Process Maturity Workshop

Report
Assessing Business
Process Maturity
Chicago ABPMP
October 2011
Chic a g o
Agenda
Chic ago
Topic
Speaker
Time
Round Table Discussion
Todd
20 minutes
BPM Maturity Overview
Brett
10 minutes
Forrester Model (BPMMM)
Jeanne
20 minutes
The Process and Enterprise Maturity Model (PEMM)
Todd
20 minutes
Process Strategy Group Model (PBMMM)
Pat
20 minutes
Networking Break
All
30 minutes
Group Exercise
All
20 minutes
Group Exercise Report Out
All
20 minutes
Group Findings & Discussion
Todd
20 minutes
Best Practices, Recommendations & Closing
Brett
10 minutes
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Round Table Discussion
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• Are you using a maturity model? Why or
why not?
• If you are using one – which one are you
using?
• How are you using it and what value does
it provide you?
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Maturity Models Overview
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Maturity Models
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• Stages of Growth Models
• Manufacturing Maturity Model
• Capability Maturity Model (CMM)
• Other IT Maturity Models
• Proliferation of Maturity Models
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Meta Model
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• Levels (Stages of Growth)
• Categories
• Characteristics
• Assessment Models
• Prescriptive Models
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BPM Maturity Models
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•
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AIIM
Amentra
Appian
APQC
Becker, Jorg
BPMG (8 levels)
BPTrends/Harmon
Cordys (SaaS BPMM)
EABPM (European
Association for BPM)
EDEN
Forrester
Gartner
Global360
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• Hammer
•
•
•
•
•
•
•
•
•
•
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Huffner, Tapio
IBM
IDS-Sheer (Software AG)
Innovation Value Institute
Knowledge Partners
International
McQueen Consulting
OMG (BPMM 1.0)
Oracle
Queensland University of
Technology
SMS Management
XMPro
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Forrester Business Process Council
Maturity Model
Jeanne Strepacki
Director, Business Process Council
Forrester Research
October 12, 2011
8
© 2009
2011 Forrester Research, Inc. Reproduction Prohibited
BPM maturity is about achieving the
right balance for your organization.
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© 2011 Forrester Research, Inc. Reproduction Prohibited
Agenda
 What is the Business Process Council?
 Why did we launch a Maturity Model for the
Council?
 What does the model include and why?
 How do our members use it?
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© 2011 Forrester Research, Inc. Reproduction Prohibited
Forrester Leadership Boards
A premier service level designed to help business process leaders solve business
problems with a curriculum using peer and Forrester insight.
8 Boards, 1000+ members, $1B+ companies
• Application Development & Delivery Council
• Business Process Council
•
•
•
•
•
•
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The CIO Group
Enterprise Architecture Council
Information & Knowledge Management Council
Infrastructure & Operations Council
Security & Risk Council
Sourcing & Vendor Management Council
© 2011 Forrester Research, Inc. Reproduction Prohibited
Forrester Business Process Maturity Model-based
assessment process
Identifies strengths and areas for improvement within an organization.
• Guided by advisor
• Connect to peers with
similar challenges
• Compare current
state to desired state
• Prioritize gaps to
work on
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• Peer best practices
• Analyst expertise
Forrester Business Process Maturity Model:
Self-assessment
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Five Levels of Maturity
0 — nonexistent Not understood, not formalized, need is not recognized
1 — ad hoc Occasional, not consistent, not planned, disorganized
2 — repeatable Intuitive, not documented, occurs only when necessary
3 — defined Documented, predictable, evaluated occasionally, understood
4 — measured Well-managed, formal, often automated, evaluated
frequently
5 — optimized Continuous and effective, integrated, proactive, usually
automated
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June 2011 “Health Payers Search High And Low For Their Business Transformation Edge”
Critical Areas For Business Process Pros Leading Business Process Change
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Business Criteria
 Strategic objectives
 Cross-domain consistency
 Customer empowerment
 Competitive forces
 External impact on process
 Business architecture
 Transformation project portfolio
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© 2011 Forrester Research, Inc. Reproduction Prohibited
Process Discipline Criteria
 Methodology
 Change management skills
 Change management effectiveness
 Change management tactics
 Process ownership
 Process governance
 Established goals
 Measurement and reporting
 Executive knowledge
 Executive leadership
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© 2011 Forrester Research, Inc. Reproduction Prohibited
Technology Criteria
 IT-business process alignment
 Business process tools
 Technology skills
 Alignment with MDM
 App Internet/mobile strategy
 Social and cloud strategy
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© 2011 Forrester Research, Inc. Reproduction Prohibited
BPM maturity is about achieving the
right balance for your organization.
