This document discusses business process management and provides insights and practices for sustained transformation. It addresses key success factors for practitioners and depicts the enterprise as a dynamic system. Some key process elements of BPM are also outlined, including frameworks for evaluation and management. The document emphasizes that sustained process performance depends on an organization's capability to manage its processes through business process management.

1. Business Process Management
Insights and Practices for Sustained
Transformation
Business Process Management – ASIA PACIFIC
ARK Group – Connected Forum
Thursday 19th October 2010 | SYDNEY

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www.imrehegedus.com
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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Key Success Factors
CONSIDERATIONS FOR PRACTITIONERS
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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The Enterprise as a “Dynamic System”
Strategy
Results
Value Realisation Enterprise Value Realisation
Structures
Suppliers
Suppliers Process Technology Customers
Customers
People
Supplier System Customer
Partnership Relationship
Culture
Values
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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 Strategically-aligned
 Process-driven Strategy
Results
Value Realisation Enterprise Value Realisation
 Structurally-sound Structures
 Technology-enabled Suppliers
Suppliers Process Technology Customers
Customers
 People-centric
People
Supplier System Customer
Partnership Relationship
 Results-oriented
Culture
Values
 Customer-focused
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Some Key Process Elements of BPM
BE Framework How to evaluate our organisation as a system of inter-related processes
BPM Maturity Model How to evaluate our organisation’s ability to manage processes
BPM Framework How to manage processes as a central part of our business
Process Governance How to ensure sustained transformation and improved performance
Process Model How to context your key ‘value chains’
Process Technology How to automate and innovate your business processes
Process Maturity Model How to evaluate individual process capabilities
PI Methodology How to improve our processes
Project Management How to mange our improvement projects
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Process focus enabled by a Philosophy
 ”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
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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Insights and Practices
FROM
NETWORKING,
CONSULTING
AND
PRACTICING
BPM
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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BPM in context
Business Process Management
managing the enterprise as a system
enterprise-wide capability to
Process Management BPM continually improve and (re)design
managing specific processes new and existing processes
capability to continually manage
and improve specific processes
BPM Leadership
Process Stewardship PM
PI PD
Process Improvement Process (re-)Design
improving specific processes designing specific processes
realise capabilities of new processes provide
existing processes increased capabilities
DMAIC DMADV
“BPM is about managing and improving business performance through systemically and
systematically focusing on the business processes that deliver value.”
Hegedus: Business Process Management – Insights and Practices for Sustained Transformation (2008)
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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Process Improvement and Process Management
 Process improvement, whether driven from external market forces, regulatory
requirements, cost reduction, growth or even business survival, is a common starting
point and, sometimes, the only way in which organisations know ‘process’…
Public Private
Rank Business Driver
Sector Sector
1 Save money by reducing costs and/or improving productivity 1 1
2 Improve quality of processes 2 2
3 Improve management coordination or organisational responsiveness 3 5
4 Improve visibility and control of processes 6 3
5 Improve customer satisfaction to remain competitive 5 4
6 Improve management of resources 4 7
7 Improve existing products, create new products, or enter new lines of 8 6
business to remain competitive
8 Government or compliance requirements 7 9
9 Provide new revenue opportunities 9 8
10 One time event (merger or acquisition) 10 10
Question 11: What are the business drivers causing your organisation to focus on business process change?
(Rank all appropriate)
(Base=79)
Table 1. Business drivers causing organisations to focus on business process changes
“If there is a maturity gap between an enterprise’s ability to improve processes
and it’s ability to manage them, then the sustainability of any of the
improvements made comes into question.”
Source: BPM Practice in Australian Organisations
Harnessing the Potential of BPM
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Australian Enterprises expect a 2-5 year Return on
their BPM Investment
 Enterprise-wide process-driven change, like all others, requires a
methodology, significant investment, persistence, and patience
1 year
6%
Other
30% 1 – 2 years
22%
Don't know
9%
Longer than 5 years 2 – 5 years
1% 32%
Return on BPM Investment
Source: BPM Practice in Australian Organisations
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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BPM Deployment Lessons
 BPI provides immediate results while introducing concepts of
‘process thinking’
 BPI embeds Process Improvement and Project Management skills
and methods
 Strategic PI projects emphasise the need for Process Management
(and often for Process Owners)
 Process Models, BPM methods, and Process Ownership can be
developed using the knowledge gained from BPI
 The need for BPM becomes clear once a certain level of process
management ‘maturity’ is reached
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The PI and BPM Partnership
 Enterprises begin their ‘process journey’ by deploying
Process Improvement methods
 The sustainability of any Process Improvement (project)
is dependant on the capability of the business to manage
its processes
 Improve only what you can manage
 Continuous improvement is a function of the capability of
an enterprise to both improve and manage its processes
Manage to Improve
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The role of the BPM CoE
