1

Managing Business Processes and Change

DRIVING SUCCESSFUL BUSINESS TRANSFORMATION AND IMPROVEMENT INITIATIVES

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

Imre Hegedus Consulting All Rights Reserved

BPM Perspectives: from Philosophy to Culture

BPM Perspectives
World View this is how we see things Collective Wisdom this is how we do things

Philosophy
Theories Concepts

Discipline
Frameworks Systems

Practice
Methodologies Structures

Culture
Values Behaviours

Technologies and Structures

Source: BPM Insights and Practices for Sustained Transformation

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

Process focus enabled by a Philosophy and Culture

Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes

Mr. Cho Vice Chairman of Toyota

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

Emerging Themes in BPM

The Enterprise as a Dynamic System

Enterprise (Business) Architecture Executive Engagement

Continuous Improvement

BPM and BPI Business Excellence

Governance

Technology - Discipline - Culture The Cloud Methods - Collaboration

Imre Hegedus Consulting All Rights Reserved

Improving Performance | BPM Forum 2011 - MELBOURNE

CONSULTING

Improving Performance Managing the Enterprise as a Dynamic System

Imre Hegedus
Ark Group BPM Connected Forum | MELBOURNE 2011

Traditional BPM focuses on relatively narrow perspectives of enterprise system elements

BPM Maturity

the maturity of an enterprise to manage and improve its business processes

BPM Suites

the technologies enabling the BPM lifecycle

Process Governance

structures and roles to ensure the ongoing and integrated management of enterprise processes

Process Improvement

methods to improve specific business processes through rational and deficit-base analyses

People, Change, and Culture are referred to in passing

Learning is rarely ever mentioned!

Imre Hegedus Consulting All Rights Reserved

Improving Performance | BPM Forum 2011 - MELBOURNE

Sustainable Performance Improvement requires a focus on broader enterprise system elements

Integrating BPM and BPI

Selecting and sustaining improvement initiatives through BPM and Systems Thinking

Enterprise Lifecycles

Enterprise lifecycle stages inform the approach for managing processes and change

Engaged People

relationship-based positive inquiry to complement the rational deficit-based analysis

Cultural Awareness

appreciation for the culture being changed and that which being being strived for

Learning to improve performance

a system of learning as a means and a by-product of performance improvement

Effective Visual Communication

Using diagrams and graphics to effectively communicate messages succinctly

Imre Hegedus Consulting All Rights Reserved

Improving Performance | BPM Forum 2011 - MELBOURNE

The Enterprise as a Dynamic System

erved
Business Agility | Process-Driven Transformation Imre Hegedus Consulting All Rights Reserved

10

Enterprise Perspectives: Functional and Process Models

Functional Model Process Model
Australia Post Directing Plan Market

Customer

Activation

Fulfill

Service

Core

Enabling Manage Finance Manage People Manage Information Communications Technology Manage Assets and Services

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

11

Enterprise Perspectives: Systems Models

Process-centric Systems Model
Environment
D irect ing Processes
Strategy
Value Realisation

Dynamic Systems Model

Results Enterprise
Value Realisation

Change & Control Processes

Resourcing Processes

Planning Processes

Monitoring Processes
Structures

Core Processes

Suppliers Suppliers

Process

Technology

Customers Customers

Customers

Supplier s

O utputs

Inputs

People

Supplier Partnership

System Culture Values

Customer Relationship

Enabling Processes

The system m ap distinguishes between the core transactional processes that deliver outputs to the custom er and two distinct type of supporting processes. Enabling processes assure the provision of the infrastructure and operational support required for the core process to operate Directing processes are the m eans by which the core process m aintains relevance and eectiveness.

Most organizations have well developed enabling processes, which typically encompass shared services as well as function speci c processes such as equipm ent m aintenance and certi cation. However, it is also the case that most organizations directing processes tend towards the unstructured and ad hoc - ex cept for the centre piece of budgeting, which is the m ost comm on name for the resourcing processes in the diagram. Critically, the m onitoring processes should look both outside to the environment as well as to Improving Performance | internally to indicators of core and enabling process perform ance. custom er feedback, and also BPM Forum 2011 - MELBOURNE This monitoring should be synthesized by planning processes into inputs to the resourcing

Imre Hegedus Consulting All Rights Reserved

12

Enterprise Perspectives: In Practice

Organisation Chart Logo and meaning
This touches the Ethics Centre's conception of its role, which includes fostering and supporting practical change while not losing touch with the deeper springs of human consciousness and identity. The alchemist's approach reflects the Ethics Centre's understanding that there is a universal ethical sense and, properly understood, there is a shared set of values which informs most people most of the time. At the same time, the focus on process is important. Only an appropriate process offers the possibility that a transformation in thinking and understanding might occur.

