation

Environment Coordination

UAT

Maintain RPA Solutions

BU Level Change Management

Program Communication

Program Training

Change Programs (Knowledge, Skills,

Reinforcement)

RPA COE

Governance & Standards

Organization Enablement

RPA Development (RPA Factory)

Program Management

Support Activity

Incident/Problem Management

Technology Support To Enable More RPA

Collaborate on RPA initiatives and support

Collaborate on best practices and standards

Collaborate on IT-related issues and opportunities


RPA Delivery RACI Chart – Page 1

Ope

ratio

ns VP

Process A

nalyst

Process O

wne

r

CoE Assigned

Lead Con

figurator

Process E

nginee

r

Director PDO

Dir A

pplication / D

evelop

men

t

Solutio

n /Enterprise Archite

ct

Director of Infrastructure

Director Help De

sk and

Sup

port

Director Security

Busine

ss Analyst

Develope

r / Dev M

gr.

Release Manager

Archite

cture Re

view

Board

Executive Stee

ring Co

mmittee

Capital Com

mittee

Finance

Procurem

ent

Legal

HR Corp. Com

pliance

Head of the

CoE

RPA Team

Lead

Lead Analyst /B

RM

Lead Con

figurator

Configuration Manager

1 Governance Oversight C I C I C I C I I C C I I I I I I I A R

2 Process Definition I R R C C C C C I C C C C C A R C C C

3 Product Documentation R A R R R R R

2 Break/Fix, Robot Modifications/Enhancements I I I C I I I C I I C I I I I I A R C C R

6 Robot Portfolio Management I C C R A R C

RPA Configuration Development1 Solution Engineering & Design I C R R C C C A R C C R

Change Request Management1 Create & Maintain Procedures and Policy A C

Program / Project Management 4 Review and Approval A C C C C R C C C C I I I I I I I C A R

Automation Testing, Release and Deployment Management1 Create and Maintain Procedures and Policy I I I I I I I I I I I I I A I I I I I I I I

Automation Demand Management5 Prioritization and Scheduling of Automation Projects A I C C C R C C C C I C I I I I I I A R C C C

Incident Management1 Create and Maintain Procedures and Policy C I C C C C C C C C I C I I A R C C C

Business Relationship / Customer Satisfaction Management1 Initiate Customer Satisfaction Survey Process I C C C C I I I I I I I C C I I I I I A R C

ABC Corporate RPA CoE

RPA Operations

RPA Delivery

RPA Team Management

RPA Support and Maintenance

RPA Governance

Business Unit ABC IT

RACIR=Responsible A=Accountable C=ConsultedI=Informed


§ Change Management and Operational Alignment


Phase Value Risk if Not Done Properly

Transition Planning •  Vision of the path forward •  Anticipation of potential areas of transition

challenge •  Established change management team, transition

plan and capabilities prior to transition

•  Business disruption during transition •  Poor transition execution, leading to longer lead

time to cost/benefit realization •  Failure to deliver the promised savings •  Impact on quality of service

Communications Management

•  Develop communications strategy and plan considering all stakeholders

•  Effective employee communications and messaging

•  Risk mitigation for employee actions, loss of key talent

•  Unprepared for objections and resistance •  Incomplete view of communications requirements

for successful transition •  Legal action, failure to meet regulatory

requirements •  Communicators unaware of the nuances for

successful RPA transition

Organization Redesign

•  Aligned organization for the RPA “era” •  Eliminate chaos associated with unknown new

organization structures and new roles •  Reduce the likelihood of flight by key personnel •  HMS retained employees fully prepared to engage

in transition

•  Loss of productivity and quality prior to the initiation of transition

•  Employees unprepared for new roles •  Ill-timed loss of top talent needed for post RPA

organization

Change Management Phases - Risks

Understanding the risks connected with each change management phase


Phase Value Risk if Not Done Properly

Operational Alignment

•  Alignment and clarity on operational interactions and handoffs

•  Proactive identification of concerns to resolve during transition

•  Ability to sustain work processes during/after transition

•  Failure to align new processes with the realities of the business

•  Missed hand-offs when moving from before to after transition

•  Inability to fulfill business expectations and adapt to changing business conditions

Transition Management

•  Best-practice transition management, execution and controls

•  Mitigation of value leakage from the business case that occurs due to ineffective transition and governance structures

•  Optimized transition operations that ensure clarity performance and reporting accountability

•  Strong foundational governance structure

•  Sustainable operations damaged by transition conflicts

•  Business disruption during transition •  Poor knowledge transfer and transition

execution, leading to delay realizing planned business case benefits

•  Failure to deliver the promised savings or promised quality of service improvements