 Leading the strategy, design and deployment of the BPM effort. This
will include the development of process methods and standards
 Engaging the IT department and ensuring process-driven
technology investment
 Enterprise-wide focus to ensure strategic alignment, business
relevance and integration with other business components
 Process-centric focus to ensure the integrity and
comprehensiveness of the BPM and PI activities
 Prioritisation and program management of process initiatives
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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The BPM Centre of Excellence
Strategy Results
Value Realisation Enterprise Value Realisation
Structures
Suppliers
Suppliers Process Technology Customers
Customers
People
Supplier System Customer
Partnership Relationship
Culture Values
Process-centric focus on ensuring the
Systemic focus on ensuring the management and improvement
strategic alignment and value of
processes and the BPM effort to the
BPM CoE (comprehensiveness, integrity, and
accountability) for the all enterprise
enterprise processes
CEO
Marketing Operations Finance Service
Function Process
Heads Owners
Function-centric focus on ensuring Process-centric focus on ensuring
accountability and performance of the visibility, accountability, and
department through the enactment of performance of specific processes
agreed process elements across all departments
Source: Imre Hegedus Consulting
Source: BPM – Insights and Practices for Sustained Transformation
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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BPM Governance: Accountability
Insights and experiences
 Rarely:
 do the senior executive team fully appreciate what it means to be
process-oriented when the BPM Executives or CoE are appointed
 are Process Owners empowered or resourced appropriately
 Is the organisational* change effort fully appreciated or well managed
 Typically:
 Lack of clarity around roles (BPM CoE, Functional Owners, Process
Owners)
 Business function managers feel threatened by the concept of Process
Owners
 Role of governance is multi-dimensional and changes over time (leader,
convener, facilitator, enforcer)
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BPM Governance Success factors
Successful BPM Governance will be more likely when:
 The CEO and the leadership team endorse and resource (human and
financial) the BPM effort
 The BPM Governance body is empowered and filled by senior executives
 The structure and role of the BPM bodies are recognised
 Decision-making methods and rights are defined
 BPM methods and standards for the enterprise are defined and formally
endorsed
 The relationship with other governance bodies, such as corporate and IT
are clear
 An enterprise business model that contexts process activities is adopted
and managed
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Emerging Themes
THEMES AND CHALLENGES FOR IMPROVING (BPM) PERFORMANCE
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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
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BPM Perspectives: from Philosophy to Culture
BPM
Perspectives
World View Collective Wisdom
“this is how we see things” “this is how we do things”
Philosophy Discipline Practice Culture
Theories Frameworks Methodologies Values
Concepts Systems Structures Behaviours
Technologies and Structures
Source: BPM – Insights and Practices for Sustained Transformation
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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Sustained Process Performance is dependent on the
capability of the business to manage its processes
Process Maturity
The capability of specific processes
Optimised 5
Managed 4
Defined 3
BPM Capability Gap Repeatable 2
Initial 1
The capability of the enterprise to manage processes
BPM Maturity Source: Imre Hegedus Consulting
Focus on the relative positions of Process and BPM Maturity to bridge the BPM Capability Gap
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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Sustaining Process-driven Transformation through
Business Process Management (BPM)
 Enterprises begin their ‘process journey’ by deploying Process Improvement
methods
 The sustainability of any Process Improvement (project) is dependant on the
capability of the business to manage its processes
 Improve only what you can manage
 Continuous improvement is a function of the capability of an enterprise to both
improve and manage its processes
 All enterprises have processes. Whether they are visible, managed and improved as
a primary mode of their operations is what distinguishes a process-oriented
enterprise from one that is not.
 The process-orientation needs to occur across the enterprise processes and through
all levels of the organisational hierarchy…
Manage to Improve
“BPM is about managing and improving business performance through systemically and
systematically focusing on the business processes that deliver value.”
Hegedus: Business Process Management – Insights and Practices for Sustained Transformation (2008)
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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Improving Performance Seminars and In-House Training
www.improvingperformance.com.au
Deming’s System of Profound Knowledge
 Partnering with Quality Learning
Australia to design and deliver a series Appreciation
of learning experiences based on: for a System
 Quality improvement,
 Change management, and
 Process management principles System of
Knowledge Theory of
Profound
about Variation Knowledge
Knowledge
 By taking a wholistic perspective to
managing an organisation, we believe
that sustainable transformation may
be effectively managed
Psychology
!
Source: W. Edwards Deming
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved

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BPM Resources at:
http://www.imrehegedus.com/resources/index.php
Presentations “Business Process Management – Insights
and Practices for Sustained
 BPM: Aligning Business and IT
Transformation” (2008)
 BPM: Context-setting Models
To Oder:
 BPM: Key Elements P. (03) 9038 9007
E: report@imrehegedus.com
Articles
 BPM & Culture
 Customer Value: The Business Discipline of BPM
 Innovation and BPM
 BPM & PI: Business Performance Partners (part 3)
 BPM & PI: Business Performance Partners (part 2)
 BPM & PI: Business Performance Partners (part 1)
BPM – Insights and Practices for Sustained Transformation © Imre Hegedus Consulting – All Rights Reserved