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Business Process Excellence: Building Out Business Process Capabilities

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In this presentation, we explore whether the business process improvement capability is best built from the bottom up (a “grassroots” effort) or built via a separate, dedicated function that is governed and managed centrally.

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Business Process Excellence: Building Out Business Process Capabilities

  1. 1. NOTICE: Proprietary and Confidential This material is proprietary to Centric Consulting, LLC. It contains trade secrets and information which is solely the property of Centric Consulting, LLC. This material is solely for the Client’s internal use. This material shall not be used, reproduced, copied, disclosed, transmitted, in whole or in part, without the express consent of Centric Consulting, LLC. © 2013 Centric Consulting, LLC. All rights reserved Building-out Business Process Capabilities Within Organizations: Business Process Centers of Excellence as Accelerators At Centric, we deliver unmatched client experiences that center on collaboration. Working together, we implement lasting solutions that work. Solutions that matter.
  2. 2. AGENDA • Introduction to Process Excellence • Business Process Capability Maturity Model • Leveraging COE’s as Accelerators • Centric Overview 1/27/ 2
  3. 3. Business Process Engineering: involves the redesign of core business processes to achieve dramatic improvements in cost, productivity, cycle- times and quality. WHY BPE? Driving Performance & Customer Satisfaction: Achievement of superior business performance through ongoing process management and resulting process optimization. • Service & Quality: Meeting and exceeding customer expectations around quality, customer service and responsiveness. Producing with minimal defects. • Cost Effectiveness: Managing total costs to enhance customer and shareholder value as well as drive competitive advantage in the marketplace • Reliability: Maintaining predictable, repeatable and consistent operational performance. • Scalability: Providing the operational foundation to effectively scale and support top line growth without large increases in headcount and cost • Flexibility & Responsiveness: Providing the operational foundation to effectively scale and support top line growth without large increases in headcount and cost Typical Performance Impacts What Does BPE Enable? 1/27/2016 Client
  4. 4. BUSINESS PROCESS CAPABILITY MATURITY MODEL Stage 1: Process Aware Stage 2: Coordinated Process Stage 3: Cross-Functional Process Mgmt Stage 4: Goal-Driven Processes Stage 5: Optimized Processes Process Aware Coordinated Processes Cross-Functional Process Mgmt Goal-Driven Processes Optimized Processes Process Definition Processes are manual, undefined; metrics are poorly understood Processes dependent on individuals and have limited documentation; performance is tracked intuitively and qualitatively Processes are understood and documented; measurement is a systematic part of the management processes Performance Management is embedded; processes are continually improved and automation is applied in key areas Process Excellence is an intentional part of the culture; systems and structures are in place to monitor and adjust processes real time Organization & Governance Functional hierarchy/ silos Isolated Champions CoE in place, process improvement mentality Process Owners Strategic alignment of processes to goals Process excellence mentality (continuous improvement) BPI Competencies Isolated Awareness of skills and gaps Tiered model for “skilling- up” Process skills reflected in job profiles Everyone has core skills Methodologies Nonexistent Leveraging multiple in ad- hoc manner Standardized methods Organizational “tool-box” in place Enterprise input Technology & Architecture Application silos Paper-based models Enterprise process nomenclature, IT linked with Process CoE Comprehensive BPM/business rule mgmt strategy in place Dynamic BPM enablement with simulation and optimization Performance Management (Metrics) Task-orientated KPIs Initiate process KPIs Process KPIs in place across organization Process KPIs linked with strategic goals (real-time) Scenarios available for analysis 41/27/2016
  5. 5. Though there is a critical mass of companies at more advanced maturity levels, the vast majority of your peers are in early stages of process maturity WHERE ARE YOUR PEERS RELATIVE TO THE PROCESS MATURITY CURVE? 1/27/2016 10% 13% 15% 26% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% No PEX Program Small Scale Process Pilot Have FTE's But No Formal Program One or More BU's Enterprise Wide Program Scope of Process Efforts Majority of organizations are at CMM level 0 -2 SOURCE: SPECIAL REPORT: ALIGNING STRATEGY WITH OPEX TO DRIVE SUSTAINABLE, ENTERPRISE-WIDE TRANSFORMATION; PEX PROCESS EXCELLENCE NETWORK 2015/16
  6. 6. Most companies employ a relatively small team of BPI/PEX practitioners that tend to report across a multitude of departments within organizations SIZE AND REPORTING RELATIONSHIP OF PROCESS TEAMS 1/27/2016 6% 5% 8% 24% 58% 0% 10% 20% 30% 40% 50% 60% 70% 200+ 100 - 200 50 - 100 10-50 0-10 2% 2% 4% 8% 13% 16% 17% 25% 0% 5% 10% 15% 20% 25% 30% Human Resources Engineering IT COE Quality Business Units Operations Process Improvement Group BPI Team Size (FTE’s) Departmental Responsibility Many organizations do deploy PEX practitioners through Centralized Teams SOURCE: SPECIAL REPORT: ALIGNING STRATEGY WITH OPEX TO DRIVE SUSTAINABLE, ENTERPRISE-WIDE TRANSFORMATION; PEX PROCESS EXCELLENCE NETWORK 2015/16