•  Resistance to organizational changes spikes

Change Management Phases - Risks

Understanding the risks connected with each change management phase (continued)


Overview of the process of implementing change management for RPA, showing key deliverables by phase

Communications Management

Implementation Management

Organization Redesign

Operational Alignment

Service Governance

Operate Deploy Test Configure Design Define

Organizational and Operational Readiness Assessment

Assessment / Strategy

Go / No Go

Strategy Phase Implementation Phase Run Phase

1- 4 Weeks Duration Based on Scope of RPA

Assessment establishes baseline and approach to plan

and manage the change process

Requirements to successfully

implement change

Organization and staffing for

retained organization

Plan for and execution of

communications throughout

implementation

Testing samples change

preparations and readiness

Governance plan and strategy to guide and direct

the operationalization of change

Overall Change Management Process


§ Metrics and Measurement


Business Drivers RPA Project Org Enablement Program

•  Program-level ROI •  Project – level ROI •  RPA resources trained •  Cycle time from request to production

•  Performance to business case

•  Quality improvements / defect reduction

•  RPA resources certified •  Reuse of modular configurations

•  Revenue cycle reduction time

•  Customer satisfaction •  RPA adoption rate •  Compliance improvement / logging

•  Human capital resource reduction / hiring avoidance

•  Efficiency / capacity gains

•  RPA impact – pre / post KPI performance

•  Accuracy levels

•  Business, operational, & technical cost and cost avoidance

•  Operational gains / risk reduction

•  RPA impact – pre / post SLA performance

•  Risk reduction

•  Impact on sales to customer value proposition

•  % of processes fully automated

•  Customer satisfaction / Employee satisfaction

•  Number of sales enabled with RPA as differentiator

•  IT / business innovations implemented / quarter

•  Demand compliance / quarter

RPA CoE – Performance Metrics


Real Client Cost Savings


Real Client Time Saved


§ Summary Coe Functions, Capabilities


RPA CoE – Functions, Capabilities and Processes

Governance & Standards

Organization Enablement RPA Development (RPA Factory)

Program Management

Process Automation Strategy

Process Analysis Security/Infrastructure Develop & Deploy Change Management

Relationship Management

Demand Management Project Management Metrics And Measures

Controls & Audits Provider Delivery Mgmt Financial Mgmt

Define and Design Build and Test UAT Implementation Planning Go Live Support / Maintenance

Infrastructure Planning & Mgmt

Communication Planning

Milestones and Deliverables

Track Status Of RPA Projects

Catalog RPA Solutions

Monitor and Measure

Report Program Metrics

RPA Continuous Improvement

Deliver Training

Change Programs

Assessment

Proof of Concept

Prioritization Security Design

RPA Center of Excellence

Add ongoing support to RPA Factory

Metrics and Dashboards

Report ROI Results

Compliance Assessments on RPA Deliverables

RPA Library Assessments

Security Assessments

Performance Management

Contract Management

RPA Team Administration

Internal

External

Forecast Demand

Demand Intake and Approval

Fulfill Demand


Governance Stakeholders Roles and Responsibilities

Governance Executive (Informed)

§  Approves substantial changes to scope and business case as deemed appropriate by the Governance team §  Consults on key strategic decisions as deemed appropriate by the Governance team

Governance Team (Accountable, Consulted,

Informed)

§  Oversees the governance process of prioritizing, approving and delivering RPA initiatives §  Reviews intake requests and approves requests for RPA action and delivery §  Stays engaged and informed on the impact to respective business units and RPA build-deploy progress §  Reviews and approves material changes to scope, financials, timeline of the initiatives §  Communicates progress, successes, challenges back to respective Business Unit/Corporate Center §  Provides resolution to escalations for issues, risk and scope §  Assures change management plan is developed and implemented

RPA Team Lead Management (Accountable, Consulted,

Informed)

§  Provides strategic direction and priorities support to RPA CoE Lead §  Assures alignment of the RPA CoE to prioritization and capacity requirements §  Resolves issues escalated by the RPA CoE in a timely fashion §  Monitors progress and status of RPA initiatives

RPA CoE Lead (Accountable, Responsible)

§  Overall management of the execution of the RPA functions and services, including RPA automation delivery, support and maintenance

§  Implements the priorities as approved by the Governance team §  Recommends prioritization and capacity requirements §  Resolves issues escalated by the RPA CoE team, business units and other stakeholders §  Communicates results, status and progress to Governance team §  Accountable for RPA CoE program deliverables and metrics

BU Representatives (Responsible for representing BU)

§  Initiates, facilitates and ensures communications between BUs and RPA CoE §  Represents BU; collects feedback within BU and serves as central point of contact with decision making

authority

Support Functions (e.g. IT, Compliance, Security)

