This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
Janelle Hill
Advancing Beyond The Early Stages of BPM Maturity
Agenda
• Overview of Gartner's ITScore for Business
Process Management (aka BPM Maturity Model).
• Split into workgroups based on shared interests.
Brainstorm on critical dimensions that
advance/inhibit maturity.
• Share findings with all attendees.
• Summary and action plan.
Distinguishing Gartner's Five Levels of BPM Maturity
Progression
Level 1
Operational performance results are
subpar.
Fundamental change,
through a focus on
process, is explored.
Process-Aware
Ability to capitalize on
market dynamics is
subpar.
Optimization technology is
used to optimize business results across
processes.
Level 5 Optimized Processes
Best practices don't exist;
work is performed
inconsistently.
Automation introduced to
increase control.
Level 2 Coordinated Processes
Process and application
silos dominate.
Exceptions, lost time and
poor data are rampant.
Focus shifts to closing the gaps
across the silos.
Level 3
Cross-Boundary Process Mgmt.
Strategy-to-execution
links do not exist.
Advanced BPM
technologies are
introduced to create this
linkage.
Level 4 Goal-Driven Processes
“Before”
“After”
Investments in Six Dimensions Advance BPM Maturity
• Organization and culture
• Process competencies
• Methodologies
• Technology and architecture
• Metrics and measures
• Governance
Push When Ready
ITScore for BPM Maturity: Investment Guidelines by Critical Dimension
Level 1 Process-Aware
Level 2 Coordinated
Process
Level 3 Cross-Boundary Process Mgmt
Level 4 Goal-Driven Processes
Level 5 Optimized Processes
Organization & Culture
Critical
Dimensions
= Critical transition point
Key:
High Low Medium
= Investment level
Process Competencies
Methodologies
Technology &
Architecture
Metrics & Measures
Governance
The Maturity Model Assesses Key Capabilities Across Six Dimensions
Organization
and Culture
How formal are process-centric roles and responsibilities ?
Is there a formal Business Process Competency Center (BPCC)?
Do the collective values and beliefs reflect process-related attitudes and behaviors?
Process
Competencies
To what extent are process skills (e.g., modeling, analysis, measurement, simulation, coaching and team building) absent/ present ?
Methodologies Are there repeatable frameworks that deliver a sound, comprehensive and consistent approach and specific deliverables from project to project ? (e.g., Six Sigma, Lean, Kaizen, Balanced Scorecard and value chain analysis, BPM – custom)
Technology and
Architecture
What technologies and architectures exist to support process improvement competencies and projects? Are they aligned to the BPM vision?
Metrics and
Measures
Do process performance metrics (that optimize enterprise rather than functional unit performance) exist? Are they benchmarked, with targets established and measured regularly?
Governance
Do processes, policies and forums exist to prioritize process improvement initiatives and govern process optimization decisions, increase transparency, reward actions and recognize leadership in process change?
Workshop Exercise
• Break into interest groups based on dimension – 5 Min’s
- Select a spokesperson and scribe
• Identify Your Challenges (5 min per person)
- Each participant should introduce themselves and their role
- Each participant should discuss their current situation relative to the dimension for their enterprise. What aspect of this dimension inhibits your BPM project or program from advancing?
• Group brainstorming (25 min.)
- Jointly develop recommendations for next steps
- Capture recommendations on your flip chart
• Spokesperson for table will share results with all (25 min.)
Current
Future
Take Gartner’s BPM Assessment: Use Your ITScore Report for Planning Your Next Steps
Organization and Culture
Process
Competencies
Methodologies
Technology and Architecture
Metrics and
Measures
Governance
5
4
3
2
1
Based on your responses, your role maturity is: Level 2: Coordinated Process
Plot Your BPM Maturity Journey
Level 1 Process-Aware
Level 2 Coordinated
Process
Level 3 Cross-Boundary Process Mgmt.
Level 4 Goal-Driven Processes
Level 5 Optimized Processes
Acknowledge operational challenges
Document and analyze business
processes
Monitor PPIs and adjust for
effectiveness
Automation of routine activities
Champion role emerges
Process owners and governance
structures established
Fully functioning
BPCC
Measure, monitor and
adjust operational
processes in real time
Public reputation for
process excellence
Process hierarchy in place, aligned to
goals
Advanced technologies in use to balance
conflicting goals
= Key milestones for our company = Our planned maturity journey
Organization and
Culture
Dimensions
Process Competencies
Methodologies
Technology and
Architecture
Metrics and Measures
Governance
Action Plan for BPM Leaders
Monday Morning
• Assess your current state using Gartner's ITScore for the BPM diagnostic tool.
• Review the improvement goals for existing process improvement projects in light of your self-assessment. Reprioritize projects as appropriate.
Next 90 Days
• Share your assessment with key stakeholders. Engage in a discussion about Gartner's assessment.
• Initiate a key BPM project that is "guaranteed" to deliver business value, advance maturity and thus generate excitement for the approach.
Next 12 Months
• Plan your action steps to demonstrate the business value of BPM and reach your maturity goals.