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Forrester’s perceived current and future balance
requirements
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© 2011 Forrester Research, Inc. Reproduction Prohibited
How our members will use the tool
 Part of onboarding process
 Advisor/Member jointly create
roadmap: prioritize gaps to work
on
 Resource for best practices
 Quarterly updates
 Annual check-up
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© 2011 Forrester Research, Inc. Reproduction Prohibited
Thank You!
Jeanne Strepacki
Christophe Torride
Global Council Director
Senior Advisor, EMEA
+1 617/613-8110
+33 1 4758 9342
[email protected]
[email protected]
David D’Silva
Associate Advisor
+1 617/613-6165
[email protected]
22
© 2011 Forrester Research, Inc. Reproduction Prohibited
Chic ago
Todd Lohr
Michael Hammer’s
Process & Enterprise Maturity
Models (PEMM)
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Process Maturity
Chic ago
• Process Maturity provides a methodology to assess the
ability of our processes to provide optimized
performance to the business
• More mature process capabilities will drive enhanced
business results
• Process Maturity provides the framework to establish our
process structure and guides development of a process
roadmap
• The process maturity framework reviewed here is based
on the Process Enterprise Maturity Model (PEMM)
developed by Michael Hammer and summarized in The
Process Audit, Harvard Business Review, April 2007
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Process and Enterprise
Maturity Model
Chic ago
Process Maturity Models – A tool to help organizations
plan and manage their transitions to process. Consists of:
 a framework for assessing the maturity of any
particular business process and
 another for assessing the maturity of an enterprise as
a whole.
PEMM – a framework that helps executives comprehend, plan and
assess process-based transformation efforts. Companies need to
ensure that their business processes become more mature – that they
are capable of delivering higher performance over time. Companies
must deliver process enablers which pertain to individual processes and
enterprise capabilities which apply to the entire organization.
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Process Maturity
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Process Maturity can be viewed on twodimensions:
• Process Enablers – maturity of our individual processes to drive
process transformation within our business areas
• Enterprise Capabilities – foundational requirements across the
enterprise to enable successful process transformation within our
processes
Enterprise Capabilities
Process
Enablers
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Process
Enablers
Process
Enablers
Process
Enablers
Process
Enablers
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Prerequisites of Process
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• Effective process organizations require capabilities within the
enterprise to sustain their efforts
• These are the things that as an enterprise need to be in place to
sustain process transformation and are the responsibility of the
central Process Competency Center driven through the Process
Owners
• The Enterprise Capabilities are:
– Leadership
to authorize and enable the effort
– Culture
a value system receptive to what process entails
– Expertise
capability to plan and execute process transformation
– Governance
a system to manage the effort and ensure it doesn’t fall apart
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Enterprise Capabilities - Key
Aspects
• Leadership
–
–
–
–
Knowledge
Alignment
Behaviors
Style
• Culture
–
–
–
–
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Teamwork
Customers
Responsibility
Change
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• Governance
– Process Model
– Accountability
– Integration
• Expertise
– Personnel
– Methodology
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Process Enterprise
Capabilities
Chic ago
Fitting them together
Leadership
shapes
establishes
Culture
Governance
enables
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develops
Expertise
informs
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Enterprise Capabilities
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• Stronger organizational capabilities makes for
stronger enablers, which allow for better
process performance. 13 different dimensions
across
• E-1
• E-2
• E-3
• E-4
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Enterprise Maturity Scoring
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Process Enablers
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• Process enablers are required for each process for
sustained performance
• These are the things that each process team needs to
focus on for their respective process
– Design
specification of how the work is performed
– Metrics
used to assess and assure performance
– Owner
required to manage E2E view of the process
– Performers
knowledgeable users to ensure execution
– Infrastructure
required supporting mechanisms
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Process Enablers
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• Determine how well a process is able to function over time. They encompass
• the comprehensiveness of a process’s design
• the abilities of the people who operate the process
• the appointment of top-level process owner to oversee the process’s
implementation and performance
• the match between the organization’s information and management systems
• the process’s needs and the quality of metrics that the company uses to measure
process performance.
