A BPM Framework for KPI-Driven Performance Management

Report
Robert Osborne
Business Breakthroughs Inc.
Business Breakthroughs
Business Breakthroughs
•
Overview of the Enterprise Business Model and the
Governance Layer
•
Performance and Change Management as the Link Between
Governance and Operations
•
KPIs – the Strategic Gap Measure for BPM
•
Performance Management – from Discovery to Assignment
•
Change Management – from Assignment to Resolution
•
Quick Hits vs the BPM Portfolio – How to Choose the Path
•
Success Factors for Management Adoption
Business Breakthroughs

Identify the Changes
◦ Confirm Strategic Goals
◦ Establish Change Office
◦ Build Enterprise Business Process Architecture
◦ Choose KPIs – Cash, Employees, Customers, Suppliers
◦ Identify BPM & Change Projects

Implement Changes through Projects
◦ Operate the Change Management Office
 Facilitate Communication
 Facilitate Change Projects
 Support BPM Project Teams
 Enable the teams to be successful
◦ Communicate Vision, Strategy and KPIs

Maintain Progress
◦ Promote communication across the people at every level
◦ Monitor KPIs and close performance gaps
◦ Build teams and capabilities for change
Identify Goals,
Gaps
And Projects
Prioritize,
Guide and
Execute
Change
Monitor,
Measure &
Celebrate
Business Breakthroughs
Complete Strategic Analysis
and Build Meta-Architecture
Input
• Identity
to
• Vision
Models
• Strategic Objectives
• Existing documentation
• Subject matter expert input
• Value Reference Model
(VRM)
Manage
Change
Build
Enterprise
Business
and
Process
Models
Models
Build
KPI
Model
Validate
Architecture
(Process,
Function, KPI)
KPIModel
Model
KPI
Change
Project
Portfolio
Strategic Workshops
& Prioritization
Strategic Initiatives,
Gaps, and Quick Win
Opportunities
Business Breakthroughs
Business Breakthroughs
Company
Governance
Plan
Company
Business
Strategy
Define
Standards
of
Operation
Ensure
Compliance
Manage Company Performance
Key Performance Indicators
Manage Ongoing Company Operations
Execute Company Operational Changes
Manage Client Relationships
Manage Business Partner Relationships
Company
Operations
Brand
Mgmt
Market
Mgmt
Product
Mgmt
Lead
Generation
Sales
Product &
Service Delivery
Post-Sale
Services
Strategy to
Brand
Brand to
Market
Segments
Market
Segment to
Offering
Offering to
Opportunity
Opportunity
to Order
Order to Cash
Cash to
Satisfied
Customer
Product
Research
Product
Development
Product
Creation
Segments to
Innovative
Practices
Offering
Concept to
Design
Design to
Product /
Service
Company
Infrastructure
Services
Provide &
Manage
Operational
Finances
Provide &
Manage HR
Manage Product and Service Relationship
Provide &
Manage
Infrastructure
Manage Supply Chain
Provide &
Manage
Technology
Services
Provide &
Manage
Transformation
Services
Business Breakthroughs
Plan
Company
Business
Strategy
Company
Governance
Define
Standards
of
Operation
Ensure
Compliance
Manage Company Performance
Key Performance Indicators
Manage Ongoing Company Operations
Execute Company Operational Changes
Manage Client Relationships
Manage Business Partner Relationships
Company
Operations
•
KPIs are the “missing link” between strategies and operations
Brand
• Using
Mgmt
Market
Product
Lead
Sales
Product &
Post-Sale
Services
Brand to
Market
Offering to
Opportunity
Order to Cash
Cash to
KPIs
to identify
and prioritize
performance gaps
makes
sure
Mgmt
Generation
Service
Delivery
Mgmt
you’re fixing the most important things first
Strategy to
• The
Brand
more
immediate
thetofeedback
from operations
to management Satisfied
Market
Opportunity
to Order
Segment
Customer
via KPI Segments
reports andOffering
dashboards, the more agile the organization
becomes
Product
Product
Product
•
Research
KPIs come
in fourDevelopment
classes:
•
Creation
Manage Product and Service Relationship
Segments to
Offering
Financial
(Cash)
Innovative
Concept to
•
Design to
Product /
Practices
Design
Service
Service Delivery (Customers)
•
Supply Chain (Suppliers)
•
People
(Employees)
Provide
&
Company
Manage
Infrastructure
• Fewer is
better!
Operational
Services
Finances
Provide &
Manage HR
Provide &
Manage
Infrastructure
Manage Supply Chain
Provide &
Manage
Technology
Services
Provide &
Manage
Transformation
Services
Manage Performance

GM
Process
Owner
KPI


Operations
Analyze
Performance
Gap
Prioritize
Performance
Gap
Assign
Performance
Gap
Ownership


Change
Management
Office GM
Enterprise
Process
Architect
Change
Program
Manager
Quality
Performance
Manager

