Transcript Slide 1

BPMDS’09
Towards a
BPM Success Model:
An Analysis in South African
Financial Services Organisations
Gavin Thompson,
Lisa F Seymour &
Brian O'Donovan
Centre for Information Technology and
National Development in Africa
http://www.commerce.uct.ac.za/
Organisations/CITANDA/
Research Question
What are the enablers of BPM
success?
How is success defined?
Rosemann, de Bruin & Power
BPM success model [1]
Context
Strategic Alignment
People
Culture
Impact on Business Success
Information
Technology
Impact on Process Success
Methods
Business Process Management Success
Governance
Context
• SA Financial Services in 2008
– SA economy favourable until end 2007, shifted in 2008
– Increase in interest rates and oil prices,
– Concerns around political stability.
• Org1 & Org2
– large, multi-nationals
– reducing operating costs
– history of BPR
• Org3 & Org4
– medium size
– Started process improvement
with implementing BPM suite
Source: Kevin Lings, Stanlib, May 27, 2008.
Method
• Interpretive philosophy
• General Inductive
Approach [9]
• Semi-structured
interviews, 2
documents
Ref
Org.
Description
Ref
Org.
Description
Int1
Org1
BPM Program Manager Int8
Org3
BPM Domain Owner
Int2
Org1
Business Leader
Int9
Org4
BPM Program Manager
Int3
Org2
Business Consultant
Int10
Org4
Business Analyst
Int4
Org2
Process Owner
Art01
Org1
Process Improvement Roadmap
Int5
Org2
Process Owner
Art02
Org2
Way Forward with Lean Six Sigma
Int6
Org2
Business Leader
Sem01
Int7
Org2
IT Architect
Lean Deployment. Executive
Breakfast July 2008.
STRATEGIC ENABLER Findings
Ref
Corporate strategy
Performed consciously in only one instance;
consciously linked to core acknowledgement that this was difficult to achieve
processes
10,
11
Strategy to implement
the technology AND
principles of BPM
Organisations either had a strategy that addressed
the technology implementation or, the
implementation of a process improvement
methodology with only Org1 having both
‘Process’ recognised as
an organisational
dimension
In no cases did the participants agree that the
dimension of process was well understood
11
BPM initiatives driven
from the top
“Due to the vastness of what it entails, it is not
something you can drive from within the business;
you need to do it from a higher level towards
various businesses in the company”
12
Sufficient initial and
medium-term central
funding for BPM
“External factors such as the economic pressure that New
the organisation might experience could result in the
organisation going for short term gains rather than
long term gains and to get BPM right completely you
need to take a longer term view and take it slow
and get things established”
Not just strategic
alignment
CULTURAL ENABLER Findings
Ref
A culture of continuous
improvement
“Given that the organisation has been through a
number of cost reduction initiatives, this has made
people conscious that if we do not continuously
improve, you are going to get these large (process
improvement) interventions”
10
Process improvements
that don’t concentrate
merely on cost savings
Int2 stated that linking process improvement to cost
savings, rather than improvements such as
productivity, quality, and client experience was a
concern and would discourage adoption
16
A cross functional
(between business
functions and between
business and
organisations) team
work culture
large organisations were structured around the value
chain yet cross functional team work was difficult.
Difficult to find an optimal structure to manage
processes. “I do not think you will ever find an ideal
12
Empowerment and
incentivising of
employees to improve
the process
Only Org1 reported an incentive scheme to improve
process but suggested that it needed more work.
Org2 and Org4 had Key Performance Indicators to
measure employees’ contribution to process
improvement
16
structure as at some stage you will have to go across
boundaries and you will need to make sure that your
MIS and culture is such that you can manage that”
PEOPLE / RESOURCE
ENABLER
Findings
Ref
The development of a
process understanding
amongst all employees
but selected promotion
of BPM understanding
“...people still tend to view things functionally and
not necessary in a process dimension” (Int8)
“The communication of BPM into the organisation is
low key, specifically because we are trying to move
away from this being the next fad. It is more
something that we build into the fibre of the
organisation rather than a big bang, ho-ha, ra-ra
type approach of implementation” (Int2).
10
A well defined BPM
training programme
Employees involved in process improvement need to
be skilled in process modelling, analysis and
simulation
11
Sufficient IT resources
There appears to be a real danger that organisations New
can become efficient at identifying improvement
opportunities but not efficient enough at
implementing these. There need to be sufficient IT
resources available to implement improvements in a
timely manner.
GOVERNANCE
ENABLER
Findings
Ref
Clearly defined
process owners
“If you look at it from a process point of view that
crosses boundaries or business units, then
someone needs to overlook the total process.
Currently we are not set up like that so it is more
silo driven for a specific piece of the process”
11
(Int5)
A cross-functional
facility that has
responsibility for the
management and
improvement of
processes and the
adoption of a formal
process improvement
methodology
12,
“...they have a group that they call the Process
16
Owner Team with representatives from
Distribution Support and New Business and they
talk through process issues across the boundaries”
(Int3).
