1. How BPM feels at times!
1
BUSINESS PROCESS MANAGEMENT

2. Creating killer business cases for process improvement
initiatives
April 12, 2012
Gary D. Mendelson, Business Process Solutions Executive
Rev 1.0.14062011 Copyright © OpenPROCESS MANAGEMENT
BUSINESS Text Corporation. All rights reserved.

3. Agenda
Level Setting…
How are being a vendor and an employee similar when
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it comes to evaluating business process problems?
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The “art of building a business case”
Two real world examples
Interactive experience… Let’s start building a business
case
A message from our sponsor

4. Every dep’t has multiple processes
Sales Finance Compliance Marketing
• Quotes / Pricing • Invoice Admin • Know Your Customer • Advertising
• Underwriting • Procurement • Patriot Act • Events Management
• Contract Approval • Project/ Budget Approval • Sarbanes Oxley • Packaging & Pricing
• New Client Onboard • Expense Management • HIPAA • Communications
• Compensation • Charge backs • Basel II • Creative Development
• Meeting Planning • Budget Planning • GLBA
• RFP Admin • FISMA
Information Customer Service Product Dev and Operations
Technology • Case Management Research • Inventory Management
• IT Request • Client Feedback • Requirements • Order Fulfillment
Management • Inquiry Management Gathering • Client Management
• Portfolio Management • Escalation • Product Specifications • Events Management
• App / System Support Management • Change Request Man • Facilities Management
• Incident & Bug Fix • SLA Management • Research • Award Distribution
• Change Control • Support Services • Lifecycle Management
• Certifications Renewals
Legal Human Resources Manufacturing
• Contract Management • Recruitment • Resource Procurement
• Investigation • New Hire On-boarding • Order Management
• New File / Case • Compensation Plan & • Change Request
Management Admin • Trading Partner
• Regulatory Filing • Benefits Administration Management
• Legal Doc • Performance Management • Defect / Recall Man
Management • Training & Career Dev • Equipment / System
• Employee Status Change Repair
• Transfer / Relocation • Quality Assurance
• Leave Management
BUSINESS PROCESS MANAGEMENT

5. Symetra Financial reported
internal processing time
reductions of four days and was
able to handle a 67 percent
increase in applications without
increasing staff.
BUSINESS PROCESS MANAGEMENT

6. Business (Process) Challenges
Current process
significantly
reduces the
opportunity to
scale the
business Process/System
Current process is
modifications are
constantly
difficult and
changing
costly
Existing process
“Reactive”
requires a high Business management of
percentage
Challenges issues due to lack
manual
of visibility
intervention
BUSINESS PROCESS MANAGEMENT

7. BPM Solution Objectives
Provide a platform
that enables
Integration with
multiple
Provide Detailed technology Deliver a Highly
Status, Audit solutions Flexible process
Trails and management
Dashboards for environment for
Operational ongoing process
Monitoring improvement
Provide Process Allow to govern,
Automation and Solution support, change,
Management of and manage the
human/system Objectives solution Self-
centric process Sufficiently
BUSINESS PROCESS MANAGEMENT

8. Nike recovered millions of
dollars in credit claims and
reduced resolution time from
2 weeks to 2 minutes
BUSINESS PROCESS MANAGEMENT

9. Improved customer service
while consolidating
commercial policy issuing
from 40 centers down to 3
locations
BUSINESS PROCESS MANAGEMENT

10. What are your professional / BPM
goals?
Being a vendor and an end user are related
CLICKpersonal goal is to be a OPTION 1
Your TO EDIT MASTER “trusted advisor” of your
manager, customer (internal or external)
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Perhaps grow your career
Obtain Six Sigma, ITIL, CBPMP credentials
How do you get there?

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12. Who is your competition?
Colleagues?
Managers?
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Future
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Other departments?
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Other companies in a competitive field?

13. Who is your competition?
The answer is your company's limited capital expense
budget and so you compete with other projects for a
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limited pool of funding.
Onceto edit Master subtitle style this, understanding the need to
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YOU understand
build a rock solid business process case helps you a)
beat the competition and b) become a trusted advisor.

14. Bonus question
What is the Internal Hurdle Rate (IHR / IRR) ?
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15. The Internal Hurdle Rate
The Internal Hurdle rate is the number of months it will
take an investment to pay itself back to the corporation
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and the “bar” your company OPTION 1
number of months
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Movie Rental = $4 each
Monthly Rental Cost = $16
You already pay for CATV & HBO
A DVR costs $160
You break even in 10 months
Is that acceptable?
That is your internal hurdle rate

16. The “Art” of Building a business case
Example #1
Business process re-engineering effort all across their SDLC
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Example #2
Customer's internal justification which was fueled by my business case.
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17. The “art” of a business case
Dig into every step (who, what, where, when, why)
Draw out every process
Who does this, how often, how long (time), who approves, time
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to approve, process of approval (paper, email), exceptions,
re-work factor, double data entry
Audit Click to edit Master subtitle style ready, times / yr, who audits,
% passed, failed, staff to get
consequences of a failed audit
History of failed builds, back outs, what are the consequences /
impact?
Do you have a software release schedule?
How often? Ever miss the schedule? Why? How often?
Consequences? Pay OT or Comp time?
Reporting = gold mine
Spreadsheet compares BAU vs. projected process efficiencies

18. Why do you need to do this?
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19. Letterman’s Top 5 symptoms for
building a business case
5. Your project goes from on fire to “back burner”
4. Another project took the funding from yours
3. We really like your idea but we have no funds
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2. We TO put any money in the budget for
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20. Real World Examples
Example #1: Credit card processor
Example #2: Banking
BUSINESS PROCESS MANAGEMENT

21. Let’s Build a Business Case
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