Change
Office
Team

Operational performance is reported via
KPIs
If there is a performance issue, the GM or
Process Owner is informed
The Performance Gap is confirmed and
rapid analysis performed
The Change Office team is available to
help with the analysis and provide
recommendations
Based on priority, action is taken; The
higher the urgency, the more immediate
the action
Ownership of the Performance Gap is
assigned to individuals or projects
The performance managers monitor the
KPIs to determine if and when the
corrective action is successful





The Performance Gap Owner reviews the issue
and determines, with help from Operations, if this
is a “Quick Fix” that can be handled by Ops. If
so:
◦
Ops team is assembled, and a short project
is conducted
◦
Solution is implemented and activated
◦
KPI is checked by the team and assessed
If the Ops team determines it is outside their
scope of competency or ownership, a
Performance Gap Project is defined, and added
to the Change Portfolio
Portfolio is evaluated regularly or upon request
by the Steering committee and Change Office
Using KPIs and Strategic Targets, the committee
prioritizes, funds and assigns resources to
projects
Active projects require teams, and the teams
execute projects, implement the solutions and
monitor KPI impacts
Manage Change
Steering
Committee
Identify
Potential
Solutions
Prioritize
Proposed
Solution
Portfolio
Change Office
Team
Prioritize
Project
Portfolio
GM
Execute
Project
Change
Project
Team
Project
Champion
Team
Leader
Ops Team
Members
Ops
Fixit
Teams
Project
Business
Leader
Project
Team
Business
Experts
Execute Quick Fix
Activate
Solution
Across
Group
•
Driven to resolving a specific
problem or achieving a specific
goal.
•
The solution can be identified
quickly
•
Implementation authority exists
on the team or can be confirmed
within one or two business days
•
All the people required are
immediately available
•
A short burst of activity & effort
(can range in hours to few days)
•
Emphasis on action over
extensive analysis
•
Initiative to resolve a more
complex issue
•
Cross-department issue, where
all the people required are not
immediately available
•
May require IT/MIS participation
•
The required level of activity &
effort is uncertain
•
More detailed analysis is needed
to understand and completely
identify the problem
•
Impacts multiple departments or
multiple companies
•
Requires sponsorship or
executive approval
10
Business Breakthroughs
Informed
Action
Over-Reaction
Action
Understanding
Action
Awareness
Understanding
Knowledge
Awareness
Knowledge
Analysis
Paralysis
•
•
This circle shows the risk of moving from
Awareness to Action without Understanding the
consequences and impact of those Actions
•
This circle represents the correct cycle of
progression
•
When undertaking a new initiative, teams must
worked round sequentially, beginning with
Awareness
•
Ensures that the action is within the correct
context
Equally there is a risk of failing to act quickly
enough through too much analysis.
Start Here
Business Breakthroughs
Document
Situation
Move on
to Next
Issue
Celebrate
Success
Identify Gaps
& Problems
Design
Solution
Improvement
Lifecycle
Make this
the Standard
Measure
KPI Results
Confirm
Feasibility
Make
Changes
Monitor
and Verify
Change
12
12
Manage Performance
Process
Owner
KPI
Operations
Manage Change
GM
Analyze
Performance
Gap
Prioritize
Performance
Gap
Assign
Performance
Gap
Ownership
Steering
Committee
Identify
Potential
Solutions
Prioritize
Proposed
Solution
Change
Program
Manager
Quality
Performance
Manager
Prioritize
Portfolio
GM
Execute
BPM
Project
BPM
Project
Team
Change
Management
Office GM
Enterprise
Process
Architect
Portfolio
Change Office
Team
BPM Proj
Champion
Team
Leader
Change
Office
Team
Ops Team
Members
Ops
Fixit
Teams
BPM Project
Business
Leader
BPM Project
Team
Business
Experts
Execute Quick Fix
Continuous Process Improvement
Activate
Solution
Across
Group
Business Breakthroughs
Change
Office
Manager
Steering
Committee
Portfolio
Financial
Controller
IT (MIS)
Enterprise
Process
Architect
Quality
Performance
Manager
Change
Program
Manager
Change
Project
Sponsor
Team Leader
Project
Team
Business Experts
IT Lead
Change Project
Team Structure
KPIs
Drive
Project
Priorities
for the
Teams &
Measure
Success
Business Breakthroughs
Vision
KPI

Strategies must
contribute to Vision
KPI

Operational KPIs
must contribute to
Strategies

Setup a KPI
Dashboard team that
is 100% committed
to building the
executive
dashboards

Implement the KPI
model in one value
chain at a time

Start small, get some
successes, prove
that the entire cycle
works
Strategic
KPIs
Value Chain KPIs
Activity / Workflow
Performance Metrics
Task Performance Metrics
KPI Model
Business Breakthroughs
 Use KPIs to maintain alignment throughout the organization
 The more current the KPI measure, the more agile the
organization can be
 A formal and fulltime Change/BPM office is needed;
Change/BPM is not a part-time job
 Dedicate team to build KPI Dashboards
 Define a clear process for how to react to KPI variations
Robert Osborne
Business Breakthroughs Inc.
Business Breakthroughs

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