Each sign relates to a process, and together these encapsulate St James Ethics Centre's core characteristics:

Source: http://www.ethics.org.au/content/ethics-centre-organisational-chart

An appreciation of the past combined with an orientation to the future Practical assistance based on sound theoretical principles An approach which is gentle in nature An approach which is non-judgemental

The strength of a good symbol is that many meanings lie hidden for future discovery
Source: http://www.ethics.org.au/content/st-james-ethics-centres-logo

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

13

Improving Performance

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

14

Improving Performance: Managing the Enterprise as a Dynamic System

This report brings together a unique set of disciplines, concepts, and case study experiences in one reference. The authors are all: 1. seasoned professionals ensuring real-world relevance and insight 2. thought leaders in their chosen field ensuring a strong research-base to the content 3. consultants who apply and refine their knowledge and experience across all industry sectors ensuring relevance to a broad audience

Contributing Authors

Robert Lamb: Sustained Improvement Malini Jayaganesh: Culture

Kimberly dela Cruz Odom: Change and Organisational Lifecycle Stages

Jane Kovacs and Michael King: Quality Learning Jeremy Scrivens: Appreciative Inquiry Graham Johnson: Effective Visual Communication

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

2012 INDUSTRY REPORT

15

Improvement through Systems Thinking

Demings System of Profound Knowledge

Systems: optimising the performance of a particular process will sub-optimise the whole system if not viewed in that context Variation: All processes exhibit variation. Ensure processes are stable before seeking to improve their capability Knowledge: Facts are mediated by theories and world views. Develop your own theory for improvement and continually validate it Psychology: Processes operate in a human context not always rational. Focus on intrinsic motivations rather than extrinsic motivators

Appreciation for a System

Knowledge about Variation

System of Profound Knowledge

Theory of Knowledge

Psychology

Adapted from: Deming (1993)

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

16

Culture is both a function of and an influence on your enterprise

Cultural Archetype Study Culture is an outcome
Strategy
Value Realisation

Japan

Perfection It works (better than before)

Suppliers Suppliers

Results Enterprise
Value Realisation

America
Structures

France

Process

Technology

Customers Customers

Luxury
Supplier Partnership

People

Germany

System Culture Values

Customer Relationship

Adherence to specification Relationship

We all agree that people are central to the effective management and improvement of our business processes and yet we tend to focus on the more technical aspects of the discipline!

Australia

Implications

Heroes respected over process Changes must engage employees A good recovery is often better than getting it right first time! See heroes

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

17

Change Principles underpin sustainable improvement

Adopt and adapt a Change Process

Sustainable change is linked to an enterprises capability to learn A systems-thinking perspective is key to planning and implementing sustainable change Develop a transformation program based on sound change management principles combined with tailored methods and a pace specific to your enterprise context

Adapted from: Kotter (1996)

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

18

The Enterprise Lifecycle informs the BPM Strategy

Enterprise Lifecycle and process change

All enterprises go through lifecycle phases Process Maturity is related to the lifecycle stage of an enterprise The Process Improvement and Management interventions are best tailored to suit the stage of the enterprise as well as the intent of the intervention Enterprise Transformation Programs seek to create a new lifecycle curve more than just prolong the existing one

Late Prime Early Prime Adolescence

The Fall

Aristocracy Salem City

Go-Go BPM BPI Courtship BPT

Bureaucracy

Infancy

Death

Growing
BPI: Business Process Improvement BPM: Business Process Management BPT: Business Process Transformation

Aging
Adapted from: Adizes (2004)

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

19

Learning to Improve Performance

Learning in a hierarchical enterprise

Performance Improvement occurs in an environment where employees are empowered to learn Learning and improvement are inherent characteristics of humans consider the enterprise elements constraining performance An effective framework for performance improvement is the System of Profound Knowledge

Management

Employer

Leadership

DO TO
Master

DO FOR
All Knowing Provider

DO WITH
Coach

ENABLE
Facilitator and Mentor

Extrinsic Motivation
Slave Passive Recipient Learning Participant

Intrinsic Motivation
Active Self-starting Learner

Controlled

Employee

Empowered
Adapted from: Langford (2009) and QLA (2011)

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved

20

Engagement through Appreciative Inquiry

Comparison of traditional improvement approaches and Appreciative Inquiry

Traditional
Exit Interview why are you leaving?

Appreciative Inquiry

Why are you staying and what have been your best experiences working here?

Deficit-based Analysis (rational) Define the Problem Analyse what is not working well (gaps) Analyse the problem Fix weaknesses and close gaps

Strengths-based Inquiry (emotional) Select a positive topic Look for positive experience - stories Identify what works Align strengths making weaknesses irrelevant
Adapted from: Scrivens (2011)

Reactive Technical Fix

Proactive Adaptive Growth

People embrace change that they are part of creating any Transformation Roadmap should engage people rationally and emotionally allowing them to take forward the best of the past
Imre Hegedus Consulting All Rights Reserved

Improving Performance | BPM Forum 2011 - MELBOURNE

21

Effective Visual Communication Simplicity is the Ultimate Complexity

Visualise your enterprise

Your audience must understand your message strive for the simplicity on the other side of complexity Presentation of content is not merely a matter of aesthetics it impacts effectiveness Some Industry Standard notations can inhibit communication effectiveness Have multiple representations of your message for your various audiences Broaden your message beyond the discipline or topic (ie. BPM or processes) to the value that your message has for your audience

Customers

Customers
Business

E-Banking

Branch Site

Customers

International Bank
Internal Employees
Government Oversight

ATM

Commercial Finance LOB

Services LOB

Home Mtg LOB

Customers

ATM

3rd Party Services

Payment Service Providers

Commercial Customers

Branch Site
Underwriting

3rd Party Services Legal Services Mortgage providers

Outsourced service providers

2011 IBM Corporation

Business Agility | Process-Driven Transformation

Imre Hegedus Consulting All Rights Reserved

22

The Enterprise is a Dynamic System

Strategy
Value Realisation

Results Enterprise
Value Realisation

Structures

Suppliers Suppliers

Process

Technology

Customers Customers

People

Supplier Partnership

System Culture Values

Customer Relationship

Improving Performance | BPM Forum 2011 - MELBOURNE

Imre Hegedus Consulting All Rights Reserved