§  Represents each function to the team and vice-versa; provides subject matter expertise and consultative support as needed

§  Leveraged for deeper understanding of processes, risks and issues §  Engages cross BU function partners to keep them informed and complete assigned project deliverables §  Member of core project team; communicates updates to core team


Project Stakeholders Roles and Responsibilities

Executive Sponsor (Accountable, Consulted, Informed)

§  Overall accountability for the implementation of the approved initiatives §  Ensures solution design aligns with approved initiative §  Responsible for the realization of the initiative's business case §  Ensures alignment of stakeholders with solution design §  Provides guidance to the Implementation Lead and team §  Removes roadblocks for the implementation team

RPA Team Lead (Responsible for overall effort)

§  Point of escalation §  Partners with Project Manager and SMEs to ensure that project deliverables are completed on schedule, in

budget and within scope, and meet the requirements and expectations §  Identifies and monitors financial and operational metrics §  Informs Governance team

Project Manager (Responsible for Project

Management)

§  Partners with RPA and business resources, and other stakeholders as needed, to ensure project deliverables are completed on schedule, in budget and within scope, and meet the requirements and expectations

§  Provides program structure, tracks program deliverables, budget health and emerging risks and issues §  Updates/maintains the overall project plan, manages issues, risks and scope §  Coordinates preparation of regular updates for Governance and management §  Schedules and chairs the project meetings §  Provides operational project structure, and tracks project health and emerging risks and issues

BU / SME Lead (Responsible for representing BU)

§  Represents BU to the team, and vice-versa; participates actively in the project, collects feedback within BU and serves as central point of contact with decision making authority

§  Provides Subject Matter Expertise §  Initiates, facilitates and ensures solid communication between business units and project team §  Reviews and aligns on prioritization of RPA implementation plans and opportunities

BU Representatives (Responsible for work stream

deliverables)

§  Provides Subject Matter Expertise §  Completes assigned project tasks/deliverables/milestones on schedule §  Represents BU to the team and vice-versa; participates actively in the project, collects feedback within BU and

serves as central point of contact with decision making authority

Support Functions (e.g. IT, HR, Compliance, Security)

§  Represents each function to the team and vice-versa; provides subject matter expertise and consultative support as needed

§  Leveraged for deeper understanding of processes, risks and issues §  Engages cross BU function partners to keep them informed and complete assigned project deliverables §  Member of core project team; communicates updates to core team


§ Appendix RPA Solutions Overview


Data Elements and “Intelligence”

Learning

Rules-Based

Structured Data Unstructured Data

Cognitive

Robotic Process

Automation

Autonomics


Alsbridge RPA Practice

§  Pioneering RPA since 2011

§  Partnered with major RPA software vendors to deliver services around their products

§  30+ dedicated resources in North America, Europe and AsiaPac

§  Data-driven methodology, tools, templates and IP

§  Service offerings include:

•  Assessments and strategy

•  Implementation

•  Training

•  Organizational change management

Robotics

Autonomics

Cognitive


Current State of the Market

Robotics Autonomics Cognitive

Business Goals Automation of repetitive, algorithmic processes to reduce cost and enhance speed, accuracy, availability and auditability

Automation of repetitive, algorithmic processes to reduce cost and enhance speed, accuracy, availability and auditability

Automation of non-standard, heuristic processes typically requiring human intervention…and pattern recognition in “big data”

Functional Targets Any process involving structured digital data and business rules

IT processes Processes that require voice interaction, image recognition and/or unstructured data

Value Proposition •  Automate any process •  Without changing the

process or the systems •  If/then logic •  Low cost to deploy/run •  Rapid deployment (4-6

weeks)

•  Automate IT processes with traditional integration

•  Learning algorithms to dynamically change business rules

•  Medium cost to deploy/run •  Fast deployment 4-6 mos.)

•  Structure unstructured data so that other tools can manipulate it, or…

•  Analyze “big data” beyond human capability

•  High cost and pilots that run 9-18 mos.


Current Vendors in the Market*

Robotics Autonomics Cognitive

*Example of representative leading vendors in each category. Not intended to be an all-inclusive list.


RPA CoE – Functions and Capabilities

Enterprise Governance &

Standards

Controls and Audit

Organization Enablement

Process Automation

Strategy

Org Change Management

Program Management

Demand Management

Project Management

Provider Delivery

Management

Metrics and Measures

RPA Development (RPA Factory)

Process Analysis

Security/ Infrastructure

Design

Develop and Deploy

Functions

Capabilities

Relationship Management

Financial Management

The key functions of the RPA CoE and the significant capabilities required to achieve success

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