The larger organisations had both adopted a
formal process improvement methodology (based
on Lean or Lean Six Sigma)
METHODOLOGICAL
ENABLER
Findings
Standardised process
mapping and storage
practices
“We don’t have a central process repository… but it is 19
quite tough to come up with an answer that everyone
is going to buy into” In two organisations the
Standardised process
measurement;
simulation and
monitoring practices
Only Org3 reported that they were able to measure
process quality to an acceptable standard. Three of
the organisations were using metrics to monitor and
adjust process performance.
10
Develop a flexible
process improvement
methodology that fits
with the organisation’s
culture and maturity
In addition to Lean and Six Sigma, both large
organisations were doing work around Client
Experience and incorporating these techniques into
their own process improvement methodology.
Employees were put off by Lean’s manufacturing
background and terminology such as ‘waste’
New
Quantify the value of
BPM through smaller
projects
“I think we first want to see what will come of this
(pilot project) before it is driven as a company-wide
initiative”
13
Ref
Business Analysts did process mapping in Microsoft
Visio, IT developers then re-did these in the BPMS
interface prior to generating executable BPEL code.
IT ENABLER
New Findings
An appropriately priced
BPMS, with good
vendor support and
proven implementation
history
three organisations reported that they were dissatisfied
with vendor support levels as well as their level of
technology knowledge
BPEL compliant BPMS
with good BAM and
process rules capability
All of the suites could model and execute processes and
had some BAM capability. However, not all were using
BAM and that the BPMS at Org1 was not BPEL compliant.
Two organisations reported that their BPMS rules engine
capability was not very powerful.
BPMS needs to fit the
IT architecture with
good legacy system
integration
Int3 made specific mention of the dependence of BPM on
SOA. Two organisations reported that integration was
relatively easy. One of these organisations selected its
BPMS based on compliance with its current technology
stack and strategic technology plans. Both Org3 and
Org4 reported integration issues. “The integration into
existing systems was not as easy as we had thought and
it took a lot more effort than we had originally thought”
(Int9)
Insights on Technology or
Methodology first
Org1 and Org2 had started with process improvement and was following
that with technology. “We did a lot of departmental level Lean
improvements but realised that we could not get any further
improvement until we started linking our value chain together and
supporting that by BPM” (Int1).
In contrast, both Org3 and Org4 had gone the technology route first. “We
have to bed the system down and then look at how we can improve the
process” (Int8).
The technology-first approach:
• may help to alleviate some of the IT resource constraints,
• would provide rich process metrics to support Six Sigma’s statistical data
analysis requirements.
Linkages
• A continuous improvement culture can not be
established in isolation of a clearly communicated BPM
strategy.
• Many of the People/resource enablers will be best
addressed when there is a clearly communicated BPM
strategy in place.
– The structured training
– The creation of IT capacity to implement process
improvements. The average IT department will be unwilling to
incur this extra cost unless it is in response to a stated
corporate strategy.
• Process improvement methodology needs to be
customised to organisational culture.
– Creating a process language that employees can identify with.
• The use of methodology is dependent on the amount
of technology implemented, specifically BAM
BPM enables
Process Success
• Process Quality
– “It definitely reduces error rates. …
– The error rates were previously about 5 – 8% and are now down to
0.something %”
• Process Efficiency
– “The automation saves time. We are definitely doing a lot more now
with the same number of people than what we did two years ago”
• Process Agility
– Int3 reported that his organisation had to wait about six months to
get process changes implemented on its legacy systems, with BPM
technology, they would benefit from better process agility and
flexibility
Defining BPM
Success
• Process success does not
necessarily result in business success.
• Business Success can be measured through
improved operational cost efficiency, improved
client experience, and business agility.
• BPM Success should only be achieved when
BPM initiative leads to measurable degrees of
business success.
Conclusion
• This research
•
•
expanded on the
Rosemann, de Bruin
and Power [1] BPM success model
Generalisability can be argued
It is hoped that this model will be able to assist
organisations in making a success of BPM and that future
research could validate this model in other industries.
References
1. Rosemann, M., de Bruin, T., Power, B.: A model to measure Business Process
Management Maturity and improve performance. In Jeston, J., Nelis, J. (Eds), Business
Process Management, Butterworth-Heinemann, London, Chapter 27 (2006)
10. Lee, R. G., & Dale, B. G.: Business Process Management: A Review and Evaluation.
Business Process Management Journal, 4 (3), 214-225. (1998)
11. Melenovsky, M. J., Sinur, J.: BPM Maturity Model Identifies Six Phases for Successful BPM
Adoption. Stamford: Gartner (2006)
12. Rosemann, M., de Bruin, T.: Application of a Holistic Model for Determining BPM Maturity.
Proceedings of the AIM Pre-ICIS Workshop on Process Management and Information
Systems, Washington D.C., December, 46-60. (2004)
13. Mooney, L.: Building a Business Case for BPM - A Fast Path to Real Results,
http://www.metastorm.com/ec/sf/WP_Building_a_Business_Case.asp (2008)
16. Lees, M.: BPM Done Right: 15 Ways to Succeed Where Others Have Failed,
http://whitepapers.silicon.com/0,39024759,60447963p,00.htm (2008)
19. Engiles, M., Weyland, J.: Towards Simulation-Based Business Process Management.
Proceedings of the 35th Conference on Winter Simulation: Driving New Orleans
Innovation, 225-227. (2003)