• Enabler’s strength determines how mature a process is
• P-1 process is reliable, predictable
• P-2 process delivers superior results because the company has designed &
implemented it from one end of the organization to another
• P-3 process delivers optimal performance because executives can integrate it with
other internal processes to maximize company’s performance
• P-4 process is best in class extending back to suppliers and forward to customers
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Process Maturity Scoring
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Chic ago
Process Strategy Group Model
Process Based Management
Assessment and Roadmap Model
Pat Dowdle-Process Strategy Group
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PSG View of
Process Based Management
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A holistic management approach that focuses on:
• Processes named
• Boundaries identified
• Standard methodology
• Infrastructure established
• Awareness & Communication
• Executive leadership
• Process included in strategy
• Measurement Architecture
• End-to-end performance
• Best Practices
• Benchmarks
• Leverage existing programs
• Identify linkages
• Develop common terminology
• Voice of the Customer
• Customer driven Products & Services
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Focus of PBM
Examples
P
B
M
Enterprise
management
approach
Individual
processes
Process Based Management,
Cost Management, Brand
Management
Strategy, Operating Plan,
Corporate Initiatives
Continuous Improvement, Lean,
Six Sigma, ISO, Target Costing,
Balanced Scorecard, Baldrige,
etc.
Process Maps, Value Chains,
Control Charts, Strategy Maps,
etc.
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Copyright 2011 Process Strategy Group All Rights Reserved
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PSG PBM Assessment Evolution
Chic ago
• Research from 1994-1997
• Experiences of 7 companies heavily engaged
in reengineering, with negative consequences
• Developed an approach to becoming process based
• 1998-2004: 15+ companies
• 5 case studies and additional research
- Bell Canada, Stat Oil, US Marine Corp, Boeing/USAF, Santee Cooper
• Developed the PBM Loop for evaluating implementation
progress
• PBM Program: 2004-2008: 15+ companies
• Developed an Assessment Model to evaluate progress
• Develop a Roadmap on how to implement PBM
• 2008-now: Ongoing development and supporting tools
• Free Quick Assessment and Assessment for an Organization
• Process Perspectives Newsletter: results of Quick Assessment
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Assessment and Maturity
Assessment
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Maturity
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Why do an Assessment?
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• Enlist and secure management support
• Engage staff in adapting to new process
culture
• Establish a baseline
• Identify and address Gaps
• Leverage Strengths
• Create actionable plans
• Alignment of strategy to process
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Results from Quick Assessment:
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PBM Assessment Categories:
How they relate
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Category Descriptions
Strategy & Planning
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Examines how your business strategy and Process Based Management
(PBM) strategy integrate. Evaluates how the organization executes its plan
for implementing and continuously improving PBM.
Governance
Examines the roles, responsibilities and structure in place to oversee the
implementation and management of PBM.
Deployment
& Integration
Examines the extent to which PBM deployment has been achieved, your
approach for cross-process integration, alignment with improvement
methodologies, and stakeholder involvement.
Evaluation
Examines how measures are designed and monitored to track the
implementation of PBM. Evaluates PBM implementation against leading
practices.
Process
Knowledge Management
Examines the structure and practices for capturing and utilizing process
knowledge.
Culture & Adaptation
Examines how you communicate PBM strategy, develop and maintain PBM
competencies, and adapt your culture to PBM.
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The Roadmap to PBM
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• Pathways for moving between Stages
• Detail steps for each Pathway
– What, Why, How, Who
– Inputs & Outputs
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Stages:
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PBM: Check up & Prognosis
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PBM Assessment Types
Quick
•
•
•
•
•
•
Web-based survey
Initial baseline
Overall Score
Stage of Roadmap
Limited feedback
2 Options
 Free
Multiple Participants
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Mini
Web-based text responses
25 question set
Targeted to Leadership
Online Feedback session
Prescriptive action plans
utilizing Roadmap
• Focused on gaps and
strengths
•
•
•
•
•
Chic ago
Full
• Integrated Assessment System
• Complete criteria
• Onsite interviews with key
personnel
• Full feedback session with
senior management
• Extensive feedback report
• Prescriptive action plans
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Culture and Adaptation Quick Assessment Questions
• How are process efforts
communicated to the
organization?
