#BRF First hundred days of a BPM effort

Jim Sinur is talking about the benefits of a BPM effort.

BPM efforts have so far a ROI of at least 20%. 84% of BPM efforts are sponsored at CxO level or higher. 60% broken even in less than 1 year. Over 2/3 had benefits over 1 million dollar (record had over 100 million dollar benefit).

The relationship between BPM and rules. To keep your processes green, you need to be able to change your rules in your BPM.

What should the first 100 days of a BPM project look like?

BPM is a journey that affects culture, skill and the way work gets done. Every organization is different and there is no silver bullet.

“Am I going to lose my job?” There is a fear that people are going to lose their job. Need to make people understand that this is going to help them do their job. People feel happier doing their job when structured processes are in place.

Key issues

  • How should users assess organizational readiness?
  • How do you initiate BPM, what does a plan for getting started look like?
  • Critical factors for long term success?

Step 1: Phases of maturity, determine where you are, understand the journey

  1. Acknowledge Operational inefficiencies
    1. Measure and monitor business activities
  2. Process aware,
    1. Model and analyse BP
    2. establish performance metrics
    3. Identify process owners and governance structure
  3. Intraprocess automation and control
    1. Directly link process model and rules to executions
    2. Compare alternatives by various optimization techniques
    3. Integrate activity based accounting with process steps
  4. Interprocess automation and control
    1. Achieve process alignment
    2. Craft process automation across the enterprise customers and trading partners
  5. Enterprise Valuation Control
    1. Achieve comprehensive BRM strategy
    2. Goal driven processes
  6. Agile Business Structure
    1. Innovate new businesses, products and services through agile business structure

Step 2a: Understand your corporate culture. BPM is a cultural change, every organization is different, get help if you don’t have the skillset to do this.

Step 2b: What is your type of enterprise personality profile

  • Cultural aggressive
  • Cultural Moderates
  • Cultural Conservatives

Step 3: Understand Roles and Skill and establish a business process competency center. Critical: Get an executive sponsor.

  • Executive Sponsor
  • Business Process Analyst
  • BP Director
  • BP Project Manager
  • SMEs
  • BP Project Team

Step 4: Executive Sponsor: Get it Right. No absentee sponsors, no iron-fisted approaches, no indecisive leadership. Need to devote the time, be a good communicator, can make decisions, well respected, able to influence and motivated to succeed.

The BPM Plan

  • Determine your BPM Objectives
    • Cost savings?
    • Speed to market?
    • Compliance?
    • Customer satisfaction?
    • Efficiency?
    • Agility?
  • Define your processes and opportunities
  • Determine you initial organizational model
    • Start somewhere, and rapidly evolve to a blended model
  • Apply a “Getting started” checklist
    • (Checklist was too long for me to write all)
  • Document and Use the BPM Strategic Plan

Critical success factors

  • Don’t make the model the primary outcome
  • Plan for a sustainable BPM Program
  • Avoid the temptation to choose the tools first, see the whole, know the right methodology
  • Carefully select the first project
  • Assign the right resources at the right time

Recommendations

  • Understand your culture, political and competitive environment
  • Tailor your approach to meet the unique needs of your organizations
  • Understand the roles and build or hire the skills needed
  • Lay out you BPM strategy and document it in BPM strategic plan
  • Use results to communicate and educate to gain adoption
  • Use BPM to help your enterprise SURVIVE
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