  7. 7. 7 The CoE collaborates with and enables Business Units to become self- sufficient over time by building BPI capabilities within their businesses transitioning to a Federated model augmented by a centralized CoE. Level of Support FacilitatedCOE Led BU Led Progression over time to BU’s becoming self-sustaining CoE Collaboration and Engagement Model CoE and Business Unit Complete Business Diagnostic and Determine Highest Impact Projects CoE and Business Unit Jointly Complete High Impact Delivery Projects Business Unit Begins to Own and Lead Continuous Improvement Efforts BPI CoE Business Units * Each business unit leveraging BPI needs to plan to allocate, hire, or augment externally these roles for on- going BPI Projects dependent upon the project scope and their resource bandwidth * Our clients typically leverage external BPI SMEs (subject matter experts) to build internal capabilities/train resources www.centricconsulting.comConfidential and Proprietary BPI COE ENABLEMENT & GOVERNANCE MODEL
  8. 8. Supplemental Material 1/27/ 8 • Business Process COE Benefits • Functions of a Process COE • Implementation Considerations • Illustrative Organization Model • Client Samples
  9. 9. Our recommended BPI Program approach is to leverage a centralized Enterprise BPI Enablement Team/Center of Excellence (CoE). Process Team/BU 3 Process Team/BU 2 Process Team/ BU 1 BPI CoE BPI Program/Project Governance Provide Cross-Organization Governance & Coordination • Drive governance, standards and policy • Provide leadership and expertise pertaining to business process improvement and operational excellence • Be the central utility in the identification, prioritization and coordination of cross- organization BPI efforts • Maintain overall implementation roadmap / change plan • Facilitate BPI Advisory Team / Steering Team involvement Enable a Process Driven Culture to Accelerate Value Delivery • Provide education to the business on BPI • Assist operating groups in identifying & prioritizing opportunities • Facilitate process improvement across functional areas/business units to increase savings (minimize sub-optimizations) • Provide expert process and technology skills and resources to help deliver initiatives • Develop, maintain and make available best practice methodologies, templates and tools • Facilitate knowledge transfer of best practices, opportunities and lessons learned across company • Provide flex resource capacity for operating groups Build Sustaining Capability throughout Organization • Assist operating groups in the development of internal operational improvement and BPI technology capabilities (infrastructure, training, leadership development, performance mgmt., etc.) to manage process on an on-going basis BPI CENTER OF EXCELLENCE ENABLEMENT MODEL www.centricconsulting.comConfidential and Proprietary 9
  10. 10. FUNCTION OF THE BPE COE - POTENTIAL OPERATING MODEL The BPE COE acts as an internal consultancy that provides services to multiple BPE projects, programs and initiatives. It also establishes BPE guidelines, standards and tools, and provides services that enable the enterprise to adopt and evolve its BPE competency over time. Engagement Mgt & Delivery Planning, preparing and delivering engagements at the highest quality level COE Strategic Intent Mobilization & Prep Delivery Quality Assurance Pipeline Mgt / Prioritization Opportunity Identification Awareness/ Relationship Mgt Financial Mgt Training/ Resource Development Demand & Resource Planning Toolset / Methodology Development Alliances Governance Opportunity Identification Generating demand for BPE COE services and management of opportunity pipeline. COE Practice Mgt Developing and managing the COE practice required to support day-to-day operations COE Functions to be Considered www.centricconsulting.comConfidential and Proprietary 10
  11. 11. ESTABLISHING A BPE COE • Reporting Structure of the BPE COE: Initially BPE COE’s typically report to either the IT or the Business and evolve to a hybrid model over time. • COE Charter, Services and Operating Vision: Determine the scope of the COE and how it will operate within business units and across HUB • COE Resource Model: Define roles, skill-sets, and capacity required. Close on approach to source, develop, and manage BPE practitioners across Kemper and the BU’s • Common Methodology and Tools: Collaboratively determine relevant BPE methodologies and tools for use within HUB. Decide on governance model to ensure consistency • Implementation Approach and Plan: Evaluate potential implementation and phasing options and decide on approach, staging and high-level timing of standing up the COE. • Don’t Overburden or Complicate Process Work: Making process work too bureaucratic and overly complicated can derail a BPE program. • Modeling - avoid requiring as-is models in detail (task-level) and for every process • Project Work Plans - create project templates to accelerate project startup, and ensure consistency; however, avoid requiring burdensome amounts of detail and upkeep • Align with and Avoid Redundancy with Other Governance Efforts: Avoid overlaps with other established groups and governing bodies as this could lead to diminished accountability and conflicts of interest. Key decisions and common pitfalls to avoid: Decisions Common Pitfalls Source: Elise Olding. “Best Practices and Pitfalls for Business Process Competency Center Success” Gartner, March 22, 2010 1/27/2016