• The role our senior leaders
play in the Implementation
of Process efforts:
a) there is limited communication
b) Some communication occurs
in newsletters, emails, and
departments meetings
c) Communication of process
efforts and results are
frequently done to process
teams and performers
d) Communication of process
efforts and direction is ongoing
in all meeting agendas,
newsletters, strategy
discussions, and other
methods of communication
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a) They have a limited role
b) They are aware of the efforts , but
not the driver
c) They drive the efforts based on
current pain points
d) They drive the effort based on
strategy
Copyright © 2011 Process Strategy Group, LLC
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Quick Assessment Output
Chic ago
Take it Yourself :http://www.processstrategygroup.com/Quick_Assessment.html
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Copyright 2011 Process Strategy Group All Rights Reserved
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Full Feedback Report:
QA for an Organization
• We provide
you with a full
feedback
report that
highlights your
results
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Copyright © 2011 Process Strategy Group, LLC
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Process Strategy Group
•
www.ProcessStrategyGroup.com
•
Learn more or take the Free PBM Quick Assessment at
•
Learn more on the PBM Quick Assessment for an Organization at
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Chic ago
Group Exercise
Self Assessments
Break Into Groups
Pick a Model
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Group Findings & Discussion
Chic ago
• What did you find?
• How easy was it to use?
• What value do you think your organization
could get from using a maturity model?
• Do you think you have enough
management maturity to begin using a
BPM maturity model?
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Chic ago
Conclusion
Using Maturity Models
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Why Use a Maturity Model
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• Assessment
• Improvement
• Transformation
• Management Framework
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How to use a maturity model
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• Choosing/customizing/building a model
• Process Improvement/Transformation
• Process Management
• Internal (Productivity, Quality, Control)
• External (Positioning, Differentiation,
Strategy)
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Not the CMM…
Level 1: Initial
The software process is ad hoc, and occasionally even chaotic. Few processes are defined, and
success depends on individual effort and heroics. Frequent late nights and hollow, sunken eyes
are common. Programmers at each others' throats. Managers mostly very angry.
Level 2: Repeatable
Should a similar project be run, it would probably be just as chaotic. Team leaders have slim
control over the programmers. Project manager has installed MS Project, and printed out
reams upon reams of Gantt charts which have already started to block doorways and
commonly used pathways, e.g. from "zoo" area to kitchen. More late nights than not.
Programmers generally civil to each other, but often murmur discontentedly behind each
others' backs. Managers have bouts of rage during progress update meetings.
Level 3: Defined
The software process is documented, standardized, and integrated into a standard process for
the organization. Managers express keenness to use the process for any new projects, as soon
as all the current projects are finished. Programmers spend more time filling out forms than
writing software.
Level 4: Managed
Accurate metrics are collected for each project, as and when it fails. Detailed "post-mortems"
explain why the organization's standard process was not used yet again. Programmers spend
large proportion of day updating CV and hanging around the popular job sites.
Level 5: Optimizing
A miracle worker was passing by one night. Programmers angry because most of the jobs out
there are made-up.
Source: July, 2003; http://www.bad-managers.com/rumours/cmm_level_one.shtml
The roman empire Maturity Model
assimilate
(5)
Complete
dominance
Mercantile
conquest
Military
conquest
Explore
(1)
ad hoc Process
Diplomatic Process
colonize
(4)
cultural
conquest
Acculturation Process
occupy
(3)
Romans are
everywhere
commercial Process
Conquer
(2)
martial Process
We are the
world
Bow down to
Rome, send
tribute
Getting to
know you
Presented at ISACA, January 8, 2004
roman empire
When all else fails…
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Your Feedback Is Important
Chic ago
• Does this workshop format work for you?
• Topics for future workshops
• Speakers/Topics for talks
• Anything else
• Send to: [email protected]
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