Related Gartner Research
ITScore Overview for Business Process Management Janelle Hill, Jim Sinur (G00205169)
Toolkit: Building a Business Process Competency Center Elise Olding, John Dixon (G00175496)
Align BPM to Strategy by Targeting and Measuring High-Value Processes Bill Rosser, Michael Smith (G00168431)
How to Make Process Ownership Work Bill Rosser, John Dixon (G00201193)
Toolkit: First 100 Days of the BP Director Elise Olding (G00206468)
For more information, stop by Gartner Solution Central or e-mail us at [email protected].
Appendix
11
Advancing From Process Aware (1) to Coordinated Processes (2)
Champion process thinking
Organization and
Culture
Champion process thinking by discussing what BPM could do for your company. Provide educational sessions, create a recommended reading list, find and share case studies. Find other enthusiasts.
Process
Competencies
Identify BPM leadership team needs and possible education sources based on your 12-month goals. Hire "Gold" skills first. Enlist HR to help identify the pockets of skills that likely exist in your organization.
Methodologies Focus on process discovery, process modeling and value chain assessment. Use rudimentary or paper-based methods (such as observations, interviews and drawings/printouts from graphics tools).
Technology and
Architecture
Identify current technologies used to support your initial process improvement project. Identify duplicated and redundant functionality and gaps in automation. Begin with simple and high-level models that business roles can understand.
Metrics and
Measures
Collect just enough data to establish the need for more focus on process, and not just functions. Use data to prove that problems exist.
Governance
Nothing formal needed yet.
Advancing From Coordinated Processes (2) to Cross-Boundary Process Mgmt. (3)
Organization and
Culture
Create a process hierarchy model that depicts your enterprise view of the four to 10 end-to-end processes that your company must execute to deliver its mission. Use it to communicate resource dependencies. Establish importance of business architecture work. Formalize the BPCC.
Process
Competencies
Document the mission of the BPCC and establish the list of process competencies needed. Begin to source these skills. Expand to include coaching, change management and communication skills.
Methodologies Create a BPM framework, including methods to support all phases of the process improvement. Begin to fill your own methodology toolbox.
Technology and
Architecture
Select BPM technologies as appropriate to your project plans and needs. Publish guidelines on when to use BPM-enabling technologies to support explicit process management needs.
Metrics and
Measures
For two or three processes, define a process performance metric that optimizes enterprise (rather than functional unit) performance.
Establish your baseline and establish a performance target. Begin measuring.
Governance
Graphically model your approach to process governance. Define decision guidelines for process owners and vet with functional executives.
Formalize your BPM program
Advancing From Cross-Boundary Process Mgmt. (3) to Goal-Driven Processes (4)
Organization and
Culture
Establish a rotational approach to process ownership for cross-functional processes. SMEs should rotate into BPCC to work on projects.
Process
Competencies
Skills transfer has started from BPCC to employees. A rotational approach is in place to further socialize process skills. Simulation and optimization skills are acquired.
Methodologies Simulation techniques are used in the strategic planning cycle now, with the process view and current performance levels providing input that influences the strategy going forward.
Technology and
Architecture
Match technology investments to process management needs; not every process requires explicit management. Not every process needs to be goal-driven. Establish tighter guidelines to map technologies appropriate to desired maturity level.
Metrics and
Measures
Use scenario simulations to balance incompatible performance objectives and come to an acceptable, realistic compromise.
Governance
Publish a responsible, accountable, consulted, informed (RACI) model for the governance process for reference by all stakeholders.
Avoid overselling BPM
Business Dimensions by BPM Maturity Model Level: A Summary for Reference
Level 1
Process-Aware
Level 2
Coordinated
Process
Level 3
Cross-Boundary
Process Mgmt.
Level 4
Goal-Driven
Processes
Level 5
Optimized
Processes
Organization and
Culture
Functional hierarchy Isolated champions • BPCC in place
• CPI mentality
• Matrix mgmt.
• Strategic alignment
of processes to
goals
Reputation for
process excellence
Process
Competencies
Isolated Awareness of skills
gap
Tiered model for
skilling up
Process skills
reflected in job
profiles
Everyone has core
skills
Methodologies Nonexistent Experimentation with
a few legacy process
methods
Beginning of
standardized methods
Organization-specific
toolbox in place
Input from the
collective is
incorporated
Technology and
Architecture
Application silos Paper-based models
at best
• Enterprisewide
process
nomenclature.
• IT working with
BPCC
Comprehensive
business rule
management strategy
is in place
• Simulation,
optimization,
dynamic BPM and
more in use
Metrics and
Measures
Task-oriented KPIs Process performance
measurement starts
Process Performance
Indicators (PPI) in
place
PPIs linked to
strategic goals with
real-time updates
Scenarios are stored
for easy invocation
Process
Governance
Nonexistent Steering committee
funds application
investments by IT
Global process
owners supported by
BPM Council
Matrix model to
balance local and
global concerns
Decentralized, tiered
model with local
empowerment
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
Janelle Hill
Advancing Beyond The Early Stages of BPM Maturity