  12. 12. EPMPO / BU ROLE IN BPE GOVERNANCE 1/27/2016 12 BU’s will conduct discrete projects, participate in enterprise project portfolio decisions and contribute resources to cross-BU business process work BU COO’s are members of the EPMO Steering Committee which assesses and approves projects across the enterprise BU COO’s and their respective BPE Leads will participate in defining the Charter and Strategy of the Enterprise BPE COE BU COO’s Contribute their respective BU BPE resource participation on cross – enterprise BPE projects BU COO’s can solicit assistance from Enterprise COE resources on select BPE engagements within their BU BU COO’s work with their respective BPE Teams to ensure adherence to Enterprise BPE guidelines and project controls / phase-gates BU COO’s hire and develop BU level BPE resources and capacity based on projected needs
  13. 13. 1/27/ 13 Centric Overview Centric Overview
  14. 14. WHO WE ARE You’ve found your most reliable partner. We’re a business consulting and technology solutions company that’s been around for 15 years and we’re building a company that will be here for 100 more. Our culture is built on our passion for our work and driven by our values. • We work to understand your needs and act as a true partner. • We selectively hire people who have a track record of delivering exceptional results. • We value hard work and temper that work with humility, respect and collaboration. • We are committed to making a positive difference in the communities we serve. • We are unconventional, loyal, smart and fun. We strive to manage a work-life balance that makes us better professionals and better people. To learn more about our core values, visit us/core-values. 1999 year founded 650+ employees 30+ practice areas 12 locations 2 national practices 1 bold vision that spans 100 years $104* million 2015 revenue • Business Consulting Service Offerings • Technology Solutions Service Offerings • Industry Emphasis Areas • Boston • Charlotte • Chicago • Cincinnati - Dayton • Cleveland • Columbus • Indianapolis • Louisville • Miami • Seattle • St. Louis • Tampa • Energy & Utilities • Oracle 1/27/2016 14 * Projected
  15. 15. WHY WE’RE HERE Centric was founded because we wanted to be different in the way we approached relationships with our clients, people, families and community. • Our highest priority is building lifelong relationships with clients based on trust, respect and collaboration. • We invest in our talented team and support their well being by keeping them challenged and inspired. • Our localized company structure allows us to play very active roles in the lives of our families. • We devote time, both personally and professionally, to making a positive difference through community service. This relationship-centric focus keeps us passionate, committed and motivated in all facets of our lives. That’s why our team is here to stay. 1/27/2016 15
  16. 16. We bring an ideal blend of business and technology skills. We take a collaborative approach to problem solving. We offer local delivery with firm- wide support. HOW WE WORK Centric is dedicated to providing you with an unmatched experience. We are guided by our commitment to do what’s right for you. • Our range of talent brings in-depth knowledge of your business and market. • We treat every project as unique and customize solutions to fit your needs, industry and desired results. • We use our multi-faceted knowledge to approach challenges strategically. • We have a 100 percent referenceable client base. • National service offerings harness the size and scale of Centric while bringing deep experience to local markets. • Our multi-site delivery skills are coupled with onshore and offshore development capabilities. • We offer solutions based on your needs including role- based consulting, complete project delivery or work-stream delivery within large projects. • Our employees are here to stay – Centric has industry- leading retention rates. • We build consensus from the top down and bottom up. • We know when to talk and when to listen. • We flexibly integrate our team with yours for seamless delivery. • We are serious about budgets and timelines and drive toward these goals with appropriate sensitivity. 1/27/2016 16
  17. 17. OUR BALANCED APPROACH Our culture, people and delivery come together in what makes Centric truly different – our balanced approach to achieving lasting solutions. This is what we mean by “in balance” and it’s what we work toward every day. Short-term results Long-term perspective Technical knowledge & & & & & Strategic thinking Creativity Enterprise impact Business sense Practicality Local delivery Tactical execution 1/27/2016 17
  18. 18. WHAT WE DO We are passionate about the intersection of business and technology. It’s a blend of skills that results in a solid execution every time. And it brings you a partner with a wide range of capabilities. 1/27/2016 18 Energy and Utilities Financial Services Government Healthcare Insurance Logistics /Supply Chain Manufacturing/ Products Retail Transform and Grow Your Business Enable and Sustain Change Enhance Customer Experiences Improve Operational Performance BUSINESS CONSULTING TECHNOLOGY SOLUTIONS INDUSTRY EMPHASIS IT Expertise Full Lifecycle Capabilities Tools and Technologies Digital
  19. 19. 1/27/ 19 Work Experience Mark Buchynski Partner / Director Chicago Business Consulting Practice Leader Mark is an energetic, results-driven executive with more than 20 years of professional experience working hands-on with Fortune 500 corporations, growth organizations and startupsto address their critical business priorities. He has more than 15 years of experience in management consulting, using his operational experience and process-oriented background to take a discerning look at clients’ existing processes and recognize risks and opportunities associated with current performance. Mark has been successful in leading change initiatives by focusing on critical drivers of initiative adoption.
  20. 20. STAY CONNECTED WITH CENTRIC 20 Facebook Twitter Google Plus LinkedIn ConsultingNational consultingNational/ @centric centric-consulting